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These are some factors that drive demand for residential properties regardless of economic conditions. The real demand persists in the market with a few changes in terms of consumer tastes and behaviour.

Even in the present scenario, shopping for a home is a good idea. These are the reasons why:

n The government's tax stimulus package offers huge discounts in transfer fee and mortgage registration. The package cuts transaction cost from 2 per cent to 0.01 per cent. That means a buyer would save Bt100,000 on a Bt5-million house. The package is effective until next March.

n With rising steel and land prices pushing up construction costs, property prices are climbing. The cost of construction materials is likely to rise 20 per cent from last year. And developers are unlikely to slash home prices to entice buyers in face of rising costs. In fact, some developers have already raised home prices. It is likely that the price of units may rise 5 per cent by the end of this year, especially in the condominium market as it is more vulnerable to land and steel price

fluctuation.

n Interest rates have also bottomed out and may rise because of high inflation.

These factors make it a good time to buy homes, especially if buyers go in for low fixed-rate loans offered by some banks.

While scouting the market, some points worth taking into account are:

n The units should be ready or close to completion as their prices would not have been adjusted to accommodate increasing costs.

n The legal issues should be sorted out so that there is no risk of delay or breach of contract. The environmental-impact-assessment licence and construction permit must also be in order.

n The house and society should suit the buyer's lifestyle. For example, a society must be clean, green and safe.

n Property is all about location. Home-buyers must look for a house that is either close to or easily commutable from their workplace and schools.

n Lastly, buyers must do their own research - surf the Internet, scan newspapers, brochures, magazines and go for site visits - and then weigh the alternatives before homing in on a property.