Supalai To Move Away From The Condo Market But Still Continue To Launch Projects
Supalai Plc, a SET-listed developer will adopt a more cautious approach but will still continue launching new projects for the rest of the year. It will however focus less for the time on the condo market but rather focus on low-rise houses despite the current market sentiments. It will however be launching its last condo project for the year in October.
Supalai Lite Tha Phra-Wongwian Yai
“Property Developers should be cautious when launching condo projects because of the many negative factors affecting the market. Homebuyers' purchasing power and borrowing ability has decreased, while financial institutions are more cautious about giving home loans. Chinese buyers, other foreign investors and speculators have also left the condo market." commented Managing director Tritecha Tangmatitham in an interview with Thailand Condo News.
He said the low-rise market is strong in all price ranges and in all locations except Surat Thani,Nakhon Si Thammarat and Chiang Mai where demand has slowed.
"Low-rise house sales have been higher than new supply launched each year during the past four years, as large developers are gulping up market share from small firms," Mr Tritecha said.
Through the end of the year, Supalai plans to launch just one condo project worth Bt 1.24 billion and three low-rise housing projects worth a combined Bt 1.5 billion. So far only six of the 30 projects worth a combined Bt 40 billion of Supalai's launches and planned launches this year are condominiums. The rest are low-rise house projects in Greater Bangkok and major provinces.
The company is maintaining its 2019 presales target of Bt 35 billion, up 5%, and 28 billion in revenue, up 8%.
In October, Supalai plans to launch a new condo project, Supalai Lite Tha Phra-Wongwian Yai, with 421 units sized from 30 square metres and priced at 74,600 baht per sq m on average.The project is expected to perform well due to its price, location and also because of the fact tha there is a high demand for condos still in the Thaphra-Wongwian Yai vicinity.
"Condos with reasonable prices will win customers," Mr Tritecha said. "Developers should do pricing packages to match target buyers' purchasing power. They should also offer other perks such as built-in furniture, electrical appliances etc"
SPALI shares closed yesterday on the Stock Exchange of Thailand at 17.90 baht, up 20 satang, in trade worth 140.4 million baht.
Details Of Supalai Lite Tha Phra-Wongwian Yai will be announced in early October and Supalai will be having lots of promotions to entice buyers.