Non-performing property assets (NPAs) in good locations and with attractive pricing can still sell through any economic slowdown according to Suchart Dechittirat, Assistant Vice President of Krungthai Bank (KTB).
During a slow economy, the property market is impacted by a limited supply of new units, a lack of labour and high construction costs that push up residential property prices.
Suchart said that as the ASEAN Economic Community approaches, strong demand is being seen in condominiums near Bangkok’s mass-transit routes, as well as those in upcountry and border provinces.
NPAs differ, he said, as they are already completed and their prices are lower. They are also well-dispersed – providing buyers with more choices.
KTB has already sold THB5 billion worth of NPAs during the first half of 2013, with another THB5 billion worth of sales predicted during the second half of the year as more buyers take advantage of lower prices and special incentives.
Andrew Batt, International Group Editor of PropertyGuru, wrote this story. To contact him about this or other stories email andrew@allproperty.com.sg
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