Property Prices

[malcoml]

Living in Australia we are constantly told we have some of the most expensive houses in the world.

Does anyone else living in Thailand believe houses are now quite expensive there. The Australian dollar has dropped which has made Thailand more expensive for us Ozzies but looking at some of these realestate agent adds even if our dollar was still strong prices would seem outrageous.

[CharlieH]

as with most property, location location location.

I would nt call prices where I am outrageous, but then I dont live in major city or seaside location.

MOVED to Real Estate forum

[ttthailand]

I think why too high considering what you can rent for. Example, my current address is 40sqm and 5 million to buy but only 19,000 to rent. That's 22 years + pay back. Huge risk .....

[Crossy]

We live 50 ish km from the centre of a capital city (Bangkok), our home is a beautiful Thai style 3 bed, 3 bath on 1.5 Rai (about 1/2 an acre) and is currently valued at about 13,000,000 Baht (GBP 270,000). Pool being built this summer.

Daily commute about an hour, 8 Litres of diesel at 25 Baht (50p) per Litre plus tolls of 210 Baht (GBP 4.20) = total commute GBP 8.20 per day.

According to this website http://www.thelondoneconomic.com/tle-t20/top-20-most-affordable-places-to-communte-into-london/ I can get a 3 bed terraced house in Chelmsford for about the same money (but not on 1/2 an acre), no space for a large bath let alone a pool.

Daily 40 minute, 51km commute (by train) for 27 Quid.

Oh, the weather is warm and sunny every day (when it's not hammering down with warm rain), I can pick tropical fruit off our own trees when I want and I pay less tax and earn far more $$$ than I could in the UK.

No doubting upon which side our bread is buttered.

This:-

vs this:-

EDIT The equivalent Chelmsford property to the one we currently own in Thailand will set you back 1.25 million Quid.

[KittenKong]

We live 50 ish km from the centre of a capital city (Bangkok), our home is a beautiful Thai style 3 bed, 3 bath on 1.5 Rai (about 1/2 an acre) and is currently valued at about 13,000,000 Baht (GBP 270,000). Pool being built this summer.

.......

According to this website http://www.thelondoneconomic.com/tle-t20/top-20-most-affordable-places-to-communte-into-london/ I can get a 3 bed terraced house in Chelmsford for about the same money (but not on 1/2 an acre), no space for a large bath let alone a pool.

The difference is that in Chelmsford there are untold thousands of people who can afford to buy that house, and many millions more across the UK.

Here a middle-income employee earns perhaps 15,000B a month which isn't enough to pay the rent on a small studio condo, let alone buy your house.

There's the rub.

[Anthony5]

We live 50 ish km from the centre of a capital city (Bangkok), our home is a beautiful Thai style 3 bed, 3 bath on 1.5 Rai (about 1/2 an acre) and is currently valued at about 13,000,000 Baht (GBP 270,000). Pool being built this summer.

.......

According to this website http://www.thelondoneconomic.com/tle-t20/top-20-most-affordable-places-to-communte-into-london/ I can get a 3 bed terraced house in Chelmsford for about the same money (but not on 1/2 an acre), no space for a large bath let alone a pool.

The difference is that in Chelmsford there are untold thousands of people who can afford to buy that house, and many millions more across the UK.

Here a middle-income employee earns perhaps 15,000B a month which isn't enough to pay the rent on a small studio condo, let alone buy your house.

There's the rub.

I would add to that the following.

In the UK you will have amenities, like proper drainage, decent city water, a electricity network without 3 brownouts or power cuts a day, proper roads that don't damage your car etc.

The built quality will also be superior and the termites will not destroy your house, so children and grandchildren will still have a valued property.

[robertthebruce]

We live 50 ish km from the centre of a capital city (Bangkok), our home is a beautiful Thai style 3 bed, 3 bath on 1.5 Rai (about 1/2 an acre) and is currently valued at about 13,000,000 Baht (GBP 270,000). Pool being built this summer.

Daily commute about an hour, 8 Litres of diesel at 25 Baht (50p) per Litre plus tolls of 210 Baht (GBP 4.20) = total commute GBP 8.20 per day.

