Outlying areas draw mid-sized interest

Three mid-sized property developers _ RK Group, Sarin Property and D-Land Group _ will stay focused on their flagship base in the Bangkok outskirts, with target growth of at least 15%.

RK Group, which developed 25 projects in eastern Bangkok over the past three decades, plans to launch four projects worth a combined 2.57 billion baht this year.

Visit Kittiudom, the president of RK Group, said they will include townhouses and four-storey home offices with a lift in areas near the Motorway and on Ram Intra Road.

Bangkok's eastern zone is among the top 10 locations by largest number of low-rise houses newly registered each year.

It offers workplaces and residences in the same area with convenient transport networks, said Mr Visit.

This year, RK is aiming for presales of 1.4 billion baht, up by 15%, and 1.2 billion in revenue, up by 17%.

Last year it recorded 1.2 billion baht in presales, up from 1 billion in 2011, and more than 1 billion in revenue, up by 30%.

Meanwhile, Sarin Property, whose focus is Rama II Road, plans to launch two projects worth a combined 400 million baht on parts of remaining plots in Sarin City, a project under development since 1993.

Property development depends on the location each developer is familiar with, said Sarin vice-president Ataphol Vongkusolkit.

He said few developers succeed outside their base location.

In Sarin City, the firm has 400 rai remaining for property development. It used to have 6,000 rai, which fell to 2,000 rai after a haircut from creditors and sales to other developers.

Best Ocean Group, a developer that bought 2,000 rai from Sarin, signed a memorandum of understanding last year with Britain's University of Central Lancashire to set up a campus on Rama II Road.

Mr Ataphol said the property market will continue to grow this year, even as housing prices rise in line with higher construction material costs and negative factors such as the ongoing labour shortage.

Sarin will ramp up its prefab works to compensate.

It has a prefab factory in the Rama II area that can produce one single house a day and whose capacity can be doubled, said Mr Ataphol, who joined his father's property business four years ago.

The company expects revenue growth of 25% this year after recording 1 billion last year and 800 million in 2011.

D-Land Group, another developer on Rama II Road in Samut Sakhon province, plans to launch three projects worth a combined 700 million baht.

It aims for 1 billion baht in revenue this year, up by 20% from last year.

Executive director Suthep Panyasakorn said 21,865 housing units were launched last year in and outside of western Bangkok or in the Rama II area and Samut Sakhon.

Of the total, 10,000 were townhouses, especially units priced from 1-2 million baht.

About the author

Writer: Kanana Katharangsiporn
Position: Business Reporter