BAM to run the first 2015 NPA auction worth 1,742 million Baht

BAM has been stimulating real estate sales all the year round. On this coming 28th of April, there is a first 2015 auction to be held at BAM’s headquarters with a list of 32 items worth 1,742 million Baht. After the success of 2014 auctions with the earning of 3,641.45 million Baht surpassing its target, the industry has a long way to go.

           BAM’s Senior Executive Vice President, Mr. Somporn Moonsrikaew revealed that BAM is continuing to make progress on the offensive policy. After greatly succeeding the 2014 auctions with 52 items sold worth 3,641.45 million Baht, BAM is planning to run the first auction of 2015. There will be 2 auctions throughout the year. The first one is to be held at BAM’s headquarters on April 28 from 9.30am onwards; the other one is to be determined.
For the first 2015 auction, BAM is offering 32 golden sites and premises altogether for investment, commercial, and residential at a minimum bid of 1,742 million Baht. They include 20 vacant lands, 6 premises, 2 factories, 1 office building, 1 office space, 1 detached house, and 1 commercial building.

           Assets selected for the auction are, for example, 3 vacant lands in Khao Yai CASA Nakorn Ratchasima, one in Yao Yai island Phang Nga with a minimum bid of Baht 274 million Baht, one in Mae-Sod with a minimum bid of 420 million Baht, a land and house in Roi-Ed with a starting price at 47 million Baht, a 632.48 sqm office space at Jewelry Center building starting at 21.5 million Baht, and a 5-story commercial building at Nonthaburi starting at 25 million Baht.

           In addition, BAM has provided special promotion for customers who win the auction items. They will receive lucky draw coupons to win prizes with over 3 million Baht value. The eligible customers are the ones who win the auction items for any category of property in any province and complete the ownership transfer within May 31, 2015 except BAM’s customers who pay in installments. The coupon will be drawn on June 10, 2015 at 1pm at BAM’s headquarters. Prizes await including 1st prize: a golden plot of land in Mountain Villa Khaoyai, 2nd prize: two 2-story townhouses in 18 sqw. in Siriwan Village Bangbuatong, 3rd prize: two condos at Condo Park Thaand Nirun Condo 2 in 28 sqm. and 24.51 sqm., respectively, and the 4th prize: 12 tour packages to Chiang Rai, U-bon ratchathani, and Phuket with flight tickets and accommodations for 3 days 2 nights.

          Mr. Moonsrikaew also ensured that real estate business today tends to grow, even though several projects did not perform well when they were first started in the first quarter due to the economical problems. However, there are positive signs to be effective in the second quarter. It is, for example, a decrease of policy rate from 2% to 1.75% which will psychologically boost customers’ demand for property and encourage entrepreneurs to invest in such potential assets for sustaining the future business growth. Some new projects are also scheduled to open in the second quarter as planned after the tough situation at the beginning of the year has been relieved.
The investment in real estate industry remains attractive. The important keys driving the business growth are the followings. First, the demand for real estate is growing as the urban areas expand. Second, the government support of investment projects such as the mass transit system in Bangkok and vicinity and the establishment of special economic zones also has an impact on the business. Next, the limited amount of land especially in the urban areas causes an ongoing rise in land price in the long run. Finally, there will be an average of approximately 10-15% increase in land appraisal during 2016-2019.

          At present, the total number of NPAs in BAM’s possession is 12,291 worth 35,762 million Baht. 47.3% is vacant land; others are detached houses, factories, and condominiums, respectively. By March 2015, the company had sold over 362 NPAs with the value of 1,335 million Baht.