Mr Wongsakorn at a recent press conference.

SET-listed developer Property Perfect has scaled back its new project launches this year from seven projects worth 7.7 billion baht to just one -- the lowest number it has recorded in over 20 years -- to minimise risk amid reduced purchasing power and financial challenges.

Managing director Wongsakorn Prasitvipat said launching new projects amid very weak demand could result in unnecessary costs without generating any income. Instead, the company would focus on its existing ongoing projects.

"Market sentiment is very poor, even worse than during the pandemic," he said. "While business closures during the pandemic were temporary, today's closures are permanent."

He said the impact of the sluggish economy on prospective lower-end homebuyers felt earlier this year has now spread to the middle and higher-end markets.

Many homebuyers in the high-priced segment have started to delay their decision-making.

Overall, the banks' mortgage rejection rate was as high as 40% in the middle-to-high-priced segment, and 70% in the lower-end segment.

The company experienced rejection rates of 30% and 50% in these respective segments.

"Banks are now tightening both post- and pre-finance while issuing new debentures has become more difficult," he said.

"We have debentures worth 2.5 billion baht maturing in the second half and we will seek bank loans to repay them as a backup plan."

To cope with the poor sentiment and challenges in the financial market, the company has cut costs by reducing the number of new projects to be launched this year to only one and offering its assets to new investors.

The new project, worth 2 billion baht, which opened for sales in March, is Perfect Place Ratchaphruek-Rattanathibet. It covers 45 rai in Tha It, Nonthaburi, and features 163 units priced between 10 and 18 million baht.

The remaining six projects, worth 5.7 billion baht and originally planned for launch this year, will be postponed until next year.

With presales in the first half of 2024 reaching 4 billion baht -- 30% below target -- the company's 2024 presales target will also be revised downward from the initial 16.7 billion baht.

"Cutting interest rates and revoking the loan-to-value limits can help boost purchasing power in the second half," he said. "Combined with the government's budget starting at the end of the year, the residential market is likely to improve next year."