SET-listed developer Origin Property Plc (ORI) will freeze launches of new condo projects for the middle class for at least two years, due to the new requirements on mortgage lending taking effect on April 1 deterring some buyers in this segment.

The company would rather focus on condos for first-time workers and the luxury segment. It will develop more hotels and serviced apartments to gain recurring income as the property market in 2019 will be unfavourable, said chief executive Peerapong Jaroon-ek.

Mr Peerapong said the Bank of Thailand's new mortgage lending requirements will affect the speculation market and those buying a condo unit as a second home.

"These buyers have a single house or townhouse in the outskirts of Bangkok and are looking for a condo unit in the inner city to stay during weekdays," he said.

"If they have paid a home loan for the unit they reside in for less than three years, they will put off looking for a condo as it requires them to make a higher down payment."

According to the Bank of Thailand, homebuyers who purchase a residential unit priced lower than 10 million baht and seeking a second home loan will be required to make a down payment of at least 10% if they have made payments on their first mortgage for three years or longer.

The minimum down payment requirement will be raised to 20% if borrowers have serviced the first mortgage for less than three years.

For those who seek a first or second mortgage to fund the purchase of a home priced at 10 million baht or higher, a minimum 20% down payment is required.

Those who apply for third and subsequent mortgages will be subject to a minimum 30% down payment, regardless of home price.

Mr Peerapong said there will be no impact on those buying a unit priced 10 million baht and above, who will be required to make a down payment of 20% of the unit price as the company found 70-80% of these buyers use cash to get a unit transfer.

The remaining 20-30% who use a mortgage loans ask for a loan-to-value ratio of 50-60%, he added.

Origin will freeze new launches of middle-end condo projects that are under the Notting Hill brand with units priced 2.5-4 million baht for two years as target buyers in this segment will not buy units during the first three years, having already paid for a first home loan contract.

The company will focus on first-time condo buyers or those who graduated less than three years ago as this segment has fresh demand and will likely prefer buying a condo near a mass transit station than buying a car.

The focus on first-time homebuyers next year will also include the new launch of townhouse and duplex house in locations where demand is strong, such as eastern and northern Bangkok.