Property Market In Thailand After The Coup D’etat

[george]

Property in Thailand after the coup d’etat

A real estate expert's reaction to the new military government and future prospects for owning property in the land of smiles.

BANGKOK: -- On the bright side, the tanks managed to dislodge a government whose nest-feathering not only was becoming an embarrassment to Thailand, but removed a political party which also had amassed enough money in its war chest to win elections for decades. On the other hand though, few countries have found that soldiers can run the nation better than civilians.

How then has Thailand’s real estate market reacted in the month after Thaksin Shinawatra was booted out of the prime minister's office?

“The market has shown that the coup is overwhelmingly positive,” says David Simister, chairman of CB Richard Ellis (CBRE) in Bangkok. “I’m not suggesting that military rule in general is necessarily better. I think we will probably see a return to Thailand’s former style of coalition government.”

CBRE has reported closure on two major deals that straddled the coup. Kingdom Hotels bought a 66-acre site in Phang Nga on which it plans to develop the $115 million Raffles Phang Nga Resort. And in Karon Beach, Phuket, Destination Properties has bought the 125-room Fenix Resort.

These are deals that were structured before the coup. What risks though would stop new deals from happening?

Apparently no buyers have even mentioned the tsunami to CBRE, or the possibility of another tidal wave. People are concerned about legal risks, given that foreigners cannot buy legal freehold of houses and land. International buyers like the idea of holding a land title with their name on it, and yet in Thailand they have to settle for either a long-term leasehold or they have to set up a Thai company. With that in mind, it is imperative to hire a good lawyer to do title searches. That is money well spent when making a big financial commitment in Thailand.

Right now, Thai authorities are scrutinising the companies set up by foreigners to buy land. Simister thinks that a properly constructed corporate acquisition of a Thai property will be water-tight and that regional governors will not start kicking foreigners out of their houses. Nevertheless, Thais are perennially resistant to being much more accommodating to new foreign arrivals and see their unique rights over land ownership as sacred.

“There is a disconnect in Thai bureaucracy preventing foreigners from buying property, even if it was in a place that no Thai person would conceive of wanting to live in, like atop a rocky outcrop,” says Simister. “If a Thai person was asked to rank on a scale of one to 10 the importance of allowing foreigners to buy property, they would reply that it doesn’t even appear on their scale. It's possible one day leases might be extended to 90 years, or special areas set aside for foreigners to acquire leasehold title, perhaps with some special land tax.”

Working within the alternatives sector in Hong Kong, there is no shortage of multi-millionaire prime brokers and hedge fund managers who own property in Phuket and Bangkok, or those who have expressed intentions to buy property in order to spend their twilight years in Thailand. One hedge fund manager asked us to enquire about the property he has bought in Le Raffine, in Sukhumvit Road, Bangkok. “It is over-gilded,” says Simister. “It's not one that is on my list to recommend to my clients.”

Mindful that people want to get a good deal that will appreciate in the future, what will be the hot spot of tomorrow?

“I agree that it is harder to see prices doubling in the near future on the Andaman coast of Phuket, though if you buy a villa off-plan you might still make 30-40% in the mid-term," Simister argues. "For greater potential upside, I suggest looking in Phang Nga and the east coast of Phuket. Thais themselves might not be rushing out right now to buy new developments, but Thailand has become a global destination for international buyers. Prices there are a tenth of those in Hawaii.”

Unlike Hong Kong, where real estate is virtually a currency, property is more of an illiquid investment in Thailand. Also there is more opacity about pricing; gauging what has been paid for similar properties is not easy. It is hard to do the research that can lead buyers to decide how much to offer. A stingy lowball or distressed offer can expect to be greeted by the mortally wounded feelings of the Thai seller.

Bargains could be found by disintermediating the agencies and approaching old fishermen on the beaches, asking where to find someone with land for sale, as everyone knows someone with something to sell in Thailand. However, Simister counsels not to be surprised when you find when you do legal searches that your ‘bargain’ has no land title and the incumbents possesses no more than squatters rights and the sale then falls apart. (Warning: this precise scenario happened to the author in Khao Lak, five years ago, although this may have been a blessing in disguise: sadly people on that parcel, for the most part Scandinavian tourists, were killed by the 2005 tsunami.)

