Never-ending building in Hua Hin

[fabman]

I don't know about you guys but every time I go out these days, I seem to get stuck behind a cement mixer, digger or lorry.

The building of houses, apartments , shops, projects never ceases to pause.

Why do they keep building these things when there are already thousands of empty/unsold houses , half built projects and rows of empty shops everywhere.

Who are the ones making money here? Obviously the banks make money every time they loan money to the building companies/ developers ..and the workers you would hope are getting paid ( although this dosent happen sometimes) But how do the banks get their money back when these places don't get brought / rented out?

Seems like madness to me.

But then again TIT

[caller]

I don't know about you guys but every time I go out these days, I seem to get stuck behind a cement mixer, digger or lorry.

The building of houses, apartments , shops, projects never ceases to pause.

I agree completely. I don't understand it either. But it is annoying. Even where I am at the rag end of 112, there is so much development going on, especially shop houses, while whole rows of them a short distance away, remain empty.

[hhinner]

Money laundering springs to mind. The sort of investment that can wait years to be legitimized.

[dundrillin]

Don't worry buy shares in Siam cement.

[HHTel]

A lot of the cement trucks meandering aroun 112/14/16 is for roads. Although I agree that the number of condos being built is ridiculous.

Remember all the thousands of unfinished projects after the crash of 97/98? Will it happen again? Possibly.

[oakdale160]

I have been told that Thai people have no interest in Stocks or Bonds or other forms of 'paper' investments as there have been so any scams in the past, but property that you can see and touch, even if not profitable makes more sense to them. Anybody with Thai families know if this is true?

[handdrummer]

I have been told that Thai people have no interest in Stocks or Bonds or other forms of 'paper' investments as there have been so any scams in the past, but property that you can see and touch, even if not profitable makes more sense to them. Anybody with Thai families know if this is true?

True. Property is tangible, everything on paper is ephemeral. Goes back to old Chinese ways.

[buksida]

The money lenders are the only ones earning, it is a huge credit bubble that will burst at some stage, as it did before. Thais can get loans as easy as buying a bag of rice so why not throw someone else's money into an empty building and worry about it later. No feasibility research is ever done on any of these new buildings ... such as ascertaining the demand for another row of shop houses in the middle of a field. The lender eventually reposeses, the 'owner' gets to say he had a new shop once without paying for it, and hundreds of them remain derelict and empty, yet they keep building more.

There is also the notion that Thais generally don't like 'second hand' and always want to buy something new - even buildings!

[fabman]

I don't know about you guys but every time I go out these days, I seem to get stuck behind a cement mixer, digger or lorry.

The building of houses, apartments , shops, projects never ceases to pause.

I agree completely. I don't understand it either. But it is annoying. Even where I am at the rag end of 112, there is so much development going on, especially shop houses, while whole rows of them a short distance away, remain empty.

The amount of smoke these vehicles give out as well, if your stuck behind one on a motorcycle.. I try to stay well back. Pretty sure most of them wouldn't pass any emission test ( probably don't have them in Thailand anyway)

[fabman]

The money lenders are the only ones earning, it is a huge credit bubble that will burst at some stage, as it did before. Thais can get loans as easy as buying a bag of rice so why not throw someone else's money into an empty building and worry about it later. No feasibility research is ever done on any of these new buildings ... such as ascertaining the demand for another row of shop houses in the middle of a field. The lender eventually reposeses, the 'owner' gets to say he had a new shop once without paying for it, and hundreds of them remain derelict and empty, yet they keep building more.

There is also the notion that Thais generally don't like 'second hand' and always want to buy something new - even buildings!

I heard it was harder for Thais to get loans from the banks these days , Then again I guess it's who you know.

It's the same with buying new cars, A lot of Thais buy them because they think it gives them status..then they realize they can't afford the monthly payments, the Lenders then repposes the cars. It seems very common out here.

[fabman]

A lot of the cement trucks meandering aroun 112/14/16 is for roads. Although I agree that the number of condos being built is ridiculous.

Remember all the thousands of unfinished projects after the crash of 97/98? Will it happen again? Possibly.

Let's hope so, I might be able to afford to go out more than once a month again then..