Sena rolls out leasing option
Developer to lower prices and offer a scheme to help homebuyers own a unit more easily
As a rise in interest rates will lower home purchasing power, SET-listed developer Sena Development Plc plans to lower the prices of residential units and offer a leasing programme to help homebuyers own a unit more easily.
Managing director Kessara Thanyalakpark said increasing interest rates would create an extra financial burden for homebuyers who take out a mortgage loan.
For example, homebuyers who want to buy a residential unit priced 1 million baht are required to have a monthly salary of at least 20,000 baht in order to pay 5,000 baht as a monthly instalment.
When the interest rate rises by 1%, these homebuyers are required to have a salary of at least 22,000 baht and need to pay 6,000 baht as a monthly instalment.
"To help homebuyers afford a unit amid rising interest rates, we will develop residential units with lower prices," she said.
"The strategies include the development of smaller-sized units, an adjustment of specifications and opting for distant locations where land costs are lower."
The plan to shift down residential units will start from next year as the new projects it will launch in the second half have already been planned, she said.
"By tapping the same target group, we will shift from earlier planned units at 3-5 million baht down to prices of 2.5-3 million baht to match purchasing power which may be lower due to higher interest rates," she said.
Since interest rates would inevitably rise in the second half, Sena launched a leasing scheme two months ago to help homebuyers who were unable to get a mortgage loan.
"The monthly payment for renting a unit can be converted into a monthly instalment once they are ready to get a mortgage loan. The contract will be a maximum of three years," she said.
At present, around 20-30 units have joined the leasing programme. All are condo units in Bang Na and Ramkhamhaeng.
In the second half, Sena plans to launch 12 new projects worth 7.1 billion baht.
Of this amount, seven projects worth 4 billion baht will be joint ventures with Japanese and Thai partners.
Due to several negative factors, it revised down its presales target in 2022 to 12 billion baht from 13.9 billion baht.
During the first six months, it launched six projects worth 4.84 billion baht and recorded 5.48 billion baht in presales.