So what does CBRE think is the next undiscovered property location in Thailand? Go buy your air tickets for Krabi and have a quiet look around.

-- FinanceAsia.com 2006-10-16

[cclub75]

“The market has shown that the coup is overwhelmingly positive,” says David Simister, chairman of CB Richard Ellis (CBRE) in Bangkok. “I’m not suggesting that military rule in general is necessarily better. I think we will probably see a return to Thailand’s former style of coalition government.”

Ah, I feel better !

Real estate during Thaksin was booming, but now with the generals it might be sexy too.

Thoses guys at CBRE are really amazing...

[ding]

So then why does it seem the concesus here is that LOS real estate value is generally static?

Seems to me Bangkok is an undervalued world class city. And the beaches far below Hawaii. Of course I'm talking about condos...

[midas]

" Ah, I feel better !

Real estate during Thaksin was booming, but now with the generals it might be sexy too.

Thoses guys at CBRE are really amazing... "

Of course these agents have to put out this self serving crap from time to time

[samtam]

I tend to agree with the sentiments being expreseed both by CBRE - that post coup is a more healthy environment than pre - in that there is now certainty in the market place. However, I also agree that currently the market is quite static. I have had a THB20m + property on the market for several weeks, without any bites, and I think this ("luxury") sector of the market is very quiet, indicating perhaps that there is an oversupply. If you just look in the condo in which you live, how many vacant units are there? In my own there are 20% vacant, and this is a grade A building, with excellent management. Any other thoughts on this would be very welcome.

[bkkandrew]

Things really must be bad in the property sector for someone to come out with this level of BS.

When things arn't selling, you call for the salesman to pitch the goods..

[womble]

Things are quiet, definatley quieter than any other period over last 3-4 years, but it's not dead. We have had several people look around the house that we rent, so that shows people are still searching.

It always seems though that agents will talk things up and generally try to make things appear more rosy than they are.

On the other hand there are those that post on TV who will do all they can to make things seem as bad as possible, I expect most of these guys eigher live on a budget and are jealous of those with property to sell, or they themselves were ripped off or screwed by someone and so hope everyone else gets screwed up.

There are many bitter and twisted farangs in LOS, and many of them seem to post on this forum.

[samtam]

Also, this is a totally unregulated market, so that even the top brokers, such as CBRE have unqualified people working for them. I do have experience of selling property, and instructed my agent not to send their rep in future as I would do the condo tour myself. I did this, because the one visit, (with two clients as it turned out), was conducted totally unprofessionally. The agent came, as I said, with two clients, (three people), but she did not explain that to me, (the owner). I suggested to her that she show the clients around on her own, as she had been given an introduction to the property previously, and her clients were Thai. I was amazed to discover that one of the cilents was taking numerous photographs, (even though they are provided on the broker website). But he was not photographing the obvious, but rather the detail of the interior design, furniture, pictures etc. When I asked the agent subsequently what was going on, she advised that he had been so impressed by the interior design, that he wanted to photograph it.......(copy it?) I had not wanted to confront the photographer with the other couple present, as I thought they were all connected. She seemed surprised that I was not flattered by this interest in the interior design. Needless to say there was no subsequent interest shown in buying the property from either of these two clients, nor indeed any follow up to me by the broker. I am relieved to report that this agent no longer works at the brokerage firm.

[bkkandrew]

Things are quiet, definatley quieter than any other period over last 3-4 years, but it's not dead. We have had several people look around the house that we rent, so that shows people are still searching.

It always seems though that agents will talk things up and generally try to make things appear more rosy than they are.

On the other hand there are those that post on TV who will do all they can to make things seem as bad as possible, I expect most of these guys eigher live on a budget and are jealous of those with property to sell, or they themselves were ripped off or screwed by someone and so hope everyone else gets screwed up.

There are many bitter and twisted farangs in LOS, and many of them seem to post on this forum.

Happy to report that I am none of the above..

[johnnyk]

Mr. Simster is, naturally, an impartial observer. Why would he say anything different?

Personally I never ask a barber if I need a haircut.