According to this website http://www.thelondoneconomic.com/tle-t20/top-20-most-affordable-places-to-communte-into-london/ I can get a 3 bed terraced house in Chelmsford for about the same money (but not on 1/2 an acre), no space for a large bath let alone a pool.

Daily 40 minute, 51km commute (by train) for 27 Quid.

Oh, the weather is warm and sunny every day (when it's not hammering down with warm rain), I can pick tropical fruit off our own trees when I want and I pay less tax and earn far more $$$ than I could in the UK.

No doubting upon which side our bread is buttered.

This:-

vs this:-

1013681_1379050928977893_1982996434_n.jpg

EDIT The equivalent Chelmsford property to the one we currently own in Thailand will set you back 1.25 million Quid.

Daily commute about 1 hour ???, yes, and you might not be lucky to come back alive.... Thailand driving, Maybe not...

Edited April 20, 2015 by Crossy
fixed the quote

[Crossy]

I drive in to BKK pretty well every morning and home again in the evening, it's really no worse than driving into central London. It usually takes around an hour but it does depend upon what time I travel, nice and early in the morning (6AM) and it's 45 minutes to the office, get it wrong going home (5PM) and it can take up to 2 hours

And we have potable mains water (yes we RO filter it anyway), power that stays on most of the time (mitigated with UPSs and a genset which runs maybe twice a month), a decent concrete road without too many potholes and 2 bin collections a week (not 2 every month like back home).

[long klong]

We have just come back from a visit to Khon Kaen. This town has developed a lot since our last visit a few years ago - a beautiful Central Plaza and many good restaurants including the fantastic Smile restaurant on Nong Kote lake (probably one of the best Thai restaurants in the country!). Many new Asean projects are in the works including expansion of transport facilities. The Khon Kaen university spreads over acres and acres of land and has several reputable faculties. Over the past few decades wherever we have lived the place has boomed - Singapore, Hongkong and now Phuket. We wonder whether Khon Kaen is the next place!! Property prices have gone up in the past five years (after Bangkok floods and talk of subsidence) but are not crazy(yet). Looking at current rents, Khon Kaen is not attractive for rental investment but maybe a pretty good investment from the future price appreciation viewpoint. Would be interested in insider feedback from people who already live there. Thanks.

[trogers]

I drive in to BKK pretty well every morning and home again in the evening, it's really no worse than driving into central London. It usually takes around an hour but it does depend upon what time I travel, nice and early in the morning (6AM) and it's 45 minutes to the office, get it wrong going home (5PM) and it can take up to 2 hours

And we have potable mains water (yes we RO filter it anyway), power that stays on most of the time (mitigated with UPSs and a genset which runs maybe twice a month), a decent concrete road without too many potholes and 2 bin collections a week (not 2 every month like back home).

There would always be a decision between quality of residence and loss of time.

People still of working age may not be willing to trade 3 hours a day of travelling time, having to leave home at 6am and reaching home around 7pm. This would mean only 2-3 waking hours in your home on working days.

[recycler]

It's very hard to compare completely different markets. I think by now condominium prices on top locations in BKK, Pattaya, Huahin, Phuket, etc. are getting relatively high. Houses not, but try to sell a second hand house here, there are too many new developments and certainly Asians don't like to buy pre-owned houses, they want to build their own. So on a house in many cases you may need to depreciate.

Than there is a huge difference in quality, in western countries houses have double insulated walls, roofs and double glazing, the windows can be closed without finger wide gaps, roofs aren't leaking, there are central systems for heating/cooling, hot water, ventilation, etc. Pluming and electricity actually work and are safe. We have regional planning so your neighbor can't start a steel mill next to you. Than there are the ever increasing issues with us foreigners residing in Thailand and our visa, so how sure are you that you can enjoy this investment for the rest of your life, it's basically never really yours but trough a company, lease or marriage.

In the end you buy half a house that's not really yours and can't expect that it will keep it's value and if you compare than the price isn't that much different compared to many countries.

