The Housing Loan Association has teamed up with banks and asset management companies to launch a promotional campaign aimed at boosting sales of second-hand homes through the Home-Loan-NPA Grand Sale 2022, featuring aggressive promotions, discounts, giveaways, and special interest loans, with the goal of clearing over 130 billion baht worth of Non-Performing Assets (NPA) through both onsite and online channels. Visitors can now explore the event via a 3D Virtual Exhibition.

Mr. Kitti Patthanapongpiboon, President of the Housing Loan Association stated that this year is a golden opportunity for real estate purchases, especially for acquiring NPAs from banks and financial institutions at original costs. Meanwhile, new home prices have increased by 5-10% due to rising construction costs, making NPAs at least 20-30% cheaper than new homes. Additionally, buyers can benefit from government support for purchasing properties priced under 3 million baht, which includes a reduced transfer and mortgage fee of just 0.01% until the end of 2022, along with special interest rates.

The association has collaborated with banks, financial institutions, and asset management companies (AMC) to promote the sale of Non-Performing Assets (NPA) under the event titled “Home-Loan-NPA Grand Sale 2022.” This exhibition showcases a variety of properties from banks and financial institutions, offering the best locations and financing options, making it an excellent opportunity for both residential and investment purchases.

The event will be held in a hybrid format, both onsite and online, allowing customers to access the exhibition. The onsite event will take place from July 1-3, 2022, at Impact Exhibition Hall 8, Muang Thong Thani, while the online event will be available in a 3D Virtual Exhibition format on the website https://www.cn-ves.com/npa2022/Exhibitions/Virtual_Exhibition_Hall/3D/.

The event runs from today (June 15, 2022) until July 15, 2022.

Following the COVID-19 pandemic, the accumulated NPA has risen significantly. As of April 30, 2022, commercial banks reported a total NPA of 135.16 billion baht, an increase of 46% compared to the same period in 2019, which had an NPA of 92.8 billion baht.

Dr. Wichai Wiratthakhan, Inspector of the Government Housing Bank and Acting Director of the Real Estate Information Center, as an advisory committee member of the Housing Loan Association noted that the measures to stimulate the real estate market, including second-hand homes, have led to an increase in supply in the market compared to the previous year. In the first quarter of 2022, the number of units and value of second-hand homes grew by 20.2% and 25.1%, respectively.

Single-family homes are the most offered in the second-hand market, followed by condominiums and townhouses. Most second-hand homes are available in Bangkok and its vicinity, as well as key provinces such as Chonburi, Chiang Mai, Rayong, Prachuap Khiri Khan, Phuket, and Nakhon Ratchasima. In Bangkok, the average monthly units available are 54,627, accounting for 39.6% of the national total, with an average monthly value of 581.059 billion baht, representing 61.9% of the national total.

Demand has also expanded, reflected in the transfer of ownership of second-hand homes. In the first quarter of 2022, there were 49,227 units transferred, valued at 96.296 billion baht, showing a growth of 4.0% in the number of units and 5.9% in value, accounting for 61.5% and 44.7% of total ownership transfers, respectively.

For second-hand homes priced under 1.5 million baht, which make up over 80%, it indicates that buyers looking for homes in this price range will need to focus on the second-hand market due to the lack of new supply. Meanwhile, second-hand homes priced between 2-3 million baht have seen the most significant growth in ownership transfers, as many new homes produced in this price range over the past few years are now considered second-hand.

Furthermore, as new home prices are expected to rise due to increased raw material costs and inflation, potential buyers may consider second-hand homes more, as they are more affordable, located in good areas, and benefit from reduced transfer and mortgage fees. Therefore, it can be concluded that 2022 is a crucial year for second-hand homes in driving the expansion of the housing market.

 

Mr. Alongkot Boonmasuk, Secretary-General of the Housing Loan Association stated that this year's highlights include financial institutions offering low-interest housing loans with 100% financing to provide consumers with greater access to credit. Additionally, financial institutions and asset management companies will present a diverse range of NPAs across various locations and price levels, with special promotions for consumers to choose from based on their needs.

Moreover, for those who reserve purchases online, financial institutions have prepared special conditions for customers, particularly exclusive rights to choose from various promotional options, such as special discounts, reduced fees, or support for various expenses. There is also a One Price marketing campaign being prepared to cater to customers both onsite and online, utilizing communication channels tailored to individual customer behaviors.