In the US housing prices have flattened, and in highly speculative areas (i.e Las Vegas, SoCal) have decreased. Foreclosures are up, interest rates up, and property stays on the market significantly longer. This is not a huge drop or a burst in the housing bubble; but it is noticeable.
So what is happening in HH? I was there a year ago and will becoming out in Sept. With the Bhat going up relative to the US$$, the issues with ownership noted in this forum, and the over building; what has happened to prices in the last year?
Inquiring minds want to know!!
Where are house/property prices heading?
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HansMartin
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Randy Cornhole
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Prices have gone up here too far to quickly. greedy developers are trying to make a quick buck. nothing new there. Give it time and things will stabilise to a normal level hopefully, but don't hold your breath. The standard of average house building here is sub-standard to say the least.
www.35mmview.com
Whats hard is that you can't find out what movement in the market there really is? My guess is that its dead at the moment, but I assume the people selling need to hold out whether they're developers or private sales?
Its a fairly specialised market after all, and not subject to control by changes in interest rates, chains etc.
Its a fairly specialised market after all, and not subject to control by changes in interest rates, chains etc.
Talk is cheap
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silverbird
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Re: Where are house/property prices heading?
My impression is that prices in Thailand (like BKK, CM etc) have stabilised but not yet started to decrease. But for areas like HH/CA it is a dead market at the moment. It has at the same time some good opportunities for those who dare to take a real risk. This is if you are prepared to close the deal quickly – and pay the farang developer cash at closing day. In such a case - do not pay anything until you at the same time get the Title of Deed at the Land Office and your legal adviser tells you it is OK.HansMartin wrote:In the US housing prices have flattened, and in highly speculative areas (i.e Las Vegas, SoCal) have decreased. Foreclosures are up, interest rates up, and property stays on the market significantly longer. This is not a huge drop or a burst in the housing bubble; but it is noticeable.
So what is happening in HH? I was there a year ago and will becoming out in Sept. With the Bhat going up relative to the US$$, the issues with ownership noted in this forum, and the over building; what has happened to prices in the last year?
Inquiring minds want to know!!
But I am not too sure about the future. I expect many farang developers to leave the market due to their difficulties but they are likely to be replaced by Thai developers. Some of them might be the real big ones from BKK. If they can offer a “set-upâ€
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malcolminthemiddle
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That's a really good post and interesting malc.
Your not going into it but i will.
The governments reason for pissing on the market is taksins and his buddies to buy up cheaply real estate, companies and business now that they are flush with money and in a few years sell them off again when the then Thai government picks up the market. They are in prime position now to do that for themselves and their families name and might never get such a chance again.
Anybody who has being around awhile and has their eyes open can see how obvious that is.
And who can blame them when they grew up in that environement and had it blasted into their heads their whole lives. Men are weak for money when it is right in front of them for the taking just to play the game. money and all the rest that follows the good money for sino-thais and a very odd thai.
Your not going into it but i will.
The governments reason for pissing on the market is taksins and his buddies to buy up cheaply real estate, companies and business now that they are flush with money and in a few years sell them off again when the then Thai government picks up the market. They are in prime position now to do that for themselves and their families name and might never get such a chance again.
Anybody who has being around awhile and has their eyes open can see how obvious that is.
And who can blame them when they grew up in that environement and had it blasted into their heads their whole lives. Men are weak for money when it is right in front of them for the taking just to play the game. money and all the rest that follows the good money for sino-thais and a very odd thai.
Artile con Hua Hin in Business Day
Here's another opinion
Business Day
BUSINESS DAY
Hua Hin is the golden location for investors, especially for long–term investment, with at least 10 percent return rate due to high demand, according to Knight Frank Chartered (Thailand) Co Ltd.
Phanom Kanjanathienthao, managing director of Knight Frank, said the company’s recent survey found that Hua Hin and Cha–am beaches have high demand but there is a lack of areas close to the beach and it is very difficult to find a good location.
At present, they are 18 condominium projects with a total of 1,732 units on sale. The price ranges between 30,000–100,000 baht per square metre with about 75 percent of the total units on sale.
“Demand in Hua Hin is expected to grow for the whole year due to both Thai and foreign buyers, which boosted the price up by 10–20 percent during the past two years,â€
Business Day
BUSINESS DAY
Hua Hin is the golden location for investors, especially for long–term investment, with at least 10 percent return rate due to high demand, according to Knight Frank Chartered (Thailand) Co Ltd.
Phanom Kanjanathienthao, managing director of Knight Frank, said the company’s recent survey found that Hua Hin and Cha–am beaches have high demand but there is a lack of areas close to the beach and it is very difficult to find a good location.
At present, they are 18 condominium projects with a total of 1,732 units on sale. The price ranges between 30,000–100,000 baht per square metre with about 75 percent of the total units on sale.
“Demand in Hua Hin is expected to grow for the whole year due to both Thai and foreign buyers, which boosted the price up by 10–20 percent during the past two years,â€
house prices
Trouble with a hua Hin forum is it gets too focussed on the immediate area. Of course prices will continue to rise in Hua Hin. It remains the most desirable area in thailand for thais to have a second home. thailands economy is growing fast and that means more second homes. It remains too the prefered destination of the worlds richest country..........Norway. Lots of rich swedes too. Markets make corrections but there's no 'bubble' in Hua Hin; look at prices in other hotspots in Thailand. Hua Hin remains very good value given the prices foreigners pay at home and there's no alternative to it in Asia given its unique blend, secure borders, good infrastructure, democracy, great hospitals, english language papers, great cuisine and hospitality, liveable climate, esp Hua Hin.
