Strong growth took place in Bangkok’s residential property market during the first quarter, The Nation reported. The Thai government’s stimulus package cutting transfer and mortgage registration fees plus the recently introduced “Baan Pracha Rath” financial package for the purchase of homes priced THB1.5 million and under looked to have given the market a much needed boost.

Several developers have seen strong pre-sales numbers this quarter and have also been able to complete transfers at a brisk pace. For example, Pruska Real Estate believes it will now surpass first half estimates while other developers are also seeing better than expected growth.

“Our pre-sales in the first quarter came in at THB9.36 billion, up four percent from our earlier estimate of THB9 billion, thanks to both the cut in transfer and mortgage fees to 0.1 percent and the latest financial package for homes priced at no more than THB1.5 million per unit under the ‘Baan Pracha Rath’ campaign,” Lersuk Chuladesa, chief operating officer of Pruksa Real Estate, told The Nation. “We believe this campaign will drive our first-half sales strongly – above our earlier estimate for the period.”

During January and February of this year, Golden Land Residence brought in THB3.1 billion in pre-sales and The Nationnoted that the company will now easily surpass its pre-sales target of THB3.5 billion that it had set for the first quarter.

“We believe pre-sales will grow beyond our estimate thanks to strong residential demand among homebuyers, and especially among those speeding up their decision to purchase before the measure to cut transfer and mortgage fees to 0.1 percent expires on April 28,” Golden Land managing director Saenphin Sukhee explained.

Supalai presales are up 27 percent y-o-y worth and the developer earned a staggering THB3.13 during the first two months of 2017. The developer has revised its first quarter pre-sales estimates and is now hoping to make THB5 billion.

“Residential demand started to recover during the final quarter of last year, when the government’s measure to cut the mortgage and transfer fees came into effect. This drove increased demand to buy detached housing and townhouses in the final quarter of 2015 and the first quarter of this year,” Supalai managing director Tritecha Tangmathithum stated.

Source: DD Property.com