Pricing Changes - Dramatic Drops

[Gadfly]

I will try to make this quick. I noticed amazing price changes in the markets here. I think real economics has finally triumphed over Thai economics. A few examples:

 

- Developers are desparate to sell property. If you a stubborn and press hard (don't worry about being a nice guy), you can pick up stuff for about a third of what it was going for a year go. Just did so.

 

- Nightlife. The ratio of BGs to customers is amazing, and the BGs have finally accepted reality. With very little prodding (but polite persistence and willingness to walk away), expect to pay 50% of what you did last year. For the same BG. That is what I am doing now.

 

A harginger of things to come? I suspect so. A little persistence and willingness to walk, you can get what you want as long as you don't let yourself get conned by the local nonsense.

 

A few nitwit Farangs were able to keep prices up before, but now, I don't even think that is possible (but it would be better if those Farangs pressed for the prices the market will bear rather than tossing money around).

[samak]

could you sustain your claim with some examples; for real estate, of course, then who wants to bargain down a BG by 50% of what you paid before...

[Gadfly]

Examples:

 

- In another thread, mentioned La Raffine. Steep drop in prices. They started in the 30 to 40 million Baht range just a year ago. I know a foreign free-hold unit that was just sold for slightly over 10 mm Baht. It required tremendous haggling, walking away from the deal multiple times, the building is not 100% complete, and it was a cash deal, but I don't think it would not not have been possible a year ago.

 

It can be done know with other condo project as well, but you need to be persistent. I mean really persistent, know the market and simply walk away if they won't bargain. There are plenty of other units going up. Look around.

 

It shouldn't be surprising that this is having an affect on prices. What surprises me is that it took so long to affect prices.

 

BGs are a bit different. With BGs I know and see all the time, there is price stickiness. The prices don't go down and, in fact, they sometimes ask for more, citing their own financial woes. But they don't press too hard and they are obviously insecure. All sorts of promises are made.

 

I know one BG who bought a THB1,200 bottle of wine when she met me (she recalled a wine I liked) - I'd like to think its because I am such a handsome and nice guy, but I kind of doubt it. I never saw anything like this a year ago. To here, I am a guy who lives, can be counted on for regular business and she understands that this little touch (which touched me) helps her tremendously. I doubt she would have considered this a year ago.

 

And if I see a new BG, where a price has not been established (and I will admit I had tended to set prices high because of my own foolishness over the years), it's as much as 50% lower for a much "newer model." In the past there was a bit of this and I put it up with it because, well, BGs I know are predictable and I don't need the grief on work night. I could take them to my favorite wine bars, they knew a bit about wine and they civilized (I am over 50, and on a work nights and even some weekends, go go bars just don't have the same appeal).

 

Now, with new BGs I am meeting and starting to go through this same routine, I am paying about 50% less. Actually, I don't even need to negotiate. I figured this out when one Soi 33 girl, tenatively, asked for an amount (1,500 Baht) that is 50% less than my much older (and now, less attractive) old favorites. Shocked me.

 

The bar fines on Soi 33 used to be THB1,500. Now its a third less at some (specific example: Santara - did I spell that right?)

 

In NEP last night, a BG insisted she wouldn't go for less than 1,000 Baht all night. I was willing to pay 1,500 short time.

 

I am seeing more and more of this. Not everything is cheaper. Imports are still dear, but that is because of import taxes. High quality services (construction, professional) are high, but that is because of limited supply.

 

But there are tremendous bargains now at the hotels and in tourism generally, which is really suffering. I am a lazy old fart and in the past I wouldn't look that hard for bargains, but now, because of offer after offer to residents and Thais, I decided maybe I should look. I had a room at beach resort that I paid THB 3,500 a night for this time of year last year on Koh Samui for THB 1,500. And the room was better this time.

 

Back to BGs and the nightlife, I will go into a bar that used to be packed by 10 p.m. on a Friday night, but now they have, say, three or four customers. And twice as many girls. I thnk others have already reported on this.

 

It's taken a while, but I think we are seeing a market correction in Thailand.

[Stickman]

I really hope that what you say becomes more widespread. I have felt for some time that prices for many things have just got too high in Bangkok. Think drinks, Western food, condos...so many things!

 

I mean, it is kind of crazy that when I was back in New Zealand a few weeks ago and just happened to be hanging out in downtown in the most expensive city, that things were cheaper than Bangkok. Example? A massive roast dinner with a pint of any beer for $NZ20 = 400 baht. OK, you can get that price in Pattaya but not in Bangkok. And this was a really nice pub, better than anything in Bangkok, with good service etc.

 

And when you can pay the equivalent of 120 baht for a large plate of Thai food in downtown Auckland which is better than the equivalent in Bangkok then you know prices in Bangkok are out of kilter.

 

For many things Bangkok has become just plain bad value and a massive correction is needed.

[radioman]

I'd like to see this correction applied to cars. Just annoying having to pay 40k for a 10k motor. S'pose it all evens out in the long run though.

 

[cavanami]

Food prices have jumped; I used to like some of the Thai-German sausages, but they put the price up almost 10%, wine up 10%, and all this for no reason! and the wine went up before the supposed tax increase.

Meat, I like to bb'q some ribs now and then...same price for the ribs as I pay in the USA...WTF???

 

I just say NO and don't buy certain items.

[Stickman]

For me, food products are still fairly reasonably priced here - I mean at the market or supermarket. It is value added products such as meals in restaurants, drinks in bars etc where things have just got too expensive. But then, everywhere is different. For example, a 100 baht beet at a British pub with nice surroundings and friendly staff might represent better value than the same drink for 70 baht elsewhere.

[cavanami]

Cost of medical, way up.

Petro, up and down but mostly up and higher then some other countries.

Utilities (water, electric) are still reasonable, IMO.

We talked about the price of cheese going to the ceiling last night!

All in all, cheaper overall for me then in the USA.

[Torneyboy]

And condo prices as well...

[buffalo_bill]

Sir ,

 

as you so rightly say : it is Bangkok being partially overpriced and not Thailand . You may look into China where 3 or 4 hubs are same same expensive or take Moscow or Lisbon or any other dominant city in a relative desert . Prices are skyrocketing at boom time and collapse during a depression .