LP.com

Thailand's real estate market is currently facing dual pressures of rising household debt and soaring mortgage rejection rates, leading to an overall market contraction. However, the demand for high-end housing, particularly in the price range of 7 million to 20 million THB, remains robust. In response to these market dynamics, several real estate companies are launching new projects to attract buyers from different income brackets.

Piya Prayong, CEO of Pruksa Real Estate Public Company Limited, highlighted that the issue of household debt has led to decreased purchasing power and increased mortgage rejection rates of up to 60-70%, resulting in an 18% contraction in the overall real estate market in the first quarter of this year. Despite these challenges, the high-end housing market continues to perform well, especially for properties priced between 7 million and 20 million THB.

To seize opportunities in the luxury housing market, Pruksa has introduced the "Pine Wellness Residence" brand, focusing on detached houses priced between 10 and 20 million THB. Over the next three years, the company aims to increase the proportion of homes priced above 10 million THB from 13% to 20%. To achieve this, Pruksa has launched five luxury residential projects worth over 1 billion THB in total, aiming to meet market demand and enhance the company's competitiveness.

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Piya Prayong expressed confidence in the luxury housing market despite the challenges, planning to strengthen Pruksa's leadership in the high-end residential market through innovative design and high-quality construction.

SC Asset Corporation Public Company Limited, another real estate giant, is similarly adapting to market changes, planning to launch five low-rise residential projects with a total value exceeding 10 billion THB. These projects will be rolled out in phases and include landmark developments like Bangkok Boulevard, luxury villas at Ramintra - Phraya Suren, and more, with prices ranging from 200,000 THB to 30 million THB.

Mongkut Techolarn, CEO of SC Asset's low-rise real estate development division, stated that these projects aim to cater to the actual demand from customers, particularly in the market for homes priced above 10 million THB, where the company has already achieved significant sales success. He emphasized that SC Asset will continue to focus on developing high-quality homes that meet market demand to maintain its competitive edge in the fiercely competitive market.

Despite the challenges posed by increasing household debt and rising mortgage rejection rates in Thailand's real estate market, the demand for high-end housing remains strong. Major real estate companies are responding by launching a diverse range of projects to meet the needs of buyers from different income levels, ensuring steady growth. For buyers, this means more choices and opportunities to better meet their housing needs.