Sena shifts focus to affordable condos
published : 23 May 2023 at 04:55
newspaper section: Business
writer: Kanana Katharangsiporn
SET-listed developer Sena Development Plc will develop more low-priced and affordable condo projects in response to a potential decrease in purchasing power caused by higher housing prices.
Atika Boonrodchoo, assistant managing director, said housing prices are expected to rise by 5% this year due to increased construction costs, including materials and wages.
"Purchasing power may not be able to adjust in line with the higher housing prices," she said. "In response, we will introduce more affordable condo projects in locations outside Bangkok, where development costs are lower compared to inner city areas."
As the new government might increase the minimum wage, the company will closely monitor the policy and assess whether the implementation will occur all at once or in phases.
"We will strive to maintain a good balance amid challenging circumstances," she said. "We will work with contractors to adjust some costs to cope with the wage hike."
This would enable the company to maintain costs at a reasonable level for product sales and minimise the impact on profit and customers' purchasing power, she said.
As the majority of the company's overseas customers were Chinese, the company will closely observe the foreign policies of the new government. It will adjust strategies accordingly to align with the evolving situation.
Ms Atika said that despite various negative factors, the company remained committed to achieving its presales and transfer targets of 18.2 billion baht and 16.5 billion baht, respectively, both of which would mark a new record high.
These figures represent significant growth compared to 12.7 billion baht in presales and 10 billion baht in transfers last year.
Last year, Sena introduced a rent-to-own programme or hire purchase option for residential units, which received positive feedback from consumers.
The first group of consumers to participate in this programme would start the home loan application process within the next 6-10 months.
"We thoroughly assessed the financial and debt status of most hire purchase customers based on their history and income. If they successfully repay their debts, they will be eligible to apply for a home loan," she said.
Sena also provided a personal loan option for customers who require additional funds to cover the costs of purchasing a residential unit in cases where their credit line for a home loan was insufficient.