SC Asset Corporation Plc is finalising plans to launch 9 new housing projects in the 2nd half valued at THB11.5 billion combined, according to media reports. The developments will be in various segments including a housing project that has unit prices under THB3 million.
Among the 9 projects expected to be launched by the developer in the 2nd half is a two-storey townhouse development on Phetkasem Soi 81. It is being developed under a new brand, Verve, and will target younger buyers who prefer a low-rise house instead of condo-style living. Home prices start at THB2.59 million.
Projects in this price range usually have high bank rejection rates, but SC Asset will reduce this risk by using pre-built developments. The company believes bank mortgage rejections in the 2nd half will be similar to what was recorded in the 1st half, but also thinks banks could be more active in mortgage lending.
SC Asset Chief Executive Nuttaphong Kunakornwong
“The segment with units priced THB3 to 5 million or lower is a big market worth investing in for us, despite relatively high household debt in this segment. The projects we will launch in the 2nd half are single houses and townhouses, a real demand segment,” says SC Asset Chief Executive Nuttaphong Kunakornwong to The Nation.
SC Asset had an overall mortgage rejection rate of 10.2 per cent in the single-house and townhouse segment which was only a slight increase from the same period last year. Meanwhile, rejection rates for units priced THB15 million and higher decreased while other segments under that price point all saw rejection rates rise.
The company made THB7.5 billion in presales during the 1st half which was significantly higher than 2016’s total. Most of these presales came from an increase in condo bookings. SC Asset has a presales target of THB16 billion for 2017 which the company believes it will reach with these new launches.
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