Huge price differences for old and new condominiums. Why?

[OneMoreFarang]

I recently checked some prices for renting and buying condominiums in Bangkok.

Obviously new and modern buildings are more expensive than older buildings. But I am surprised by the huge differences.

I.e. in one lower Sukhumvit Soi the asking price in a new condominium is about 200k per square meter. Not even 500m in the same soi is a high rise building from 1995 with prices about 70k per square meter. And renting in these places the prices have the same dynamic. More than double in the newer building.

 

So what's the huge difference?

If the old building and the unit(s) was never renovated then the big price difference is understandable. But some "old" buildings are well maintained. And a unit might be fresh renovated to a similar standard like in the new building. But the price differences are still huge.

 

I guess if someone buys a condo then the absolute price is important but relative. I.e. after x years the price will be maybe 10% up. And the same applies to the old building. The price still goes up.

But what's the advantage of renting a double expensive unit in a new building compared to a freshly renovated unit in an old building?

 

I want to move to a new place probably sometime next year and I want to get a better understanding about the situation.

 

[Mavideol]

42 minutes ago, OneMoreFarang said:

I recently checked some prices for renting and buying condominiums in Bangkok.

Obviously new and modern buildings are more expensive than older buildings. But I am surprised by the huge differences.

I.e. in one lower Sukhumvit Soi the asking price in a new condominium is about 200k per square meter. Not even 500m in the same soi is a high rise building from 1995 with prices about 70k per square meter. And renting in these places the prices have the same dynamic. More than double in the newer building.

 

So what's the huge difference?

If the old building and the unit(s) was never renovated then the big price difference is understandable. But some "old" buildings are well maintained. And a unit might be fresh renovated to a similar standard like in the new building. But the price differences are still huge.

 

I guess if someone buys a condo then the absolute price is important but relative. I.e. after x years the price will be maybe 10% up. And the same applies to the old building. The price still goes up.

But what's the advantage of renting a double expensive unit in a new building compared to a freshly renovated unit in an old building?

 

I want to move to a new place probably sometime next year and I want to get a better understanding about the situation.

 

same as a 18 years old girl and a 40 year lady 555

[worgeordie]

Well if it's an old building it probably means the owner will have recouped

the cost of the building over the years,so can afford to offer lower prices,

 

Anyone buying a new Condo now will be paying a lot for the property,so

will need a higher return on his investment,the price of land now is why

property is so expensive.

regards worgeordie

[Peterw42]

I think you can attribute some of the price difference down Thais being a superstitious bunch. Thais believe in ghosts so therefore any old property can have a ghost. Many Thais will only consider new and will pay a premium for it..

All those spirit houses in the front of the house/condo block are not there for decoration.

 

 

[Pilotman]

1 minute ago, Peterw42 said:

I think you can attribute some of the price difference down Thais being a superstitious bunch. Thais believe in ghosts so therefore any old property can have a ghost. Many Thais will only consider new and will pay a premium for it..

All those spirit houses in the front of the house/condo block are not there for decoration.

 

 

are Thais the ones buying? 

[Susco]

Last week I went to the Mercedes showroom, and a new car costed a lot more than one from 1995.

 

Anyone can explain?

[Ireland32]

On 11/18/2020 at 5:50 PM, OneMoreFarang said:

I recently checked some prices for renting and buying condominiums in Bangkok.

Obviously new and modern buildings are more expensive than older buildings. But I am surprised by the huge differences.

I.e. in one lower Sukhumvit Soi the asking price in a new condominium is about 200k per square meter. Not even 500m in the same soi is a high rise building from 1995 with prices about 70k per square meter. And renting in these places the prices have the same dynamic. More than double in the newer building.

 

So what's the huge difference?

If the old building and the unit(s) was never renovated then the big price difference is understandable. But some "old" buildings are well maintained. And a unit might be fresh renovated to a similar standard like in the new building. But the price differences are still huge.

