Land prices in Thailand -- Disney Rumours?

[asiafun]

I will be in the market soon to pick up a few small plots of land in either Thailand, the Philippines or both. While I have a idea of what I should be paying in the Philippines I am at a disadvantage in Thailand. I have considered the Pattaya area.

 

Plot sizes I am looking at are in the range of 50sq/m to 500 sq/m

 

I am looking for the average price per sq/m in Pattaya city, the undeveloped areas a few klicks to the east of Pattaya and in Jom Tien. I am looking for land that does not have buildings on them.

 

I am also aware that if I am not a Thai citizen I cannot actually buy the land but must enter into a 30 year lease. I have heard that there are different types of leases that I must be aware of though as some may limit my ability to develop the land or release to another indovidual so that I could turn a profit. Any comments please...

 

Lastly during my last little fun run to Pattaya I had heard from a US gvt official in an unofficial capacity make a side comment that Disney has been looking strongly at developing an area in Thailand and the most likely candidate being in the area of Pattaya.

 

In the same vein a comment was made that an organization was buying up tracts of land just outside Pattaya city but was unsure if it was a front for Disney or some other venture. Comments? Any truth to the rumors or more rumors to add?

[cardinalblue]

Simple question..why?

 

I can understand purchasing a place one is going to call home and live there part or wholde during the year..

 

But to buy land or house as an investment in a country where the econ is not that great, where inflation is rising yet not being relected in salaries and incomes? Where 25% or more is added to the value if a falang is invo;ved in the purchasing equation..

 

Where areas that falangs are buying into, i don't believe they reflect true value compared to current market value. Thais don'r seem ro rent or pay the same prices as foreigners do.

 

All these condos going for 4 million up on lower suk, homes going for 3 to 8 mil and up in pattaya, homes in CM that falangs are puchasing 3 mil and up isn;t true value or put it another way, i believe are overvalued and will take the biggest hit if there is another correction.

 

just wait for the baht to lose 25% or so and you wished that you didn't buy now but had waited..

 

Better to stick with american real estate if one is looking at it from an investment perspective..

 

How stable is the baht should be your first question...

 

CB

[khunsanuk]

Hi,

 

"Lastly during my last little fun run to Pattaya I had heard from a US gvt official in an unofficial capacity make a side comment that Disney has been looking strongly at developing an area in Thailand and the most likely candidate being in the area of Pattaya. "

 

Seeing that there are already 2 in the region (Tokyo and Hong Kong) I kinda doubt this. Of course what do I know?

 

Sanuk!

[pattaya127]

CB is right. Unless you have insider information, from people you know well and trust unconditionally, such investment may cause more headaches than anything else. Buy to own and build in Thailand, not invest, I'd say. If that makes you money later, good, but not the plan at the onset.

[asiafun]

You gentlemen are absolutely right buying land for investment purposes is not a good idea.

 

I do plan to buy to "own" for house purposes and even put up my own side business when the timing is right. I am not planning on buying just for the sake of reselling later. However if a bigger fish came along and offered then of course I would consider it.

 

I never prospect for land initially while the price is up for negotiation. I have a trusted agent do it for me. After the price is agreed upon will I show my face for the signatures. By then they can only smile and grumble.

 

There's always the thought if my trusted agent dimes me out and pads the price for his own pocket but thats a risk I have to take and why it helps to have ballpark numbers to work with.

 

I just need some ballpark numbers so I have a rough idea what I am working with please.

 

The Disney thing is not a sure bet...things like that never are and usually take a few years before they really get momentum anyway. If the government was serious about taking emphasis off of the "adult" entertainment for tourism and push in the direction of family oriented tourism then it would not be a bad idea to entertain and provide (tax, etc) incentives for a corp like Disney to come along. Of course that would require "vision"

[elef]

I don't see any chance for a Disney entertainment park in Pattaya. 2 reasons for that, first the local population isn't big enough and second the road capacity is already used more than 100 % many hours fridays to sundays. If you have seen the busses leaving Pattaya from the 2 katoey shows.... No a Disney World must be located closer to BKK and probably close to either the new or old (maybe on some of it) airport.

 

A few years ago the thai government announced that it might allow 6 casinos in Thailand. Even if Pattaya wasn't mentioned, the Chonburi governor saw it as natural to get a casino there, so natural that GF was invited to buy land beside the future casino already some months before the government published its plans. Probably that is the land reserved for the casino.

[pattaya127]

first the local population isn't big enough

-------------------------------

for the region, it is, plus IMHO, Bangkokians/thais see no problems in driving 2 or 3 hours anywhere, "wasted time" being rather a western notion. Driving in group (family, friends) is already starting to party.

 

Also, If there is no disneyland in China, or eastern Europe, tourists from there are a definite market target.

 

And it may not be close to Pattaya by 40kms (think U-Tapao is Pattaya's airport), but if it's closer to it than Rayong or Chonburi, That will be Pattaya's Disneyland.

 

Now, I have no idea, just learnt here about it.

[cardinalblue]

I just recently saw an interview with a disney upper executive and he hinted hong kong was it for awhile in asia..

 

Disney is a very conservative org and they have a history of testing the waters for a long time of placing a park and seeing what happens. They are not going to open other parks in same foreign regions and overextend their captial and cash outlay...

 

Also, disney seems to pick well established tourists and mature areas that already who have first rate infrastructures in place to handle disney's requirements.

 

Ticket prices are always high with disney and i don't see them placing parks into developing economies or newly industrial ones or countries that might be unstable politcally/socially (the deep south issues could interpreted as such) where their prices would not to be able to be afforded by the local population; thus one would say they would have to drop their prices but they ain't going to do that especially if capital costs are high, break even year extended further out than normal, etc and they are not going to compromise on safety standards, technology, etc.

 

Be VERY surprised to see any new parks in SE asia or east asia for a long time. I could see mainland china (Beijing only)some day way down the road as a potential location if they keep on high consumer target growth and fulfill their other selection criteria..

 

CB

[asiafun]

My only comment would be that it would not necessarily be as costly as assumed as labor costs are pretty cheap in Thailand.

[SingaporeSteve]

I own multiple property outside Pattaya and I have heard these rumours from many people. I have also heard that the BKK sports Club is building a new race track, that the Casino is coming to the ambassador, that Taksin has bought the Royal Cliff and the Ambassador hotel as well. I have also heard that Tesco Lotus is building a new hypermarket on the 36 highway between Pattaya & Rayong as well as countless other claims of how the city is growing.

 

Also heard that Siam Country Club are building another 27 hole golf course, that the motorway is about to be started (oops heard that one 2 years ago but still nothing), a new train line will be capable of getting from the airport to Pattaya in 20 minutes.

 

Now, personally I suspect that the liklihood of some of these happening is true. I do not believe the Disney one though.

 

Will land values in and around Pattaya increase over time - for sure they will - its still too cheap relative to other areas - although that is changing fast. If you bought land 2/3 years ago you could have sold it at a 100% gain in most areas of Pattaya. You cannot do that now though - probably need to wait for another 5 yrs to get that kind of growth and be prepared for it to rollercoaster if there is any kind of collapse. The land in the right location will always be a good bet if you can hold out - if your trying to make a quick buck I would suspect you have missed the boat.