What's the average sq. m. cost to build?

[Crossy]

Someone meantioned that the cost of building a concrete condo is very different from a house.

Anyone know the current cost of building say a 10 story concrete condo with no fittings etc? For our building insurance we are working on about 8,000 Baht per sq metre but do not know if this is reasonable.

Your insurance company should be able to assist with an appropriate re-build rate.

Total-loss of a hi-rise is extremely rare, 8k per metre may be adequate to re-furb after a major fire that didn't damage the structure.

[Naam]

....obviously there are a lot of ignorant foreigners paying way too much for their houses and have money to waste.

5000 b / sm can easily get you the quality foreign house you desire with hot water and ac....

sad...how little research people do

...obviously there are a lot of ignorant foreigners who's perception of a quality house is lightyears apart from those who gladly spent 28,000 Baht/m² to have exactly what they consider achievable quality and down to the last detail personalised comfort in Thailand.

what makes them especially happy is the fact that for a home with all equivalent amenities they would have to spend 125-150,000 Baht/m² in their home countries.

it's a waste of time to dicuss this topic any further with somebody who considers it important to mention the peanuts cost of having "hot water" supply in a house

[DrDave]

It looks like this thread has gotten a little off topic.

The OP was asking about the build cost for a house to be used by Thai tenants. This implies "Thai standard" fit, finish, fittings and quality. Not the "western standard" that many of us put in houses we build for ourselves. One could discuss the costs and benefits of various levels of western-standard houses ad nauseam, but that's not what the OP was asking about.

So, getting back to the OP's original question - 6,000 per m2 seems reasonable for a Thai-standard build. The house I built for 6,500/m2 was for Thai relatives, and to be honest, was probably overbuilt considering their lifestyle and maintenance habits.

[Crossy]

We don't really know what our OP wants to build since he refers to a 'room' rather than a house and he's not returned to the thread with responses to any of the questions posed.

[cheeryble]

Built a 6 x 6 meter one story house in Prathai for $6,000. Two doors, 4 windows and electric lights and outlet. Separate bathroom with separate toilet room and shower room for $4,000 American.

a "house" size 6x6m?

That's the size of Naam's wine cooler.

ps: Epictetus said everything's a matter of perception.

Edited April 26, 2015 by cheeryble

[cheeryble]

Someone meantioned that the cost of building a concrete condo is very different from a house.

Anyone know the current cost of building say a 10 story concrete condo with no fittings etc? For our building insurance we are working on about 8,000 Baht per sq metre but do not know if this is reasonable.

Sure there is a table of costs from something like the Association of Thai insurers or something like that.

Damned if i can find it on Google right now but have read it before.

Building costs go up with the number of storeys of course.

I would take a rough stab from memory that the rebuild cost would be double or more what you quote....but that would be for finished units.

[onni4me]

I would like to add that speaking of real estate somewhere in Europe and here there are different specifications like insulation and so on but as a good guesstimate I say 1/5 or 1/4 of the square meter of the prices in Western Europe.

Now, many will say 5K per m2 is way too low but on what? 1 Floor simple build on easy foundation?

Or some say 28K m2 is cheap for condo or even 200K

There are reasons why something costs. I was thinking earlier to have something like 3+ Floors but decided against it due to foundation costs. It can take up to several million Baht to have solid footings for multiple floor building. Engineer much needed and so on or who is qualified to say anything about a site without further knowledge? It could be on earthquake area or marshland.

And when it comes to what level we consider "finished" there are all kind of considerations. Fittings and furnishings can easily double the prize of build or are we talking here just basic concrete box without much anything? I've never heard anyone call air-con or water heater house furnishing but maybe I'm old-fashioned.

I was talking with a lady that runs local hardware store how much she reckons building cost here in the Isaan sticks if talking about hiring a local company and so on. Her rather insightful answer was 15000 Baht per sq. meter. That normally qualifying for a mortgage and so on containing roughly 30% profit for the constructing company and some for other middle hands.

[cheeryble]

I was talking with a lady that runs local hardware store how much she reckons building cost here in the Isaan sticks if talking about hiring a local company and so on. Her rather insightful answer was 15000 Baht per sq. meter. That normally qualifying for a mortgage and so on containing roughly 30% profit for the constructing company and some for other middle hands.

From what i pick up it is not at all uncommon for Thai folk to pay way more than is necessary for a build, not just farang.

