Apus Development Group Co, a Pattaya-based company, has a policy in place that sees it collect a 30% down payment for units in an upcoming condo project it will soon launch in the seaside city, reports local media. The move is done to allow the developer to reduce risk.
“When units are unable to transfer, they will return to us and hurt us eventually. We are not a big player. We do not focus on speeding up sales during a launch period like a big firm does,” says Apus Development Group Managing Director Chalermphon Khoncham to the Bangkok Post.
By requiring a higher down payment for its units, the company is able to deter short-term speculators. This group is known to be unable to complete unit transfers when the project is completed if they don’t find a person to buy their booked condo. The company has had success with this scheme at previous projects with only a small number of buyers refusing unit transfers.
“Most of the buyers who paid the down payment usually receive the unit transfer, as the down payment rate is high and the unit had a capital gain in price. We will continue to use this strategy as it helps us reduce risk,” says Chalermphon.
Apus Development Group’s next launch will be Andromeda. The condo is valued at THB1.28 billion and is located in Pattaya’s Khao Pratumnak area. There are a total of 216 units with prices starting at THB2.8 million. The company has set down payment requirements of 30% from Thai buyers and 50% from foreigners.
The company also has plans to launch a new condo project next year near Terminal 21 Pattaya. That development will have 200 units as well as a 150-room hotel and be worth THB1 billion. Apus Development Group is also looking to build a housing project in the nearby Bang Saray in 2018.
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