SC Asset campaigns around policy restraints

SC Asset campaigns around policy restraints

SET-listed developer SC Asset Corporation Plc is using a campaign to boost sales of completed condo units as the government's property tax incentives effective from the start of this month do not apply because its units are priced above 3 million baht.

"The property sector involves not only suppliers but also various players such as manufacturers and labourers," said Prayongyut Itthiratchai, first vice-president for high-rise development. "To boost the property market, the incentives should not have unit price limits."

SC has six projects with unsold completed condo units. Three are in the super-luxury segment, comprising Saladaeng One with 40 units remaining, 28 Chidlom with 140 unsold units and Beatniq with 80 unsold units. Three in the mid-priced segment -- Centric Ratchayothin, Chambers Raminta and Chambers On Nut Station -- have units starting from 3.49 million baht.

To encourage buyers, SC waives fees for transfer, common areas and electricity and water supply metres.

"The recent cut in interest rates will be good for the property sector as the strong baht can be offset slightly. But the new lending curbs had a strong impact on the condo market as some investment buyers cannot take out loans," he said.

If the loan-to-value regulations are revised to exclude third homes, some investment buyers can buy condos for rent at various locations, Mr Prayongyut said.

According to Terrabkk.com, a property website and consultant, the top three locations where internet users searched for a rental condo with a monthly rate of 20,000 baht and lower were Phra Khanong-On Nut, Huai Khwang-Sutthisan-Sena and Krung Thonburi-Talat Phlu.

From On Nut to Punnawithi skytrain stations, rental rates ranged between 480-650 baht per square metre per month, with a rental yield of 5-6% per year.

From Thong Lor to Punnawithi stations, On Nut also saw the lowest average condo price per sq m at 120,000 baht, followed by Bang Chak (140,000 baht), Punnawithi (180,000 baht) and Phra Khanong (200,000 baht).

Tomorrow, SC plans to launch Chambers On Nut Station, a low-rise condo project with three eight-storey towers and a total of 487 units worth 1.7 billion baht. It was completed earlier this month.

"We are launching the project after construction was completed because most target buyers living in the On Nut area are renting apartments or condos. They would not pay both rent and down payments at the same time," said Mr Prayongyut.

SC shares closed yesterday on the SET unchanged at 2.30 baht in trade worth 23.6 million baht.


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