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BANGKOK 22 April 2019 09:27
Pravda

Construction costs of houses going through the roof?

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We have lived in a 3 bedroom townhouse for 3 years near Chiang Mai Airport. We paid 3.1 million new and about another 500k to add a 4th bedroom downstairs, make an enclosed kitchen in back and furnish the inside. Our complex has five 3 bedroom units that never sold and a few 2 bed room units that sold but have been listed for sale since last summer. I do not see much demand over the past few years. When we bought 3 years ago, you had to go out to the 2nd or 3rd Ring Road to find cheaper houses. Our 2 older kids have a house building/remodel business. Past 2 years, they have had a decrease in new customers even asking for bids on jobs. This past year, they only got a couple of remodel jobs, but no new from the ground up house builds. It has been a struggle to keep their team of workers busy. When we drive around Chiang Mai, I see many new unsold vacant units. It has been that way for a few years now. We have friends who own local businesses that are also seeing a decrease in customers. I do not think the cost of new building, at least in the Chiang Mai area, can continue to increase until the demand returns.

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It sounds like the price is for the finished houses including the cost of land and markup and the value that the owner feels they are valued at once finished, I.e the retail price + foreigner markup 

 

welcome

 

😶

 

 

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8 hours ago, baansgr said:

Construction costs have increased no more than 20% in ten years. Bog standard unfurnished with Thai block/tiled kitchen 2 bed 2 bath 108 sqm, just being built by me cost 1,100,000, that includes boundry and gate on 55 TW so your 3 bed 3 bath should still really not be more than about 1,300,000...location Jomtien and of course not including land.

We've build a house in a village in the northern part of Thailand with around the same specs (but large external kitchen) for 1.5 million Baht or so. Mostly not very expensive quality materials (I think) and built buy local villagers, but the house is still decent imo. 

 

I do believe that many Thai people try to make huge profits on houses though. And I would guess most foreigners don't really know what the actual cost is to build a house here. I think that the prices you see on many real estate sites are rather crazy.

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32 minutes ago, Rimmer said:

I built ten years back for 10k a square meter but 15k at that time was the norm, but we used family.

A friend who is a builder has ten house projects on the go at this time says the cost per sq mtr now is around 20k.

 

As an example back then I paid 14 baht each for QCon blocks they are now 22 baht each, labor has gone up and steel has gone up considerably,  another big factor in the price rise 

 

Okay, so it looks like my amateurish observation was correct.

 

The 2 million dollar house is definitely over 100sqm, so they might be even getting a deal.

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The build cost of a finished house varies vastly according to the quality of both the style of build/building method and materials and fitments used.

 

On the style side you need to consider things like the number of storeys, bathrooms, gables, balconies etc. etc. Building method - single or double skin walls? Tin sheet or tiled roof etc. ect. Far too many variables to be able to give an idea on cost without knowing the above details.

 

Materials, fenestration and internal fitments can also have a huge impact on the cost price.  I've had people tell me they've built a single storey small house - complete for 500,000. Yes, you can still build a house very cheaply in Thailand if you are happy with Chinese plastic windows, no skirting boards or architraves, plastic bathroom doors and kitchen units built from concrete block with doors from the local DIY shop.

 

I've just re-fitted my house to suit my own personal requirements - its only a 2 bed but the windows and doors were around 250,000 and the western kitchen 220,000. Add on the plumbed in 'inverter' hot water system and I'm close to 500,000 for those items alone - quality costs money. My plugs, sockets and switches were close to 30,000!

 

I went to look at some houses on a new development recently - advertises at 2.9 mil. They look quite well from the outside but when you get close up/go inside, they are very basic.

 

 

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Supply & demand.

But finishing as has been said makes a huge difference. Kitchen appliances can add 800,000

at the blink of an eye if you want the top stuff

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Here in Udon a cousin of my wife built a 2 bedroom bungalow 2 years ago, under 100 sq, metres, to a middling Thai standard and it cost 1.2 million, not including the land (previously had old thai house on it).

 

There has been a bit of an explosion in Thais having houses built on family land, but usually small (50 sq. metres?) and basic concrete block and brick (single thickness). These are all about 600,000-800,000 i understand. I guess these are for older couples who expect to retire soon and return to Isaan. Middle class/farang builds have hit a 10 year low i would say. The only Moobaan developments now going on are those on really well located sites at Hiso prices (The latest near Nong Prajak has prices up to 30 million!), But the developer i know admits sales are really bad.

 

The older, 10-20 year old Moobaans often have about 25% of the plots still undeveloped and no sign of ongoing building.

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14 hours ago, rickudon said:

Here in Udon a cousin of my wife built a 2 bedroom bungalow 2 years ago, under 100 sq, metres, to a middling Thai standard and it cost 1.2 million, not including the land (previously had old thai house on it).

 

There has been a bit of an explosion in Thais having houses built on family land, but usually small (50 sq. metres?) and basic concrete block and brick (single thickness). These are all about 600,000-800,000 i understand. I guess these are for older couples who expect to retire soon and return to Isaan. Middle class/farang builds have hit a 10 year low i would say. The only Moobaan developments now going on are those on really well located sites at Hiso prices (The latest near Nong Prajak has prices up to 30 million!), But the developer i know admits sales are really bad.

 

The older, 10-20 year old Moobaans often have about 25% of the plots still undeveloped and no sign of ongoing building.

Who would pay $1.000.000 for a house in Issan..... No wonder he can't sell them... That kind of money can buy beachfront or even major  cities around the world where you can actually own the property... 

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Posted (edited)

........................................................

Edited by KhaoYai

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On 3/7/2019 at 10:45 PM, cornishcarlos said:

Sounds high to me but then Thais lie a lot, they look better if they say their house cost 3mil as opposed to just 1mil... 

There was a typo in your post.  I fixed it for you.

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15 hours ago, baansgr said:

Who would pay $1.000.000 for a house in Issan..... No wonder he can't sell them... That kind of money can buy beachfront or even major  cities around the world where you can actually own the property... 

Where can you buy beachfront or even in a major city around the world for the equivalent of $31,515 USD?

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My Thai neighbour (divorced young lady) has just built a nice little two story place.  Nicely rendered with steel frame, proper gyprocking, hidden wiring and a nice steel water tower tank included.  All up 500K THB.  But the build is now 3 months passed promised deadline because the builder just cant get enough workers.  Good quality job.  I might actually get the builder to build exactly the same for me.

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13 hours ago, Khaeng Mak said:

Where can you buy beachfront or even in a major city around the world for the equivalent of $31,515 USD?

 

You are confused.

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On 3/10/2019 at 7:04 AM, baansgr said:

Who would pay $1.000.000 for a house in Issan.

The OP keeps using $ when he means baht - or at least I hope he means baht.........

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