Cho Runglert Group has diversified into residential development with a 2-billion-baht project in Khao Yai and a 300-million-baht project in Hua Hin after the labour shortage put its construction business in a pickle.
An artist’s conception of The Pluris Khaoyai worth 2 billion baht. Located on an 82-rai site on Thanarat Road Km 4.5, the project will comprise 50 single houses priced 12-18 million baht and 314 condo units priced from 2.49 million.
Pudit Runglertsakul, managing director of the medium-sized contractor, said the firm needs to reduce the construction jobs it takes each year due to the labour shortage, down from 19 a few years ago to five now. Its labour force has been cut from 3,000 a few years back to 1,000.
"Labour is acutely limited now, while the rise in minimum wage to 300 baht a day is another problem," said Mr Pudit, 59, who has run a contracting business for more than three decades.
Most of the company's jobs were shopping malls in Bangkok and major provinces and hotels in Hua Hin, Koh Samui and Phuket. Its five current jobs are all for Big C Supercenter, a regular customer, with a combined construction value of 1 billion baht.
The group started shifting to property development a year ago with a 42-unit shophouse project worth 250 million baht near the Tesco Lotus on Mittraphap Road, which is now sold out.
From July 20-24, it will launch The Pluris Khaoyai worth 2 billion baht. Located on 82 rai at Thanarat Road Km 4.5, the project will comprise 50 single houses priced 12-18 million baht and 314 condo units priced from 2.49 million or 78,000 baht per square metre.
Sichalin Runglertsakul, the eldest daughter and managing director of Puthanarat Co, a subsidiary of the group, said Khao Yai attracts demand from both homebuyers and developers. This has led land prices to soar some 30% from last year, especially from homebuyer demand.
The company plans to launch a single house project with unit prices above 5 million baht in Hua Hin on a plot of 20 rai near Palm Hill Golf Course by year-end.
Established in 1994, Cho Runglert Group has registered capital of 50 million baht, while Puthanarat was founded in 2007 with capital of 1 million baht.
The subsidiary sold Ton Nam Lamtakhlong Hotel in Pak Chong a few years ago to a brother of Dhanin Chearavanont, but the sales value was not disclosed.
About the author
- Writer: Kanana Katharangsiporn
Position: Business Reporter