[trogers]

I think why too high considering what you can rent for. Example, my current address is 40sqm and 5 million to buy but only 19,000 to rent. That's 22 years + pay back. Huge risk .....

The huge risk is due to the same building and nearby buildings still having large unsold stocks and unoccupied units.

You may get similar rental yields in Singapore but capital gain would balance the equation. Not so for Bangkok, or Thailand.

[kerrysum]

Personally,

I do not buy where I can not own..... Maybe the rules need to be changed... Time has taught me this, been there and done that... Rules in Thailand make me wonder, nothing never clear, and it is true it depends upon where you live....

So, what is it that makes me think this way? Past experience, laws that newer expats would never understand, and no clear ideals...

Personally, I believe that there has to be a clear ideal, I know it differs in the South verses the North. The prices in Thailand, are way to high, and yes it may be due to development....... If one can really say it......

To the older expats? You know it doesn't have to be said.... That was my ideal also....

So today, I am living in America, and have changed ideals over time... Wife wants house in Thailand, sister has leveraged the property, and borrowed.

Sister suggests we pay off her loan on said property..... Then she will pay us back....

Situation where we are now? And yes this is in Las Vegas Nevada, growing the trees, the Juju bee, plum, and yes the persimmon... Reality warrants, study,

maybe some thought, and just making things grow.... Thai veggies? No problem, it is a design and idea that we can all do! This is experienced via internet, and we can sometimes connect.... We are also growing apple trees, but it is the adaptation of where we all live.... What about the spices? Continually working on them, Kapow? Still trying to get the idea in the wife's head.....

Just my two cents, in a world where we are survive....

Have a great day, isn't life great?

WE do have a seed bank going on here, it is great, and I love it! It is nation wide here in the USA, I am thankful, and happy to participate in it...

That's the way it is.....

Wish you all of the best! Have a great day!

[PattayaPhom]

XE has made Thai real estate more expensive for a number of currencies. Working in the industry for 10 years in a number of locations personally I feel the prices here are ridiculous but if demand is there and asking prices are achieved then that's the determined price. Iif a company is prepared to pay over 1 million Sterling for 400 sqm in Pattaya then yes you could say Thailand is expensive.

Edited April 21, 2015 by PattayaPhom

[asdecas]

I've never understood the urge to own property in Thailand, when rents are so cheap and political stability so fickle.

Happily rented for more than twenty-eight years, so probably never will understand it now.

[Liquorice]

I think why too high considering what you can rent for. Example, my current address is 40sqm and 5 million to buy but only 19,000 to rent. That's 22 years + pay back. Huge risk .....

Location, location, location.

My house has a floor area of 120sqm, large gardens front and rear, patio, car porch. 6,000 rent a month. Cost to build now 3 million

[NanLaew]

The prices you see quoted in each and every Thai real estate presentation is an over-inflated estimation of A ) what the owner and/or developer thinks it is worth which is openly encouraged by the realtor so he can B ) rake off a larger amount on the percentage.

Generally rubbish construction with sub-standard products and lack of infrastructure but charging western prices due to some self-proclaimed, magical 'tropical paradise' or 'lavish' or 'exotic' marketing mumbo jumbo. And don't get me started on the appalling finishing which in most projects just adds insult to injury when they pull the huge price tag out of their asses. There's nothing in a Thai-built 'cookie cutter' home that is worth anything like the prices being asked regardless of the 'style' it is supposed to be emulating such as 'Thai style' or 'Balinese' or 'villa'.

[Crossy]

I drive in to BKK pretty well every morning and home again in the evening, it's really no worse than driving into central London. It usually takes around an hour but it does depend upon what time I travel, nice and early in the morning (6AM) and it's 45 minutes to the office, get it wrong going home (5PM) and it can take up to 2 hours

And we have potable mains water (yes we RO filter it anyway), power that stays on most of the time (mitigated with UPSs and a genset which runs maybe twice a month), a decent concrete road without too many potholes and 2 bin collections a week (not 2 every month like back home).

There would always be a decision between quality of residence and loss of time.

