Mortgage rule easing aids market
Date：2017/05/11
Published: 05 May 2017 | WRITER: Kanana Katharangsiporn
[Bangkok Post] The Thai property market has recovered since March as financial institutions are easing their mortgage rules, according to SET-listed developer Supalai Plc (SPALI).
Managing director Tritecha Tangmatitham said the company posted 7.56 billion baht in presales in the first quarter, up 43% year-on-year, despite the fact that the first quarter of 2016 was the period when property tax incentives were put in place.
"Judging from our presales, which lived up to our target, the market today is picking up and is quite better than it was in the third quarter last year [prior to the mourning period]," he said. "The condo market is improving and the low-rise sector is close to or better than last year."
In March 2017, the number of walk-in customers totalled 200 a month a project on average, the highest since Supalai's establishment 28 years ago. The number of people visiting low-rise projects exceeded that for condo sites.
Of the first-quarter presales, 3.47 billion baht were from condos, jumping 43% year-on-year. Another 4.08 billion baht was from single houses and townhouses, rising slightly by 6%. The company launched only two new projects worth a combined 11 billion baht that quarter.
One was Supalai Oriental Sukhumvit 39, a high-priced condo project with a total of 1,046 units worth 10 billion baht. Launched in January this year, it had a sales rate of 20% worth 2 billion baht.
"Banks relaxed mortgage rules as they are now more positive than last year," he said. "Mortgage lending for salary earners is the same as last year but for business owners or entrepreneurs it is more relaxed."
Supalai had a rejection rate of 7.5% in the first quarter, a drop from 8.5% at the end of last year. The company's highest ever rate was 10%, while its lowest was 6%, said Mr Tritecha.
Supalai will launch six low-rise projects in the second quarter worth 4 billion baht. The firm is aiming for 7 billion baht in presales. Three projects will be in Ubon Ratchathani, Chon Buri and Phuket, and the rest will be in Greater Bangkok.
SPALI shares closed yesterday on the Stock Exchange of Thailand at 25 baht, down 25 satang, in trade worth 66 million baht.