Sena Development to launch affordable condos amid rising housing prices

Sena Development Plc, a SET-listed developer, plans to develop more affordable condo projects in response to an anticipated decline in purchasing power due to increasing housing prices.

Atika Boonrodchoo, Sena Assistant Managing Director, expects housing prices to rise by 5% this year as a result of rising construction costs, including materials and wages. She said…

“Purchasing power may not be able to adjust in line with the higher housing prices. In response, we will introduce more affordable condo projects in locations outside Bangkok, where development costs are lower compared to inner city areas.”

The company is also closely monitoring the potential increase in the minimum wage by the new government and will work with contractors to adjust costs accordingly. This strategy aims to maintain reasonable costs for product sales while minimising the impact on profit and customers’ purchasing power.

 

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With the majority of Sena’s overseas customers being Chinese, the company is keeping a close eye on the foreign policies of the new government and will adjust its strategies in line with the evolving situation.

Despite various negative factors, Atika said the company remains 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.

In 2021, 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 will begin the home loan application process within the next 6-10 months. Atika added…

“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.”

Sena also offers 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 is insufficient, reported Bangkok Post.