SET-listed developer Richy Place 2002 Plc plans to collect larger down payments -- 15% instead of 10% of unit prices for new condos -- and is cutting the sales target for new project launches because of the central bank's new loan-to-value (LTV) limit.
President Apa Ataboonwongse said the company made the adjustment in the event the central bank enforces the new requirements for mortgages from the start of next year.
"After the new LTV limit was announced, the number of customers visiting condo projects declined throughout the market, even though October is typically the high season," she said.
"Both real demand and investment buyers are taking a wait-and-see approach, while developers with a sales backlog want to speed up unit transfers [before the new LTV is applied on Jan 1, 2019]."
Under the new requirements, the maximum LTV ratio will be restricted at 80% of residential value for a second mortgage contract and for new mortgages for homes worth 10 million baht or more.
The central bank is considering comments and suggestions from developers and others before deciding whether any rules will be changed. It expects to make a decision by next month.
Mrs Apa said many years ago Richy collected a down payment of 15% of the unit price before reducing to 10-12% during the past few years because of higher competition.
"We will return to 15% for a new condo project to be launched next month as we want to prepare our customers. If the new LTV is capped at 80%, the customers are unlikely to find it difficult to add 5% of the unit price in cash," she said.
On Nov 3, the company plans to launch The Rich Rama 9-Srinakarin at Triple Station condo, worth 2.5 billion baht, its first project to collect a 15% down payment.
The project is situated on a two-rai plot on Srinakarin Road, comprising a 32-storey building with 558 units sized 25-45 square metres, and priced between 2.9-5 million baht a unit.
Richy cut its sales target for new condo launches to 50% of project value from the usual 70%.
After the new LTV was announced, the company surveyed some customers and found only 2% bought two units or more.
Buyers purchasing four of 500 units at a condo project due for transfer will take out a second mortgage contract, said Mrs Apa.
Richy expects to have 3 billion baht in revenue by the end of this year, more than double the 1.32 billion it registered in 2017.
In the first half, it recorded 243 million baht in net profit, compared with 132 million for the whole of 2017.
To boost sales in the fourth quarter, the company will hold a final price fair at CentralPlaza Ladprao during Nov 8-14 to introduce condo inventory worth 9.3 billion baht. Richy Place aims to have 300-400 million baht in sales from the one-week event.
Richy has 1,200 units worth 4.1 billion baht from six condo projects ready for transfer.