Sena Development managing director Kessara Thanyalakpark discusses the company’s new RentNex subscription model at a briefing on Tuesday in Bangkok. (Photo: Sena Development)

SET-listed Sena Development has introduced Thailand’s first subscription model for condominium units to capitalise on the preferences of the new generation, who prioritise affordability, flexibility and a trial run before committing to ownership.

Kessara Thanyalakpark, the company’s managing director, said many younger people are familiar with the subscription model through services such as video or movie streaming, music platforms and even car rentals or clothing rentals.

“Our new subscription model primarily targets new graduates, who typically lack sufficient savings to purchase a residential unit, but want to live apart from their parents,” she said on Tuesday.

Many of them do not want to own a home or commit to long-term debt from a home purchase, which often requires monthly payments for up to 30 years.

Some are undecided about the location they want to settle in, while others prefer to try out a project or location before committing to a long-term stay.

“These are potential customers that many developers overlook, as they focus solely on selling and transferring units immediately to book revenue,” said Ms Kessara. “We see this group as prospective homebuyers.”

The RentNex subscription model offers three packages: 6,700 baht per month with access to 12 condo projects, 10,000 baht per month for 16 projects, and 12,800 baht per month for 20 projects.

Each package, with a contract term ranging from a minimum of six months to a maximum of three years, requires an upfront payment equivalent to two months’ rent as an entry fee.

The payment covers common area expenses and water supply, with electricity being the subscriber’s sole responsibility.

The packages cater to all price ranges. After six months, subscribers have the flexibility to move to other projects within their chosen package.

“The subscription fee paid each month will be directed to the Government Housing Bank, our financial partner, to create a credit record that subscribers can use as proof of financial history when applying for a mortgage loan at any bank,” said Ms Kessara.

To propel sales, Sena allows subscribers to use their accumulated subscription fees as a 20% discount towards the purchase price of a Sena unit if they decide to purchase.

“The subscription model comes with additional costs, such as renovation or maintenance expenses when subscribers move out. However, what’s most important for developers is customer care and the additional back-office work required to support this group of customers,” she said.

The units offered under the subscription model will be unsold, completed ones.

By the end of 2024, Sena expects to have roughly 7,000 to 10,000 units for the new business model, with a combined value of 30 billion baht.