Pattaya Daily News

10 December 2006 :: 13:12:49 pm 23062

Biggest Condominium Auction In Pattaya

Pattaya, Thailand--New 17th December Auction Sale At “Royal Cliff” Hotel. Generally the sale of prestigious real estate properties by auction is not common in Pattaya, which is rather surprising, considering the success of such events, which are always of great benefit to both the buyers and the sellers.
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            Everyone can see that the purchasers are on a winning ticket to some very sound very sound investments, because they know that they are not paying over inflated prices for their property purchase. The prices they pay, represent what are the current values that people are prepared to pay, and not some over inflated price that is on the ‘wish list’ of the owner or property broker, who wants to get as much out of the sale as possible. 

            This having been stated, you would be correct in asking that “this being so, why would property owners wish to take this course of action, when they may be able to get a higher price using the listing method of selling, where a prospective buyer is taken to see properties, and then can purchase or possibly negotiate a slightly lower price.” The answer to this is surprisingly simple, in that you must view this from the property developer’s point of view, and understand that having invested so much capital in construction, their prime objective is to sell the properties concerned as quickly as they can, in order to maximize their profits. 

            Listing such properties for many months before they are all sold, costs them in maintenance charges, government taxes, administration fees and other sundry expenses, which are not needed if the properties are sold on the day of the auction or shortly thereafter.

First Up-Market Auction 

            The first auction of up-market properties took place at Pattaya’s “Royal-Cliff Resort,” on 19th December 2004, and it proved to be a resounding success with the allotted 14 “Jomtiem Park Villas” all being sold on the day, whilst the other seven were left as open to offer. This carefully orchestrated business strategy saw the remaining properties sold within 19 days and it was a “win –win” situation for both the developer and the buyers, The biding started a little uncertainly, because the prospective purchasers, in the main, had never seen this type of real estate marketing in Thailand, with its bold “No minimum bid, No reserve” sales policy.

In this instance the early bidders picked up some real bargains, and must have been “laughing all the way to the bank,” when values virtually doubled 18 months down the track. Conversely, I have attended property auctions where the initial bidding was very spirited, but then tapered off and allowed some of the smart investors, (with yours truly being in their midst), to make a “real killing,” because there were no reserve prices). 

            Likewise the developers at Pattaya’s first MGI auction were delighted at such a quick turn-around on their investment, which has seen them proceed with a further five similar villa developments. Buyer confidence in them was such that the main of these residences have already been pre-sold, because investors saw them as very reliable entrepreneurs. This initial success was due to the marketing expertise of the worldwide MGI Global Auction Company, who boast branches in USA, Europe & Asia.

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Property Auctioning History 

            This modern method of real estate auctioning was developed by American businessman Mr. Melvin Giller, who made an interesting observation back in the 1950’s. Mel, became the pioneer of real estate auctions in the USA, after he saw a “Renoir” painting sell in London for 23 million, when it was only expected to bring 11 million. He asked the Director of Sotheby’s why this sales system was not applied to other forms of property sales, and the reply was that there seemed to be no reason why this sales method could not be applied. 

            Mel Giller returned to America, and founded the US “Nationwide Auction Company,” specializing in the selling of “up market” real estate by auction. Mel then went on to market larger properties, using his unique real estate auctioning system. In 1986 he conducted the largest one-day sale on record, selling the 280 “Miami Beach” condos for 10% above what other agents thought was the market value, in just 10 hours 40 minutes and returned $24.5 million US. 

            Their mission statement was that they could is able to “Sell Anything, Anywhere,” including such diverse properties as condo complexes, hotels, hospitals, office buildings, golf courses, islands and even a US military radar site. With such an impressive track record, clients have the complete assurance that within 90 days they will maximize their profits. It is a win / win situation for both the vendor and the purchaser, and it is the specialized marketing program by experienced and highly qualified auctioneers, that holds the key to its success. It can be categorically stated that “MGI Global Auctions Co. Ltd.” are the leaders of the property auction business, and with a track record that is second to none. 

            However, they only take on certain types of properties that they see as being suitable for auction sales. After the “Asian Meltdown” of the mid 1990’s they took the bold step of successfully auctioning some very up-market properties in Bangkok, and this set a price platform, that got the Thai real estate market moving again. 

            This set the trend for auctions to be used to sell all manner of items, from real estate to motor vehicles and a whole variety of goods, especially where there was a considerable quantity or monetary value involved. The “Nationwide Auction Company,” spread to Asia and Europe, and the untimely death of their Asian Director, Mr. Phil Attbury, saw the whole operation purchased by a local Pattaya businessman, Mr. Gordon Gillen, and re-organized into the MGI Company, with the founder Mr. Mel Giller as the Chairman, and Mr. Gordon Gillen as the Managing Director.

The auctioning of single properties or goods belonging to a single entity is a very common occurrence these days, and these sought of auction sales are a bargain hunter’s delight, as there is always something that suits somebody.

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New December 17th Auction 

            The next MGI Auction is set to go big-time, at 4.00pm at Siam Ballroom ‘B’. in the prestigious location of Pattaya’s Royal-Cliff Resort, on 17th December, 2006, so mark it on your calendar, and be sure not to miss the real estate opportunity of the year. 

            This extraordinary sales event will see 22 luxury condominiums sold individually to the highest bidder, but with a difference, – “NO Minimum Bid, – NO Reserve Price.” Instead of throwing a party extravaganza, the developers are offering real value to their prospective customers by having this “Grand Opening Auction” of the latest luxury hi-tech, low-rise, condominiums in what we would class as the nicest parkland area in the Pattaya region, which was for many decades formerly in the possession of an upper class Thai dynasty. At this point in time there are 33 one, two and three bedroom condos, designed and built to international standards, in a unique private estate, that features vast tropical gardens and state of the art security. 

            Thus this “eco friendly” tropical area has been named “The Park,” which mystified some who saw the many posters all around the city region; – “Was it the sale of land or housing” they asked. Possibly the replacement of the logo with an image of these prestigious Jomtien Beach Condos, together with the word “Condos,” would have rectified the confusion. 

            However, be that as it may, there is no doubt that the MGI auction company have really done their homework in the lead-up to the real estate sales event of the year, in a carefully planned presentation that is “second to none.” Nobody on the planet does it as well as MGI, with their decades of professional experience, and the flamboyancy of their Chairman, the famous “super-star auctioneer,” Mr. Mel Giller.

Big Sales Event For Investors 

            There is no doubt that the developers are on the right track, with their push towards Condos, which can still be legally owned by foreign nationals, whereas the ownership of land is a very contentious issue. The limiting of three properties per purchaser makes it fair for all investors, and in any event the ownership of these by foreign nationals will have to be placed in individual names to comply with the property ownership laws. 

            This auction is well worth attending, and whether you are serious buyer, or someone who is just trying to get a feel for the current real estate market, it is an event that you definitely should not miss. You will be sure to come away with an updated view regarding the advantages of the auction method of selling, which can benefit both the buyer and the seller in many ways. Our advise is to take along a pocket full of cash, just in case you see an investment bargain, that later you will be sorry you did not purchase.

Reporter : PDN staff   Photo : PDN staff   Category : Business News

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