Property expected to shrink 11% this year
The property market will drop by at least 11 per cent this year as customers of residential projects have delayed taking delivery of their homes in the third quarter, property experts said.
Business Housing Association president Issara Boonyoung said 84,000 new residences were registered in the first seven months of the year, down 26 per cent from 114,000 units in the same period of 2010.
Many customers delayed transferring both new and resale residences in August and September because they were waiting to see the government’s policies supporting home-buyers with such measures as tax reductions and zero-interest mortgages.
The market slowdown over those two months will likely mean a drop in property transfers by more than 11 per cent for the full year, from 170,000 units last year to only 150,000 in 2011, he said.
“The property market last year benefited from tax incentives and recorded high growth, but this year the market did not have any good signs and also faced a vacuum situation from the government policy. Overall, this will mean a drop in the market,” he said.
However, property firms are trying to revive business growth in the fourth quarter through special promotions at the 25th House & Condo Show at Queen Sirikit National Convention Centre running from yesterday through Sunday.
For example, Property Perfect launched a special promotion offering zero-interest mortgages for the first two years, while Charoen Nakorn Co launched a zero-interest package for the first three years on only 10 units.
