Kanda Property is ramping up its efforts in the final quarter of 2023 with a major campaign titled “I-Leaf Unlock Your New Home,” aimed at alleviating the burden for those wanting to own a home through a powerful offer of “Live Free for Up to 2 Years.” The company is set to launch ParQ Villa, a pool villa located in a prime area of Cherng Talay, Phuket, along with the concept of “Buying a Home to Solve Debt,” which aims to unlock the issues caused by banks rejecting loan applications.

Mr. Hatsakorn Boonyang, Managing Director of Kanda Property Co., Ltd., revealed the overall housing market situation for the first three quarters of 2023, stating that the market continues to face challenges, particularly in the first quarter, where it slowed down due to the unclear government policies regarding the extension of measures to stimulate the real estate sector. However, the market began to recover in the second and third quarters, supported by the government’s extension of measures such as reduced transfer and mortgage fees, as well as relaxed loan-to-value (LTV) regulations allowing for full 100% borrowing, which has somewhat stimulated the market. Nevertheless, the overall performance in the first three quarters of 2023 is still not as good as the same period in 2022, primarily due to financial institutions tightening their lending criteria, resulting in a continuously rising loan rejection rate, which remains a significant issue affecting the market.

For the fourth quarter, it is expected that the market will continue to recover from the previous quarter and will be a crucial time for operators to accelerate sales. The market will become more vibrant due to various promotions, especially price competition, to boost sales in the final months of the year. The company has launched its major campaign of the year, I-Leaf Unlock Your New Home, offering 0 Baht payment and living free for 2 years* at the 48th Home and Condo Expo from October 30 to November 2, 2023, at the Queen Sirikit National Convention Center. This aims to reduce the burden for homebuyers under the “I-Leaf” brand, allowing them to live free for up to 2 years without payments, down payments, or large sums of money upfront, along with discounts of up to 500,000 Baht, gold bars up to 5 Baht, and a chance to win an iPhone 17 Pro Max, free transfer fees, furniture, air conditioning, solar panels, etc.

The projects included in the I-Leaf Unlock Your New Home campaign, offering 0 Baht payment and living free for 2 years*, consist of single houses, twin houses, townhomes, and commercial buildings with 4 bedrooms, 3-4 bathrooms, and parking for 2-3 cars, with prices starting from only 1.89 to 7.59 million Baht. These include projects such as I-Leaf Prime Pracha Uthit 90, I-Leaf Prime 2 Pracha Uthit 90, I-Leaf Prime Setthakit-Bang Pla, I-Leaf Town Setthakit-Bang Pla, I-Leaf Prime Ring Road-Rangsit Klong 4, I-Leaf Proud Ring Road-Rangsit Klong 4, I-Leaf Park Theparak-Bang Bo, I-Leaf Town Theparak-Bang Bo, and projects where the company assists in payments, including I-Leaf Prime 2 Rama 2 Km. 14, I-Leaf Proud Rama 2 Km. 14, I-Leaf Biz Rama 2 Km. 14, I-Leaf Prime Ram Inthra-Khubon, I-Leaf Prime Lam Luk Ka-Klong 2, I-Leaf Town Ratchaphruek-Kanchanaburi, I-Leaf Prime Pattaya-Jomtien, and I-Leaf Prime 2 (Thalang) Phuket.

Additionally, the design of homes in all company projects emphasizes sustainable and environmentally friendly residential development with the 5 Kanda Concept, which includes:

1. Eco Smart: Designed and selected materials to reduce energy consumption.

2. Easy Maintenance: Designed homes for easy future maintenance, using durable and environmentally friendly materials.

3. Multi Generation: Designed to include ground-floor bedrooms for the elderly, young children, or other uses.

4. Space Matter: Emphasizing the design of all usable spaces, including a designated laundry area at the back of every house.

5. Flood Protection: Implementing flood protection systems.

“The I-Leaf Unlock Your New Home campaign, offering 0 Baht payment and living free for 2 years*, will help address the pain points for those looking to purchase housing but are still concerned about the burden of payments. The company will help alleviate the payment burden for buyers for 2 years and is confident of a positive response, setting a sales target from this campaign at the Home and Condo Expo at 100 million Baht and another 500 million Baht from November to December, totaling no less than 600 million Baht,” Mr. Hatsakorn stated.

Mr. Hatsakorn further noted that the market direction in 2024 will continue to face several challenges, including domestic factors related to the elections and the formation of a new government, which may take several months, resulting in the economy being in a "vacuum" state with a lack of clarity in policy. Meanwhile, external factors will be impacted by the U.S. tax response policies, which will begin to have tangible effects in 2024, particularly on the export and related industrial sectors. Although there are signs of declining interest rates, the slowdown in new project launches by operators and the continued expansion of real estate stimulus measures until mid-year may not be sufficient to create a solid recovery momentum unless the new government implements strong measures to stimulate the economy.

“The company must continue to operate with caution, focusing on markets with strong purchasing power. In December, the company is preparing for the soft opening of the ParQ Villa project in Cherng Talay, Phuket, a modern contemporary style pool villa project with 22 units and a large garden area of 4-5 rai, targeting foreign customers, with a grand opening planned for the first quarter of 2024. Additionally, the company is set to launch a new brand, I-Leaf Privé, featuring single houses and townhomes in a contemporary resort style that emphasizes privacy, with plans to open in three locations: Phuket, Lam Luk Ka, and Rama 2 starting in the second quarter of 2024,” he added.

Moreover, Mr. Hatsakorn proposed a policy idea of “Buying a Home to Solve Debt” to the government to help reduce household debt burdens and stimulate access to credit for capable consumers. He pointed out that many customers, even with sufficient income to qualify for a home loan, face obstacles due to existing debts, such as credit card debts or car loans, which hinder home loan approvals. The proposed approach is that if customers have sufficient capacity or can borrow beyond the amount applied for, the Bank of Thailand and the Ministry of Finance should find ways to relax conditions so that financial institutions can grant loans by incorporating existing debt into the home loan.

For example, if a customer wants to borrow money to buy a house priced at 2 million Baht but has credit card debt of about 150,000 Baht, they may not be able to secure a home loan. However, if the customer can pay off the credit card debt of 150,000 Baht by consolidating that debt with the home loan amount, they would be able to apply for the loan because their existing income allows them to borrow up to 2.5 million Baht, covering both the home loan and the existing credit card debt.

“Allowing loans that consolidate credit card debt with home loans will benefit homebuyers, banks, and the economy as a whole, without the Ministry of Finance needing to inject funds into this proposed approach. In addition to reducing the burden of interest and repayments for the public, it will stimulate demand in the real estate market, reduce loan rejection rates, decrease the increase in non-performing loans (NPL), and convert unsecured debt into secured home loans, which will help reduce financial system risks in the long term,” Mr. Hatsakorn concluded.