[ding]

David Simister, chairman of CB Richard Ellis (CBRE) in Bangkok

This man would not have this position for this firm if he were a huckster. I would guess he's pretty well informed. Agents NEVER talk-down the market, I agree. They will sell it and try to create activity with hype.

But debasing your professional credibility by touting isn't usually done at this level. Especially if it will be published as your expert opinion.

and that's merely MY opinion.

[Old Man River]

Mr. Simster is, naturally, an impartial observer. Why would he say anything different?

Personally I never ask a barber if I need a haircut.

You obviously don't live in Thailand, or at least not in Bangkok. Those of us who do, know that David is one of the true experts in the real estate industry in this area. One of the comforts I have in buying a unit in an expensive condo in Bangkok is that David has also bought a unit.

Perhaps you know the wrong barbers.

[opothai]

property in los is good value,

but will not increse dramaticaly until the laws are changed to make outright ownership, or at least 50/50 ownership rghts legal for falangs.

and laws that are consistent and long lasting with stability.

look at how many people have lost thier savings and homes in spain for instance, due to corrupt activities and law changes at a whim, and that is europe.

still imho los is worth the GAMBLE at the prices currently, too much more then you are playing with fire.

one problem i can foresee in the future,

have all these luxury homes on samui, in phucket obtained proper planning permmision kept within the boundaries or can these boundaries and permissions be revoked for reasons of encrochment or building on protected land.

when these issues are clarified then you would expect major rises in property values.

[womble]

There is still a hel_l of a lot of room for movement on property prices, especially Samui, Phuket less so, but still some room, and Bangkok is still very reasonable for a city of it's size and popularity.

Actually I think the current slowdown is very welcome and also very healthy for the property market long term. The was a real danger of a bubble appearing, some believe it had already started to form. This current slowdown has allowed things to slow down and correct itself.

Next year I believe we will see things start to take off again. Friends of mine in property have told me that since the coupe things have improved, particulary the high end properties.

The finance minister and previous head of BOT did an extremely clever thing that has resulted in stopping another property bubble like the one in 97.

[Rinrada]

Just whacked in another 3 Rai ...on the dam ....and looking at the last 3 ...Guess who our new neighbours are.....

need a wee boat ..might take up fishing

[merlion]

Things are quiet, definatley quieter than any other period over last 3-4 years, but it's not dead. We have had several people look around the house that we rent, so that shows people are still searching.

It always seems though that agents will talk things up and generally try to make things appear more rosy than they are.

On the other hand there are those that post on TV who will do all they can to make things seem as bad as possible, I expect most of these guys eigher live on a budget and are jealous of those with property to sell, or they themselves were ripped off or screwed by someone and so hope everyone else gets screwed up.

There are many bitter and twisted farangs in LOS, and many of them seem to post on this forum.

You are ###### right. haha

[Steph1012]

OK then, lets get some stats.

My Lawyer says its almost dead and this is his main source of income. 2 of my friends (and I don't have many ) have pulled out of sales since the coup. One was looking at a hotel and a house and the other paid a deposit on some land and has walked away from it.

Me? I took the missus land/me house route and should be talking the market up, but this is not my experience. Hope it rockets but can't see it.

The Land Office stats will show if this is BS. Can we make an effort to nail this?

Anyway, we had another post like this two weeks ago with an Estate Agent talking up the market. He was so busy selling properties that he had the time to give a reason why every add in the Phuket Gazette that week was not suitable for him to buy/sell and that more adds in the paper supported his dubious claims of a shortage of land and houses!!! And there were FOUR full pages of adds that week!

Me thinks he doth protest too much!

Edited October 16, 2006 by Steph1012

[Steph1012]

And here it is!

[/b]Tornado 2006-09-29 17:51:38 Post #45

Platinum Member

Group: Advanced Members

Posts: 2,870

Joined: 2004-06-06

From: Nakhon Si Thammarat

Member No.: 10,415

QUOTE(Steph1012 @ 2006-09-29 15:31:30)

Nice try Tornado. Keep talking it up and try not to get too steamed up about it as well, we all have opinions and this is mine.

I am a keen cyclist and clock up hundreds of KM every week on and off the Island. Get out of your office and car a bit more if you want to know whats going on here.

