With many units at its condo developments sitting empty, developer L.P.N. is trying something different to fill these residences. The homebuilder launched a rent-to-buy scheme for unsold condo units at several of its complete Bangkok projects. The move is seen as a win-win with the company generating income during a difficult period while giving buyers an alternative path to ownership.
“We will rent out these completed units to generate a recurring income during an oversupply in the condo market,” L.P.N. Chief Executive and Managing Director Khun Opas Sripayak explained to the Bangkok Post. “We will also offer tenants these units for purchase which could be transferred in the future or when tenants are ready to secure them. The monthly rents they pay will become monthly instalments once they decide to buy the rental unit.”
The developer rented out 200-300 units at Lumpini Park Phahol 32 last year. Completed in 2019, the project on Phahon Yothin Soi 32 was mostly empty before the switch in strategies. No details were available on how many renters took up the option to buy. However, the homebuilder believes people unable to secure a mortgage during COVID-19 will be able to do so once the situation improves.
L.P.N. opted to fill empty units in this development through the rent-to-buy scheme after discounts failed to attract buyers.
“We will not cut prices to boost sales for this project if discounted prices still remain unattractive to draw buyers. Lowering prices should occur at an appropriate level,” Khun Opas noted.
L.P.N. has several other complete Bangkok projects currently dealing with large amounts of unsold condo units. Lumpini Place Rama 3-Riverine and Lumpini Ville Sukhumvit 101/1-Punnawithi each sit more than 70 percent empty. Both condominiums were completed within the past 12 months.
Meanwhile, 68 percent of the condo units in Lumpini Park Boromarajonani-Sirindhorn remain unsold and 52 percent of the units in Lumpini Ville Pattanakarn-Srinakarin are empty. According to the developer, it has THB9 billion worth of completed condo units currently unsold.
