Fragrant Property expects market to freshen up in second half

Developer Fragrant Property believes the market will pick up in the second half of the year due to the government's stimulus measures.

Managing director James Duan said the measures are likely to benefit the economy, especially the real-estate sector. However, the results will probably be detected from the second half, when money starts flowing into the system. Although currently there is purchasing power, the key negative factor is that consumers lack the confidence to spend.

"Actually, purchasing power has not disappeared, but the problem is that buyers are lacking in confidence to make a decision to buy units. I believe that when the results of the government's measures start showing through and the money starts to flow into the system, the real-estate market will probably recover, and that this will probably happen some time during the latter half of the year," Duan said.

He said the Home & Condo event, to be held from Thursday through Sunday at the Queen Sirikit National Convention Centre, should boost the number of potential buyers. However, it may not yield too many deals, as customers are still wary of the local and global economic outlook.

He acknowledged that developers would be unlikely to see their sales figures rise at the event, because most buyers are still hesitant to buy real-estate assets despite the fact that there is demand and purchasing power in the system for housing.

"Rather, we hope to use it as a public-relations opportunity, as we will have a chance to communicate with consumers directly. We believe that when the Airport Link opens in August, it will stimulate sales of our project The Circle. As a result, we will certainly be able to close the sales of the project by the end of the year, because we do not have too many units left," said Duan.

He added that Fragrant Property would continue to go ahead with new projects targeting the middle to high-end sector with prices of between Bt3 million and Bt5 million, mainly in the central business areas and also close to mass transit.

The company expects that the progress of new projects will be clearer in the second half of the year, as the company is currently in negotiations over the acquisition of land banks.

Meanwhile, consultant and agent Darvid Property Services will focus more on selling second-hand homes because of the high demand for this type of property, said managing director Darunee Rungruangphol.

However, she admitted that the greater caution of financial firms in approving loans was affecting sales. If the government were to launch additional tax allowances for the used-home market, this would boost purchasing power, she said.

Moreover, the jobless would be helped because construction firms would recruit more workers in line with rising demand.

Darunee said the company would focus more on the used-home market this quarter, as there are many projects suitable for such sales and Darvid has received good feedback from selling second-hand houses.

"We can close the sales deal within a short time. Consumers want to buy second-hand homes because of good location, and if the projects are improved, it is not really different from buying a new house," she said.