Just seen 350 rai being auctioned off, and here are four full pages of houses for sale.

http://phuketgazette.net/classifieds/phuke...f=2006929151115

Also try a search on Google, theres thousands of adds. Lot of land was bought up by speculators and they are struggling to shift any of it.

Some of these have been on for over a year. A lot of these adds are for multiple houses on developments and there are massive plots of land.

Try Chao Fah Road as well. There are hundreds of properties for sale at Land and house, Middle Road, Phuket Villa etc. etc., Massive complexes going in up at Talang as well.

Hundreds of plots for sale and when you ring about one, you are always offered more choices as a lot of the adds are from agents and discounts are always offered.

AND THE REPLY FROM TORNADO

Im not getting steamed up, Im suggesting you are looking at crap land in crap locations.

Who wants to live in these areas? That is the Thai market. Your initial response to this thread was regarding land being plentifull, this is not the case.

Houses are always for sale and always will be. Land on the other hand is very hard to get in the right areas.

Hundreds of plots for sale, but where? How much? Are the titles ok? due dilligence done? under the 80 meter height restriction? flying sor kor 1? national park? airport noise? zone? build height restrictions? servitude? water? electricity?

The west coast has 5 plots left on the beach and that is a pretty large coast.

The Panwa area: looks like loads of land until you get the paperwork and they are either tor bor 6 or sor kor 1, which is no good to a foreigner.

The Kathu area: try and find a 1 or 2 Rai plot without a major overhead powerline behind you.

The Layan area: Last year selling at 3-4 mil per Rai, now 7 mil and up and very hard to find.

The Surin area: try and find a nice sea view plot.

Kamala: millionaires row. 3 plots left on the whole road.

Mai Kao: 2 beachfront land plots and other than that, some jungle plots in horrible locations.

Rawai: find a 1 rai plot.

Nai Harn: rare as rocking horse shit.

Patong: two larger plots left under the 80 meter mark and no 1 rai plots.

Cherngtalay: plenty of low level land that needs to filled (cost about 600 k a Rai to fill)

Thalang: last year 500 k per rai, now 1 mil per Rai and selling to Bangkok Thais and a few foreigners.

Chalong: I can go throgh every road if you like.

East Coast: Ao Phor, not much sea view left and selling at 7 mil per Rai and upwards.

Yamoo: 25 mil per Rai if you buy in the nice area and other land in this area is land banked by Thais from Bangkok or anyone with money for that matter.

Koh Sirea, a dump and the most lawless area on the island and the land price is still 6 mil and up per rai.

Now lets go through your post:

Just seen 350 rai being auctioned off, and here are four full pages of houses for sale."

350 Rai isnt what the average foreigner wants and the houses I've already covered.

"Also try a search on Google, theres thousands of adds. Lot of land was bought up by speculators and they are struggling to shift any of it."

Thousands? Please show me the adds where they are struggling to sell. What price did they pay for it and what area was it in?

"Some of these have been on for over a year. A lot of these adds are for multiple houses on developments and there are massive plots of land."

Developers usually advertise for many years, it obviously depends on location and price and the quality of the product.

"Try Chao Fah Road as well. There are hundreds of properties for sale at Land and house, Middle Road, Phuket Villa etc. etc., Massive complexes going in up at Talang as well. "

Very badly built, thrown together with sub standard fixtures and fittings, aimed mainly at the Thai market. Thalang is also a Thai village area and we can wait and see if the average foreigner thinks its for them.

"Hundreds of plots for sale and when you ring about one, you are always offered more choices as a lot of the adds are from agents and discounts are always offered."

I have been in this game for ten years and anyone who knows anything about searching for land, is, there is always another plot. When looking for the right plot, there is much due dilligance to do and most turn out to be far from perfect and after you have gone through all of the neccesary checks, your out on the road again looking for more.

I am out and about everyday in my job and deal with every Thai broker on this Island. I get 60 plots a week brought into my company by 1 broker alone and after I sift through the crap, I end up with less than 10 percent.

Since arriving in Phuket way back in the late 90's, I have seen land prices (1 area for example) in Rawai go from 300,000 baht per Rai to todays price (same land) 7 million baht.

