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Thai Property Developers Focus on Mid- to Upper Market

By on Aug 12, 2015 in Property News, Residential

Due to the tighter bank loan restrictions for home-buyers in both the lower income and the luxury end, property companies are developing projects with a focus on the middle to upper income segment where there remains reliable purchasing power.

“At present, it is not only the lower-income market facing tighter bank restrictions on the provision of mortgages, as potential buyers of luxury residences who own small and medium-sized enterprises [SMEs] also face close scrutiny before a loan can be approved. As a result, the rejection rate in the luxury market increased from below 10 per cent to 30 per cent in the first half of the year,” said Pumipat Sinacharoen, chief people excellence officer at AP (Thailand).

Due to the tougher screening the average rejection rate has increased from 25% to 30% in the first half of this year said the president of the Thai Condominium Association and Managing Director for condominiums at Pruksa Real Estate.

Sammakorn, a residential developer plans to launch 2 residential projects with a combined worth of over 2 billion THB. They are targeting the middle to upper income segment with their detached housing and town house projects. Both projects comprise of properties up to 10 million THB. “Most of our customers who have had their loan applications turned down were prospective buyers of either homes priced below Bt2 million or higher than Bt10 million. But customers buying a property in the range of Bt3 million to Bt5 million still normally get bank approval for a mortgage,” said managing director KittipolPramoj Na Ayudhya.

Golden Land Residences is also focusing on the middle-income market as well as AP (Thailand) with plans to launch 15 projects worth 24 billion THB. The Chief Marketing Officer, Vittakarn Chandavimol said that although the economy had grown only slightly in the first half, residential demand had continued to expand in the middle and upper-income market.

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Source: The Nation 31st July 2015

Nora has been in the Corporate Communications arena for a number of years. Nora's role is to communicate all newsworthy items that are of a PR nature.

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