Mortgage curbs force Thai developer to reduce launches

BANGKOK: A leading Thai residential developer is scaling back its ambitions for new projects this year, as mortgage curbs and a weaker economy dim the outlook for Bangkok’s once-booming condominium market.

Sena Development Pcl expected to start marketing 13 residential projects worth about 10 billion baht (RM1.28 billion) this year, but would have preferred to launch more, said deputy chief executive officer Kessara Thanyalakpark in an interview.

“All the negative news about property and the economy led us to be more cautious,” he said.

“There’s been a shift to focus more on the quality of new buyers rather than quantity, to avoid people who abandon purchases or struggle to get mortgages.”

Parts of the home market, here, had started slowing, with builders forced to rely more on foreigners for business, according to CBRE Group Inc.

Government Housing Bank, Thailand’s top mortgage lender, sees sales of new houses and condominiums in the capital dropping 13 per cent this year.

Sena Development expects earnings growth of about 20 per cent this year as sales of older projects complete.