Pruksa laments govt delay of scheme

"Our customers who bought homes priced between Bt1 million and Bt3 million have delayed transfer because they are waiting to see the government's policy to offer zero interest for the first five years of a mortgage," the company's director and chief business officer, Prasert Taedullayasatit, told a news conference yesterday.

Customers were also waiting for changes in tax deductions for interest payments, Prasert said as he announced Pruksa's new business strategy for serviced condominiums.

He said the government needed to clarify its policies so home-buyers could make decisions.

This situation not only affects people waiting to take possession of their new homes, but those who have obtained mortgage approval from the Government Housing Bank on the existing scheme offering zero interest for the first two years.

However, the market for homes priced over Bt3 million has continued to grow because of demand in this market. Therefore, the company yesterday announced that it would join with Singapore-based Ariva Hospitality Group, a property-management firm, to set up a serviced-condominium concept for buyers of Ivy Thonglor.

"Ariva will provide rental services for those who invest in Ivy Thonglor under the serviced-condominium concept," he said.

So far, 78 Ivy Thonglor buyers have said they are interested in this service. The company targets 150 units joining the service, which will help customers manage their assets to generate rental returns.

Ariva chief executive officer Cameron Ong said his company would provide the service and also find rental customers, offering profit-sharing with a target return for the condo owners averaging 5-6 per cent a year.

Jones Lang LaSalle (Thailand) managing director Suphin Meechuchip said demand for serviced apartments in Bangkok's Thonglor area was growing strongly. Monthly rentals average Bt700-Bt1,000 per square metre.

There are about 6,000 serviced apartments in Thonglor, with an occupancy rate of about 65 per cent. Occupants generally stay for one to 12 months.

Demand for serviced apartments in this location comes from foreigners working in Bangkok, including Japanese, Singaporeans and Europeans, she said.

Prasert said the company would offer the same service at Ivy Sathorn and Ivy Ampio Ratchada. This will create more value for property assets and challenge customers to buy Pruksa's condominiums.

"We are offering this service to support our customers after finding out that 30 per cent of them buy condominiums for investment, holding on to them for five to 10 years," he said.

Ivy Thonglor has sold 93 per cent of its total project value of Bt2.48 billion or about 447 units. The condos will be ready to transfer to customers this year.