Some of Thailand’s developers are looking for new ways to attract buyers. Their plans include the offering of free or low monthly instalments as they look to move ready-to-transfer condo units and find a way around the high mortgage rejection rates, reports local media.
At the moment developers have a large amount of empty condos that are either unsold or returned with the bulk of these in the middle- to low- end segment. The potential buyers from this group have struggled with reduced purchasing power and an inability to obtain financing for home purchases.
“These problems increase pressure on developers to use every means available to clear their stock,” says Surachet Kongcheep, Colliers International Thailand Associate Director for Research, to the Bangkok Post.
The most popular method developers use to sell units is discounts. This allows customers to know what they are saving for a unit and provides them with a better idea of how much they will pay. However, not all customers want discounts.
“Sometimes it is subjective. When we offer free furniture items, some customers ask for a discount instead. But some choose the furniture, as they like the designs and the items we get from our suppliers are priced below market value,” says Uthai Uthaisangsuk, Chief Operating Officer at Sansiri Plc.
In order to attract new buyers, Sansiri is offering promotions that provide low monthly instalments during the initial 6 to 36 months of a loan in order to help buyers get rid of existing debt. In some cases, there will be no payments required at all during the opening period.
Meanwhile, SC Asset is running a promotion for completed condo units at 4 projects in Bangkok, Hua Hin, and Pattaya. Grand Unity Development Co is offering free monthly instalments for up to 3 years for completed units at its Bangkok projects while Origin Property Plc is doing the same for 150 unsold units that are completed in 10 of its condo developments.
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