Monday, 27 August 2012

Real estate business improves after last year's floods

BANGKOK, Aug 23 - Housing Business Association chairman Isara Boonyang said the real estate business has expanded some 10-15 per cent after last year's floods, thanks to remedial measures implemented by the government.

The Bank of Thailand (BoT) is offering Bt300 billion in soft or low interest loans for those affected by floods, while the government's 'first house' scheme provides home buyers with interest-free loans for three years.

The expansion of so-called horizontal residential projects has been overtaken by vertical housing, high rises or condominiums, for many pieces of land have not been developed, he said.

The construction cost for a residence as well as real estate prices have moved up about 5 per cent as a result of higher prices of land and the minimum wage rise of Bt300.

Many housing projects have adjusted home planning designs to be able to cope with future floods, he noted, such as dyke construction.

Mr Isara believes Thailand will not face a flood crisis this year, for he thinks the government has measures to deal with such situations despite its as yet unclear water management plan.

Chairman Kitti Pattanapongpiboon of the Housing Finance Association said the overall amount asked for in applications for loans in the second quarter reached Bt270 billion, which was an improvement. The whole-year figure is expected to reach Bt300 billion.

The Housing Finance Association and Home Buyers' Guide Company have joined together to sponsor a 'Home Buyers' Expo 2012, NPA Grand Sale 2012, and Home Loan 2012' to boost the housing market at Queen Sirikit National Convention Center from today through Sunday with special conditions offered to potential buyers.

Around 80,000 visitors are expected to join the four-day event.


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