Sentiment in the second-hand property market started to improve last month, as buyers are scrambling for more lucrative investments at a time when deposit rates are near rock bottom.

Bangkok Commercial Asset Management (BAM) recorded deals worth 110 million baht, more than double its target of 50 million baht, said president Bunyong Visatemongkolchai at the House & Condo Fair held at Queen Sirikit's convention centre last month.

"We started to see small investors who usually put their money in banks showing interest in buying land and condominiums for speculation or rentals," he said.

"People are shifting to invest in property as interest rates for credit and savings accounts are quite low."

Agricultural plots are generating healthy sales as many workers have moved from the industry sector to the agricultural sector amid rising unemployment.

Mr Bunyong added that BAM achieved the target revenue of 2 billion baht in the first two months and was confident of reaching the total revenue projection of 11.73 billion baht this year. Currently, its non-performing assets stood at 37 billion baht.

BAM, the country's largest asset management firm, last year generated income of 12 billion baht, higher than the projected 11.7 billion baht, with a net profit of 2.2 billion baht.

The company is also considering reducing its loan interest rate by 50 satang in the near future to help reduce the burden for its clients, both for debt repayment and asset installment.

BAM yesterday opened a condo fair offering discounts up to 20-50% on 600 units worth about 100 million baht in Bangkok, Rayong, Chiang Mai and Pattaya in addition to a Saijo Denki air-conditioner in each room. It expects to sell 500 units worth about 90 million baht at prices ranging from 200,000 baht to 5 million baht at the fair. Currently, it has about 1,000 condo units for sale.

As well, the National Housing Authority along with the Ministry of Social Development and Human Security and the Bangkok Metropolitan Administration (BMA), yesterday signed a contract to grant BMA's officials and employees the right to purchase 10,000 residential units under the government's housing projects in Bangkok and Greater Bangkok.

Each unit costs 390,000 baht and the common area fees will be exempted for five years.

source : www.bangkokpost.com