Some developers, anxious to improve cash flow, are reducing prices of unsold units on hand. By Surachet Kongcheep
- Published in Bangkok post: 04 Apr 2019 at 04:00
- NEWSPAPER SECTION: Business | WRITER: Surachet Kongcheep
Purchasing power in the Bangkok condominium market in the past two years has decreased, because prospective buyers are still concerned about the long-term economic situation and stricter loan approval procedures by banks. Some have postponed decisions to buy condominiums and others have been unable to complete transfer of units because they could not obtain mortgage loans.
But a developer who had started building a condominium cannot stop construction just because sales are going poorly. Even if the building contains 400 or 500 units and only a few have been sold, the developer needs to complete the entire building and hope that market interest picks up.
All unsold units, as well as common facilities, are the responsibility of the developer until the units are transferred to the buyers. It is thus in the developer’s interest to do everything possible to make the building appealing to prospective purchasers.
There are currently about 28,000 unsold units in existing condominium projects now on sale in the Bangkok market. This excludes the many other units held by investors. Out of the total of 28,000 units, construction of about 8,300 has been completed. Approximately 57% of all completed and unsold units are selling for less than 3 million baht each, with 33% offered at 2-3 million baht.