Property Developers Find Middle Market More Appealing
Mid priced houses have received more interest from more property developers as its demand grows and the rate of unsuccessful mortgage request is low.
Home Builder Association president Panthep Tanvichitkul said houses priced between Bt4 million and Bt7 million have strong potential to grow, compared to luxury or low-priced housing.
Many property developers have added more projects for the mid-priced market with houses priced lower than Bt3 million.
Asian Property Development (AP) managing director Pichet Vipavasuphakorn said leading property developers have started to focus on building single, detached houses priced between Bt4 million and Bt7 million.
Companies like Casa Ville, SC Asset Corporation and AP have launched several projects for residential properties with the offer price between Bt4 million and Bt8 million a unit.
The developers try to attract home buyers who are starting a family and earning at least Bt70,000 a month. The instalment rate for this market is about Bt35,000 a month. Therefore, the buyers' base income is between Bt80,000 to Bt100,000 per family.
SC Asset Corporation executive vice president for low-rise property development Kree Dejchai said the rate of unsuccessful loan requests for this group is much lower when the unit price is lower than Bt3 million. The rate of unsuccessful loan requests for low-priced houses is about 25 to 30 per cent.
"Only big, well-known developers have competed in this market. Some of these players have started penetrating the market since last year by launching units priced between Bt3.4 million and Bt3.5 million. When customers become aware of their brands, the developers will raise their selling price to Bt3.9 million per unit for new phases or new projects," he said. (Report by The Nation)
Casa Ville senior vice president Yuthana Tantiyanon said the company has introduced two single detached-house projects named Casa Ville Ratchapruek-Changwattana and Casa Ville Watcharapol 3 to attract the mid-priced housing market. The offer prices start from Bt4 to Bt7 million per unit. Instalments begin from Bt35,000 to Bt40,000 a month.
Meanwhile, Four Pattana has launched four series with fully furnished houses, with prices between Bt5.1 million and Bt7 million per unit.