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Optimism over property fair

Siam Paragon Development, undaunted by the economic crisis, predicts exhibitors at the Siam Paragon Luxury Property Showcase will have sold 150-200 residential units worth more than Bt1.5 billion by the time the fair ends on May 24.

Forty developers are promoting 12,000 units built in Bangkok and tourist destinations like Hua Hin and Koh Samui at the showcase.

Worth more than Bt20 billion in total, most of the homes are priced from Bt2 million - with some at Bt100 million per unit.

Siam Paragon Development executive chief marketing officer Kriengsak Tantiphipop said at the fair's opening yesterday that more than 40,000 visitors were expected, with over 80 per cent of them locals. The target transaction value is 40-per-cent higher than that achieved at last year's event.

"The property market has recovery potential, as investors are seeking a higher return on investment in light of low deposit rates," said Kriengsak.

Aside from the Bt15-million investment for this event, the company plans another fair in the third quarter in The Emporium, which will cost Bt8 million to Bt10 million. Another fair is planned for the fourth quarter in Siam Paragon.

Encouraging investment in these events is a change in home-buyers' behaviour, Kriengsak said. Buyers now prefer to look around for the best offers at property fairs, as they can compare promotional packages from many developers. This is more convenient than visits to project sites, which are time-consuming.

At the current fair, Kasikornbank offers a zero-interest mortgage rate for the first year to all home-buyers.

Some property firms offer a guaranteed 6-per-cent annual return on investment for the first three years for those buying with a view to renting out their property. Others offer a one-year free stay, as they will shoulder the first 12 months of instalments.

This will be a good time for investors who have cash and want to find a good investment, Kriengsak said.