Property Values Near The Airport - Have They Dropped?

[Bredbury Blue]

I live near the airport, in a Land & Houses mooban to the south and pretty much on the flight path.

Eventually i'd like to move away from the flight path and we will spend the next few months / years scouting for our next place.

I was wondering, does anybody, hopefully somebody working in the property market here, have any facts or opinions on the selling price of houses north and south of the airport - are they as before the airport opened, dropped (by what kind of percent) or even risen, and when is the pricing level expected to level out (after how many years)?

My theory is that there isn't an abundance of property in the area, i expect that currently the market has dropped but there will be people requiring to move home to my area in the next few years (i'm thinking of people who lived and worked in the Don Muang area who probably want to move closer to work at the new airport). So if i wait a year or so maybe i can sell at a reasonable price (i.e. not a loss) but if i sell now i'll struggle to find a buyer and if i do i'll get ripped off.

Any thoughts anybody?

[pete_r]

Land prices have dropped, in some cases from 30,000 to 13,000 Bahts/sq.wa according to a property magazine recently.

For houses, the demand is high so there is no reason for a major drop, unless the house sits directly under the flight path. For example, I don't see the new housing projects reducing their prices just yet.

[Rinrada]

K.Wifes got a couple of bits of land that she now rents out to a building distributor not far from the new outer ring ( Ling Load) road near the the Shri Nak Tescos (flyover) in Sam Prat which should be finished any day now..ie the flyover/road etc.........anyone... know?...isit? and has been offered 1 mil bt each for them but she is adamant that if and when the said bit is complete she should get at least 2 m each.....so thats the whisper..... on the ground.

Noticed on last visit that the whole area around there is on the up and up with new intersection flyovers,road improvements/drainage works,housing developments and eventually the Teperack road will give a good connection direct to Bagna T and hence on to Suwanna.......

Airports are good news......

[Bredbury Blue]

Noticed on last visit that the whole area around there is on the up and up with new intersection flyovers,road improvements/drainage works,housing developments and eventually the Teperack road will give a good connection direct to Bagna T and hence on to Suwanna.......

Airports are good news......

Teperak road is a two lane road all the way to just before Big C (about km 12) and then becomes one lane, however they are currently widening the road atleast to km 17 (i don't go beyond there but they maybe widening it further out) or Bang Chalong, plus the reminder of the outer ling load isn't that far off being complete (and it will cross over Teparak), so yes it is all improving in the area, except for those of us unlucky enough to be right on the chuffin flightpath! To be honest if the flightpath was 0.5 km either direction from my place there would be no reaon to consider moving, however in recent weeks (funnily enough, since the AOT chairman came and slept in our mooban to judge the noise levels) it has definately got worse, they've moved the landing route slightly to the west (consequently over my place) and they've lowered the planes on the flightpath in - i don't think we could have been much unluckier

[nev]

sorry to hear about your bad luck bred blue,hope it all works out for you mate!!

i will be looking to buy a place around bangkok this year, as my girlfriend and me plan to marry, i dont no to much about bangkok or the prices, does anyone have a link to new home developements,we do not need anything big, maybe a 2 or 3 bedroom villa is what we are thinking of buying.

thanks for any help or information. nev

[Bredbury Blue]

Nev,

Cheers buddy.

Here's a tip for you. Most developments you'll need a decent sized deposit, but if you go for Thailand's biggest developer, Land & Houses plc, they usually need only a baht 50,000 deposit and you can move in (most of their developments have sufficient aircons, etc ready to be habitable from day one), even gardens are finished for you. They have their own bank as well so its not quite so hard to get a mortgage. Remember mortgage will be in wife's name but they'll make you to be the guarantor and take out a life insurance policy on the property (i.e. you die property will be paid up and become wife's 100%). Also check out www.bcp.co.th for decent 2nd habd homes - they seem to be the L&H official selling agent for 2nd hand.

If any body has a link to a decent website IN ENGLISH for developments i'd also be interested to hear

[nev]

cheers for that bred blue,i will go visit land & houses plc. when i am back in febuary, i did come across this company when i was up khon kean.

thanks for the link too bcp.co.th i will check them out cheers pal.

[astral]

I was under the impression that lans prices in the airport area have boomed over the last few years.

My brother-in-law sold off a small plot for a good profit.

