Pruksa Real Estate is also speeding up deliveries of its condos to meet its 2015 revenue target of Bt47 billion, Prasert Taedullayasatit, managing director of the company's condominium group, told The Nation . He acknowledged that the commercial banks were restricting mortgage lending to mid- and lower-income people already carrying heavy debt burdens, concerned about their ability to make their payments.
However, Pruksa has tried to support its customers by getting pre-approval from the banks before signing their contracts. This has helped it maintain a mortgage-rejection rate of 25 per cent, he said.
He said the government's decision to cut transfer and mortgage fees to 0.1 per cent until the end of April 2016 was encouraging people to purchase homes and take delivery. However, the main problem is the commercial banks' reluctance to provide mortgages.