Condo Loan Application Rejection Rate Rises Sharply

Loan application rejection rate rises sharply

BANGKOK: -- Potential buyers of condominium projects located in the vicinity of the capital’s electric mass transit train routes are experiencing trouble seeking financing from commercial banks as the loan application rejection rate has sharply increased, according to the Government Housing Bank.

Government Housing Bank information centre director Summa Keetasin said more commercial banks had refused to approve loans to condo purchasers although they had already made down payments.

Simultaneously, he said, many condominium developers had postponed the opening of their projects to the third and fourth quarters from the first quarter of this year because financial institutions are stricter in lending.

The centre reported 11 such projects were closing sales more slowly in February due to their liquidity crunch, and were reviewing their investment plans, and adjusting marketing strategy.

In addition, the centre studied the behaviour and profiled 420 present and prospective buyers of condominium projects located in a 2-km radius of the mass transit train routes in metropolitan Bangkok.

The study found 205 interviewees had already purchased condominiums while another 215 planned to buy the condos within one year.

It also found most condo buyers are unmarried, aged between 25-34 years, with a monthly income of Bt20,000-40,000.

The key influential factor for the condo-buying decision is the unit price. Most people are interested in purchasing condos priced at around 1.6-2 million baht with a 30.5-40 square metre space.

-- TNA 2009-04-03