Big firms gain from improved sentiment

       Property markets in Bangkok and some holiday destinations have shown signs of recovery and will see better prospects in the remaining months of the year due to improved economic sentiment,says real estate agency Knight Frank Chartered (Thailand).
       A number of new projects were launched by large developers such as Asian Property Development, Noble Development and CMC Group. But small developers have delayed launches and held on to their land plots as banks were reluctant to lend to small firms, said managing director Phanom Kanjanathiemthao.
       "Without the upward trend in the economy, big firms wouldn't dare to push out their projects," he said."Midpriced condos in Bangkok are still in demand although the sales might not be that extravagant."
       Sentiment in holiday markets such as Hua Hin, Cha-am and Rayong has also picked up as those markets mainly rely on local buyers who are less sensitive about domestic political uncertainties.
       Mr Phanom said foreign buyers seeking second homes in Thailand were still delaying their decisions as the global economy has just started to pick up.They also remain concerned about Thai politics, but sentiment would continue to improve if politics remains stable.
       Despite better prospects for Phuket with site visits increasing by two to three times from the beginning of the year,Mr Phanom said many projects there would achieve no sales this year. In normal times, each project can sell around 12 units a year but managing just one or two sales this year is hard enough.
       However, the villa market is still doing well in Phuket as buyers must pay according to the construction process rather than making the usual down payments.
       Pattaya remains a hard market to sell condominiums to foreigners due to foreign ownership restrictions, while local people prefer to buy houses.
       Knight Frank has one Bangkok project under its management that is awaiting a possible launch. The 2-billion-baht mixed development will feature a hotel and a condo worth one billion baht each. Another project worth 5-6 billion baht is expected to be introduced late next year.
       The company will stage its Taste of Living property fair, featuring nine projects from Oct 15-25 at Siam Paragon,aiming to generate sales of 300-400 million baht.
       Discounts ranging from 5% to 18%will be offered to buyers at the fair.
       Besides new developments, Bangkok Commercial Asset Management Co is offering discounts until the end of October for some 800 second-hand condominiums on its books.
       The Thai Condominium Association,meanwhile, is joining the brokerage Century 21 Realty Affiliates (Thailand) Co to stage a Thailand Condo Expo 2009 from Oct 23-25 at Suntec Centre in Singapore,featuring units from about 30 projects in Bangkok and tourist destinations.
       Century 21 plans to join with a partner to open an office in Singapore to provide consultation and sales management to Thailand-based developers who want to tap the city-state's market.