Thailand's Kbank expects delay in home transfers in first half

Kasikornbank's housing projects and delivery to home-buyers could be delayed in the first half of 2013.

This is due to the shortage of man-power and higher costs of construction materials and labour. Such delays would affect mortgage lending, Chatchai Payuhanaveechai, executive vice president said.

He said KBank expected mortgage lending next year to grow by 9 percent, down from 10-percent 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.

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.

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