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Prices for new Thai property developments are often quoted
on the basis of price per square meter built.
Prices per square meter are calculated on the basis of location, quality
of building specifications and the overall quality of the project.
Once the initial offer price has been determined, timing is everything.
With the bank guarantees in place and their equity fully guaranteed and/or
insured, the smartest investors move in early during the launch phase to
secure the best possible prices and the best possible returns.
It is inside knowledge of this 'lifecycle of a new development' that makes
it possible for serious investors to make a far above average return in a
fully secure way.
During the construction phase, your property rises in value.
As more and more properties are sold the developer's sales requirements
are met. The developer therefore increases the price of the remaining
properties. This has an immediate effect on the value of your property.
The developer increases the prices of the properties in the development in
order to regenerate the income from the discounted properties sold
initially. This can happen without depending on any overall market growth
because the developer is simply raising your previously discounted
property's price to what it should really be.
The true market value is of course derived from the current prices for
existing properties in the same location, built to similar specifications.
Usually the first significant price increase takes place when the required
number of off-plan sales has been reached. This period is usually two to
four months after the launch.
The second significant price increase takes place when construction
actually begins. This usually happens another two to four month after the
required percentage of off-plan sales has been achieved.
Remaining price increases then occur periodically throughout construction
as the development progresses. These price increases eventually result in
your property reaching a selling potential of at least equivalent to
today's price per square meter for similar developments in the same
location, built to similar specifications.
The other factor, which has a major impact on the value of your property,
is the strength and stability of the Thai property market.
As one of the fastest growing property markets in the world, your
strategic investment in off-plan property is made even more secure.
Not only are you buying into a buoyant, growing and very stable market,
but you are also buying into that market via an investment scheme that
ensures you have the very best change to make a very handsome return on
your equity. |
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