The art of business and politics is the art of the possible. The market will continue to work as people find solutions to problems and the idea that in the global economy Thailand will kill the goose that lays the golden eggs is crazy. It wont hurt tourism. FULL STOP It was just a tightening up of existing laws. Its blown out of all proportion and if it leads to more Thais being involved in the buying and selling of land and houses thats only a good thing. I dont like doing business with purely falang enterprises and never have. It needs a bit of Thai and foreign expertise to get the product right. Otherwise we will all end up living in houses totally unsuited to the country. If you haven't bought in Hua Hin you are missing the boat and if you are waiting for prices to start to fall dream on.
The art of business and politics is the art of the possible. The market will continue to work as people find solutions to problems and the idea that in the global economy Thailand will kill the goose that lays the golden eggs is crazy. It wont hurt tourism. FULL STOP It was just a tightening up of existing laws. Its blown out of all proportion and if it leads to more Thais being involved in the buying and selling of land and houses thats only a good thing. I dont like doing business with purely falang enterprises and never have. It needs a bit of Thai and foreign expertise to get the product right. Otherwise we will all end up living in houses totally unsuited to the country. If you haven't bought in Hua Hin you are missing the boat and if you are waiting for prices to start to fall dream on.
I agree with Roberto
Good one Roberto
Dream On!
For all your arguments in the these threads, ref falang companies, many of you out there, Burger, Tuktukmike etc. seem to think that only rich falangs can come here and buy a nice home.
Look around at the fancy cars, luxury homes, all owned by Falangs, I think not!
Dream On!
For all your arguments in the these threads, ref falang companies, many of you out there, Burger, Tuktukmike etc. seem to think that only rich falangs can come here and buy a nice home.
Look around at the fancy cars, luxury homes, all owned by Falangs, I think not!
Property values rise or fall depending on the perceived risk of ownership. The level of risk a purchaser is prepared to take varies to reflects the purchasers personal situation.
For example, if one is emigrating to a country, risk is a trade off between lifestyle and security of capital whereas if investing in property security of capital is all important.
Whether or not the Thai Goverment are hatching a rouse to crash the market by its recent announcement as suggested by James61, the Government is making the rules of ownership of land by foreigners quite clear.
When the British Embassy says that the only adviseable property purchase route is a condo and it can't understand why so many have set up companies to buy land, that should be a warning this is a very risky business.
If you don't know how to address the question of risk in investment analysis, I would recommend you do not get involved in foreign property ownership, possibly based on a few bar talks with people who have the same knowledge base as yourself.
Do not rely on a single word of an estate agent, even if he is the MD of Knight Frank.
Talk to the Embassy and their recommended list of legal advisors.
Based on the increased level of risk as a result of the the Thai Government's recent announcement, it would be suprising to see an increase in value in the foreseeable future. However, Roberto is quite right that Thais also are buying in HH.
For example, if one is emigrating to a country, risk is a trade off between lifestyle and security of capital whereas if investing in property security of capital is all important.
Whether or not the Thai Goverment are hatching a rouse to crash the market by its recent announcement as suggested by James61, the Government is making the rules of ownership of land by foreigners quite clear.
When the British Embassy says that the only adviseable property purchase route is a condo and it can't understand why so many have set up companies to buy land, that should be a warning this is a very risky business.
If you don't know how to address the question of risk in investment analysis, I would recommend you do not get involved in foreign property ownership, possibly based on a few bar talks with people who have the same knowledge base as yourself.
Do not rely on a single word of an estate agent, even if he is the MD of Knight Frank.
Talk to the Embassy and their recommended list of legal advisors.
Based on the increased level of risk as a result of the the Thai Government's recent announcement, it would be suprising to see an increase in value in the foreseeable future. However, Roberto is quite right that Thais also are buying in HH.
Thai me to the moon
Roberto, I fully agree with everything in your post. It was about time someone started to look further than the land office on Petchakasem rd when talking about the future of Hua Hin.
As a comment to Johnrxx99's talk about "risk", I would like to add that to any investor , the word "risk" is not entirely negative. An investment with no risk doesn't have much potential either. As long as you get so much more house for your money here compared to Europe, there will be enough people realising that in a somewhat longer term the property prices here in Hua Hin will continue upwards.
As a comment to Johnrxx99's talk about "risk", I would like to add that to any investor , the word "risk" is not entirely negative. An investment with no risk doesn't have much potential either. As long as you get so much more house for your money here compared to Europe, there will be enough people realising that in a somewhat longer term the property prices here in Hua Hin will continue upwards.
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tuktukmike
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Re: I agree with Roberto
But none of the Thais buy the houses - they only buy condos? Why?samlorsam wrote:Good one Roberto
Dream On!
For all your arguments in the these threads, ref falang companies, many of you out there, Burger, Tuktukmike etc. seem to think that only rich falangs can come here and buy a nice home.
Look around at the fancy cars, luxury homes, all owned by Falangs, I think not!
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tuktukmike
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