The problem isn’t mortgage rejection anymore. It’s buyers who get approved, then walk away.
According to Sena Development, a SET-listed Bangkok developer, around 50% of failed property transfers now come from what the company calls “self-rejection”—buyers cancelling purchases despite securing financing. Bank loan rejections account for 40%, while conventional cancellations make up the remaining 10%.
Managing director Kessara Thanyalakpark told the Bangkok Post that many buyers are cancelling after viewing completed units, even though more than 90% of the homes are ready to move into and some buyers have already obtained mortgage approval.
The shift points to weakening consumer confidence rather than financing constraints. Buyers are increasingly concerned about economic uncertainty, job stability and whether they can service a 30-year mortgage. In some cases, co-borrowers withdraw shortly before transfer.
Why this matters for developers and the wider market
Failed transfers reduce developers’ cash flow, which can affect payments to contractors, suppliers and financial institutions. The issue becomes systemic when buyers who are financially qualified decide not to proceed.
Ms Kessara described the trend as reflecting broader economic volatility and household caution, not a problem with product quality or mortgage availability.
For Phuket property, the implication is worth noting. While the island’s market dynamics differ from Bangkok—driven more by foreign buyers, lifestyle investment and rental demand—any trend showing domestic Thai buyers becoming more risk-averse may also affect Thai nationals buying in Phuket, particularly in lower-tier villa and condo segments where local buyers form part of demand.
How Sena is responding
To address the issue, Sena revised its rent-to-own programme, Livnex, which allows buyers to live in a home and make monthly payments for up to three years before committing to purchase.
Originally designed for customers unable to obtain mortgages, the programme has been expanded to include buyers who remain uncertain about homeownership amid economic uncertainty.
Monthly payments are set at levels comparable to rental costs, and instalments are deducted from the property’s principal value. Buyers who decide not to proceed after three years can exit without penalties.
Ms Kessara said the scheme helps customers establish a stronger credit record while locking in current home prices. By the end of the three-year period, accumulated payments can reduce the effective purchase price by roughly 9%.
Since launching nearly three years ago, Livnex has accumulated 900-980 customers. A total of 187 buyers have successfully completed home transfers, while about 100 customers have exited the scheme. This year marks the first batch of contracts to mature, with roughly 80 customers becoming eligible for unit transfers.
Sena expects 400-500 units worth roughly 1 billion baht to be transferred to buyers by the end of the year.
The remaining challenge
Even within the programme, some participants maintained perfect payment records but still failed to qualify for bank mortgages because their debt service ratio exceeds lending limits.
The developer is working with banks to encourage greater recognition of customers’ repayment history. When financing remains unavailable, eligible participants may extend the programme to a fourth year.
What Sena’s strategy shift signals
Given the uncertain market, Sena will continue to suspend new project launches this year and next, prioritising inventory management and financial strength.
The company holds 98 projects, including more than 10 billion baht worth of completed inventory and a 40-billion-baht development pipeline, sufficient to support annual sales of around 7 billion baht for five years.
Ms Kessara said the company aims to reduce its debt-to-equity ratio to 1 time from 1.2-1.3 times, and cut outstanding debentures from 10 billion baht to 6 billion, while expanding recurring income from green energy, electric vehicles, leasing and services.
In the first quarter of 2026, revenue from the company’s green business rose to 13% of total revenue from 4% a year earlier, while recurring income from rental and service businesses increased to 21% from 10%. The share of revenue generated from residential property development declined to 62% from 78%.
Rather than reducing headcount, Sena will continue to retrain employees while strengthening asset management capabilities as completed inventory remains in stock for longer periods.
What buyers and sellers should understand
The self-rejection trend reflects a shift in buyer psychology. Economic uncertainty is making even qualified buyers hesitate.
For Phuket, where foreign buyers dominate the luxury segment, the domestic Thai buyer segment—particularly in mid-market villa and condo developments—may be experiencing similar caution. Developers relying on Thai national buyers for pre-sales or unit absorption may face longer sales cycles and higher cancellation rates.
For sellers, the data suggests that price alone may not be enough to close deals. Buyer confidence, flexible payment structures and rental-to-own options may become more relevant in uncertain conditions.
For buyers, the trend may create opportunities. Developers holding completed inventory for longer periods may be more willing to negotiate, offer flexible terms or consider rent-to-own structures.
Frequently Asked Questions
What is self-rejection in property buying?
Self-rejection refers to buyers cancelling property purchases despite obtaining mortgage approval. According to Sena Development, this now accounts for around 50% of failed transfers in Thailand, driven by concerns about economic uncertainty and long-term financial security rather than financing constraints.
Does this trend affect Phuket property buyers?
The trend primarily affects domestic Thai buyers. While Phuket’s luxury market is driven more by foreign buyers and lifestyle investment, Thai nationals buying in mid-market villa and condo segments may be experiencing similar caution, potentially affecting absorption rates and developer cash flow.
What is Sena’s Livnex programme?
Livnex is a rent-to-own programme allowing buyers to live in a home and make monthly payments for up to three years before deciding whether to complete the purchase. Monthly payments are comparable to rental costs and are deducted from the property’s principal value. Buyers can exit after three years without penalties.
Why are developers suspending new project launches?
Sena Development is suspending new launches this year and next to prioritise inventory management and financial strength. The company holds more than 10 billion baht worth of completed inventory and aims to reduce debt while expanding recurring income from non-property businesses.
Could this trend create opportunities for buyers?
Possibly. Developers holding completed inventory for longer periods may be more willing to negotiate, offer flexible payment terms or consider rent-to-own structures. Buyers with stable finances may find more room to discuss terms in a cautious market.
Sources
- Bangkok Post — Property — Self-rejection a rising trend among potential buyers — link
