Ocean Property Co Ltd, a subsidiary of the Ocean Group, plans to develop a 5-billion-baht condominium project in Khon Kaen to cash in on strong demand upcountry.
Managing director Teeravat Pipatdhitakul said demand is largely from students at Khon Kaen University (KKU), followed by lecturers and staff.
The Northeast's largest university has 50,000 students, 2,000 lecturers and 3,000 staff. Its dormitories can accommodate only 30% of students.
The Dormitory and Apartment Corporation Khon Kaen Club said 24,000 apartment units are situated near KKU.
Most are sized from 24-26 square metres with rents of less than 5,000 baht a month.
But the largest market is for rooms costing 3,500 baht a month located farther away.
Opposite KKU, Ocean Property has a 39.5-rai plot where it plans to develop mixed-use projects over the next six years including five phases of a condo project, each worth 1 billion baht on 20 rai.
The remaining plot will be developed for a community mall and budget hotel.
The company will launch the first phase of the project by next year's third quarter, but the number of units is not yet finalised.
Unit sizes will start at 26 sq m, with prices starting from 900,000 baht.
Mr Teeravat said the company will also look at developing condos in Lak Muang and Bung Kaen Nakhon in the province.
"We have many plots of land on hand and will see which have potential for property development. But we don't rush, as we're a non-listed firm," said Mr Teeravat, who joined the company three months ago.
Ocean Property targets revenue of 1 billion baht next year, double the figure for each year from 2008-12.
Of next year's target, 40% will be from residential sales, up from 30% this year, and the rest from rental revenue.
It has two projects with units for sale.
They are 100 units worth a combined 1.6 billion baht at the 268-unit Ocean Portofino Condominium in Pattaya's Jomtien Beach and 29 units worth 300 million baht at the 48-unit O2Hip in Bangkok's Phloenchit Road area.
Its rental properties include Ocean Tower 1 and 2, office buildings in Bangkok's Asok area with an occupancy rate of 96%; the Ocean Marina Yacht Club with 50 hotel rooms in Pattaya; and Asara Villa & Suite with 96 pool villas in Hua Hin with occupancy of 35%.
The developer plans to spend 40 million baht to build 1,000 sq m of shops and a 2,000-sq-m floating restaurant at Ocean Marina, which will be completed next year.
It will not acquire new land but rather develop its existing plots nationwide.
The company plans to develop a 200-room hotel on 60 rai in Pattaya.
It also has a 206-rai plot in Phuket's Muang district, a 400-rai plot on Thanarat Road in Khao Yai, a 16-rai plot on Rama III Road in Bangkok and a 19-rai plot on Bangkok's Rat Burana Road.