Kata Rocks
Login | Create Account Poll Currency Weather Facebook Youtube Search

Condo group warns of ‘fly-by-night buyers’

BANGKOK: Condo developers should be wary of “speculative” buyers in the high-end segment who may opt out of buying the units once a project is completed, says the Thai Condominium Association.

By Bangkok Post

Friday 21 July 2017, 10:26AM

Workers construct a building at a site in Bangkok. Photo: Bankok Post / Panumas Sanguanwong

Workers construct a building at a site in Bangkok. Photo: Bankok Post / Panumas Sanguanwong

President Prasert Taedullayasatit said the condo market is seeing a growing number of speculative buyers in middle- to-higher-end projects in some locations.

“It’s unusual for upper-end projects to see buyers queuing up to book a unit,” he said. “For high-end customers, they won’t buy a unit if they have to take a long queue.”

The upper-end segment is unlike the lower-end market. The latter has a secondary market of buyers who will buy a condo unit when construction is complete and move into the unit because they cannot afford to pay rent and a down payment at the same time, Mr Prasert said yesterday (July 20) at a seminar on condo development.


He said developers involved in joint ventures with partners must use big and aggressive marketing events to launch projects. Some need to build up their presales, regardless of buyers who might be speculators.

“Speculative buyers will backfire on developers when the project completes construction, as some of these buyers may refuse to get a unit transferred,” Mr Prasert said.

He said many condo developers shifted to the upper-end segment after the lower-end market experienced “problems”, namely with potential buyers experiencing weak purchasing power, high household debt and rising mortgage rejections.

Developers should screen customers, particularly those buying a unit for B10 million or more, before allowing them to book a unit, he said.

“We should prevent a situation such as what happened in the provincial condo market five years ago,” he said.

“At that time, many condo projects in major provinces like Phuket, Chiang Mai and northeastern provinces sold out in a short period but had very few unit transfers upon completion.”

Laguna Golf Phuket


Mr Prasert spoke of a new landscape in the property market over the next three years, with at least eight mixed-use projects spanning 360 rai under development in Bangkok.

The largest is One Bangkok on 104 rai at the junction of Wireless and Rama IV roads with an investment of B120 billion. The project is a development of TCC Assets Thailand, a subsidiary under the group owned by tycoon Charoen Sirivadhanabhakdi.

“All of these mixed-use projects are on leasehold plots,” Mr Prasert explained. “The leasehold property trend will be not in large-scale projects but in the consumer market, as land prices keep rising higher than people can afford.

“The government should thus consider an extension of the leasehold period to at least 50 years, so that consumers can afford a condo unit in the city and the bank will give a higher credit line than for a 30-year contract.”

Peerapong Jaroon-ek, chief executive of SET-listed Origin Property Plc, said his company is adjusting to cope with changes in the environment and consumer behaviour.

Origin has shifted to the upper-end market, with condos priced at more than B3 million a unit making up 62% of supply this year, up from 18% in 2014.

The group also acquired Proud Residence Co, which is developing the Park 24 condo project in Sukhumvit Soi 24, as a way to enter the high-end segment earlier this year.


Read original story here.



Comment on this story

* Please login to comment. If you do not have an account please register below by simply entering a username, password and email address. You can still leave your comment below at the same time.

Comments Here:
Comments Left:
# Characters

Be the first to comment.

Have a news tip-off? Click here


Phuket community
Phuket Police say investigation into Finnish girl’s death inconclusive

Whether she was a 'girl' or a woman' is immaterial, the fact that she has died is the cr...(Read More)

PPRP ‘seals deal’ to form coalition govt

So, 'translating' what the military sources are saying is that a few civilian parties are al...(Read More)

PHUKET XTRA: VIDEO: Road rage axe attack? Drugs found in rectum! Dark web bust sees 50 kids saved! || May 23

Did the police contact the Phuket based foreign Inspector .... for his expertise on how to extract t...(Read More)

May 4 approved as Coronation Day

...How many people he thinks do really benefit from those holidays ?Most Thai's are working anyw...(Read More)

Phuket braces for heavy weather, small boats advised to stay ashore

All chinese passengers, brace for heavy sea inpact before boarding coming days! You are warned! Rem...(Read More)

Phuket braces for heavy weather, small boats advised to stay ashore

Well, mr Wiwat, just covered himself (' I told you, not my responsible any further'). When...(Read More)

Four dead as pickup truck slams into tour bus heading to Phuket

Haha...driver to check if had taken drugs/alcohol. How silly is that? Riding on the back of the tru...(Read More)

One billion baht found in teenage drug dealer’s accounts

Wow, a 19 years old thai man, in drugs business with more than 1 million thb in his personal account...(Read More)

Government clamps down on surging illegal Thai migration

And, day in, day out, many thai having been illegal staying/working in Korea of course return to Tha...(Read More)

Men arrested for axe-wielding road-rage attack on ambulance

These two morons are seriously primitive in their mental capacity and cerebral development. No way ...(Read More)