Despite uncertainty surrounding Thailand’s property market in 2017, more developers are finalising their plans for 2017, reports Thai media. Chewathai Plc announced that it will develop 5 new residential projects this year while N.C. Housing Plc has plans to launch 4 new housing projects.
The new projects being launched by Chewathai will be worth THB 4.65 billion and 4 will be located in Bangkok, says Chewathai Managing Director Boon Choon Kiat. The company has purchased 2 land plots in southwestern and northern Bangkok for development of 2 of the projects. Land purchases in eastern Bangkok are pending and will the site of home office and townhouse developments.
There are also plans in place for Chewathai to build a condominium project in Phuket worth THB 3.9 billion. This will be the 1st project located outside of Bangkok the company has built in 9 years. That project will be a joint venture with an unnamed partner.
Meanwhile N.C. Housing is expected to launch 4 housing projects in 2017 that are worth a combined total of THB 3.7 billion, according to media reports. The company believes the real estate market will fare better than it did in 2016 since Thailand’s economy is expected to rebound.
“Residential market growth will be mainly in the low-rise segment as the new mass transit lines expand to Bangkok’s outskirts. Demand in housing units priced THB 5 million and lower remains strong as this is real demand,” tells N.C. Housing Chief Executive Somchao Tanthathoedtham to the Bangkok Post.
Last year, the company had trouble with mortgage rejections from banks as they saw an average bank mortgage rejection rate of 30 per cent. This rate jumped to 40 per cent for units priced at the THB 2 million level. This will remain a major problem for N.C. Housing in 2017 and the developer is considering asking customers who were rejected to deposit a monthly amount into a bank account in order to prove creditworthiness.
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