Residential developers fine-tune strategy

Residential supply and demand in Chon Buri has shifted towards the rental market due to weakened purchasing power and high mortgage rejection rates among prospective local homebuyers, while foreign demand remains strong, according to property executives.

- KANANA KATHARANGSIPORN

Vattanapol Pholvichin, president of the Chon Buri Real Estate Association, said some developers have adjusted their sales strategy, converting town-houses or single houses originally intended for sale into rental properties as many prospective buyers fail to secure mort-gage loans.

“The developers are allowing cus-tomers to rent when they are unable to obtain financing,” he said.

Absorption rates for units priced at 3 million baht or less have nearly ground to a halt as many buyers struggle to qualify for home loans due to stricter lending policies implemented by banks in response to rising household debt.

Mr Vattanapol said these town-house projects, totalling 3,000 units, are located near Amata City Chon Buri Industrial Estate and priced around 2 million baht per unit. The primary target market is workers employed within the industrial estate.