More Chiang Mai residents are embracing condominium living as their purchasing power increases, urban land prices soar and fewer people live in extended families.
Supalai Monte @ Viang Chiangmai will be a 32-storey building with 734 condominium units and four shops. It will be the tallest building in Chiang Mai.
"People's lifestyles in Chiang Mai and many large provinces are changing as they have higher incomes," said Prateep Tangmatitham, president of SET-listed Supalai Plc, the country's fourth-largest developer by market capitalisation.
"Economies in the provinces have grown faster than in past years after the national budget poured in through local government and local administration organisations. This has also brought a modern trade expansion."
Many Bangkok-based developers had failed with provincial condo projects because they were short of local expertise and some had entered provincial markets too soon, he said.
However, Mr Prateep said land prices in Chiang Mai city have now soared to such a level that development of single houses or townhouses is not viable. Land prices rise 8-10% a year, he said.
"With the land price hike, locations from Chiang Mai city to Superhighway Road, the most inner ring road, are now feasible only for condominiums," he said.
Townhouses and single houses are feasible for development from Superhighway Road to the Inner Ring Road and Outer Ring Road where land prices are lower.
Supalai is not a new player in Chiang Mai, where it has launched several projects in recent years.
Next month it plans to launch Supalai Monte @ Viang Chiangmai on a five-rai site on Superhighway Road, 250 metres from Central Festival, which is due to be completed by the end of next year.
The project will comprise 734 condo units sized from 33 to 120 square metres and four shops with a total sales value of 1.5 billion baht. Selling prices will start at 38,000 baht per sq m or 41,000 baht on average.
Target customers will be local people, Chiang Mai-born people living or working in Bangkok, foreigners, retirees seeking a second home and Bangkok-based investors buying units for rental income.
Mr Prateep said the project would have a Doi Suthep view at one side of the building as a good view can increase selling prices by 20%.
In 2013, Supalai plans to launch more projects in other provinces including Udon Thani, Rayong and Nakhon Ratchasima after entering Hat Yai in Songkhla, Phuket, Khon Kaen, Chiang Mai, Chon Buri and Surat Thani this year. The best market is Phuket, followed by Chiang Mai and Hat Yai.
Over the next few years, the company expects sales from provincial projects to account for 30% of sales. This year sales from provincial projects will rise to 22% from 16% last year, with the contribution from Bangkok projects falling to 78% from 84%.
The company expects to have 22 billion baht in sales by the end of this year, higher than a previous target of 21 billion baht and up from 18.25 billion baht last year.
SPALI shares closed yesterday on the Stock Exchange of Thailand at 19.20 baht, down 10 satang, in total trade of 112.69 million baht.
About the author
- Writer: Kanana Katharangsiporn
Position: Business Reporter