BAM to host an auction “Popular Condo Muang Thong Thani” following stimulus plan

           BAM is hosting a “Popular Condo Muang Thong Thani” auction offering 37 units in an effort to support government’s real estate stimulus measure. With almost 50 potential buyers, the auction will be held on March 30, 2016 and the starting bid price is only 375,000 baht. The Government Savings Bank offers a special fixed interest rate at 4.50% for 3 years.

           Mr. Somporn Moonsrikaew, BAM’s senior executive vice president, revealed that BAM is organizing the first auction of 2016 on this coming March 30 offering 37 units in Popular Condomunium Muang Thong Thani project to public. They are 1-bedroom studios available in 4 sizes: 28.40 sq.m, 32.84 sq.m, 38.39 sq.m, and 40.32 sq.m. The price starts at 375,000 baht.

           The total number of units in the project is 206. The average number of those interested is 3 per each unit, while the highest number is 13. In order to be open and above-board, the auction seems to be the best way to sell the assets. The one who offers the highest price will own an asset and will be granted with the discount for transfer and mortgage fee according to the government’s measure (only ones transferred before April 28, 2016). They will also be offered a special loan deal with fixed interest rate of 4.50% for 3 years.

           The Popular Condominium project is expected to be very attractive to customers since it is located among the prime area close to IMPACT Arena Exhibition and Convention Center Muang Thong Thani, Sukothai Thammathirat Open University, and Office of the Permanent Secretary for Defence. Many real estate developers tend to be more interested in investing in this area because it becomes more civilized and full with facilities. As well as being close to many attractions such as Central Plaza department store and Muang Thong Thani flea market, the area also provide a shuttle van service to public.

           Mr. Somporn added that the real estate sector in the first quarter of 2016 is still expanding due mainly to the extension of the mass transit system which supports investment and development of several projects in real estate market among Bangkok and vicinity. In addition, the government measure regarding setting up special economic zone in 10 provinces causes investors to invest more in real estate market among the provincial areas.

           Real estate sector is also supported by another government’s measure launched in October 2015 which is the discount of transfer and mortgage fee at 0.01%. There is also the government’s Ban Pracha Rat project which aims to help low-income earners to have their own residence. The project will be taken care of by 3 state-owned banks. KTB offers loans for entrepreneurs, while GHB and GSB offer loans with special deal for borrowers.

           The overview of the condominium market is seen to be continuing to grow. Most entrepreneurs add more promotions to their leftover units from 2015 along with investing in new projects located close to mass transit system and newly opened department stores. However, the second hand condo seems to become an important competitor to the developers’ condo since the price of the new project tends to increase.