Housing market

[ozyjon]

I live in a very nice village off the end of Nern Plubwan, only small, about 40 houses, but there have been 2 houses for sale for 6 years, and another 3 for at least 4 years. If the owners are asking too much you think they would have reduced their price by now. I would say that there is a glut of houses on the market and new villages are still being built, so who is going to buy an older house when you can move into a brand new one for the same price.

This is happening world wide especially in tourist towns in Europe,

in big cities not because of land shortage but in Spain for example

it's a disaster.

[dotpoom]

I too could not sell my house in Bang Saray. I moved out three times, lock, stock and barrel and into a condo thinking it must go this time. In all, I dropped almost 2 MB from the first ads...to the last ones. Just today, I have finished moving all my stuff back home (for the third time) with the firm promise to myself that I am not moving again except for that final ride that we never come back from. The amazing thing is....I have never been happier than I am right now....all the indecision is gone out of my life, I know I'm here for keeps. After spending almost two years on and off living in different types of condos and resorts I have firmly come to the conclusion that none of them were a patch on the house I was trying to sell.

I thank God now it didn't sell. My wife is also extremely happy with the outcome as it is willed to her.

I absolutely have no regrets about putting it on the marked because it was by doing that that I realized how blessed I was to have ever had it in the first place.

P.S. The only reason I wished to move was because somehow I felt the grass might be greener on the inside (Pattaya). I see now it isn't.

[Peterw42]

One thing to consider is "Thai people are very reluctant to buy 2nd hand houses". I know some that would flat out refuse a 2nd hand property. Being the superstitious lot that they are, the spirit of whoever lived there before will come back etc.if someone may have died in the house, forget it.

That's why the big new build estates are so popular with Thai people.

All those spirit houses in the front yards are there for a reason.

I remember the look on my wife's face when I first suggested a 2nd hand house. The same look as when I asked for a threesome with her sister.

Jokes aside, it is a real issue that impacts the 2nd hand market.

[onemorechang]

One thing to consider is "Thai people are very reluctant to buy 2nd hand houses". I know some that would flat out refuse a 2nd hand property. Being the superstitious lot that they are, the spirit of whoever lived there before will come back etc.if someone may have died in the house, forget it.

That's why the big new build estates are so popular with Thai people.

All those spirit houses in the front yards are there for a reason.

I remember the look on my wife's face when I first suggested a 2nd hand house. The same look as when I asked for a threesome with her sister.

Jokes aside, it is a real issue that impacts the 2nd hand market.

Depends how much money they have, a Hiso Thai they will go for new.

Ones with less money, no, a used house will work, just 13 monks round for a morning and all sorted.

10 times round the coconut tree, new spirit house, job done.

If any wife says i not want number 2 house, say fine we just rent for ever.

she will change her mind in 5-10 minutes, number 2 house will do just fine.

Edited July 11, 2016 by onemorechang

[ericthai]

Ii can say we where lucky bought a house at the edge of a moo-baan for 550.000 baht lived there for 8 years and sold it furnished ( we want to buy everything new in the new house) for 1.150.000 so lived free for 8 years and had money to build a new house, so who is still saying renting is better ?

I agree with you, I bought a condo for about 500,000 in 2003-4 and sold it in 2006 for 1.2 million. It was brand new when I bought it.

I wouldn't say buying or renting is better than the other as both have advantages. I got lucky

[mrfaroukh]

I remember 5 years back sqm price for a condo in Pattaya was around 30 000 Baht. It suddenly went up due to arrival of Russian to somewhere between 80 000 to 1 00 000 Baht even more some places. At the same time huge over supply. No not many foreign tourist to buy or even rent condo. Prices has come down but I feel it is still expensive. The right price for new condo should be around 30 000 Baht and old condo 20000-25000. That is what I feel if people really want to sell their condo and for those who may want to buy.

[Lee4Life]

Always sell for the right price.

And who is to say what the right price is? There is a lot of new building going on around us, but it seems to have been planned for years. There are some lots next door and also a building that have been for sale for two or three years now.

[Asiantravel]

there is a real serious banking crisis slowly brewing in Europe.

Can anyone see a ripple effect from this eventually reaching the Thai banks?

[onemorechang]

Always sell for the right price.

And who is to say what the right price is? There is a lot of new building going on around us, but it seems to have been planned for years. There are some lots next door and also a building that have been for sale for two or three years now.

Right price,

Ok, go look what has sold close to you, how much for, should give you a starting point.

How low will you go before you wont sell your place ? loads of people have 7million baht houses, but are really just worth 4 million, at a push. they hang on to them for years !!!!!!!!,

( there wives dig there heels in, because it's there money now )

When you have an idea of what you think its worth, stick it on the market, drop the price every 6 months

until it sells or reaches your bottom line.

If you still got it by now, get ready to loose some money on your property investment.

you could be now, nearing the true right price. ( right price is what it sells for )

But your place sounds like the usual half completed development with vacant lots and over priced houses.

with a new building site right next door, they are all over the dark side at present.

Loads of people are just stuck with there investment as cant afford to lose a big chunk of cash.

BTW i don't know how long a piece of string is.

Ps im talking about houses over the dark side , not condos

Edited July 12, 2016 by onemorechang

[Peterw42]

Can someone explain the "dark side"? I am presuming east of sukumvit rd ?????

[guzzi850m2]

The story about the monks are true. We sold our old house back to the developer (for a very small profit) and bough a bigger house/land in same village.

The people that bought our old house had monks at the house and "check" for ghosts and good luck factor. When that all had a positive outcome they bought the house

Thais like to park their money in houses, they don't trust banks and tax on property is very low. The Thai doctor next to my house owns app 7 properties in the Pattaya area, I think he consider the houses as his retirement fond.

