Hua Hin property picking up

[hhfarang]

Isn't it a bit alarming that 90% of E and V's properties are 'resales'? Unless owners are trading up from condo/apartments to houses, I'd say that 90% figure shows more of a rat/sinking ship situation than a stable market!

The ship has already sunk and this rat is treading water as fast as possible just to keep my nose above the surface!

[margaretcarnes]

Yes and sadly there are probably many more in your situation right now HHF. I don't have a problem at all with the credibility of E and V - far from it - as Understudy has pointed out they are a large and well respected company. But the fact is their reported 30 mill sales in the first 2 months of this year could easily be accounted for by the sale of just 2 or 3 properties. Amounts which are out of the reach of many people.
High end spenders will always be around in limited numbers, but for sustained growth - or even to maintain a regular turnover in any housing market - there needs to be a steady supply of buyers coming in at the bottom end of the market who will gradually trade up, and in turn sell on to newcomers. Conversely there need be people who have outgrown their property and need to trade down to retirement homes.
In places like HuaHin the majority of foreign buyers have to be retirees - whose requirements are static. The market must be affected by that - to the detriment of people who need to sell.
So has the supply of properties now exceeded the demand? It's looking that way - and the only way to reverse that trend is surely for prices to drop - and for development to go on hold.

[poosmate]

The needs of the people here may be static but the market in Hua Hin is not driven by people "buying up". There are many retirees still moving to Hua Hin and their needs can and do be met by resales.Many expats working in the middle east are still keen to make Thailand their retirement home.
Most quality developers are still taking orders and selling. Maybe not as quickly as before but most have made hay
Also bear in mind the prices may seem high to westerners who have been hit by exchange rates but seem to be a bargain to many high earners particularly in the middle east.
I think the property needs and market in the Hua Hin can only be compared in the UK with quality retirement areas who's customer base usually comes from a different area therefore only buying one house and not" buying up" therefore creating always a new build market ( not everbody wants a second hand home).
There are also many Thais who have not been affected and have not heard of the credit crunch.
Maybe this forum does not attract some of the satisfied well heeled who are still coming to Hua Hin and who have been living here for many years.

[TypicallyTropical]

The market must be really hot there, I contacted numerous real estate companies but only two replied and even those replies were kind of lukewarm.

[JimmyGreaves]

The market must be really hot there, I contacted numerous real estate companies but only two replied and even those replies were kind of lukewarm.

Lazy buggers they want it on a plate. Most of them have never heard of customer service all they want is smash and grab!

[Takiap]

I know nothing about the housing market but I do know a Thai company has just started a small development right next door to me, and as far as I know, all 25 units have already sold. Prices start at 2.39 million and if the pictures are anything to go by, the end result should look quite good. They sold out so quickly that the developers have just obtained another piece of land and will soon be starting construction. Again, prices start from 2.39 million. In my opinion, if you want to make money on the housing market then you need to be selling in the lower price range. Let's it; it's a lot easier shifting a house that costs 2.5 million than it is trying to sell something that costs 20 million.

Looking at some of the developments around here, I can't but wander who the clever ones are......farang or Thais. Construct a home which you can flog for 2 to 3 million and you're selling to the Thai and farang market, and while your profits may not be as much, you do manage to sell. We've had a few offers for our place and all apart from one has been from Thais. Unfortunately they were not willing to give us what we want so we declined. What also helps is the fact that our place is not in a development as many Thais just don't like the idea of developments. Personally, I don't blame them either.

[cookmanchef]

If you look in an estate agents window in the UK you will probably see that 99% are resales so I don't see anything negative about E&V's 90%. A lot of the other agents probably lean the other way with 60% of their offerings new developments, maybe E&V have a different business model?

[TypicallyTropical]

The market must be really hot there, I contacted numerous real estate companies but only two replied and even those replies were kind of lukewarm.

Lazy buggers they want it on a plate. Most of them have never heard of customer service all they want is smash and grab!

Jimmy, you sure are right on the money with that statement! Unfortunately, the lack of customer service is a trend most everywhere in the real estate industry, not just in SE Asia. (I actually walked away from a new condo project a few years ago in Malaysia because of the total unresponsiveness of the developer.)