Phuket is a very good investment and I dont think there are many places in the world you could have gains like this. THERE IS ONLY A SMALL AMOUNT OF LAND LEFT AVAILABLE IN GOOD AREAS AND I DONT CARE IF NOBODY BUYS IT, I DONT CARE ABOUT BEATING UP THE MARKET, ALL I CARE ABOUT IS THAt THE RIGHT INFORMATION IS GIVEN.

Please dont listen to arm chair real estate gurus, there are more of them than land.

With new zoning laws in place it isnt as easy as before.

(I have'nt promoted my business, nor have I got anything to gain from the post above. There are well over 100 brokers on this Island now, send a few emails away to them and see if I am right) Good Luck to all!

This post has been edited by Tornado: 2006-09-29 17:55:02

Edited October 16, 2006 by Steph1012

[cclub75]

Since arriving in Phuket way back in the late 90's, I have seen land prices (1 area for example) in Rawai go from 300,000 baht per Rai to todays price (same land) 7 million baht.

You see Tornado, that's the magic ! x20 in 10 years.

And in 2016, one rai will go for... 140 millions ? I believe this is what you are thinking, isn't it ?

Okay, okay, I'm not very fair, i should remove the inflation.

Anyway, it's the same old story... People will never change.

[lukamar]

While the property market in Bangkok and Pukett may well be remaining strong, I don't really know anything about that. The property market in in the North,Chiang Mai, Chiang Rai and Phayao, is seriously depressed. I've talked to a few realty company owners over the last month and one even described the market as, "totally F*****g dead" another said "both sales and rentals were dead". That's not the way realtors normally talk. This can be linked to a few things like the new laws and the weather but one thing is for sure, prices are going down quickly at the moment in that area.

[lannarebirth]

While the property market in Bangkok and Pukett may well be remaining strong, I don't really know anything about that. The property market in in the North,Chiang Mai, Chiang Rai and Phayao, is seriously depressed. I've talked to a few realty company owners over the last month and one even described the market as, "totally F*****g dead" another said "both sales and rentals were dead". That's not the way realtors normally talk. This can be linked to a few things like the new laws and the weather but one thing is for sure, prices are going down quickly at the moment in that area.

-That's interesting, because a piece of property I own, which wasn't even for sale has received a lot of interest lately. One guy (Thai)made me an offer, which was about double what I paid for the land, and I turned it down. Another guy (Thai)is preparing an offer, which if it isn't full price, I'll also turn down. An adjoining piece, which had been for sale for a year just sold last month for the full asking price.

I don't pretend to know the entirety of the Chiang Mai RE market, but that's my anecdotal contribution.

[Steph1012]

Since arriving in Phuket way back in the late 90's, I have seen land prices (1 area for example) in Rawai go from 300,000 baht per Rai to todays price (same land) 7 million baht.

You see Tornado, that's the magic ! x20 in 10 years.

And in 2016, one rai will go for... 140 millions ? I believe this is what you are thinking, isn't it ?

Okay, okay, I'm not very fair, i should remove the inflation.

Anyway, it's the same old story... People will never change.

What goes up must come down. Keep plugging away lads.

[lukamar]

-That's interesting, because a piece of property I own, which wasn't even for sale has received a lot of interest lately. One guy (Thai)made me an offer, which was about double what I paid for the land, and I turned it down. Another guy (Thai)is preparing an offer, which if it isn't full price, I'll also turn down. An adjoining piece, which had been for sale for a year just sold last month for the full asking price.

I don't pretend to know the entirety of the Chiang Mai RE market, but that's my anecdotal contribution.

Maybe they are buying up a block of property for some reason. Probably a lot depends on the area that property is located as to the saleability, but it's interesting that both your property and the adjoining piece are both wanted and that Thais now seem to be lining up to buy your piece. Possibly you should take a walk around and see if others around your property have also been approached.

[Rinrada]

Word is like everywhere else...Location,Location...Location....(OK ...3 words)

[womble]

Personally i'm on the lookout for prime land in Phuket or Samui, if any really good plots present themselves at attractive prices i'll snap them up.

If people are prepared to drop their prices enough, i'm prepared to take a gamble, I still think the Thai property market has a very healthy future, those that bail out now may well realise they made a mistake in a few years time.