 

I guess if someone buys a condo then the absolute price is important but relative. I.e. after x years the price will be maybe 10% up. And the same applies to the old building. The price still goes up.

But what's the advantage of renting a double expensive unit in a new building compared to a freshly renovated unit in an old building?

 

I want to move to a new place probably sometime next year and I want to get a better understanding about the situation.

 

You want good price do monthly Air B and B No deposits , I’ve booked mine for a year 

[sherwood]

Functional Obsolescence and in Thailand that can be only a decade after construction. If the building falls down or is demolished you get zero return.

Caveat Emptor.

[1FinickyOne]

Buildings depreciate... older buildings will need more attention and the life span has been shortened.. 

 

I bought in an older building at probably 70% off new construction... and the unit has more character than the modern boxes.. 

 

As to rentals, if someone pays 10MM today they will want more return on their investment than someone who paid 1MM 20 years ago... 

[natway09]

If you want modern & new, you pay for it.

The developers can be greedy as well.

Take a look at the corner of Sukhumvit Soi 6 Price start 18,000,000.

They are mad, paid far too much for the land, greedy or all of these.

The building certainly does not reflect the price tag as it is standard modern box cad plan

design.But then again, I have only ever seen 2 lights  on in the apartments & there must be 6,7000

new apartments for sale in Bangkok.

There could be a bit of money laundering in some of these modern complexes as the feasability study of holding costs alone just do not stack up

[OneMoreFarang]

11 minutes ago, natway09 said:

If you want modern & new, you pay for it.

The developers can be greedy as well.

Take a look at the corner of Sukhumvit Soi 6 Price start 18,000,000.

They are mad, paid far too much for the land, greedy or all of these.

The building certainly does not reflect the price tag as it is standard modern box cad plan

design.But then again, I have only ever seen 2 lights  on in the apartments & there must be 6,7000

new apartments for sale in Bangkok.

There could be a bit of money laundering in some of these modern complexes as the feasability study of holding costs alone just do not stack up

Thanks, I see that building from my apartment. And it's always almost completely dark...

[bkk6060]

17 minutes ago, natway09 said:

If you want modern & new, you pay for it.

The developers can be greedy as well.

Take a look at the corner of Sukhumvit Soi 6 Price start 18,000,000.

They are mad, paid far too much for the land, greedy or all of these.

The building certainly does not reflect the price tag as it is standard modern box cad plan

design.But then again, I have only ever seen 2 lights  on in the apartments & there must be 6,7000

new apartments for sale in Bangkok.

There could be a bit of money laundering in some of these modern complexes as the feasability study of holding costs alone just do not stack up

Sopon Pornchokchai, the president of Agency for Real Estate Affairs, says there is 100,000 vacant completed condominiums in and around Bangkok.

 

6 to 7,000?

Try 100,000.

[phantomfiddler]

On 11/18/2020 at 2:50 AM, OneMoreFarang said:

I recently checked some prices for renting and buying condominiums in Bangkok.

Obviously new and modern buildings are more expensive than older buildings. But I am surprised by the huge differences.

I.e. in one lower Sukhumvit Soi the asking price in a new condominium is about 200k per square meter. Not even 500m in the same soi is a high rise building from 1995 with prices about 70k per square meter. And renting in these places the prices have the same dynamic. More than double in the newer building.

 

So what's the huge difference?

If the old building and the unit(s) was never renovated then the big price difference is understandable. But some "old" buildings are well maintained. And a unit might be fresh renovated to a similar standard like in the new building. But the price differences are still huge.

 

I guess if someone buys a condo then the absolute price is important but relative. I.e. after x years the price will be maybe 10% up. And the same applies to the old building. The price still goes up.

But what's the advantage of renting a double expensive unit in a new building compared to a freshly renovated unit in an old building?

 

I want to move to a new place probably sometime next year and I want to get a better understanding about the situation.

 

Down in Pattaya it's not difficult to find decent condos in the 30k psm range, but most Asians do not like to buy 2nd hand, be it goods or condos. I miss the Oxfam and St Vincent second hand shops where one can get incredible deals, but they wouldn't work here methinks ????

