Chief Operating Officer Kree Dejchai
Buyers less likely to face bank rejection, says developer.
Residences priced between Bt2 million and Bt5 million continue to be popular on the Thai market, despite the economic downturn, property experts say.
These homes are enjoying continued popularity not only in the property projects of developers, but also in the construction of detached houses by home-building firms.
Property Perfect’s chief executive Chainid Ngowsirimanee said demand in the Bt2-million-to-Bt5-million price range had continued to grow because home-buyers who earlier planned to buy more expensive homes had adjusted their budgets according to static or fallen income levels and had moved to a lower price range.
“Our residences priced below Bt5 million have continued to record sales growth, but sales of those priced above Bt5 million have fallen significantly,” he said.
SC Asset Corporation’s chief operating officer Kree Dejchai said that demand for residences priced between Bt4 million and Bt5 million had continued to grow, and they suffered a lower rate of mortgage rejections from banks.
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There was also strong demand for homes priced between Bt1.5 million and Bt3 million, but the percentage of rejections for mortgages was also high, and the company ended up having to resell.
“In my view, projects with residences priced between Bt4 million and Bt5 million are secure for property developers because there is high demand at this price and buyers in this price range also have a financial status sufficiently secure to get mortgages from banks,” he said, adding that the selling process was also simpler, without any need to face resales.
Supalai’s president Prateep Tangmatitham said demand for homes priced between Bt2 million and Bt5 million had continued to grow, whereas that for luxury residences costing more than Bt5 million had not. This was because home-buyers had adjusted their budgets to lower-priced homes. Others, who had earlier planned to buy a second residence or invest in a larger home, had changed their minds because of the economic downturn and dropped out of the market.
With this market trend, luxury condominium projects will suffer because they are aimed at speculative investors or people buying a second home, he said.
[relatedposts]The chairman and director-general of home-building company PD House, Sithiporn Suwannasut, confirmed that detached houses priced between Bt2 million and Bt5 million were now more popular than luxury residences priced up to Bt10 million.
More than half of the company’s customers are building homes in the Bt2 million to Bt3 million price range, many of them having cut their building budgets because of the current economic conditions or out of fear that their incomes will suffer, he said.
Four Develop House’s managing director Vichai Kongsriong said his company’s customers had strong confidence in building detached houses worth between Bt2 million and Bt3 million. Consequently, the company believes it will achieve its sales target of Bt80 million this year.