People still of working age may not be willing to trade 3 hours a day of travelling time, having to leave home at 6am and reaching home around 7pm. This would mean only 2-3 waking hours in your home on working days.

I agree 100% ^^^. I probably wasn't clear but I skew my working day by an hour, up at 4.30, arrive at the office by 7AM, leave by 4PM, home by 5 ish. Plenty of time for dinner and some TV before a reasonably early night.

From this page http://www.express.co.uk/life-style/life/493116/Commuting-facts-from-around-the-world "Last year it was reported that 1.8million Britons were travelling 3 hours or more for work."

[thejcb]

We live 50 ish km from the centre of a capital city (Bangkok), our home is a beautiful Thai style 3 bed, 3 bath on 1.5 Rai (about 1/2 an acre) and is currently valued at about 13,000,000 Baht (GBP 270,000). Pool being built this summer.

Daily commute about an hour, 8 Litres of diesel at 25 Baht (50p) per Litre plus tolls of 210 Baht (GBP 4.20) = total commute GBP 8.20 per day.

According to this website http://www.thelondoneconomic.com/tle-t20/top-20-most-affordable-places-to-communte-into-london/ I can get a 3 bed terraced house in Chelmsford for about the same money (but not on 1/2 an acre), no space for a large bath let alone a pool.

Daily 40 minute, 51km commute (by train) for 27 Quid.

Oh, the weather is warm and sunny every day (when it's not hammering down with warm rain), I can pick tropical fruit off our own trees when I want and I pay less tax and earn far more $$$ than I could in the UK.

No doubting upon which side our bread is buttered.

Except, of course, in England you can go out during the day, stroll around and have a pleasant experience.

In Thailand the oven prevents any of this.

Therefore, taking quality of life into consideration, you are far worse off in the Oven.

I know where my bread is buttered.

Unless you only go out at night, like sweating and being bitten by insects and take imbibing vast quantities of beer and stupid conversations with tarts in bars as quality, then Thailand wins hands down.

[rufanuf]

We live 50 ish km from the centre of a capital city (Bangkok), our home is a beautiful Thai style 3 bed, 3 bath on 1.5 Rai (about 1/2 an acre) and is currently valued at about 13,000,000 Baht (GBP 270,000). Pool being built this summer.

.......

According to this website http://www.thelondoneconomic.com/tle-t20/top-20-most-affordable-places-to-communte-into-london/ I can get a 3 bed terraced house in Chelmsford for about the same money (but not on 1/2 an acre), no space for a large bath let alone a pool.

The difference is that in Chelmsford there are untold thousands of people who can afford to buy that house, and many millions more across the UK.

Here a middle-income employee earns perhaps 15,000B a month which isn't enough to pay the rent on a small studio condo, let alone buy your house.

There's the rub.

I would add to that the following.

In the UK you will have amenities, like proper drainage, decent city water, a electricity network without 3 brownouts or power cuts a day, proper roads that don't damage your car etc.

The built quality will also be superior and the termites will not destroy your house, so children and grandchildren will still have a valued property.

Had to laugh at the "proper amenities" comment, are these the same "proper amenities" by which one successive UK goverment after another uses to rob you of your hard earned money ? Give me freedom of choice over obligatory amenities any day.

[long klong]

I've never understood the urge to own property in Thailand, when rents are so cheap and political stability so fickle.

Happily rented for more than twenty-eight years, so probably never will understand it now.

Well, if you had bought a house on a plot of 1,000 sqm 28 years ago for say half-a-million baht in a reasonably good location, it could be worth more than 30-40 million baht at present. And you would have lived in it free all this time!

It's fun to make alterations and improvement if you live in your own a house. There is no such incentive in a rented house.

You can't bequeath a rented house to your children who have grown up in it. It's a wonderful sense of security for the family if you own the house.

Political stability is not a critical factor in making this type of a decision if the economy is not affected negatively. In fact smart investors make more money during what appears to be an unstable political environment. The most important factor is INFLATION that eats into you savings. To protect yourself against inflation you must invest some ( not all) of your money in property.

