Property Market

[Liverish]

PROPERTY MARKET: Sales dip in third quarter

Published on October 18, 2004

Developers giving away land, cars to lure buyers

Home-buyers delayed purchasing new residential properties last quarter due to signs of an economic downturn and the likelihood of an interest-rate hike in the near future, a property expert said.

Robert Collins of property consultant Jones Lang LaSalle said demand for residential condominiums in the third quarter was slower than last year and the first half of this year.

“Home buyers are concerned about their earning potential in the future because of the economic slow down and next year’s interest-rate rise,” he said.

Kasikorn Research Centre backed up Collins comments, but still forecasts a rise in new-home purchases this year.

It expects housing demand of at least 60,000 units this year, a 9-per-cent increase on the 55,000 units last year.

The research centre has forecast housing demand of 50,000-80,000 units over the next two year, compared to a high of 117,000 units in 1996, the year before the economic crisis.

With the current market sentiment, several property firms have tried to boost sales through special deals to maintain their income in the third and fourth quarters.

Prime Nature Villa Co Ltd is offering a BMW 525i worth Bt3.8 million and a Bt1-million jewellery gift certificate to customers who buy land of 1,600 square metres and 800 square metres, respectively.

SC Asset Plc is offering Bt300,000 to customer who buy a property at its Bangkok Boulevard project, while Sansiri Plc is giving away home theatres worth between Bt100,000 and Bt280,000 to customers who buy one of its condominiums.

Sansiri will also wave the monthly instalment for a year for those who buy a property at its Sanambinnam project.

The market slowdown has resulted in property firms revising their financial estimates.

NC Housing Plc has revised down its sales-revenue estimate for this year from Bt3.6 billion to Bt3 billion due mainly to negative economic forecasts caused by rising construction costs, interest rates and oil prices.

Golden Land Plc has revised down its estimated sales revenue for this year from Bt6 billion to Bt5.5 billion.

Somluck Srimalee

THE NATION

[wcr]

This refers to the Bangkok market place only and not Thailand as a whole. There is certainly no down turn in Pattaya.

[Rinrada]

And certainly not in Chiang Mai

[monty]

Same view as WCR,

Me thinks Bkk is pricing itself out of the market, Pattaya is not that cheap anymore (although it is compared to the West) but anything in Bkk sells or rents at multiples of the prices in Pty!

I've noticed quite a few Bangkok people, both Thai and Expat, moving to the outskirts of Pattaya (Mabprachan area) where they can live at a fraction of the cost and as long as they work in the Eastern part of Bangkok(Bang na etc) they are in their office in little over an hour...

[dfwbkk]

Sansiri will also wave the monthly instalment for a year for those who buy a property at its Sanambinnam project.

Sounds tiresome. How will that help? Is that in lieu of ceiling fans?

Will the waver be based inside the actual unit? Hmmm?

/// dfw