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After rebates and freebies, Thai developers to auction flats online in bid to shake off supply glut

  • Covid-19 and anti-government protests have combined to weaken the Thai property market, scaring buyers away and worsening supply glut
  • Some 120 flats in projects across the Southeast Asian country will be put up for online bidding at big discounts from next month

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Workers at an apartment project in Bangkok. An economic slump and protests against the military-led government have hurt developers who struggle to shake off a supply glut. Photo: AFP
Cheryl Arcibal
After dangling rebates and freebies to attract buyers, Thai developers are trying out a new strategy to trim their inventory of unsold homes by auctioning them online at deep discounts.
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Some 120 flats in several projects across the Southeast Asian country will be made available for bidding next month on whyborder, an online property portal owned and operated by a Singapore-based company. The flats are expected to be offered at 20 to 40 per cent below their selling prices.

The apartments range from studio units to penthouses, starting from HK$388,000 (US$49,893). Among the projects in Bangkok to be included in the promotion are the Maru Ladprao 15 in Chatuchak and Hyde Sukhumvit 11 in Khlong Toei, and Manor Sanambinnam in Nonthaburi district outside the Thai capital.

The auction is seen as an attempt by developers to overcome excess supply as buyers disappeared amid an economic slowdown caused by the Covid-19 pandemic. A series of political crises and street protests preceding the public-health crisis have also conspired to drive away foreign investors, compounding the industry glut.

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Police use water cannon on Thai protesters as they demand prime minister’s resignation

Police use water cannon on Thai protesters as they demand prime minister’s resignation

“Bangkok has an oversupply of flats where the developers are very keen to actually sell off a certain percentage of stock at a considerable discount,” said Dave Loo, founder and chief executive officer of the auction site.

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Like other countries in Southeast Asia, Thailand has recently seen a surge in Covid-19 cases. Still, the government has announced plans to reopen the capital Bangkok and island resort Pattaya to foreign visitors to revive tourism. In July, the resort island of Phuket started receiving fully vaccinated tourists.

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