AT a time when new property launches have decreased significantly year-on-year but fortunately sales and transfers are stampeding ahead only the strongest would increase development and among them is Supalai Plc.
This major listed developer’s Chairman and CEO Prateep Tangmatitham said yesterday that his company plans to launch 30 to 34 projects this year compared to 25 introduced last year.
“Developers have adjusted somewhat and this is because banks and financial institutions are more cautious in providing housing loans to low-middle and low income groups.
“They are also more careful in giving new project loans to developers – especially medium and small developers.
“That is why the number of new launches and new units has dropped compared to last year.
“However I don’t think we will see empty unfinished buildings hanging in the sky as we did in the past.”
That sales and transfers have increased year-on-year is due to macroeconomics with the International Monetary Fund recently projecting that the real Thai gross national product will be 3% this year.
Mr Prateep pointed out that demand is very strong in the low-middle and low income groups but the problem is that only about half of the buyers are able to get loans.
“If the banks relax a little bit I think there will be more sales. They would relax somewhat if they can’t meet their loan target.”
While it is usual for some property developers to shut shop and move on every year even as new developers move in and take their place, Mr Prateep mentioned that the going is getting tougher for small and medium companies.
“But prices have been increasing steadily which means the market remains okay otherwise prices would not go up.”
Although Supalai develops property both in Bangkok and several other provinces across the nation, it expects 20% of this year’s total sales target of 24.5 billion baht to come from low-rise developments in the provinces, 32% from low-rise projects in Bangkok, 5% from high-rise schemes in the provinces and 43% from high-rise projects in Bangkok.
This compares to 23.010 billion baht worth of sales contracts last year with low-rise provincial developments accounting for 16%, Bangkok low-rise 33%, provincial high-rise 6% and Bangkok high-rise 45%.
This company is gearing up to unveil a new high-rise in Bangkok during June 8-12, 2016 and this is Supalai Elite Si Phaya which will soar 36 floors and house 384 units ranging from 41.5 to 139 square meters.
By Nina Suebsukcharoen
Go further with the news we cover