By Chankit Trakoolwilai
The Nation
Chiang Mai
Published on May 1, 2008
41% of target sold between Oct and Feb
The Legal Execution Department is confident it can sell two-thirds of its assets, or Bt110 billion, this fiscal year.
Langnoy Palawatwichai, deputy director-general of the department, which is in charge of disposing of foreclosed assets, said yesterday that as of February, the agency had at hand 113,784 foreclosed property units, worth Bt165 billion.
"From October 2007 to February 2008, we obtained Bt45 billion from auctions, achieving 41.17 per cent of our target," she said.
Last year, 158,163 properties worth Bt239.3 billion were foreclosed.
With the aim of auctioning off Bt160 billion worth of real estate last year, the department performed better than expected. It offloaded properties worth Bt165.8 billion, or 103.63 per cent above target.
Langnoy said the department this year would focus on auctions and restructure for greater efficiency in selling provincial assets.
More power has been delegated to provincial offices.
To attract interest for its auctions, the department has a policy to set the starting price at 80 per cent of the appraised value. In the absence of a bid, the price will then be lowered to 50 per cent of the appraised value.
Some auctions are now being hosted on Saturdays in order to allow more participation, as many buyers are too busy to come during weekdays.
The auction fee is also cut to 3 per cent, from 5 per cent.
The department is also pushing forward with amendment of the Condominium Act, in order to exempt buyers from paying overdue fees and penalties from former owners.
Due to this requirement, condominium units have drawn little attention from bidders, as a Bt500,000 unit could carry another Bt500,000 in overdue fees.
Pakorn Pratipimpakorn, director of the Property Disposal Division, said auctions had lured fewer bidders this year as financial institutions tighten lending. Moreover, the higher cost of living has reduced purchasing power.
"People attending the auctions are mostly property developers, who accounted for 90 per cent of transactions last year," he said.
Boonthum Thongklib, director of the Chiang Mai Legal Execution Office, said the office had been given the task of disposing of Bt7.8 billion in real estate this year.
However, in the first six months, it was only able to auction off just Bt2.8 billion.
Boonthum remains upbeat that the reduction of transfer fees to 0.01 per cent from 2 per cent may spur greater sales in the next six months.
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The Nation
Chiang Mai
Published on May 1, 2008
41% of target sold between Oct and Feb
The Legal Execution Department is confident it can sell two-thirds of its assets, or Bt110 billion, this fiscal year.
Langnoy Palawatwichai, deputy director-general of the department, which is in charge of disposing of foreclosed assets, said yesterday that as of February, the agency had at hand 113,784 foreclosed property units, worth Bt165 billion.
"From October 2007 to February 2008, we obtained Bt45 billion from auctions, achieving 41.17 per cent of our target," she said.
Last year, 158,163 properties worth Bt239.3 billion were foreclosed.
With the aim of auctioning off Bt160 billion worth of real estate last year, the department performed better than expected. It offloaded properties worth Bt165.8 billion, or 103.63 per cent above target.
Langnoy said the department this year would focus on auctions and restructure for greater efficiency in selling provincial assets.
More power has been delegated to provincial offices.
To attract interest for its auctions, the department has a policy to set the starting price at 80 per cent of the appraised value. In the absence of a bid, the price will then be lowered to 50 per cent of the appraised value.
Some auctions are now being hosted on Saturdays in order to allow more participation, as many buyers are too busy to come during weekdays.
The auction fee is also cut to 3 per cent, from 5 per cent.
The department is also pushing forward with amendment of the Condominium Act, in order to exempt buyers from paying overdue fees and penalties from former owners.
Due to this requirement, condominium units have drawn little attention from bidders, as a Bt500,000 unit could carry another Bt500,000 in overdue fees.
Pakorn Pratipimpakorn, director of the Property Disposal Division, said auctions had lured fewer bidders this year as financial institutions tighten lending. Moreover, the higher cost of living has reduced purchasing power.
"People attending the auctions are mostly property developers, who accounted for 90 per cent of transactions last year," he said.
Boonthum Thongklib, director of the Chiang Mai Legal Execution Office, said the office had been given the task of disposing of Bt7.8 billion in real estate this year.
However, in the first six months, it was only able to auction off just Bt2.8 billion.
Boonthum remains upbeat that the reduction of transfer fees to 0.01 per cent from 2 per cent may spur greater sales in the next six months.
Discuss
Add this link to...
Tell a friend
Bury
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