Property prices are expected to decline by double digits in the next few months as Thailand’s property developers begin to offer more sales incentives in response to post Covid-19 markets. A recent survey by leading property portal FazWaz indicated that 50% of Thailand’s property developers are considering discounting at least 20% off minimum benchmark prices.
Brennan Campbell, CEO at FazWaz. says the measures are a long-term response, with the pandemic arguably giving a much-needed push to developers to clear their stock of unsold units.
“This will be a great opportunity for first time home buyers; we predict that this demographic will benefit from lower prices in the market as well.”
City-fringe condominiums that were previously marketed for 150,000 baht/sqm are now reduced to 115,000 baht/sqm for a one bedroom unit. Putting that into perspective, the total price of an apartment has dropped from 4.8 million to 3.6 million. Projects that launched in Q4 2019 are offering attractive buyer incentives to achieve their sales quotas, with the strategic move aligning with their pending loan applications for construction.
These are brand new condos in excellent locations being put up for sale at heavily discounted prices. Some listed companies are also starting to offer reductions of up to 50% on selected units, aiming to maintain some form of momentum in the market and cash flow for their businesses.
Brennan says it’s definitely a buyer’s market.
“Since early 2020 we’ve seen an increase in inquiries from savvy investors looking specifically for undervalued listings, the so-called bargain hunters. Many of these active property seekers are cash rich and seeking a fast acquisition process.”
Developers are also becoming aware that extraordinary commissions aren’t going to drive results; buyer incentives are where the market is heading. In response to this developer sentiment, FazWaz Group and The Thaiger have teamed up to host Flash Thursday Online Property Sale on June 18.
It will be one of Thailand’s largest online sales events, offering exclusive discount deals for a limited time period. The heavily discounted prices are genuine and are a real opportunity to find some outstanding value in Bangkok’s property market, as well as some of Thailand’s other property hot spots. Registration is free and reservation fees for properties are refundable.
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