[louse1953]

Personally,

I do not buy where I can not own..... Maybe the rules need to be changed... Time has taught me this, been there and done that... Rules in Thailand make me wonder, nothing never clear, and it is true it depends upon where you live....

So, what is it that makes me think this way? Past experience, laws that newer expats would never understand, and no clear ideals...

Personally, I believe that there has to be a clear ideal, I know it differs in the South verses the North. The prices in Thailand, are way to high, and yes it may be due to development....... If one can really say it......

To the older expats? You know it doesn't have to be said.... That was my ideal also....

So today, I am living in America, and have changed ideals over time... Wife wants house in Thailand, sister has leveraged the property, and borrowed.

Sister suggests we pay off her loan on said property..... Then she will pay us back....

Situation where we are now? And yes this is in Las Vegas Nevada, growing the trees, the Juju bee, plum, and yes the persimmon... Reality warrants, study,

maybe some thought, and just making things grow.... Thai veggies? No problem, it is a design and idea that we can all do! This is experienced via internet, and we can sometimes connect.... We are also growing apple trees, but it is the adaptation of where we all live.... What about the spices? Continually working on them, Kapow? Still trying to get the idea in the wife's head.....

Just my two cents, in a world where we are survive....

Have a great day, isn't life great?

WE do have a seed bank going on here, it is great, and I love it! It is nation wide here in the USA, I am thankful, and happy to participate in it...

That's the way it is.....

Wish you all of the best! Have a great day!

Thais will not change rules to suit you only themselves,fair enough.Good luck with the sister!

[abrahamzvi]

We live 50 ish km from the centre of a capital city (Bangkok), our home is a beautiful Thai style 3 bed, 3 bath on 1.5 Rai (about 1/2 an acre) and is currently valued at about 13,000,000 Baht (GBP 270,000). Pool being built this summer.

Daily commute about an hour, 8 Litres of diesel at 25 Baht (50p) per Litre plus tolls of 210 Baht (GBP 4.20) = total commute GBP 8.20 per day.

According to this website http://www.thelondoneconomic.com/tle-t20/top-20-most-affordable-places-to-communte-into-london/ I can get a 3 bed terraced house in Chelmsford for about the same money (but not on 1/2 an acre), no space for a large bath let alone a pool.

Daily 40 minute, 51km commute (by train) for 27 Quid.

Oh, the weather is warm and sunny every day (when it's not hammering down with warm rain), I can pick tropical fruit off our own trees when I want and I pay less tax and earn far more $$$ than I could in the UK.

No doubting upon which side our bread is buttered.

This:-

vs this:-

1013681_1379050928977893_1982996434_n.jpg

EDIT The equivalent Chelmsford property to the one we currently own in Thailand will set you back 1.25 million Quid.

[abrahamzvi]

I really don't understand how one can refer to real estate prices in Thailand as expensive. Obviously condos or houses in the center of Bangkok are nearly as expensive as in most Western cities ( not nearly as expensive as in Manhattan or central or western London), but even in expensive tourist areas like Phuket, Koh Samui and others, prices are by far lower than in tourists centers in Europe, US and even Australia. I live in a big house in a chic suburb of Chiang Mai and would pay for a similar house in a suburb of Munich or Frankfurt, Paris, Brussels, let alone London, at least 4 times what it costs here.

[malcoml]

After seeing the example above for 270,000 GBP I'm now certain they are almost as expensive as Australia.

We just sold our house in a suburb that is 15 minutes from the main tourist area of the Gold Coast Australia. It sold for a touch over 14,000,000 Baht and would have easily rented for 55,000 baht a month.

Our house was on less land than the house in Thailand being 700 sqm but was of similar features. It was a four bedroom house but with only two bathrooms. It had a double lock up garage, two indoor living areas, and an outdoor patio area. It also had ducted airconditioning throughout.

As a positive in the area there is beautiful parks, well maintained roads and foot paths. There is also no problems with drainage and reliable underground electricity. We are also about 5 minutes from a training station and a similar distance to a school that costs nothing but would be of similar quality to an international school in Thailand that charges 500,000K baht plus a year.

