Calls for longer condo transfers for Chinese
Condo developers should extend the transfer period for Chinese buyers to avoid amplifying the glut, according to property brokerage Angel Real Estate Consultancy Co.
Co-founder and president Simon Lee said developers should give Chinese buyers a longer period to pay for condo units they booked when they are ready to transfer if they cannot travel.
"Developers may allow Chinese to pay gradually, such as 10-20% of unit prices every 1-3 months after they are required to accept the unit transfer. They can keep paying in instalments until fully paid, or the buyers can come and receive the transfer," said Mr Lee.
He said Chinese buyers who paid 30% of the unit price as a down payment for an off-plan condo unit a few years ago do not want to lose that money.
"Developers should not seize the unit back as condo oversupply is severe. Doing so will amplify the problem," said Mr Lee.
"Normally, Chinese want a home in Thailand. The Covid-19 outbreak will stimulate them to think about plan B -- seeking a second home overseas, particularly in Thailand where many of them have a positive feeling."
He said Chinese buyers, especially the middle class and wealthy, want an overseas home because new homes in China are now offered at a 25% discount, or a 30-35% discount for used homes, resulting from the outbreak of Covid-19.
Angel has many requirements from Chinese looking for houses with two bedrooms and a usable area of 150-200 square metres in Bangkok, Chiang Mai and Pattaya to lease for 30 years. Their budget is between 4-8 million baht per unit.
"When the Covid-19 outbreak is under control, Thailand and Japan will be the only two countries to benefit from Chinese buyers, as they did not close their borders to the Chinese," said Mr Lee.
Angel is preparing to shift to new businesses, segments and markets. It is in talks with a few Taiwanese investors to relocate their factories to industrial estates in Thailand.
Angel is also talking with a fund from Hong Kong to introduce a budget hotel on Ratchadaphisek Road with 150-300 rooms worth 300-500 million baht. The deal is expected to be finalised in the first quarter.
The company is also shifting to buyers from Myanmar, Cambodia and Brunei.
People in Myanmar buy condos in Bangkok to house their children going to international school here, he said. Their budget is 1.2-2.5 million baht a unit for locations along mass transit lines in outer Bangkok. Cambodians buy condos in Bangkok for medical purposes, to take parents to hospitals.