[Bredbury Blue]

Well we're kind of getting used to the planes now - better when they land than take off.

When we bought land on our mooban in Bangplee 3 years back we paid Baht 18k / wah2. The plots are now up for sale at between Baht 28-30k / wah2, so i guess prices have risen regardless of the airport opening.

[bingobongo]

old article, but this is before the airport strarted disintegrating

Noise, floods cut land prices - Fri, October 13, 2006

"From an average price of Bt2 million per rai last year, land located along the north-to-south direction of the airport where take-offs and landings take place is now priced between Bt1 million and Bt1.2 million," said Sopon Pornchokchai, managing director of the agency.

http://nationmultimedia.com/2006/10/13/bus...ss_30016045.php

[quiksilva]

Plots with main road frontage to Bangna Trad, have increased from 6M/Rai to over 19M/Rai -- just because of the airport and the x-PM and his cronies buying up vast tracts of land in the area.

The increase in values is based on pure senseless speculation. The only developments that are feasible at these prices are hotels/commercial developments but why anyone would want to stay a few nights on Bangna Trad or move their office from the CBD to the sticks is beyond me.

Sooner or later the supply of people more stupid than they will run out and the Bangna bubble will burst, but it hasn't happened yet..

[Heng]

My theory is that there isn't an abundance of property in the area, i expect that currently the market has dropped but there will be people requiring to move home to my area in the next few years (i'm thinking of people who lived and worked in the Don Muang area who probably want to move closer to work at the new airport). So if i wait a year or so maybe i can sell at a reasonable price (i.e. not a loss) but if i sell now i'll struggle to find a buyer and if i do i'll get ripped off.

Any thoughts anybody?

I'd advise taking a longer term view of it (unless you are under capital or financial pressure where you wouldn't be able to own this location if you wanted to live somewhere else). Bangkok is growing in that direction (amongst other directions) whether the airport fails or not. You're right, there isn't an abundance of property... and they aren't making any more land. There was a time when the folks who own properties on Ladprao Rd., Ekkamai Rd., etc. were out in the middle of nowhere too. There were probably naysayers back then who said...."500,000 Baht!? 1,000,000 Baht!? for a house on Ekkamai? Crazy. The bottom is going drop out any time now...."

[quiksilva]

I'd agree with that, if you are buying landed property and can afford to wait for > 20 years to realise gains, paper gains that is seeing as the secondhand market is all but dead.

Look back 15 years when people were building condo's on Bangna Trad KM 1 or Sanphawut Road - how are they fairing right now?

[Heng]

Sometimes much longer, although generally I'd advise staying away from investing in air over land (condos)... and to just stick to land + homes/buildings/etc.

One's mileage will indeed vary. It's not difficult to find folks who have made poor real estate investment choices. It's also not difficult to find those who are doing quite well because of their real estate investment and development policies as well. Sometimes a little luck is involved. Sometimes a persistent/selective campaign for tenants is involved. It's not a huge leap between profits on paper and profits in your QuickBooks window on your computer when you are well located. Yeah, sometimes you'll feel like you're nickel and diming with leasing to 7-11's, noodle shops, etc. But sometimes you'll also get your red, yellow and green Monopoly properties as well though. Maybe Lotus or Carrefour needs your couple of rai to complete their 40 rai long term lease lot. Maybe the city cuts your property in half with a new road and suddenly you have streetside property *on two sides* from your lot(s).... not long after that you have the potential to develop or lease to gas stations, driving ranges, car dealerships, the list is endless.

edit: I should also add, in the latter case... the city will typically (although yes, they sometimes welch on this) compensate you in cash for your lost/reclaimed property. But even when they don't your gains will well outweigh your losses.

Edited February 2, 2007 by Heng

[think_too_mut]

The increase in values is based on pure senseless speculation. The only developments that are feasible at these prices are hotels/commercial developments but why anyone would want to stay a few nights on Bangna Trad or move their office from the CBD to the sticks is beyond me.

Look at the land - all under water. October 2006.

Can't imagine what state of mind I would have to be in to buy in those surrounding "developments".

And somebody decided to build an airport on that flood prone land - a swamp, actually.

Bang Na: yes, the prices may have doubled and tripled. After inspecting one apartment I oferred 30% of the asking price and they did not throw me out. They kept on talking until I withdrew even that money.