[Nanaplaza666]

On 11/18/2020 at 6:49 PM, Peterw42 said:

I think you can attribute some of the price difference down Thais being a superstitious bunch. Thais believe in ghosts so therefore any old property can have a ghost. Many Thais will only consider new and will pay a premium for it..

All those spirit houses in the front of the house/condo block are not there for decoration.

 

 

55555 wich clinic do you get your recipe i need to go there to get some . I know thai believe in ghosts but they can see them in any building old and new . Still your clinic should make more and try to never run out . 

[OneMoreFarang]

I just checked with my Thai gf about buying a "used" condominium. It seems there are several reasons to buy new.

 

Ghosts are a possible reason. She told me if I would buy a new condo then she wants to sleep at least one night in that place before we buy it. After that night she will know if there are any ghosts and if the ghosts are malicious.

In case there are malicious ghosts it seems some buddha ceremony can fix that problem.

 

Another reason for buying new is the hassle with checking an old place. I.e. if the current owner has the place mortgaged it will be a lot more work to transfer it, especially if the buyer will also mortgaged it. In a new building they have finance plans. Just sign and that's it - at least that's what she tells me is what many Thais think.

 

 

[ianezy0]

On 11/18/2020 at 6:49 PM, Peterw42 said:

I think you can attribute some of the price difference down Thais being a superstitious bunch. Thais believe in ghosts so therefore any old property can have a ghost. Many Thais will only consider new and will pay a premium for it..

All those spirit houses in the front of the house/condo block are not there for decoration.

 

 

Can you rent one of these spirit houses. Could be a bargain!

[Tarteso]

On 11/18/2020 at 5:50 PM, OneMoreFarang said:

I want to move to a new place probably sometime next year and I want to get a better understanding about the situation.

Have you thought be a Squat? ????

Edited November 20, 2020 by Tarteso

[Airalee]

I’d put it all down to construction quality.  It’s not like major US and European cities where some of the most expensive (and exclusive) condos, co-ops and apartments are in older buildings which are already a century old (and will easily last another century).

[OneMoreFarang]

48 minutes ago, Airalee said:

I’d put it all down to construction quality.  It’s not like major US and European cities where some of the most expensive (and exclusive) condos, co-ops and apartments are in older buildings which are already a century old (and will easily last another century).

Part might be about construction quality but definitely not all of it.

I saw when Trendy was "built". They used a very old empty building and then they renovated it with the cheapest material and the cheapest labor possible. And they still want to charge a lot of money for those cheap units in that old building.

 

[Airalee]

14 minutes ago, OneMoreFarang said:

Part might be about construction quality but definitely not all of it.

I saw when Trendy was "built". They used a very old empty building and then they renovated it with the cheapest material and the cheapest labor possible. And they still want to charge a lot of money for those cheap units in that old building.

 

You could also contribute some of it to the “uneducated consumerist” where “newer is better”...even when it isn’t.  
 

So many things regarding real estate here make no sense.  Condos with names that are derived to feed peoples egos.  Premium pricing for “location” when I see the same worn sidewalks, shophouses etc etc in the premium locations.  Beverly Hills prices for locations that make parts of Compton look upscale.
 

Then there are the premium condos with wonky floor plans and the same minuscule kitchens with a bar size sink (sans hot water), two burner cooktop, an open spot for a microwave under the counter,  a refrigerator just plopped in the middle of the room like it was an afterthought....no dishwasher...and they have the audacity to ask 300k/sqm?!?  oh...but the gold trim is fabulous! 
 

Don’t get me started on the branded condos either...lol.  Slap a brand name on it and it’ll sell...or not.

