Average price of houses at four-year low

[William]

Average price of houses at four-year low

Developers shift to low-priced units

KANANA KATHARANGSIPORN
The average housing price in Greater Bangkok declined to 2.14 million baht a unit as of the end of the first quarter _ the lowest since 2003 _ because most developers are shifting to the lower-end market, according to the property consulting firm Agency for Real Estate Affairs (AREA). ''It [average unit price] reflected the unfavourable market as most newly launched units were in the lower-priced segment. Low prices are affordable for both lower-income earners and speculators,'' AREA managing director Sopon Pornchokchai said yesterday.

In the first quarter of the year, the number of newly launched projects in Greater Bangkok totalled 82 with 16,644 units worth a combined 38.28 billion baht, with an average price of 2.3 million baht.

Of the 82 projects, 77 were housing developments, decreasing by 17% from the same period last year. Total housing units were 16,419, up 12%.

The total housing value was 35.14 billion baht with an average price of 2.14 million baht, down by 9% and 19% respectively from the same period last year.

The average housing price was 2.83 million baht in 2006 and 3.086 million in 2005, according to the company's earlier surveys.

AREA forecast the total number of newly launched projects in 2007 would be 308, down by 16% from last year, with the total value declining 25% to 140.56 billion baht. However, the total number of units would be 65,676, down only 1%, reflecting the shift to lower-priced housing.

Among the total new launches of housing units, two-thirds were condominiums. Units priced lower than two million baht totalled 8,195, or half of the total units launched.

Meanwhile, 2,724 townhouses were launched in the first quarter, accounting for 17%, while single houses totalled 1,379 units, only 8%.

''Most of the units were condominiums, showing significant speculation. Condos are the most suitable for speculation as maintenance costs and depreciation are lower than other housing types,'' Mr Sopon said.

He added that sales of newly launched condominiums in the first quarter grew by 241% year-on-year while those of single houses and townhouses dropped by 86% and 25% respectively.

The AREA survey also showed the lower purchasing power of consumers as more than half of the units were priced between 500,000 and two million baht a unit.

The largest proportion came from condominiums priced at 1-2 million baht with 4,989 units, followed by condominiums priced from 500,000 to one million baht with 3,206 units, and townhouses priced at one to two million baht with 1,033 units.

''The launch of condominiums priced lower than one million baht to more than five million baht continued increasing while others did not,'' Mr Sopon said.
''This situation showed an oversupply trend in the condominium market remained. If there is an economic crisis, the property market may crash.''

[sabang]

Interestingly, the high end market both in condo's (especially) and villa's is the strongest section here in Pattaya.
I am mulling an offer to rent my Villa out at 90K bht per month, which is quite a good yield.

[Butterfly]

Pattaya property is at par and even above Bangkok property cost. They are not afraid to build 18mil THB condos in Pattaya apparently. It doesn't matter that Pattaya will still be a dump for the next 10 years, some retirees are quite happy to blow their life saving on an expensive condo with a view on the stinky harbor.

90k for a house in Pattaya ? Jesus. I hope it's a mansion for that price.

[Begbie]

Interestingly, the high end market both in condo's (especially) and villa's is the strongest section here in Pattaya.
I am mulling an offer to rent my Villa out at 90K bht per month, which is quite a good yield.

Sabang why would someone pay 90K/month for a house. It would be cheaper to buy. Or are we talking about short term, two weeks.

[Butterfly]

I am mulling an offer to rent my Villa out at 90K bht per month, which is quite a good yield.

Make sure they are not Russians renting your house. They will trash it.

[sabang]

Senior expat contracts Begbie- there is a net shortage of quality Villa accomodation for expat families, as most of them don't want to live in Pattaya city itself, and most not in a condo if they have kids.
Bear in mind these people work mainly in the eastern seaboard industrial estates, not Pattaya. It is more convenient for them to live east of Sukhumvit Rd.
The house itslelf cost 12 mill, so 90K per month is a good yield. I am seriously thinking about it.

[William]

Interestingly, the high end market both in condo's (especially) and villa's is the strongest section here in Pattaya.
I am mulling an offer to rent my Villa out at 90K bht per month, which is quite a good yield.

Sabang why would someone pay 90K/month for a house. It would be cheaper to buy. Or are we talking about short term, two weeks.

If it's a company renting, it could be a tax dodg.... ermm, avoidance scheme

[Butterfly]

The house itslelf cost 12 mill, so 90K per month is a good yield. I am seriously thinking about it.

8% is decent but not outstanding. Depends on your needs and current income.

Would you mind posting pics of your house ? I would be curious what you could get in Pattaya for 12m ? is that including the land (I am assuming yes) ?

[sabang]

The house itslelf cost 12 mill, so 90K per month is a good yield. I am seriously thinking about it.

8% is decent but not outstanding. Depends on your needs and current income.

Would you mind posting pics of your house ? I would be curious what you could get in Pattaya for 12m ? is that including the land (I am assuming yes) ?

DD did the job for me-

https://teakdoor.com/building-in-thai...hailand-7.html

My house is on the same estate as Permalink #63 - #65.

The house in the bottom photo #65 is the 4 bedroom version like mine. Of course you get a nice private pool too.
So thats what 12 mill buys you around here, unless of course you develop your own.
The yield is 9%, which I consider good for a blue chip tenant- you're hard pressed to get 3.5% in the West thesedays.

[Butterfly]

My house is on the same estate as Permalink #63 - #65.

DD did that ? that's quite good actually. Kind of a Mediteranian villa. Remind me of my childhood. How about land size ?

[William]

^no, DD did the pic - not the building

[Butterfly]

^ too bad, it would have been good publicity

[sabang]

The land area is about 210 wah, not particularly big.

[Butterfly]

^ that's reasonable. Where are you located exactly if you don't mind I ask ?

[sabang]

Uranus.

[Butterfly]

^ yeah but where exactly

(I know you are in Pattaya, if you could be more specific on which street so I can have an idea of the location)

[sabang]

I'm in Nongprue area, just off Soi Siam Country Club.
If you know the Butterfly Bar, it's off to the left at the crossroads just before that. About 8 km from Walking St.

[watterinja]

Just curious. Are you on Uranus, or in Uranus?

[sabang]

Neither.
Up Uranus!

[watterinja]

^ LOL ... touche