Doing business during a crisis like this is certainly not easy, especially in the real estate sector. Although housing is one of the four basic necessities for humans, the current situation has caused some buyers to delay their purchasing decisions aimlessly. Undoubtedly, the real estate market will inevitably be affected, prompting developers to reconsider how to adapt during a crisis to create products that meet the needs of those who still have purchasing power.

Sena Development is one of Thailand's leading real estate developers that pays attention to detail and prioritizes the development of homes and condos that cater to the needs of all groups. They have also identified a market gap by launching “condos priced under a million” to serve customers in industrial estate areas, as they see this group has a demand for housing.

The simple approach is to encourage customers to transition from renting apartments to buying their own condos at the same budget. Owning an asset instills a sense of pride in this customer group. The “condos priced under a million” also aligns with the government’s “One Million Houses” initiative.

TerraBKK had the opportunity to speak with Dr. Yui - Kesara Thanyalakphak, Managing Director of Sena Development Public Company Limited, who shared insights on the concept of developing condos under a million, addressing the market gap and creating products that truly meet customer needs.

Strategies for Developing Condos Under a Million

In product development, we view homes and condos as high-value assets that buyers must bear long-term debt for. Therefore, we must consider where the current demand for housing lies. Typically, condos and homes come in various price ranges. In the past, we often mentioned that the real estate market was oversupplied, but the extent of oversupply varies. However, upon deeper analysis, we see an interesting price segment that currently lacks supply, even though it represents a significant portion of the population in Bangkok.

Data from the past eight years shows that individuals with a monthly salary of around 12,000-15,000 baht have a strong desire to buy homes. If we ask this group if they want a home, everyone would say yes, as it is a basic necessity. The question is whether we currently have products that these customers can purchase.

People with a monthly salary of 12,000-15,000 baht can afford to pay 2,000-3,000 baht per month, leading us to consider what price range a home should be in to match this payment capability. The answer is 700,000-800,000 baht (not exceeding 1 million baht). From the data on homes and condos that are currently oversupplied, we find that there is almost no product in this price range.

This indicates that if we shift our focus to products that cater to this group during a time when land prices have not risen significantly and construction costs remain stable, we can successfully continue our business by developing products priced under a million that meet the needs of this demographic.

Assisting Customers in Accessing Loans for Condos Under a Million

For some low-income customers, there have been issues with obtaining loans from financial institutions, partly due to the price levels of loans not aligning with their income. The simplest solution is to create products at price points that this customer group can apply for loans for.

Previously, the Government Housing Bank launched a project for one million houses worth over 50 billion baht to assist this customer group in purchasing homes with special interest rates. However, participation in this initiative has been low, primarily due to a lack of supply in the market that meets the project’s criteria, which requires homes in the Bangkok metropolitan area priced below one million baht.

We analyzed this issue and created products under the brand “Sena Kit” while collaborating with the Government Housing Bank to support this customer group, particularly in loan applications.

What Can Be Gained from Condos Under a Million

According to the company's main slogan, “Customer trust is our pride,” we believe that each customer will only decide to buy a home a few times in their life. Therefore, we strive to create the best products for our customers.

One of the most touching experiences has been creating products that allow customers to take pride in owning their own homes. On the day they receive their homes, these customers often bring their families from other provinces to capture the moment, which motivates us to continue developing products for this group to provide even better offerings.

“I am always happy to help customers who think they cannot buy a home but can purchase a Sena property.”

Strategies for Selecting Locations for Condos Under a Million

The technique for selecting locations involves looking at job sources first, especially in industrial zones, as these job sources have historically attracted the development of apartments and surrounding communities. Therefore, the “Sena Kit” brand of condos priced under a million has been developed in these areas.

Matching customers with the right products allows them to purchase homes. “Sena Kit” will be a new option for customers to transition from renting apartments to owning condos, enabling them to own property at the same monthly payment. This means that those who currently do not own homes and are paying 3,000-4,000 baht in rent are all capable of making mortgage payments with the Government Housing Bank.

After launching the “Sena Kit” project, we found that larger units sell well, and the two-bedroom model of 38 square meters priced around 1.3 million baht sells out quickly. This product serves as a middle ground between one-bedroom condos and townhouses, which in industrial areas are priced at 2.7-2.8 million baht, making this unit type an attractive option for customers.

How “Sena Development” Adapts During a Crisis

“I always tell everyone that if we view the situation as normal and act normally, we will expect normalcy. However, if an abnormal situation arises and we act normally, it will be hard to expect anything.”

This means that if an abnormal situation occurs, we cannot expect normalcy; we must act abnormally. From the perspective of a developer of condos priced under a million, this product has low profit margins and value, so a project will yield very little value compared to other projects in urban areas with the same number of units.

During normal times, developers may see these condos as unappealing, and we might think the same. However, now, in this abnormal situation, once we identify this market segment, we must develop products that meet demand rather than creating what we want without customer demand, leading to oversupply.

“We continue to seek gaps in the real estate market where development is limited to create new products while reducing the production of traditional products in saturated locations. Thus, “Sena Kit” emerged from this detailed analysis.”

Attention to Detail: “Made from Her”

The product development of “Sena Development” aligns with the company’s vision. In each product development, we pay attention to various details to ensure that customers who choose to buy homes and condos under the Sena brand receive the highest quality products, delivering goods and services that make customers proud to own Sena-branded homes and condos. Our concept must consider the overall living experience, including transportation, amenities, markets, job sources, and mental well-being.

Business Plan for 2021 of “Sena Development”

In 2021, “Sena Development” plans to expand its product portfolio towards more horizontal housing. This approach has been in preparation since before the COVID crisis, but the crisis has accelerated our efforts. Next year, we will launch new projects for houses, townhouses, and increase the production of condos priced under a million under the “Sena Kit” brand, as well as the “Niche Mono” brand priced at 2-3.5 million and the 3-5 million segment.

We anticipate launching 4-5 new projects in 2021, while other segments of the company may need to be reassessed based on market demand and supply.

In this current situation, purchasing high-value assets requires customers to make payments over 30 years, and we believe they will primarily consider value for money. Therefore, developing products that meet their needs while paying attention to small details to enhance value at accessible prices will be Sena's main strategy for 2021 moving forward.