In Thailand, condominiums are the property which takes the least time for its price to increase. From the time before the construction begins until the project completion, the price can surge to a totally different number.
The question arises as to when is the best time to buy a condominium? In general, the time to buy a condominium in Thailand can be divided into four major phases. These are VIP Round, Presale, Official Launch, and Project Completion; each one offers a different price, promotions, as well as risks and pros and cons that buyers should acknowledge before making the decision. Let’s have a look at each one.
1. VIP Round
This is the first phase that developers allow a small group of privileged customers, or loyal customers, to reserve the units before everyone else. This phase usually takes place before the project construction starts and it is the time when the project price stays the lowest. Besides the best price, another benefit is that VIP customers will get to select the units first.
They could reserve premium unit types which are limited in number, or units that have the best view or great location on the floor plan; the more quality the unit is, the higher price they can fetch when selling in the following time.
Presale is the second phase after the VIP Round when developers allow general customers to come to reserve the units for the first time. The presale period is normally held for two days. It is the time when developers entice buyers with promotions and discounted prices which are slightly higher than the VIP Rounds. In this phase, there are still plenty of units left, but the exclusive and rare ones might be taken in the VIP Round.
One thing to note in the Presale phase is to put a consideration before emotions; the atmosphere can be high-pressure as a lot of buyers come to compete for the best units, while salespersons would persuade you to sign the contract as early as possible to make a one-day-sold-out phenomenon.
3. Official Launch
After the presale, the developers would channel the project to be widely recognised in the market through advertising, marketing campaigns, and grand opening. In this phase, the project price would have surged by five to fifteen percent, while the less number of units left makes buyer’s options become more limited.
It is also the time when those who own units reserved in the VIP Round or Presale phase come to sell their units through reservation contracts to gain profits. During this phase, the project construction and down payment through installments are likely to get started. In spite of the increase, the price is still possible to continue surging until the project completion.
4. Project Completion
This is the time when the project price reaches the highest, but the paradox is that it’s also the time when you can get a low-priced unit. To demonstrate, there could be some buyers, who reserved units in the previous phases, happen to no longer want the units, didn’t qualify for a mortgage loan or realized that they could not afford the future repayment.
These buyers would rush to sell their units out before the ownership transfer date when they are obliged to pay a huge capital. As a result, they could sell at a lower price for the relief, especially when there are many facing the same situation. In spite of the high price, buying a condominium in this phase comes with benefits of no construction defaults and inspection of the actual units which help you to come up with precise decisions.
In conclusion, if you look to invest, the sooner you reserve, a higher profit you can make due to the best price and best unit. However, if you look to reside, buying after the project completion is a safer choice despite the higher payment. Knowing your true goal and making the right decision at the right time, would help you to get the best property in this competitive market.
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The article is written by Chetapol Manit and translated by Sitth Chongprasobtam