[Spenthouse]

all the property we really need is 6' x 3' each; and i see plenty supply of that around.

[lannarebirth]

-That's interesting, because a piece of property I own, which wasn't even for sale has received a lot of interest lately. One guy (Thai)made me an offer, which was about double what I paid for the land, and I turned it down. Another guy (Thai)is preparing an offer, which if it isn't full price, I'll also turn down. An adjoining piece, which had been for sale for a year just sold last month for the full asking price.

I don't pretend to know the entirety of the Chiang Mai RE market, but that's my anecdotal contribution.

Maybe they are buying up a block of property for some reason. Probably a lot depends on the area that property is located as to the saleability, but it's interesting that both your property and the adjoining piece are both wanted and that Thais now seem to be lining up to buy your piece. Possibly you should take a walk around and see if others around your property have also been approached.

No, that wasn't the case. The adjoining piece was bought by a retired general of the Army and the guy who wanted to buy my place owns an apparell factory which he wants to relocate to Chiang Mai. It's really a very desirable piece of land, and I expected if I wanted to sell it, it would garner a lot of interest. I did not expect unsolicited offers. As I say, maybe it is atypical of the region. I do not know.

[merlion]

-That's interesting, because a piece of property I own, which wasn't even for sale has received a lot of interest lately. One guy (Thai)made me an offer, which was about double what I paid for the land, and I turned it down. Another guy (Thai)is preparing an offer, which if it isn't full price, I'll also turn down. An adjoining piece, which had been for sale for a year just sold last month for the full asking price.

I don't pretend to know the entirety of the Chiang Mai RE market, but that's my anecdotal contribution.

Maybe they are buying up a block of property for some reason. Probably a lot depends on the area that property is located as to the saleability, but it's interesting that both your property and the adjoining piece are both wanted and that Thais now seem to be lining up to buy your piece. Possibly you should take a walk around and see if others around your property have also been approached.

No, that wasn't the case. The adjoining piece was bought by a retired general of the Army and the guy who wanted to buy my place owns an apparell factory which he wants to relocate to Chiang Mai. It's really a very desirable piece of land, and I expected if I wanted to sell it, it would garner a lot of interest. I did not expect unsolicited offers. As I say, maybe it is atypical of the region. I do not know.

As rhetorical as it may sound, but when it comes to property purchase, "location" is the overwhelming factor when one considers buying a property.

[Tornado]

all the property we really need is 6' x 3' each; and i see plenty supply of that around.

very well put....

[Tornado]

And here it is!

[/b]Tornado 2006-09-29 17:51:38 Post #45

Platinum Member

Group: Advanced Members

Posts: 2,870

Joined: 2004-06-06

From: Nakhon Si Thammarat

Member No.: 10,415

QUOTE(Steph1012 @ 2006-09-29 15:31:30)

Nice try Tornado. Keep talking it up and try not to get too steamed up about it as well, we all have opinions and this is mine.

I am a keen cyclist and clock up hundreds of KM every week on and off the Island. Get out of your office and car a bit more if you want to know whats going on here.

Just seen 350 rai being auctioned off, and here are four full pages of houses for sale.

http://phuketgazette.net/classifieds/phuke...f=2006929151115

Also try a search on Google, theres thousands of adds. Lot of land was bought up by speculators and they are struggling to shift any of it.

Some of these have been on for over a year. A lot of these adds are for multiple houses on developments and there are massive plots of land.

Try Chao Fah Road as well. There are hundreds of properties for sale at Land and house, Middle Road, Phuket Villa etc. etc., Massive complexes going in up at Talang as well.

Hundreds of plots for sale and when you ring about one, you are always offered more choices as a lot of the adds are from agents and discounts are always offered.

AND THE REPLY FROM TORNADO

Im not getting steamed up, Im suggesting you are looking at crap land in crap locations.

Who wants to live in these areas? That is the Thai market. Your initial response to this thread was regarding land being plentifull, this is not the case.

Houses are always for sale and always will be. Land on the other hand is very hard to get in the right areas.

