New regulations force Thai developers to resell projects

• 7 October 2019
• Construction Focus
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Many developers in Thailand are beginning to place their residential projects up for resale after some customers have been unable to complete payments due to the restrictions in the new loan-to-value (LTV) regulations.

According to a survey conducted in The Nation and reported in late September, some projects that were already sold to customers are now being put on sale again because the buyers could not get approved loans from banks.

As reported, Ananda Development Plc, was among the firm to resell its condominium units at a cost of between Bt1.29 million (about US$42,176) and Bt25.9 million per unit (about US$ 846,792). Most of these units have already been sold once.

Similarly, the Park Land Charan-Pinklow is offering a resale of its condominium units at a starting price of Bt2.27 million (about US$88,275) per unit.

Speaking with The Nation, Sena Development Plc’s deputy chief executive officer, Kessara Thanyalakpark said about 20% of the firm client’s loan applications were rejected since the LTV came into force, forcing the firm to resell the units.

According to the same source, prices of the resale units will be lower than the market rate given that the first customers have already made the down payments.

The LTV regulations were tightened due to fears about bad loans in the property sector by the Bank of Thailand.

 

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