elef Posted July 10, 2008 Report Share Posted July 10, 2008 The Nation 2008-07-10 Link PROPERTY MARKET Pre-owned homes good value By Ekarin Bumroongpuk The Nation Published on July 10, 2008 Rising costs hit builders, buyers of new housing Visitors shop around for house bargains at a previous NPA Grand Sale fair. The cost of construction materials is rocketing, increasing the prices of new houses and condominiums by up to 30 per cent. Consequently, pre-owned homes in good locations are worthy of consideration at the moment. Kasikorn Research Centre said in a report that the jump in inflation to the highest level in 10 years, driven by soaring oil prices and interest-rate hikes, had dented consumer spending power. At the same time, property developers are faced with rising construction costs, especially for steel, the cost of which has increased to historic highs. New-house prices have gone up by 10 to 15 per cent, said Bunyong Visatemongkolchai, president of Bangkok Commercial Asset Management. On average, the price of a detached house with a small area of land has increased by 5 to 10 per cent, while condominium prices have increased by as much as 30 per cent. Therefore, pre-owned houses at cheaper prices and in good locations, which most new housing projects do not offer, may be a more attractive option. In addition, the annual NPA (non-performing asset) Grand Sale fair will held from tomorrow through Sunday at the Convention Hall, Central Plaza Lat Phrao. The fair is the biggest market place of second-hand property assets offered by financial institutions, and will include special prices and lots of promotions. There are 20,000 properties covering condominiums, townhouses, detached houses, commercial buildings, land for development and farmland in Bangkok and the provinces. Discounts of up to 70 per cent will be available. United Overseas Bank (Thai) is offering the highest discounts of up to 70 per cent, while Kasikornbank is offering mark-downs of up to 50 per cent. Bank of Ayudhya is offering maximum reductions of 45 per cent, while Bangkok Bank and Krung Thai Bank (KTB) are cutting prices by up to 40 per cent and Siam City Bank (SCIB) by 35 per cent. In addition, banks - including KTB, TMB Bank and United Overseas are offering special mortgage rates at zero interest for the first year. Standard Chartered Bank (Thai) is offering zero interest on mortgages for the first six months for every customer applying for a housing loan at the NPA Grand Sale. But after the zero-interest offers expire, banks will charge different mortgage rates. For example, KTB's rate will be the minimum lending rate (MLR), which is now 7.25 per cent, minus 0.25 of a percentage point. TMB charges at the MLR minus 2 percentage points in the second and third years, then borrowers will be charged at the MLR minus 1 percentage point. In addition, fee charges - an asset evaluation fee, front-end fee and the fee normally charged when customers pay off the debt before the due date - will be waived. Meanwhile, the National Credit Bureau is offering a service for people who want to check their credit history for a Bt50 fee per enquiry. SCIB guarantees that every customer buying one of its NPAs will be granted credit. But in cases where the prospective customer does not qualify for a mortgage, the bank will allow them to pay by instalment for three years initially and, if payments are made on time during that period, they will then be given a credit line for the remaining debt. Bangkok Commercial Asset Management, whose non-performing assets have the highest market value, will offer 2,000 properties totalling Bt5 billion at discounts of 20 to 30 per cent. "At the NPA Grand Sale, we will offer properties from around the country, including more than 1,000 condominium units and over 50,000 rai of farmland," said Bunyong. Bangkok Commercial Asset Management customers wanting to reserve a property must pay a deposit of between Bt5,000 and Bt50,000, but Kiatnakin Bank will allow its customers to pay just Bt1. Visitors to the NPA Grand Sale this year will have the opportunity to receive gifts such as fuel coupons valued from Bt2,000 to Bt1 million offered by Bangkok Commercial Asset Management, iPods, MP4s, DVD players, TVs, mobile phones and digital cameras. The gift will depend on the price of the property. Housing Finance Association president Kitti Patpong Pibul said sales at the fair would probably total Bt2.5 billion-Bt3 billion, compared to Bt2 billion last year. He said prices for new houses had increased due to rising construction costs, but most banks could offer better mortgage terms than last year. This is supported by their improved financial status and the government's stimulus package for the property market, which included tax incentives and a cut in transfer fees. At a glance nNew-house and condo prices have gone up by 30 per cent. nResale homes at cheaper prices and with good locations, which most new projects do not offer, may be a more attractive option. nThe annual NPA Grand Sale fair runs from tomorrow until Sunday at the Convention Hall in Central Plaza Lat Phrao. nThe fair is the biggest market place for existing properties held by financial institutions. nSpecial prices, discounts of up to 70 per cent and lots of promotions await visitors. nHome-buyers can reserve any property on sale by Bangkok Commercial Asset Management via a deposit of Bt5,000 to Bt50,000. Link to comment Share on other sites More sharing options...
Faustian Posted July 10, 2008 Report Share Posted July 10, 2008 Sounds great! Wish I'd known about it earlier. Link to comment Share on other sites More sharing options...
CTO Posted July 10, 2008 Report Share Posted July 10, 2008 I went to this last year - there are some bargains to be had Link to comment Share on other sites More sharing options...
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