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Bangkok Property Launches Impacted by Bomb

By on Sep 11, 2015 in Property News, Residential

Demand for Bangkok property is expected to be weakened by the deadly Erawan Shrine bombing. In an already soft property market the bleak prospects have prompted many residential developers to rethink their plans.

Supalai Plc, Property Perfect Plc, Major Development Plc and Noble Development Plc have decided to postpone some or all of their projects. Pruska Real Estate Plc is still considering a cut in new launches and AP (Thailand) Plc has changed focus to house projects because they believe this segment is lower risk than the condominium market.

Pruksa is considering how many projects it will postpone to next year due to many negative factors. “It is hard to have new sales,” says Managing Director Prasert Taedullayasatit. “We will try to transfer our condo sales backlog to have revenue as targeted.” Mr Prasert is also president of the Thai Condominium Association and suggests developers deal with financial institutions to help their customers get mortgage loans.

Property Perfect, Chief Executive Theerathat Singnarongthon says the company has cut the number of new projects launched this year to 15 from the planned 22 projects. “If we launch new projects and sales are slow, expenses will rise. We will be more selective when launching a project. At least we need to make sure of demand in that location,” says Mr Theerathat.

Locations where demand continues to be strong include Bang Yai and Bang Bua Thong where the Purple Line will start running by the end of the year.

Thongma Vijitpongpun, President and Chief Executive of Pruksa, recently proposed cutting property tax and transaction fees to stimulate the property market and the economy in general. He proposes the property transfer fee be reduced to 0.02% from 2%, mortgage fee to 0.01% from 1% and special business tax to 0.01% from 3.3%.

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Source: Bangkok Post, 31st August 2015

 

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