Pruksa Real Estate, a subsidiary of SET-listed Pruksa Holding Plc (PSH), has downshifted to middle-end condos to capture real demand and investment buyers amid a sluggish market.
Prasert Taedullayasatit, president for premium business, said total condo presales in Greater Bangkok in the first quarter shrank by 25% year-on-year and 26% quarter-on-quarter to 53.3 billion baht, in large part because of the new lending curbs.
"The decline in condo presales in the first quarter was caused by fewer launches as most developers focused on clearing completed condo inventory ahead of the new lending curbs taking effect on April 1," he said.
Pruksa's market survey found condo presales in all segments dropped, except for the lower-priced segment with units priced less than 1 million baht.
This segment rose by 711% year-on-year and 1,424% quarter-on-quarter to 5.49 billion baht.
The largest drop was for units priced between 3 and 5 million baht, with a year-on-year decrease of 53% and a quarter-on-quarter decline of 49% to 8.77 billion baht.
Pruksa started its downshift last year, focusing on launches in the mid-priced segment with units priced 150,000-200,000 baht per square metre, or 5-15 million baht.
It recorded condo presales of 6.1 billion baht in the segment in the first four months, including 2.1 billion from projects launched last year or earlier.
Some 4 billion baht was from three new projects worth a combined 8 billion launched in the first four months. They included 1 billion baht from Chapter Thonglor 25, which has a sales value of 1.98 billion, and 2 billion from Chapter Charoen-Nakhon Riverside, valued at 4.5 billion.
It also recorded 70% pre-booking at the 1.3-billion-baht Chapter Chula-Samyan, which will be launched on May 25.
This condo is located on a one-rai plot on Si Phraya Road, comprising a 31-storey tower and a total of 181 units sized from 23 to 72 sq m and priced from 3.29 million baht a unit.
Pruksa will launch two new condo projects in the premium segment worth a combined 2.8 billion baht in the fourth quarter.
They comprise The Reserve Phayathai worth 1.44 billion baht and The Reserve Prasanmitr worth 1.4 billion.
PSH shares closed on Wednesday on the SET at 18.70 baht, down 10 satang, in trade worth 33.1 million baht.