CPN Residence Co, a development arm of SET-listed Central Pattana Plc (CPN), will continue developing condos in the provinces, using location, design and co-promotion with its parent firm to boost sales.
Kree Dejchai, managing director of CPN Residence, said the process of condo development upcountry is not easy, as it entails many challenges not present in Bangkok.
As a result, in some provinces, even large, Bangkok-based developers have taken a step back as the condo market is not booming as expected.
"We studied the residential market in the provinces three years ago and found growth in the condo market was minimal due to limited demand," he said.
"Condos priced higher than 2.5 million baht were difficult to sell as they had to compete with single houses."
The company launched its first three condo projects early last year under the Escent brand near CentralPlaza malls in three provinces.
Those provinces were: Chiang Mai, Khon Kaen and Rayong.
The developers managed to closed sales in 2-5 months, showing demand existed in such locations.
"Buyers in these three provinces bought for both their own use and renting out," said Flt Lt Kree.
"Wherever our parent firm's CentralPlaza goes, we will follow. It won't only be condos, but also single houses and townhouses, with the first one possibly in Phitsanulok."
This year, from the third quarter onwards, the developer will launch three new condo projects worth 1.97 billion baht in Chiang Mai, Chiang Rai and Nakhon Ratchasima.
In Chiang Mai, the condo will be the second one located behind the Central Festival branch there.
The development will have two eight-storey towers in a resort style with 400-500 units worth 800 million baht.
The company decided to launch the second project as there are 100 customers on the waiting list for the first site, he said.
At the first Chiang Mai site, 30% of buyers were from Bangkok due to its prime location on Chiang Mai-Doi Saket Road.
"The problem of oversupply in Chiang Mai does not apply to every location in the province," said Flt Lt Kree, whose past posts include chief operating officer at SET-listed developer SC Asset Corporation Plc and senior vice-president of SET-listed developer Quality Houses Plc.
Apart from a strong location, other key factors aiding sales include design with units boasting a width of 7.6-metres, co-promotion via the parent firm's loyalty membership programme, The 1 Card, and discount cards from shops in CentralPlaza.
In the first quarter of 2018, the developer will deliver a total of 1,200 units at the first three sites, with 400 units in Chiang Mai, 419 in Rayong and 409 in Khon Kaen.
The company aims to realise 3.45 billion baht in revenue by the end of the year.