Three condominium developers and a group of investors plan to offer discounts of up to 50% in a grand sale with an aim to speed up project sales closings, liquidate firms and manage costs, according to Supachai Chammanovong, vice-president of the property broker and consultant Harrison.
Sellers believe that the discount strategy will draw attention to the project sites where price reductions of 20-50% would be offered, he said.
The projects include @City Sukhumvit 101/1 from Siam Home Development, Waterford Sukhumvit 50 from Waterford Property, and The Master Centrium Asoke from P.A.J. Enterprise, offering 80, 70 and 20 units respectively in the fair to be held on March 28 and 29 at their sites.
There will be also 15 units at Saint Louis Grand Terrace offered by an undisclosed group of investors who earlier bought a wholesale lot of 42 remaining units from the developer Metrostar Property. All 185 units are complete and ready to move in but only 30 would be offered at half price.
Sahatchai Kwancheun, a vice-president at Harrison and a representative of the investor group, said the sellers might face small losses. However, he said they felt it was better than keeping the units longer and paying maintenance and possible renovation costs.
"Developers typically want to sell units as soon as possible if they are nearly complete. Many of them need to offer a discount price to liquidate the assets and get money for new project investment."
Mr Supachai said the participating projects were more than 80% sold so the developers had already reached the break-even point.
"If demand exceeds supply, it should be the sellers' chance to get a better price," he said.
The half-price units would be offered at a starting price and open for two hours of bidding, for which each project site will set its own bidding date.
Harrison last year recorded 9.5 billion baht worth of sales and expects a 30% decrease to 6.5 billion this year due to the economic slowdown.
Siam Commercial Bank will offer special financing at the fair, with an interest rate of 2% for one year, followed by the minimum lending rate (MLR) minus -0.50% afterwards, and mortgage loan of 100% of the appraised price for physicians and academics with the position of at least assistant professor.
"Those highly educated or highly paid applicants with an A-grade credit score will have higher repayment capability and less risk of becoming non-performing accounts," said Dumri Vimolsathit, an SCB vice-president.
"It's been a policy we have applied since last year to reduce NPLs, get regular interest and offer other services to this target group."
For other customers, the rates will be between 2.75% and 3.25% for one year and MLR -0.75% afterward.
source : www.bangkokpost.com |
