Will your condo unit or house be completed on time??

The new condo and housing development market has seen a boom in recent times that is off the hook. This includes all of Thailand, not just the Pattaya, Jomtien Beach area. 

Developments are rolling out in record numbers. I mentioned a few blog posts ago about some of the difficulties developers are facing to complete projects on time.

1. The increasing price of raw materials and durable goods has left some developers waiting for more investment money to roll in before they can proceed, or having to procure new loans from the banks.
2. With all the new projects rolling out through out Thailand it has been difficult for some developers to maintain a sufficient amount of staff
3. With the new minimum wage law of 300 baht per day per worker, some developers are now finding themselves going over budget. 

 

According to an article i recently found in the Pattaya Mail the Real Estate Affairs company (AREA) chairman Mr. Sophon Pornchokchai has acknowledged that...

  “For the housing market this year, we had to watch over the construction, for homes that might be completed after the delivery date, or are presold but not built,”

This is a common concern and i have to admit it would be a little scary to purchase a condo unit and 6 months later it has yet to break ground! Some homeowners have been utilizing the "Escrow System" to safe guard their down payments. How this works is a third party holds the down payment for the buyer, which will not be paid out to the builder until the home is delivered as promised.

  

Sophon now advises consumers to use the escrow system, which protects their down payments, and reduces the risk of buying a home but not getting the house later.

 

As of December 2012, an estimated 128,934 purchased units have either been built or are still under construction with only about a third being100 percent finished. The rest are still being built, and some of them are scheduled for completion in 2014-2015.

This video of the early stages of Novana Residence construction shows what your new home in the sky looks like in the beginning and what it takes to make it happen.