[Jen65]

some older Condo's are really well built ( mine about 30yrs old ) , no cracks , no movement and very solid walls plus air gap and plasterboard on adjoining walls .  Most new Condo's (and houses) are really thrown together with airbricks and really cheap construction .   The exception are really upmarket developments with either European or scrupulous project management .  As already mentioned elsewhere , the land prices are so high that in order to make any profit , the construction is cut to the bone . Older, well maintained Condo's in low rise buildings are well worth renovating ( definitely re-wire). Of course , location, location ,location is the key to buying any property.

[geisha]

OneMoreFarang, your girlfriend would have freaked out in my last new build rental ( 5 yrs old). Shelves and anything else fell off the walls, windows wouldn’t close properly, or couldn’t open, pool had several problems. The usual smelly drains.Of course I moved out. On the other hand , have had 4 older rentals, and never had a worry. 

[rupert the bear]

its very true,new builds,higher land price. higher wages materials too,they are a poor buy too. the finishings are usually poor older bldgs are more robust in many cases and wood floors. bigger land space for facilities such as pools tennis courts gardens etc some new builds havent designated parking spaces,maintenace fees are cheaper and the management proven,some extras for upgrades though,in my mind its a no brainer and for overseas buyers too,even the thais are changing to that mindset too,i really dont understand why they keep building new stuff at this incredible rate.whos gonna buy them?we still have the xenophobic rediculousness of govt limiting overseas condo ownership,its space not land being bought but what do you expect from these fools?i see a lot of these companies going broke soon as the banks want their pound of flesh.no buyers and the lock out of buyers contimues,theres demand if they open the gates

[OneMoreFarang]

6 hours ago, geisha said:

OneMoreFarang, your girlfriend would have freaked out in my last new build rental ( 5 yrs old). Shelves and anything else fell off the walls, windows wouldn’t close properly, or couldn’t open, pool had several problems. The usual smelly drains.Of course I moved out. On the other hand , have had 4 older rentals, and never had a worry. 

She is fine as long as she has good food and lots of videos - and of course no ghosts.

I wouldn't freak out, just fix it, get it fixed, or move out.

[CM Dad]

On 11/18/2020 at 6:55 PM, Susco said:

Last week I went to the Mercedes showroom, and a new car costed a lot more than one from 1995.

 

Anyone can explain?

Cost, Cost, Cost...NOT costed.

[Susco]

7 minutes ago, CM Dad said:

Cost, Cost, Cost...NOT costed.

 

Let's hope you are not an English teacher.

 

[elgenon]

17 hours ago, OneMoreFarang said:

I just checked with my Thai gf about buying a "used" condominium. It seems there are several reasons to buy new.

 

Ghosts are a possible reason. She told me if I would buy a new condo then she wants to sleep at least one night in that place before we buy it. After that night she will know if there are any ghosts and if the ghosts are malicious.

In case there are malicious ghosts it seems some buddha ceremony can fix that problem.

 

Another reason for buying new is the hassle with checking an old place. I.e. if the current owner has the place mortgaged it will be a lot more work to transfer it, especially if the buyer will also mortgaged it. In a new building they have finance plans. Just sign and that's it - at least that's what she tells me is what many Thais think.

 

 

Does she check for ghosts of dead construction workers?  That could be very bad.

[OneMoreFarang]

36 minutes ago, elgenon said:

Does she check for ghosts of dead construction workers?  That could be very bad.

I could ask her, and probably she would explain it to me in detail for the next hour or maybe days later.

I think I better don't ask.

[thailandbeachisland]

On 11/18/2020 at 6:33 PM, Mavideol said:

same as a 18 years old girl and a 40 year lady 555

 

Except that in Thailand a 18 years old is a pure idiot that you cannot trust when a 40 years old is a good one that you can trust and you have evidences can "work" well...

 

 

[TheFishman1]

 But I would recommend get a crystal ball to see into the future but on a serious note why don’t you ask an expert in real estate and see what they would say I have no clue if any expert in real estate could tell you what is going to be possible in 10 years you post a lot of posting the question you asked just seems unbelievable but I guess asking all the experts on this visa is a great thing to do must get great advice like how long does a piece of string 10 years in the future what would the interest-rate be TIT