BAM has launched a new approach to address the problem of financial institutions rejecting housing loans, promoting a rent-to-own model alongside direct installments to give Thais easier access to housing. Dr. Raks Varakitphokathorn, Chief Executive Officer of Bangkok Commercial Asset Management Public Company Limited, or BAM, revealed that although genuine housing demand, or real demand, still exists, purchasing power has weakened due to economic conditions, income uncertainty, the burden of living costs, and stricter loan assessments by financial institutions, causing many people to delay their decision to buy a home, especially in the housing market priced at around 2 to 5 million baht and among low-income groups, self-employed people, and those with irregular incomes. BAM is therefore giving people the opportunity to pay for properties directly to BAM through the Sap Mahachon project, which brings non-performing assets, or NPA, including detached houses, townhouses, condominium units, commercial buildings, and land in locations across the country, to expand choices. Currently, more than 21,000 properties have joined the program. Dr. Raks said the real estate market still has a large amount of supply, while purchasing power and access to credit remain limited. The solution should therefore not focus only on creating new supply, but should bring existing properties back to be managed, improved, and passed on to those who genuinely need to use them at appropriate prices.
Bangkok Commercial Asset Management Public Company LimitedBAM launches rent-to-own and direct installment program, opening over 21,000 NPA properties to buyers who lack bank credit.
