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Property values set to Plunge-Here we go...


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In the Nation newspaper.True or false?

Well what do you fellows think?

I own/share no worries some inexpensive and lovely land with my Thai best friend in the countryside....Glad I never bought in BKK.

Fly speak up.!




Property prices set to plunge


Published on Feb 25, 2004



Land owners on the periphery of Bangkok?s central business district (CBD) are set to feel the pinch from the capital?s new zoning laws, with property prices tipped to plunge between 14 and 27 per cent, a leading industry figure said yesterday.


Wasan Khongchantra, deputy managing director of the Agency for Real Estate Affairs, said areas most affected would be Pinklao and the Rama IIIRoad area, where property prices were expected to fall by more than 20 per cent.


He said other areas set to experience a severe property-price nosedive included Klong Toei, the Rama 9 Cable Bridge and Sukhumvit Road up to Soi 39.


The new laws, set to be implemented before July, also left little room for the development of high- and large-scale developments in Silom, Sathorn and Phaholyothin areas, he said.


Wasan said that under the new laws, Bangkok?s CBD and surrounding areas needed to be concerned about the floor-area ratio and open-space ratio, meaning property developers would construct smaller buildings but the size of land plots would remain the same.


Developers would also have to open more space than before.


He said that under the new laws an 18-story building on a 15-rai plot would have to have an open space of fiverai.


As a result, land prices for developing commercial buildings would likely decrease.


?The concept of the new Bangkok city-zoning law is good, but too late,? he said.


Sasithorn Ongdee


The Nation

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>>>Fly speak up.!<<<



sorry, but i have no idea about property market in the cities. i am too stupid for that. i understand value of agricultural land as it is connected to something real - what you can make out of the land. city property has rules which are beyond me.


if that thread is not gonna be derailed i will just sit back and maybe learn something. ;)

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Not sure I follow the economic logic here. If zoning laws restrict the size of new buildings by requiring more open space around them, this will cause less space to available. Now assuming demand in these areas continues to rise, wouldn't the prices increase (Supply-demand stuff)? Now if he is saying, demand will decrease because of these laws that is different, but he never gives a reason for that to happen. I think demand would go up with more open space required, as it would make it more desirable.

Assuming no major crash caused by other factors (See other thread for this discussion) then I think his logic is off and he is just coming up with a false impact to scare people to oppose the zoning laws, which probably do impact him in some way. Probably less property for him to sell.


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>>sorry, but i have no idea about property market in the cities. i am too stupid for that. <<




since I read this your post this morning I am sitting at my desk and all is wet from my tears of joy. Is this possible ? Finally you admit you are too stupid for something ? Did you have a Buddha-type enlightenment ? I am used to know that you understand and know everything , in fact know everything better by talking to the " blokes in your wife's village " where Thai men do not drink and cheat on their women and the " value of agricultural land is connected to something real " . What could that "real " be , the mad cow disease , the chicken disease ? Flyonzewall, for this time, I am holding my breath to learn about the secret formula that makes agricultural land have a real value against urban plots which have none. Is it the fertilizer ? 20000 squaremeters at Wireless Road, shall we transfer it to farmland to create value ? New Life Project for all redundancies from Nana and Soi Cowboy, aching under the sun to grow a handful of rice. In bad mood but creating real value.



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