BAM revealed that Thai household debt remains high at 86% of GDP, or approximately 16.41 trillion baht, leading to a mortgage rejection rate that has surged to its highest in five years. Particularly for homes priced below 3 million baht, the rejection rate has exceeded 50%, meaning that out of two loan applicants, one may be rejected. Dr. Rak Vorakitphokathorn, Chief Executive Officer, stated at a seminar that the Thai economy is growing the slowest in ASEAN, at below 2%, and the real estate market is entering the era of second-hand homes, which hold a 67% market share. Meanwhile, BAM has over 120,000 units in its portfolio, so it is accelerating the expansion of its Rent to Own model and collaborating with about 10 partners to renovate and resell second-hand homes. It also launched "BAM Guarantee" together with three insurance companies to build buyer confidence.
Bangkok Commercial Asset Management Public Company LimitedBAM's Rent to Own model and partnerships to renovate/resell second-hand homes expand its core business amid high mortgage rejections.
