Thailand’s Sena Development diversifies as margin narrows
Sena is shifting to target first-time workers and the elderly
SET-listed Sena Development has diversified into other property-related businesses as the margin from residential development is lower and younger people are not buying houses.
Managing director Kessara Thanyalakpark said competition in the housing market is rising, squeezing margins.
Some prospective homebuyers remain unable to acquire mortgage approval, while housing prices are unlikely to drop because of higher development costs, specifically increasing land prices and rising construction materials costs that are pushed by high fuel prices, said Ms Kessara.
“Property developers need to be more careful next year because there are no positive factors for the market,” she said. “The eased loan-to-value limits for mortgages are expiring this year, while inflation and rising interest rates affect home purchasing power.”
The younger generation is not buying residential units because earning enough money to buy a house takes a long time, said Ms Kessara.
“Rising costs push up housing prices and even if young people want to buy houses, they cannot afford them,” she said. “This trend is happening around the world.”
Sena is shifting to target first-time workers and the elderly.
Sena Group comprises two property development companies: Sena Development Plc and MAI-listed Sena J Property, a subsidiary of Sena Development, which holds a 42.49% stake, up from 35.35% after it purchased 300 million shares of Sena J on Nov 16.
Under Sena Development, there are six businesses, including a joint venture with Japanese developer Hankyu Hanshin Properties Corp, which develops residential units for the lower- to middle-income brackets, including first-time workers.
The other five are 18-hole golf course Pattaya Country Club, Sena Solar Energy Co, financial service provider Power Cash Co, token service provider S Financial Service Co, and SK Asset Management, a warehouse and logistics joint venture between Sena Development and MAI-listed Leo Global Logistics.