Condo market demand has picked up in Thailand as the country begins easing its way out of lockdown. Investors are eyeing ready-to-transfer units in the Thai capital which have been deeply discounted by developers who are trying to offload unsold inventory and improve liquidity.
According to Knight Frank Thailand Director of Research and Consultancy Khun Risinee Sarikaputra, real estate investors had been on the sidelines since the start of the year, but have been enticed by discounts and a belief condo prices will rebound once the COVID-19 situation in the country has passed.
“They are now coming back, thinking that the bottom of the condo market is worth an investment today,” Khun Risinee told the Bangkok Post. “Heavy discounts are applied to limited units, which is normally the tactic to draw in customers to the sites. Even if those units were sold out, developers would offer others at a discount price.”
Developers get creative with discounts to stimulate condo market demand
Thai developers aren’t slashing sticker prices on units. Instead, homebuilders are finding creative ways to save buyers money and stimulate Bangkok condo market demand. Special offers include developers making two years’ worth of mortgage payments for buyers. Other firms are waiving various fees and expenses.
The mortgage payment scheme has proven to be the most popular with investors. It allows them to buy now while prices are low and then possibly move on from their unit once the economy picks up in 2022.
Khun Phattarachai Taweewong, Colliers International Thailand Associate Director of Research explained to the newspaper that developers will continue discounts programs until June at the very least.
“The maximum discount we saw (in 2020) was 62 percent,” Khun Phattarachai noted. “The pricing campaign was successful as many developers could close projects with a number of unsold stock they carried over from a year ago.”