Homeseekers urged to buy while rate low
Potential homebuyers are being urged to make a purchase decision this year as developers’ promotional campaigns are attractive and interest rates remain low.
Issara Boonyoung, honorary president of the Housing Business Association, said this year is likely to be the final year for the low-interest rate environment, as the rate tends to rise in line with the improving world economy.
“This year is a golden period for homebuyers to get a unit with an attractive price as developers try to offer campaigns to boost sales after the period of sluggishness since the final quarter of last year,” he said yesterday.
Mr Issara said on account of rising land prices, no new townhouses priced lower than 1 million baht will be launched this year, while over the next several years none priced lower than 1.5 million baht a unit will be rolled out.
Meanwhile, construction of new mass transit lines this year is expected to open up new residential locations and boost housing demand.
They include the Pink Line (Khae RaiChaeng Watthana-Min Buri section), the Orange Line section linking Thailand Cultural Centre and Taling Chan and the Yellow Line (Lat Phrao-Samrong).
“The Thai economy will grow by 3.5%, driven by the government’s investment of around 100 billion baht nationwide,” said Deputy Prime Minister Prajin Juntong. “Consumer spending is also improving, which will help market sentiment.”
On a related note, the Thai Condominium Association, the Housing Business Association and the Thai Real Estate Association is holding the 36th House & Condo Fair at Queen Sirikit National Convention Centre, which runs from March 8-12.
There are over 1,100 projects in Greater Bangkok and the provinces, including condos, single houses, townhouses, duplex houses, resorts, golf courses, land bank plots — both new and second-hand — from more than 200 developers being introduced at the fair.
The association aims to generate 7 billion baht in sales from the fair and 4 billion from the post-fair.
Kris Naga, 43, a British citizen who visited the fair yesterday, said he came to shop around and study Thai condo design. He plans to buy a condo unit in Bangkok for his retirement in the near future.
“My budget is 1 million baht for a condo unit but the unit size introduced [at the fair] is too small. It was only 22 square metres, which is too small for me to stay. I’m looking for something sized 32 sq m,” said Mr Naga.
He said he would decide to buy a unit based on price and location. Cheaper, second-hand condos are one option said Mr Naga, who works in the film industry and spends two months in Thailand with his wife each year.
Promotional campaigns at the fair include discounts of up to 1 million baht, fixed rates of interest from 0.75%, no charge for transfer fees and free items such as gold necklaces, a BMW motorbike, a 2.5-millionbaht Mercedes-Benz.