The fact is just like at home ordinary people don't know much about all this and may become suckers or more likely in between just not get the deal they could with a little research.

[nev]

I will not open a new thread I will post my question here, what is the cost to build rooms for rent Thai style?.

Where we are their is a big demand for rooms to rent due to many new factories going up near by and extension to the local hospital.

As we live on 5 rai right in the village we have land ready to build I have one area just under 1 rai filed and ready.

The build would be just Thai style, maybe each unit about 3.5m x 9m long, the standard 6 posts with bathroom at the back type.

[stament]

Interested in modern European style bit like the ones on new housing estates can anyone pls direct me to threads or websites on that?

Or reply on this thread ;-)

[DrDave]

I will not open a new thread I will post my question here, what is the cost to build rooms for rent Thai style?.

Where we are their is a big demand for rooms to rent due to many new factories going up near by and extension to the local hospital.

As we live on 5 rai right in the village we have land ready to build I have one area just under 1 rai filed and ready.

The build would be just Thai style, maybe each unit about 3.5m x 9m long, the standard 6 posts with bathroom at the back type.

Do you have any more information on the type of design? The size of each unit sounds about right for laborer-type housing.

Are you planning on a single-story design, or multi-story?

Assuming very basic units in a simple single-story structure - tile floor, gypsum ceiling, Thai kitchen (tile counters and no wall cabinets), simple shower, toilet and sink in the bathroom, no A/C and buried cement rings for a "poop tank", then I would estimate the cost to be < 150,000 per unit. That's 32 m2 at about 4,700 per m2.

In my area, units like this rent out for 4-4,500 baht/month. Even if you only get 3,000/month, that would give you an ROI of about 25% - that is if you can keep them all rented out, and your tenants actually pay their rent each month.

[nev]

I will not open a new thread I will post my question here, what is the cost to build rooms for rent Thai style?.

Where we are their is a big demand for rooms to rent due to many new factories going up near by and extension to the local hospital.

As we live on 5 rai right in the village we have land ready to build I have one area just under 1 rai filed and ready.

The build would be just Thai style, maybe each unit about 3.5m x 9m long, the standard 6 posts with bathroom at the back type.

Do you have any more information on the type of design? The size of each unit sounds about right for laborer-type housing.

Are you planning on a single-story design, or multi-story?

Assuming very basic units in a simple single-story structure - tile floor, gypsum ceiling, Thai kitchen (tile counters and no wall cabinets), simple shower, toilet and sink in the bathroom, no A/C and buried cement rings for a "poop tank", then I would estimate the cost to be < 150,000 per unit. That's 32 m2 at about 4,700 per m2.

In my area, units like this rent out for 4-4,500 baht/month. Even if you only get 3,000/month, that would give you an ROI of about 25% - that is if you can keep them all rented out, and your tenants actually pay their rent each month.

[/quote

Thanks for the response, I was thinking about 4 to 5000 per m2 and as I would be doing work myself too I could keep to around the 4000 mark,yes just the basic Thai build rooms for rent.

Agree about the tenants not paying would be a problem and one I would factor into my decision.

[DrDave]

Thanks for the response, I was thinking about 4 to 5000 per m2 and as I would be doing work myself too I could keep to around the 4000 mark,yes just the basic Thai build rooms for rent.
Agree about the tenants not paying would be a problem and one I would factor into my decision.

This looks like a pretty good investment, nev. If you can get a net 25% ROI, then you're doing much better than people renting out condos and villas (with a much higher capital investment) who are lucky to squeeze out a 5% net ROI these days. The only other thing to consider is whether or not you'll be able to keep them rented out at least until you've recovered all of the construction cost and they become profitable (e.g. 4 years at 25% ROI). Will you continue to have a base of tenants 5-8 years out?

[blackcab]

To reduce the risk of rent and utility bill default, make sure you get a deposit and rent in advance.

If the tenants can't afford the deposit you could collect it in stages.

Generally though, as the accommodation will be occupied by multiple people they should be able to sort it out between themselves.

The standard way of doing things is to read the meters on the 25th of each month and invoice ASAP. Payment can be made up to and including the 5th day of the next month. After that there is a late fee of 100b per day.

You're going to be renting to contractors, so make sure your wiring/plumbing to the meter is secure and can be easily inspected.

Edited May 24, 2015 by blackcab