Plus Property managing director Piyabutr Lertdumrikarn presents the ‘Miracle Bag’ campaign, launched at the House & Condo Show.

They are aiming to recoup lower sales in the first quarter.

The fair, which runs until May 20 at the Queen Sirikit National Convention Centre, features more than 600 property projects which expect to raise Bt3 billion in sales. The fair is the venue at which property companies expect to revive sales following a sharp first-quarter drop.

Plus Property has spent Bt4 million on its "Miracle Bag" campaign, which offers five promotions: gift vouchers to buy furniture at Modernform worth Bt300,000; a cooling package providing air-conditioners and refrigerators worth Bt200,000; free home appliances from Samsung worth Bt200,000; a package tour worth Bt200,000; and a gift set worth Bt200,000.

These incentives are for home-buyers who decide to buy at any of its three Town Plus projects - at Lat Phrao Soi 101, Rama IX and Suvarnabhumi.

 "We expect sales from the campaign to reach Bt100 million," said managing director Piyabutr Lertdumrikarn. "This is part of a sales target of Bt4.5 billion at the end of the year."

Meanwhile, NC Housing is offering home-buyers at the fair free transfer and mortgage registration fees, as well as waivers of other fees.

Managing director Somchao Tanterdtham said that the campaign would speed up the decisions of buyers, after many delayed purchases when the government announced last month that it might reduce transfer and mortgage fees and special taxes to help the property market. The special offer is a part of an effort to drive its sales to Bt2 billion this year.

MK Real Estate is providing discounts of Bt200,000 to Bt1.5 million for home-buyers who decide to buy houses at the event.

Vice president for marketing Chukiat Tanmatithum said the company was also offering free transfer and mortgage fees, running from the House & Condo Show until the end of June.

"Our customers don't have to wait for the government's measures, because they will get better options from us," Chukiat said.

Bangkok Commercial Asset Management will provide discounts of between 20 and 30 per cent, a zero transfer fee and special interest rate (3 percentage points below minimum lending rate) for those who buy foreclosed assets selling at below Bt2 million per unit.

Managing director Banyong Visetmongkonchai said the company would show 100 asset units at the event. It expects sales of up to Bt100 million.

Meanwhile, the customer who bids the project's sales up to Bt100 million will receive a Toyota Camry 2.0 E, he said.

The Government Housing Bank will offer second-home units with a promise to lend up to 90 per cent of the house value to buyers, aside from special mortgage rates.

Other financial institutions also provide special interest rates for home-buyers, especially a zero interest rate for the first three to six months when signing a contract at the event.

Thai Condominium Association president Atip Bijanonda said most property developers would offer the best possible terms for people who buy residential properties, because they expect the event will drive sales in the current quarter.

"One month on, and home-buyers are still delaying their decisions to buy or transfer houses because they are waiting for the government's measures to help the property industry. But now property developers are offering the best elements of the government's [expected] measures, including free transfer and mortgage fees and lower interest rates," he said.

"As a result, we believe that total sales in the four-day event will reach nearly Bt3 billion, one half of the total in closing the deal and the remainder after the event."

An Agency for Real Estate Affairs' survey showed that due to lower demand, only 25 residential projects were launched in the Greater Bangkok area in April, against 28 in March. The size of the projects was also smaller, with a combined 2,628 units - a 69-per-cent drop from 6,139 units launched in the previous month.

Moreover, the combined value of the projects launched in April totalled Bt10.5 billion, or an 84-per-cent decrease from Bt19.3 billion in March.

The data indicate that the strategy of property developers in coping with lower demand and lower purchasing power is to launch fewer units at a cheaper price per unit.

Somluck Srimalee

The Nation