Kbank expects delay in home transfers in first half

He said KBank expected mortgage lending next year to grow by 9 per cent, down from 10-per-cent growth in 2012. This year’s growth was driven by the government’s first-home scheme and soft loans initiated by the Bank of Thailand to help people hit by last year’s floods.
But in 2013 there are not many positive factors to help drive lending other than lower interest rates, the KBank executive said.
The demand for homes was increasing, so sales were not a problem for developers, but the shortage of manpower would affect transfers to buyers, he said.
Developers need to accelerate construction to meet transfer schedules, and quick transfers were expected in the second half of 2013. Therefore, high growth of mortgage lending was more likely in that period, Chatchai said.
The bank will focus on three areas – Bang Yai and Bang Bua Thong in Nonthaburi, Bang Na-Trat Road in Bangkok, and Samut Prakan.
“We have seen that condominium projects are moving to those areas in line with the mass-transit expansion. The supply [of homes] close to the existing transit routes has slowed because of the high prices of land and the scarcity of plots on which to construct residential projects,” he said.
Loans for condominiums account for 45-50 per cent of KBank’s mortgage portfolio.
Chatchai said the bank aimed to secure new loans of Bt60 billion in 2013, up from new loans of Bt52 billion to Bt54 billion this year.
“A key strategy is our relationship with developers, for which the bank will send sales staff to projects to provide consultation to home-buyers. Moreover, we have a home-loan delivery service to facilitate financing for buyers who prefer to set loan conditions at the residential projects rather than at the bank,” he said.