Ananda Development is preparing to enter the high-priced, single-house segment and is also expected to launch more low-end condo projects, according to local media reports. The developer is confident that there is demand in both segments even if funding is hard for buyers to come by.
Komsan Atthaphonphithak, senior investor relations manager, explained to the Bangkok Post that Ananda will launch a 100-unit, single-house project worth THB1.24 billion during the fourth quarter. This will be the first such project in Ananda’s history.
“Demand for high-priced single houses is strong with good purchasing power,” Komsan told the newspaper. “The project to be launched under a new brand this year will be only low-rise sites. We want to maintain low-rise products at 20 percent of our total portfolio.”
Ananda also unveiled its intentions to launch more low-end condo projects under its Unio brand in 2017. The low-end segment has struggled as buyers cannot secure financing for units, mortgage rejection rates in Bangkok are at near highs, but the developer has seen still strong demand for these.
“The condo segment with units priced at THB1 million or lower, or THB50,000 per square meter, is showing real demand,” Komsan pointed out. “To prevent mortgage rejections during the transfer period, we have a pre-approval method to screen potential buyers before they book a unit.”
The developer is already building low-end condos on three sites worth a combined THB4.5 billion. These project account for ten percent of the company’s portfolio. The first site at Charan Sanit Wong Soi 3 is expected to begin unit transfers in the fourth quarter of this year.
Of the other two Unio projects, one on Sukhumvit Soi 72 and another in the Rama II-Thakham area. The Sukhumvit project is worth a combined 1.43 billion with 984 units while the Rama II condo is valued at THB962 million and has 724 units. According to Ananda, 30 percent of units have been sold at each condo.
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