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.