Rally deters home-buyers

The number of prospective home-buyers visiting residential projects in Bangkok fell by 20 per cent last week because of the red-shirt rally, a survey by The Nation has found.

Business Housing Association president Issara Boonyong said that most home-buyers were afraid of violence arising from the rally, so they delayed visits to development sites near the demonstration.

Issara, who is also managing director of Kanda Property, which is developing residential projects at Rama II and Pracha-Uthid, said the number of customers visiting his company's projects dropped from the usual 50 per site to about 40.

Thai Condominium Association president Atip Bijanonda said consumer confidence faltered when home-buyers once again faced political uncertainty. When the number of customers visiting residential projects in the first week of March was compared with that in the second week, when the red-shirt rally occurred, the drop was about 20 per cent.

"Most Bangkokians were concerned about their security, so most of them stayed at home rather than visiting residential projects," he said.

Atip, who is also deputy managing director of property firm Supalai, said that if political problems were prolonged, the overall property market in the first quarter of this year could show a drop when compared with the fourth quarter of last year.

Asian Property Development's senior vice president Visanu Suchatlumpong said the number of customers visiting his company's residential projects also fell by about 20 per cent during the red-shirt rally.

However, residential projects further out of the city tended to benefit as prospective buyers steered away from the city's central business district, according to Pruksa Real Estate's chief operating officer Prasert Taedullayasatit.

He said his company's presales in the first two weeks of this month reached Bt1.53 billion, a higher figure than in the corresponding two weeks of last year.

"Customers continued to visit our projects in suburban areas, and continued to buy. As a result, our presales will achieve a record high of Bt8 billion in the first quarter of this year, or up 100 per cent over the first quarter of last year," he said.

Meanwhile, some property firms are planning to launch new residential projects this weekend.

LPN Development plans to launch two condominium projects, Lumpini Place Ratchayothin and Lumpini

Place Rama IV-Kluay Namthai. They have a combined market value of Bt5 billion.

The company will open bookings this weekend and expects presales to hit Bt4 billion.

"We believe our sales will reach that target because more than 3,000 customers have registered through our website, lpn.co.th," the company's managing director Opas Sripayak said.

Political issues will not affect LPN's business plans this weekend, he said.

SC Asset will proceed with a new marketing campaign to sell units that are ready for occupation at 10 residential projects, before the government's tax incentives expire on March 28.

People who purchase residences before March 21 and are ready to transfer the deeds before March 28 will be able to save up to Bt2 million, depending on the size of the residence.

"We expect sales worth Bt500 million from our promotion before the tax incentives expire," said SC Asset's chief operating officer Kree Dejchai.

From : By SOMLUCK SRIMALEE
The Nation : 19-03-10