Hundreds of plots for sale, but where? How much? Are the titles ok? due dilligence done? under the 80 meter height restriction? flying sor kor 1? national park? airport noise? zone? build height restrictions? servitude? water? electricity?

The west coast has 5 plots left on the beach and that is a pretty large coast.

The Panwa area: looks like loads of land until you get the paperwork and they are either tor bor 6 or sor kor 1, which is no good to a foreigner.

The Kathu area: try and find a 1 or 2 Rai plot without a major overhead powerline behind you.

The Layan area: Last year selling at 3-4 mil per Rai, now 7 mil and up and very hard to find.

The Surin area: try and find a nice sea view plot.

Kamala: millionaires row. 3 plots left on the whole road.

Mai Kao: 2 beachfront land plots and other than that, some jungle plots in horrible locations.

Rawai: find a 1 rai plot.

Nai Harn: rare as rocking horse shit.

Patong: two larger plots left under the 80 meter mark and no 1 rai plots.

Cherngtalay: plenty of low level land that needs to filled (cost about 600 k a Rai to fill)

Thalang: last year 500 k per rai, now 1 mil per Rai and selling to Bangkok Thais and a few foreigners.

Chalong: I can go throgh every road if you like.

East Coast: Ao Phor, not much sea view left and selling at 7 mil per Rai and upwards.

Yamoo: 25 mil per Rai if you buy in the nice area and other land in this area is land banked by Thais from Bangkok or anyone with money for that matter.

Koh Sirea, a dump and the most lawless area on the island and the land price is still 6 mil and up per rai.

Now lets go through your post:

Just seen 350 rai being auctioned off, and here are four full pages of houses for sale."

350 Rai isnt what the average foreigner wants and the houses I've already covered.

"Also try a search on Google, theres thousands of adds. Lot of land was bought up by speculators and they are struggling to shift any of it."

Thousands? Please show me the adds where they are struggling to sell. What price did they pay for it and what area was it in?

"Some of these have been on for over a year. A lot of these adds are for multiple houses on developments and there are massive plots of land."

Developers usually advertise for many years, it obviously depends on location and price and the quality of the product.

"Try Chao Fah Road as well. There are hundreds of properties for sale at Land and house, Middle Road, Phuket Villa etc. etc., Massive complexes going in up at Talang as well. "

Very badly built, thrown together with sub standard fixtures and fittings, aimed mainly at the Thai market. Thalang is also a Thai village area and we can wait and see if the average foreigner thinks its for them.

"Hundreds of plots for sale and when you ring about one, you are always offered more choices as a lot of the adds are from agents and discounts are always offered."

I have been in this game for ten years and anyone who knows anything about searching for land, is, there is always another plot. When looking for the right plot, there is much due dilligance to do and most turn out to be far from perfect and after you have gone through all of the neccesary checks, your out on the road again looking for more.

I am out and about everyday in my job and deal with every Thai broker on this Island. I get 60 plots a week brought into my company by 1 broker alone and after I sift through the crap, I end up with less than 10 percent.

Since arriving in Phuket way back in the late 90's, I have seen land prices (1 area for example) in Rawai go from 300,000 baht per Rai to todays price (same land) 7 million baht.

Phuket is a very good investment and I dont think there are many places in the world you could have gains like this. THERE IS ONLY A SMALL AMOUNT OF LAND LEFT AVAILABLE IN GOOD AREAS AND I DONT CARE IF NOBODY BUYS IT, I DONT CARE ABOUT BEATING UP THE MARKET, ALL I CARE ABOUT IS THAt THE RIGHT INFORMATION IS GIVEN.

Please dont listen to arm chair real estate gurus, there are more of them than land.

With new zoning laws in place it isnt as easy as before.

(I have'nt promoted my business, nor have I got anything to gain from the post above. There are well over 100 brokers on this Island now, send a few emails away to them and see if I am right) Good Luck to all!

This post has been edited by Tornado: 2006-09-29 17:55:02

I stand by what I posted above. Prove me wrong on every point. I actually spent time on a post that is correct, I even pointed out the areas and current prices. I stand by for your area by area price range, building codes, zoning, servitudes (just a general list will do) and then we can play in the sand together

Bring cclub0 with you as well if you like, he can get the drinks.