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KBank property clients keep the faith

By on Aug 20, 2012 in Property News

Kasikornbank (KBank) will continue supporting housing projects in Greater Bangkok’s flooded zones as it believes they won’t flood this year even as developers are more cautious with launching projects in those areas. 

Tipakorn Saiphatana, the bank’s vice-president for the multi-corporate business department, said most housing projects in flooded zones appeared to resume as normal, but none of these were in severely hit zones with flood water exceeding head levels.

During the first seven months of the year, the bank approved loans for over 50 projects. More than 60% were condominium projects as the sector boomed in the period, driven by a demand shift after the floods.

Mr Tipakorn said 50-60% of the approved projects this year were owned by one of the country’s top 10 developers that conducted supply and demand studies for each area. About 10-20% were projects located in provinces.  The maximum amount of approved project loans is 70% of construction cost.

The bank supported project finance for Magnolia’s Ratchadamri Boulevard, a luxury condominium being developed by the Chearavanont family-owned property arm Magnolia Finest Corporation Limited with a credit line of 3.6 billion baht. The developer signed a lease contract with the land owner two years ago.

Though buyers of high-priced units usually pay in cash, the bank will offer buyers of this project up to 70% of prices, higher than the usual 50-60% offered for a leasehold property.

Launched at the end of June, the project already has 35% presales. More than 80% of the bookings are Thais. It comprises 316 leasehold units priced at 170,000 baht per square metre or 8.5 to 80 million baht for a 30-year lease contract.

For the full article, please visit http://www.bangkokpost.com/business/economics/308413/kbank-property-clients-keep-the-faith

Source : Bangkok Post 20 August 2012

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