[sargeant]

Takiap a super post
The only bit i will add is Thais BUY on MORTGAGES.(so does this lonely farang)

The mortgage is based on the banks valuation which is at THAI prices/values not on farang fairy tale prices plus what the bank feels it can sell it for should they need to foreclose and farang prices do NOT come into that equation at all

The farang property market was way way over priced and based on payment in full and therefore NO NIL realistic value placed on the properties just the max the mugs would pay

a large %age were built with no regard as to who would be buying when the shit hit the fan most of which are out of reach of even middle class Thais

now we have a very soiled fan

now the farang buyers are gone as mags said prices must drop to a level that allows Thais to buy on a bank valued mortgage

cookmanchef correct 99% of property in the UK is resale but 99% are on mortgages which is comparing apples and runner beans with the farang property market in Hua Hin

[London Boy]

I am sometimes quite puzzled with responses here as most of the people posting are living in Hua Hin or very much associated with the area but constantly run it down in some way or another.
I bought a place in Hau Hin some 18 months ago and was very happy with the response from various agents who we dealt with; in fact, they were very much more helpful that any Estate Agent we have used in the UK.
Property markets around the world will always have upsides and down sides (ask the Middle East expat).
Another post said that he pulled out of a deal in Malaysia because of the way the estate agents handle them but what has this to do with Hua Hin?
I know of at least three people who have turned away from thinking of purchasing in Hua Hin because of all the negative posts.
If there is a substantial amount of foreigners in Hua Hin then there must be something good there surely?

Before anyone asks, no I am not an agent but regard Hua Hin my second home for my wife and I (both Europeans) and hopefully within the next 2 years be permanent.

[poosmate]

Prices of houses built for the western market ( read 7 million plus Baht ) will not drop to levels that allow poorer Thais who are forced to live in low cost housing that the banks will lend on. Nor will the price of a BMW be reduced to the price of a Honda Wave
As I said in a previous post the Farangs have not stopped buying. There are less of them agreed but they are still there. As for a dead market try looking at the crowds inside the local land office transfering both land and houses.
Remember not everyone is poor and having to rely on pensions and stock markets.
Some are working here on western salaries along with accommodation /education packages.
Some just have lots of money:)
As for Thais buying on morgages I would suggest that most Thai homes on developments and condos have finance terms that are arranged by the developer.
Some westerners are suffering but some are still happy to buy houses that some on this forum consider them paying " mug " prices. Who is correct? I would think the person who is happy at the price he paid and is happy living in a country who's property prices are much cheaper than their own and that general cost of living is lower.
As for resales and listings I believe many of these are by both Thai and Farang who are not really trying to sell but will if the offer is high enough.This type of property price will not fall. Thais will sit and wait for ever if necessary ( pass to children ) until they get the price they want. Some Farangs are also in this position and can own several properties/land and can afford to wait and see.
Hua Hin is and will continue to grow in my opinion. Maybe the growth will be slower for a while but I believe we will see many more high end developments golf courses etc.
And a steady flow of "mugs" not prepared to live in anything less than the luxury that many developments continue to offer.

[poosmate]

London Boy. I agree. I think on this forum there are many dissatisfied complaining and generally miserable guys.
Who like me is happy? I like my house,the price I paid and the agent.

[hhfarang]

I like my house and Hua Hin. I know several honest property agencies... [Edited at the request of the poster] My problem is the dollar and the fact that when I first came here six years ago I picked a "not so honest" developer which caused me to burn through my savings more than I intended. Now with the drop in exchange rates, I do not have a happy life here any longer.

Just a bad set of circumstances...

[Takiap]

I am also happy with the house we had built. Having said that, we never purchased in a development and we never worked through a developer. We found a piece of land for sale which we liked so we simply drew the money out of the bank and went to the land office with the owner. Once the land was transferred we handed over the cash and we each went our own way. The wife then asked around between the Thai locals and soon we had found a builder. 100% honest with us all the way from start to finish and I have no reason to complain. Just wish I had spare cash so I could let my imagination run wild with the garden

As someone has pointed out, some of us will sell if the offer is right, but if not, then too bad, we'll just stay where we are.

[Super Joe]

I think on this forum there are many dissatisfied complaining and generally miserable guys.
I like my house,the price I paid and the agent.

It's like anything, you don't get people talking about how things went well, you just hear complainers.

I know a tonne of happy people, particularly Brits who 'bought' your typical 4M Baht house with pool, over here a few years back when the rate was 72 Baht/Pound. They're happy they didn't listen to the doom & gloom brigade telling them to rent, leave their cash in the UK earning interest, and that the government was going to take their house off them any day.

They're happy they didn't start renting the same place for 20k/month, as the interest they'd be getting now would maybe just cover they're yearly rental increases here.

Meanwhile the increasingly higher cost of sending the rent over, currently around 48 Baht, makes that 'safe' investment back in the UK only has about another 8 years remaining. Unless, hope to God, the exchange rate doesn't start sorting it's life out.

Rent, Rent, Rent was the cry, based over a 30 year lease at today's rate, that 55,000 Pound house will cost you 150,000 Pounds in rental money

SJ