30 Aug Generous schemes entice buyers back to Thai market
Developers getting more patient with consumers in an effort to clear housing stock
Completed, ready-to-transfer condominiums are clogging supply in the kingdom as buyers reckon with high rejection rates for mortgages and suffer from decreased purchasing power.
Also read: Real Estate Market; Slower but steady
“For those who have been refused [a mortgage], some developers will extend the down-payment period by one more year so they will have more time to clear their debts in case they have been blacklisted by a credit bureau.”
Several of the kingdom’s biggest developers have been willing to reduce interest rates on monthly installments for up to three years to woo buyers saddled with other debts. Since April, Sansiri Plc has been enticing provincial buyers to a fixed monthly instalment scheme of THB3,000 baht for THB1 million in housing loan, payable over a three-year period.
Likewise, Origin Property Plc has been trying to move 150 ready-to-transfer units priced at THB1.5 to THB2 million with a promo of free monthly installments for three years. “The campaign can entice target buyers who have a good financial record but are still hesitating on making a decision,” Origin CEO Peerapong Jaroon-ek told the Post.
While these schemes are not entirely new, they come at an opportune time when the market sentiment is decelerating and consumer spending is at a low. “It’s not just developers who are carrying large amounts of unsold, completed condo units that are using promotional campaigns to boost sales,” said Atip Bijanonda, president of the Housing Business Association. “Everyone wants to speed up the clearing of stock. Otherwise, new units from projects that are scheduled for completion in the near future will be returned, adding to their stock.”
Source: Property Report