The big positive was that we put our house to market and then had a purchase contract 48 hours later. I know friends in Thailand who have been trying to sell their house for years.

Part of bringing this topic up is I have constant arguments on how expensive housing is in Thailand with my wife. It does look quite attractive to rent over there.

[stevensg]

Living in Australia we are constantly told we have some of the most expensive houses in the world.

Singapore is far more expensive...

Does anyone else living in Thailand believe houses are now quite expensive there. The Australian dollar has dropped which has made Thailand more expensive for us Ozzies but looking at some of these realestate agent adds even if our dollar was still strong prices would seem outrageous.

Edited April 21, 2015 by stevensg

[watcharacters]

We live 50 ish km from the centre of a capital city (Bangkok), our home is a beautiful Thai style 3 bed, 3 bath on 1.5 Rai (about 1/2 an acre) and is currently valued at about 13,000,000 Baht (GBP 270,000). Pool being built this summer.

.......

According to this website http://www.thelondoneconomic.com/tle-t20/top-20-most-affordable-places-to-communte-into-london/ I can get a 3 bed terraced house in Chelmsford for about the same money (but not on 1/2 an acre), no space for a large bath let alone a pool.

The difference is that in Chelmsford there are untold thousands of people who can afford to buy that house, and many millions more across the UK.

Here a middle-income employee earns perhaps 15,000B a month which isn't enough to pay the rent on a small studio condo, let alone buy your house.

There's the rub.

I would add to that the following.

In the UK you will have amenities, like proper drainage, decent city water, a electricity network without 3 brownouts or power cuts a day, proper roads that don't damage your car etc.

The built quality will also be superior and the termites will not destroy your house, so children and grandchildren will still have a valued property.

Had to laugh at the "proper amenities" comment, are these the same "proper amenities" by which one successive UK goverment after another uses to rob you of your hard earned money ? Give me freedom of choice over obligatory amenities any day.

I'm curious as to what you mean when you say "Give me freedom of choice over obligatory amenities any day."

[carter1882]

There is plenty of readonably priced property in Bangkok. You need to realise that advertised prices can be bargained down considerably, many people selling will pay 100% of transfer fees, there are no large estate agent fees. Plenty of good location condos in the 600-800K range for 30-45 sq m. With the ever improving public transport system and much improved shopping in sois off main roads, Bangkok is more and more pleasant to live in. Of course this will be greeted by howls of protest from TV "experts" who bang on about renting and are obsessed by the notion that living outside the capital is the only way to go. While i might agree that renting houses may be advantageous I would say that despite the glut in the condo market in Bangkok they are still a good investment providing an alternative to money in the bank and a reasonable rental income.

[asdecas]

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I've never understood the urge to own property in Thailand, when rents are so cheap and political stability so fickle.

Happily rented for more than twenty-eight years, so probably never will understand it now.

Well, if you had bought a house on a plot of 1,000 sqm 28 years ago for say half-a-million baht in a reasonably good location, it could be worth more than 30-40 million baht at present. And you would have lived in it free all this time!

It's fun to make alterations and improvement if you live in your own a house. There is no such incentive in a rented house.

You can't bequeath a rented house to your children who have grown up in it. It's a wonderful sense of security for the family if you own the house.

Political stability is not a critical factor in making this type of a decision if the economy is not affected negatively. In fact smart investors make more money during what appears to be an unstable political environment. The most important factor is INFLATION that eats into you savings. To protect yourself against inflation you must invest some ( not all) of your money in property.

Each to his own. Thailand has been a good home and provided a good living to me without my feeling the need to own property here.

[Robert24]

Agree with the op that property and land prices are expensive now compared to 5 or 10 years ago. But so they are in most countries whether it is Australia as you point out, Malaysia, Singapore, China, Hong Kong etc. this doesn't mean though that prices can't go up more though. Real price comparisons between countries don't really lead to a meaningful conclusion.

If you are unsure about where the market is heading and you don't know the market well, maybe rent for a while before you buy. As people point out, rent is quite low and there is no harm to rent for 1-2 years before you buy.