Astronomical Prices

[midnightsun1]

I recently looked at some property/real estate businesses. Just seeing what the prices are for homes and condos. Its out of this world for the prices I am seeing for condos and homes in Phuket. Hard for me to believe anyone paying these prices. From 3 million to 80 million baht.

Just curious to know. Any BMs have a good idea what the cost of construction is a square meter? Minus the property. Lets say for a low? medium? and high standard home or condo?

[Nicke]

You can get decent Thai houses for 1.5-2.0m baht, lots of them in Kathu and Phuket Town.

[Hobbsy]

20,000 baht sqm - med-high level finish.

[midnightsun1]

Originally Posted by Hobbsy

20,000 baht sqm - med-high level finish.

So then for a nice 40 sqm studio condo.... 800,000 baht or so in construction. probably no more then 1 million baht... selling for well over 3 million baht up to 7 million.

some serious mark up or inflated pricing... people are making some big money.

Nicke,

Not interested in buying at all. And if the day comes I will do it up North.

[JayBee]

Originally Posted by midnightsun1;

So then for a nice 40 sqm studio condo.... 800,000 baht or so in construction. probably no more then 1 million baht... selling for well over 3 million baht up to 7 million.

some serious mark up or inflated pricing... people are making some big money.

Not necessarily. You are not figuring land value, and other costs associated with construction, such as financing, sales commissions, advertising, permit fees, design fees, taxes, school fees, sewer hook-up fees, utility hook-up fees, and bribes.

[midnightsun1]

Originally Posted by JayBee

Not necessarily. You are not figuring land value, and other costs associated with construction, such as financing, sales commissions, advertising, permit fees, design fees, taxes, school fees, sewer hook-up fees, utility hook-up fees, and bribes.

Very true... But that much? When I am thinking of a condo complex with many many units... Can not come to justify it.

Hobbsy, estimating 20k. Do u think that is Thailand wide or just Phuket?

[Dodger]

Think Hobbsey is on the button, I was quoted 18k per m2.

Think JB knows about construction in America but the price hobbo quoted takes it into consideration, only on top are the cost of the land, divisable by the number of condos and the architects fees, usually 3 to 5 % of the build cost, the architrect sorts all matters relating to the build for that price so not other meaningful costs.

[Benjy]

Obviously 20k per metre is general build cost to a high-ish level, doesn't apply to very small places like Condos, but generally the cost of a larger place with economies of scale etc... Also otrher considerations to be taken into account;

For building a villa you have to figure in (add);

Land Price
Architect
Cost for Building permission (300k Baht?)
Contractors running away with money
Road
Electric connection
Phone connection
Address
etc...

Generally if you are lucky you could build a place for 1/2 the price that it will sell for in the market, thats if you aren't unlucky with contractors, dodgy land, dodgy solicitors, poor build quality etc... The reason real estate price is higher, is because buying an already built place there is nowhere near as much risk.

Cheapest building price I have heard is 8k baht for Thai style (electric cable on walls etc...) and upto 30k baht for marble everywhere per square metre.

[Nicke]

Its a good advice, as so many problems may arise during the building process.

Another good advice is to build on a plot where you already have neighbours/developed area, not on the middle of nowhere and you dont know whats is going to happen around your plot. (E.g. on the big open area behind Simon Cabaret where I was offered land in the past)

Another plot I looked at 2 years ago had no water and phone lines, but the seller claimed it was on the way including road for the soi etc. Today there has been some villas built there but still no road, public water or phone lines available. It may be planned but you dont know if next year or in 10-20 years.

And road access, its a common trap. So check out carefully.

Originally Posted by Benjy

The reason real estate price is higher, is because buying an already built place there is nowhere near as much risk.