Condition of Real Estate Business in Recession

In this tough time of global financial slump, location and quality are the foundations of real estate business. The best location is the one which is unique and exclusive. And quality developments are always successful. Most of the probable purchasers at the present circumstances are in search of proficiency or quality that is up to the five star standards.

Siam properties is ready to launch various projects which have secondary residential units and valued at approximately Bt1million -Bt50 million. This present situation of crisis had actually made it very easy and comfortable for the purchasers. Now, they can buy a classy villa having personal pool at just Bt. 5 million. Everybody is on a race of cutting own budget. Although a few activities are observed in the market, but most of the probable purchasers are adopting the wait and watch attitude. As a result, the rental market is still well-built at the same time as foreigners balance the advantages and disadvantages of the timing for getting caught up again.

The most significant thing at this point of time is the interest rates are minimum. Therefore, people are considering the value of their cash holdings going down continuously in real terms at the same time as inflation strides on. As a result, people are going to consider sincerely in the coming six months regarding being active in property purchases. The different aid and rescue packages for financial systems all over the world will take some time to get outcome. Although, experts believe that the real estate sector of Pattaya will again start flourishing slowly and slowly by June 2009.

Another positive symptom is that many foreigners are coming back to Thailand and Pattaya due to this worldwide financial slump. This is revealed by a recent government report.

Leading Broker Is Expected To Give Away 50 Percent Discount On 4 Bangkok Condominium Projects

One of the leading property broker and consultant Harrison recently announced that it is expected to give over a mega sale offering discounts of up to 50% in order to close sales on at least four completed Bangkok housing projects that are nearly more than 80% sold.

Following units are expected to be open for auction, at a starting price offering a discount of up to 50%, and will then be open for almost two hours of bidding.

1. Units at Saint Louis Grand Terrace
2. @City Sukhumvit 101/1
3. Waterford Sukhumvit 50
4. The Master Centrium Asoke

The auction is slated to be held from March 28-29, 2009, at the individual project sites, with the effort of closing sales at all the above four projects to liquidate assets and arrange funds for new and upcoming project investment.

Vice president at Harrison, Sahatchai Kwancheun, said the sellers – three condominium developers and a group of investors - might face a little loss, but most of them felt that it is always better than retaining the units for longer period and then end up paying maintenance fees and a possible renovation cost. The initial price for some units in the auction is expected to be as low as Bt850,000.

All those buyers who will book under this campaign will also get special credits and interest rates from Siam Commercial Bank, according to a statement issued by Harrison.

The details of all the participating projects are as follows:

1. @ City Sukhumvit 101/1, which includes of five 11-14-story buildings located on a 7 rai plot of land with a total of 799 units;
2. Waterford Sukhumvit 50, seven different 8-story buildings located on a 11 rai plot of land with a total of 738 units;
3. Saint Louis Grand Terrace Sathorn, it is a 28-story building situated on a 2 rai plot of land with a total of 245 units; and
4. The Master Centrium Asoke, this is a 27-story building located on a 1 rai plot of land with a total of 79 units.

Developers tie up with banks to present extraordinary financing packages to consumers

With interest rates on mortgages are likely to increase from 0.5-1% in 2008, developers are tying up with banks to present financing packages to attract home-buyers in the second quarter of 2008. The marketing push comes at a hard-hitting time: buyer's buoyancy has been seen dropping and the political chaos is showing no signs of lessening.

Commercial banks have by now started hiking rates. Kasikorn-bank increased fixed-term deposit rates by 0.35 - 1.25 % in the first week of June. The bank increased its least lending rate, least overdraft rate and least retail rate (MRR) to 7.25 %, 7.5 % and 7.75 %.

Bangkok Bank has raised key lending rates by 0.375 %, increasing the least lending rate to 7.25 %. The minimum overdraft rate has increased to 7.5 % and the MRR to 7.75 %. Siam Commercial Bank's minimum lending rate is now 7.25 %, the minimum overdraft rate is 7.5 % and MRR is 7.75 %. Asian Property Development senior executive vice president Visanu Suchatlumpong said the company has tied up with Siam Commercial Bank to present two financing packages to home purchasers between June to August.

The primary package makes available 0 %mortgages for the initial 6 months of the loan. For the left over period, the mortgage will be set at the MRR. The next package makes available a fixed rate of 2.25 % for the starting year and then an MRR of 1.5 %.

"Most consumers opt for the second package as they consider interest rates will increase considerably with price hike to nearly 6 % in 2008. Though the rates increase by 1 %, home-buyers have to compensate 6 - 7 % extra in monthly payments. " he said.

Prinsiri is making available 0 % financing and a chance to prevail a Honda Jazz to purchasers who go for its Northern Town project.