Nakhon Si Thammarat-based property developer Apasiri Group has revised down its presales target this year by 20%, as the recovery of the housing market in the southern provinces is slower than in Bangkok.
Apasiri launched its Viia7 condominium project in Bangkok's Bang Na district last week.
Director Krit Narmkerd said the political turmoil and decline in rubber prices had hit housing demand in the South during the first five months, making the group miss its target by 30%.
"We also slowed down new project launches during the period, but will maintain a number of new ones this year as property market sentiment resumes," he said yesterday.
From January to May 2014, the group posted 300 million baht in presales, 30% lower than the target, but it expects to boost sales in the second half, as market sentiment is improving after the May 22 coup.
However, it is cutting its presales target to 800 million baht by year-end from a previous 1 billion baht. In the second half, it is maintaining its business plan to launch seven housing projects worth a combined 2 billion baht. All will be upcountry.
The company launched a condo project in Bangkok's Bang Na district last week. It was the group's first project in the capital since its establishment in 2006.
Viia7 By Apasiri, with sales value of 500 million baht, will be located on a four-rai site at Bang Na-Trat Road km 26, where current land prices are 10-12 million baht a rai.
It will comprise seven five-storey buildings with a total of 277 units sized 29 and 53 square metres and priced from 1.36 million baht a unit or 50,000 baht per sq m.
It was 20% sold in a week, mainly on acquisition by investor buyers since the project offers a 7% rental yield guarantee for the first year. The rental rate will be 7,000 to 8,000 baht a month for a small unit and 13,000 baht for a bigger one.
An additional 500 condo units are planned for launch near Abac Universtiy's Bang Na campus at km 26 due to strong demand from parents and investors who buy them to rent out.
In the first six months, about 1,000 units were launched, with a sales rate of 50 units per month.
In the second half of the year, it plans to launch seven new projects worth a combined 2 billion baht including shophouses in Phangnga and Trang, single houses in Nakhon Si Thammarat and condo and low-rise units in Krabi.