According to a recent report in The Bangkok Post:

While it is difficult to buy good condominiums at bargain-basement prices today, those who pre-register before a project's launch get the first opportunity to acquire units at attractive pre-launch prices, says Raimon Land CEO Nigel Cornick.

Getting in early can help buyers stay ahead of the condo game, which features some tricks consumers might not be aware of. One tactic involves developers selling some of their best units to connected parties at pre-launch prices. These units are then marketed at higher prices later when the project has officially sold out.

One problem for developers who intend to play this trick, though, is that banks will not disburse the full amount of construction finance until about 25-30% of the units have been sold during the pre-sale period.

"If you keep units back then it's up to you, that may be part of business. You may be able to keep the best units to the last but you must accept that it might affect your ability to sell the first 25% quickly," says Mr Cornick.

While underscoring that this is not something Raimon Land does, Mr Cornick pointed out that buyers cannot do anything if the developer signs on a third party to buy some of the units.

Also while listed property companies clearly would face some disclosure and governance issues from such tactics, non-listed ones can do whatever they want.

The River condominium has already attracted 1,500 pre-registrations for units that will start at around 85,000 baht a square metre.

There is certainly a price difference depending on which stage of the development the buyer enters. For instance, Raimon Land increased the price of its Northpoint project in Pattaya by 5% on the launch day from the pre-launch and pre-registration levels.

While it is difficult to generalise about how much higher prices climb when the project is actually completed, Raimon Land's The Heights in Phuket has gone up in price by nearly 20% since the company launched it.

Mr Cornick also advises buyers to make sure the developer they are buying from will be able to deliver what he promises.

"I think it's very interesting to see some projects, which were launched a couple of years ago and were supposed to be finished by the end of this year, not yet finished and probably a year away," he says.

"I think one has to be very conscious that what the developer might say is going to be two years invariably won't be, it will be longer."

Raimon Land's biggest project in the first half of the New Year will be The River, located on a prime stretch of the Chao Phraya near The Peninsula Hotel. The company has built up quite a bit of interest in the project, with 1,500 pre-registered buyers.

"Interestingly enough, a significant number are Thai buyers," says Mr Cornick.

The entry-level price will be 85,000 baht a square metre with the smallest unit probably being a 55-square-metre studio.

Mr Cornick said Raimon was still keen on developing a more affordable product, which would be in the range of 2-4 million baht and not quite the budget condo level, but has yet to acquire land for this.

"We haven't found the location yet, we're still looking. I think it would have to be a cheaper location. But I would never be looking at competing against L.P.N. because it's very hard to get down to that level, it's almost impossible," he said, referring to the budget condo leader.

One of the sites Raimon Land is considering is in the outer reaches of Sukhumvit in the Thong Lo area where it would develop its Lofts brand, and others are in CBD where it would again build a high-end residential condominium.

While several listed developers have drifted to off-centre locations such as the Ratchadaphisek, Lat Phrao and Onnuj areas, Raimon Land will be staying within the limits of CBD. Mr Cornick pointed out that other developers probably have to move farther out because even though there are now differences in plot ratios, landowners are not necessarily going to discount their land.

From the buyers' perspective, it will be harder and harder to find quality real estate in CBD, since because property in the very centre of the city will never lose its value whereas capital appreciation in fringe areas will be more limited.

"I think anywhere in this area, close to Lumphini Park and the Sports Club, it's going to be 120,000 to 130,000 baht a square metre. It has to be, it's the central part of a world-class city so those areas have to reflect world-class markets."

If the toss-up is between a second-hand unit in central Bangkok or a new product farther out, Mr Cornick says there's a strong case for buying something small in a good location rather than something large in a bad location. "I think it's always good to buy in prime area, even if it's second-hand."

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