More double pricing in Thailand’s property market

double pricing
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Another admission of double pricing for overseas buyers of Thailand property has emerged.

This latest admission comes just days after the CEO of one of Thailand’s top property developers admitted to double pricing at his company’s property developments, with one price for Thais and another, up to 20 percent more, for overseas buyers.

In a story published by the Bangkok Post Tritecha Tangmatitham, the Managing Director of prominent Thailand property developer Supalai, confirmed his company collects higher down payments from foreign buyers for off-plan projects compared with down payments collected from Thai buyers.

Justifying the double pricing practice, he said that higher down payments for foreigners minimise any risks because overseas buyers will be unlikely to pull out of a sale when they have already made a significant payment.

He confirmed that his company collects a down payment from foreign buyers of between 25 percent and 30 percent for off-plan condominiums, compared with between just 15 percent and 20 percent for Thai buyers.

Double pricing. Immoral, yes and more common in the property sector than perhaps anyone understands.

But is it illegal? That’s very unlikely under Thailand’s Consumer Protection Act.

Tritecha also added that Thais are able to pay their down payments through monthly installments while foreigners are expected to pay a lump sum.

Other Thailand developers are fairer when it comes to down payments and have the same requirements for all buyers. At least one listed Thailand developer currently asks for a 50 percent down payment from all buyers at its off-plan projects, and the drop-off rate on completion is almost non-existent.

By way of balance Therdsak Thaveeteeratham from Asia Plus Securities said the property sector should be more worried about defaulting Thai speculative buyers because their down payments are, in some cases, significantly lower and will have less to lose from walking away from a deal.

That’s true. Thais can currently secure many Bangkok properties for less than THB 100,000, with the balance payable on completion that, is many cases, is years away.

Thailand developers do seem extremely reluctant, for whatever reason, to legally pursue any buyers for breaching the terms of their sales and purchase agreement.

2 Comments

  1. Andy, that’s correct. There are numerous “sold out” condos throughout Bangkok that are now promoting sales for the “final few units”, as you suggest. That’s why decoding the PR from the facts is so hard.

    There’s an article coming shortly that will underline the problem the consumers have knowing what is actually happening in the market right now.

    Thanks for your comment which, as always, is much appreciated.

  2. How to decode the real meaning of Thai real estate propaganda :-

    “Hurry, hurry, last few units available” and what it really means “We’re struggling to get any sales and 97% of the units are available”

    That Bangkok Post article is about 80% Thai real estate industry propaganda and is completely unrepresentative of the realities of the Thai property market at this time. The reason many ‘investors’ hang onto their units is because there are no buyers willing to pay an inflated price for their units.

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