Developers, banks scramble to sell before tax incentives expire

The government's taxation incentives, which have delivered a significant shot in the arm for Thailand's property market, are scheduled to end on March 28 and the race is on to sell as much residential property as possible in the time remaining.

Promotional offers, campaigns and special deals are a dramatic feature of the 22nd Housing and Condo Festival, which opened yesterday at the Queen Sirikit Convention Centre and will run until Sunday.

Property firms are handing out gifts to buyers worth millions of baht, and commercial banks are going beyond low-interest mortgages and offering discount prices to shift non-performing assets.

For example, Pacific Star International (Thailand) is offering a special promotion worth up to Bt4 million for buyers of units at its Sathorn Gardens condominium. It is offering interior-designed, fully furnished units to all buyers. The package includes furnishings and decorations worth Bt2 million, a BlackBerry Bold smart phone worth Bt25,000, a gold bar weighing 50 baht, a cash-back bonus of Bt1 million and payment of electricity and water bills and common-area fees for a full year, up to a maximum of Bt300,000.

The offer, called the Dazzling Decor Furnishing Package, came into effect at yesterday's opening of the Housing and Condo Festival.

Pruksa Real Estate has launched a promotional campaign covering two of its condominium brands, Chapter One and the Seed.

It is offering furniture valued at Bt100,000 for a payment of just Bt10,000 to buyers at its Chapter one: Modern Dutch project, where units are selling at a starting price of Bt890,000.

Customers who buy units at The Seed projects at Sathorn-Taksin, Chaeng Wattana or Ratchada-Huai Khwang will get two free air-conditioners. The units are selling at a starting price of Bt1.49 million. However, if the units are transferred to the buyers before the tax incentives expire, the new home-owners will get five free electrical appliances, free furniture and free kitchen appliances.

LPN Development is offering price discounts of up to Bt90,000 for buyers at its condominium projects at Ramkhamhaeng, Ratchada-Thapra, Rattanathibet, Rama Vlll, Rama lX-Ratchada, Ram-Indra-Nawamin, Rat Burana-River View, Ram-Indra-Lak Si, and Bang Khae.

LPN's home-buyers will also get a chance to win a package tour to South Korea or Hong Kong in a lucky draw.

BKK Group is offering to accept a booking fee of Bt10,000 and down payments at Bt10,000 per month for units in its condominium project The Coast Bangkok.

Krung Thai Bank is offering up to 30-per-cent price discounts and mortgages with no interest in the first year for customers buying one of its non-performing assets at the Housing and Condo Festival.

The bank is eager to sell 1,700 non-performing assets in the greater Bangkok area worth a total of Bt2.3 billion at the event. They include single detached houses, townhouses, commercial buildings and undeveloped land.

Krung Thai Bank is also offering special mortgages of up to 90 per cent of valuation with no interest in the first year and an interest rate equalling its minimum lending rate minus 0.5 per cent in the second and third years of repayment. The bank's minimum lending rate is currently 5.85 per cent.

Bangkok Commercial Asset Management (BAM) is offering price discounts of up to 30 per cent, along with free transfer fees and free home appliances to buyers of its assets at the Housing and Condo Festival. Customers who buy an asset worth less than Bt500,000 will get a 23-litre microwave; buyers of assets valued between Bt500,000 and Bt1 million will get a free 7.4-cubic-foot refrigerator; those valued between Bt1 million and Bt2 million will get a free home theatre; and an asset valued at more than Bt2 billion will come with a free 32-inch LCD TV. Buyers of BAM's assets will also receive a gift voucher for PTT fuel worth between Bt1,000 and Bt3,000.

The Government Housing Bank is offering special mortgages with no interest in the first year to those who apply at the festival.

The 22th Housing and Condo Festival features 600 residential projects with a combined value of more than Bt100 billion. Organisers expect sales of properties worth between Bt2 billion and Bt3 billion at the four-day event. This festival is organised by the Thai Real Estate Association, the Thai Condominium Association and the Business Housing Association.

Meanwhile, large property firms that are not taking part in the Housing and Condo Festival are organising their own events to lift first-quarter sales.

Sansiri has launched "Instant Living with Sansiri", a promotional campaign for 25 residential projects with a combined value of Bt1.2 billion.

The campaign offers mortgages that are interest-free for the first year and down payments paid in interest-free instalments over six months when buyers use SCD Sansiri Platinum cards. Other offers include a Living Package featuring freedom from transfer and maintenance fees and a Premium Package in which homes are upgraded to readiness for buyers to move in. The campaign runs until March 26.

Land & Houses has opened L&H Showcase 2010 at Central Plaza Pinklao. The event will run until Sunday.

The company plans to launch similar events every month throughout 2010 at Central Plaza branches around the country.

The company's vice president for corporate communication Suparat Veerakul said the events would focus on target customers, who would be invited to visit project sites.

By Somluck Srimalee

From : The Nation : 19-02-10