RAYONG: The Confidence Co, a subsidiary of the SET-listed developer Quality Houses Plc (QH), plans to launch two new condominium projects in Rayong and Chon Buri on the back of strong demand from industrial estate workers and other Thai buyers.
Managing director Pairoj Wattanavarodum said condos are more popular in eastern provinces than are low-rise projects.
The Rayong project will be located on five rai near Mae Ram Phueng Beach, with 200-300 units priced at 1-2 million baht. It will tap Thai buyers seeking a resort home.
"Besides being the second most popular tourist destination in the area after Pattaya, Rayong is where many industrial estates are located and where new factories relocated after the floods. IRPC Plc also plans to open a university," Mr Pairoj said.
Rayong has about 5,000 serviced apartment rooms with an average rental rate of about 6,000 baht a month. The occupancy rate is a very high 97%.
The condo project in Chon Buri will be located near the Amata Nakorn Industrial Estate to tap people working there.
The Confidence Co will launch seven projects worth a combined 7.78 billion baht this year - five in Greater Bangkok, one in Pattaya and another in Nakhon Pathom.
It has an inventory of 5.87 billion baht remaining for sale and expects to achieve more than 5 billion baht in revenue this year. Last year it recorded 3.5 billion baht, up by 340% from 2011.
Founded a few years ago, the subsidiary's revenue last year accounted for 30% of QH's revenue of 12 billion baht. It expects to contribute 28% of QH's targeted revenue of 18 billion baht this year.
"The property market, particularly upcountry, will grow in line with the country's economic expansion," said QH president Rutt Phanijphand.
He said QH plans to launch a condo project on a six-rai site with unit prices of 40,000 baht a square metre in Chiang Rai's Muang district due mainly to strong demand from locals and partly from Myanmar.
"Two local developers launched four condos, and all were sold out," Mr Rutt said yesterday.
Condo demand also comes from two educational institutions in Chiang Rai.
On Thursday, QH sold Centre Point Saladaeng to the Aetas Hotel Group for 340 million baht.
The 69-room serviced apartment building is located on a one-rai freehold plot on Soi Sala Daeng that QH operated eight years ago. It gained 100 million baht in profit and 13% of initial return rate from the sale.
QH has only one remaining serviced apartment building, Centre Point Silom, which it plans to rebrand next month after receiving a hotel licence for the property. The occupancy rate of the 214-room building is 90%.