App 6-10 houses in our village (app 100 houses total) are empty with none or very little furniture inside, not for sale/rent, they just sits there and caretakers come 1-2 times a month and trim the garden/clean the house(s). The biggest land plot (well 2 plots) are owned by a big shot BKK Thai and cost +20mill, we never see the man, the house/land is pocket change for him.

[Peterw42]

Yes, I live at bang saen , beach close to bkk. Lots of bkk daytrippers etc.

Littke to no western ownership here.

Big condo blocks sit empty, some are visited once a year for holidays. Most sit empty.

Thai people parking there money.

I spoke to a condo Manager that told me there are condos that have not had the door opened in 10 years.

An investment, but not in the western sense. It just a safe place to keep your money.

[onemorechang]

Yes, I live at bang saen , beach close to bkk. Lots of bkk daytrippers etc.

Littke to no western ownership here.

Big condo blocks sit empty, some are visited once a year for holidays. Most sit empty.

Thai people parking there money.

I spoke to a condo Manager that told me there are condos that have not had the door opened in 10 years.

An investment, but not in the western sense. It just a safe place to keep your money.

Many Thais have done what you say.

But many have borrowed the money back on the Condo from banks

the condo just ends up in the banks hand a few years down the road.

Investment gone.

[Peterw42]

Yes, I live at bang saen , beach close to bkk. Lots of bkk daytrippers etc.

Littke to no western ownership here.

Big condo blocks sit empty, some are visited once a year for holidays. Most sit empty.

Thai people parking there money.

I spoke to a condo Manager that told me there are condos that have not had the door opened in 10 years.

An investment, but not in the western sense. It just a safe place to keep your money.

Many Thais have done what you say.

But many have borrowed the money back on the Condo from banks

the condo just ends up in the banks hand a few years down the road.

Investment gone.

I can understand what you are saying but surely the banks would be trying to sell it to recoup losses.

Or possibly the banks are happy to just hold it with no return .

[onemorechang]

Yes, I live at bang saen , beach close to bkk. Lots of bkk daytrippers etc.

Littke to no western ownership here.

Big condo blocks sit empty, some are visited once a year for holidays. Most sit empty.

Thai people parking there money.

I spoke to a condo Manager that told me there are condos that have not had the door opened in 10 years.

An investment, but not in the western sense. It just a safe place to keep your money.

Many Thais have done what you say.

But many have borrowed the money back on the Condo from banks

the condo just ends up in the banks hand a few years down the road.

Investment gone.

I can understand what you are saying but surely the banks would be trying to sell it to recoup losses.

Or possibly the banks are happy to just hold it with no return .

yes they do,

Banks may well have got the asset very cheap. way under market value,

[fforest1]

The number of new condos,apartments,and new houses going up in Pattaya is frightening..

There are construction cranes every where you look...

Some day all this new construction will be old construction...If most Thais and farang want

new places whats going to happen then?

The Russians were propping up the housing market big time but now they are missing in

action yet the building just keeps on going as strong as ever....

Numerous visa crackdowns,military rule,martial law,ever changing laws,A seemingly forever strong Baht....Nothing seems to matter...The building

just keeps going on and on...Some thing has got to give some where......

Edited July 12, 2016 by fforest1

[mercman24]

a few years back when i lived in Spain, you could buy a nice house on the cheap from the banks, when the Spanish bubble burst, in fact i bought a cracking town house, sea view etc, everything in it,(even a new hammer drill) no man leaves his drill behind, lol !! for £60,000

[Peterw42]

Wow, buy a hammer drill and get a free house. Why can't I ever find those bargains.

What brand ?

Edited July 12, 2016 by Peterw42

[Peterw42]

The number of new condos,apartments,and new houses going up in Pattaya is frightening..

There are construction cranes every where you look...

Some day all this new construction will be old construction...If most Thais and farang want

new places whats going to happen then?

The Russians were propping up the housing market big time but now they are missing in

action yet the building just keeps on going as strong as ever....

Numerous visa crackdowns,military rule,martial law,ever changing laws,A seemingly forever strong Baht....Nothing seems to matter...The building

just keeps going on and on...Some thing has got to give some where......

I'm with you. It seems the normal rules of supply and demand don't apply here.

There is always a lag time between the bubble bursting and sellers/developers realising the bubble has burst.

Also, construction cost are very cheap so a developer only needs to sell a small percentage to cover costs. After that they can wait 5 years to sell.

I think the only safe investment is a crane company, lol.

[LennyW]

The number of new condos,apartments,and new houses going up in Pattaya is frightening..

There are construction cranes every where you look...

Some day all this new construction will be old construction...If most Thais and farang want

new places whats going to happen then?

The Russians were propping up the housing market big time but now they are missing in

action yet the building just keeps on going as strong as ever....

Numerous visa crackdowns,military rule,martial law,ever changing laws,A seemingly forever strong Baht....Nothing seems to matter...The building

just keeps going on and on...Some thing has got to give some where......

I'm with you. It seems the normal rules of supply and demand don't apply here.

There is always a lag time between the bubble bursting and sellers/developers realising the bubble has burst.

Also, construction cost are very cheap so a developer only needs to sell a small percentage to cover costs. After that they can wait 5 years to sell.

I think the only safe investment is a crane company, lol.

This building epidemic has been going on for at least the last 15 years, but it is not unique to Pattaya, drive anywhere around Thailand and the amount of new stuff being built is astronomical, shops, condos, houses, superstores, roads, bridges......seems like construction itself is an unstoppable machine!!

You might well be onto something with a crane company ...or a concrete mixer truck!