Consumers Warned On Mass Transit Condo Projects

[george]

Consumers warned on mass transit condo projects

BANGKOK: -- Government Housing Bank president Kan Prachuabmoh warned consumers Friday not to prematurely sign contracts with condominium projects yet to be built along over- or underground electric train routes, saying they should examine whether project developers are reliable or not.

Looking at the over all picture of property business in 2007, he said the business is likely to continue to grow, boosted by a decline in interest rates in the second half of the year, stable inflation rates, an expected

oil price drop, stronger baht, and political stability after a constitutional draft is completed.

However, Mr. Kan conceded he was concerned about the burgeoning condominium projects to be built close to mass transit train routes, even though their is no certainty regarding their completion.

Many developers are offering prospective customers contracts to buy into new condo projects, he said, adding that such trading activities might lead to a bubble in the property sector.

So, he suggested, consumers might well examine personal reference data of project developers to see whether they are professional and reliable or not.

Currently, he said, condominiums on electric mass transit routes on Bangkok's main thoroughfares such as Ratchadapisek Road are priced at Bt60,000 per square metre.

Mr. Kan acknowledged that many condominiums are located in areas of Bangkok such as Sukhumvit and Sathorn roads, built by foreign investors who recognised that property prices in Thailand are lower than those in Singapore, Hong Kong and Shanghai and represented a good risk investment.

--TNA 2006-12-15

[jbsears]

Yeah, seems to be a lot going up at the same time. I live right by a BTS station and there are 3 condominiums currently being constructed within 100 meters walking distance in both directions from my condominium building. All three are selling between 60k-65k per sq.m. I have been wondering who are all the people that are going to by these condos. The majority of Thais cannot afford them. My building has a number of Chinese-Thais that own many units and rent them out. Then again I could be totally off. I'll just have to wait and see.

[astral]

.........saying they should examine whether project developers are reliable or not.

burgeoning condominium projects to be built close to mass transit train routes, even though their is no certainty regarding their completion.

Is he talkng about the reliability of the Train projects or the condominiums?

People need property near to real transport,

not some mythical line on a map, that may or may not materialise