After keeping a low profile for more than two decades, M Thai Group, a private Thai property developer, plans to invest 5 billion baht in residential projects on a 220-rai plot near Suvarnabhumi airport.
Veraphong Chutipat, executive director of Property Contact, a subsidiary of M Thai Group, said 90-95% of the planned 5-billion-baht investment will go to residential project development and the rest towards commercial building construction.
Property Contact yesterday officially announced the first phase of a single-detached house project, Vario Suvarnabhumi, on Srivaree Noi Road in Samut Prakan.
The 300-million-baht project comprises 60 houses on an area of 151-205 square metres each, with retail prices starting from 4 million per unit.
The construction of Vario Suvarnabhumi is now 50% completed, with presales accounting for 30%.
The company expects to complete the first phase by 2017.
According to Mr Veraphong, Property Contact has been studying the feasibility of developing the area adjacent to Suvarnabhumi airport since 2012. The area is expected to become more popular over the next three to five years after the government approved an expansion plan for the airport.
Once the Suvarnabhumi airport expansion is completed, Mr Veraphong forecast the number of foreign tourists to double to 60 million.
Moreover, population and economic flows are expected to increase, driving land prices to rise by 30-50% from 20,000-30,000 baht per square wah now.
"The company will focus on the Suvarnabhumi area to become a residential centre," he said. "And once Vario Suvarnabhumi is complete, the new single-detached projects will be ready to kick off."
In 2017, Property Contact aims to have 300 million baht in revenue, up sharply from 150 million baht year-on-year.
Mr Veraphong added the new land and buildings tax law, despite its enforcement being postponed until 2018, will encourage developers to beef up their new projects for managing their tax costs in the future.
But he forecast the country's property sector will be uncertain, while most developers still baulk at launching new residential projects as financial institutions remain cautious on approving mortgage loans.
"Thai gross domestic product is projected to grow only 3-4% this year, a similar pace to last year's figures," he said, adding a conservative strategy is the best solution for property developers.
Established in 1967, M. Thai Group developed eight property projects from 1986-2010, with combined investment of 18.2 billion baht. Its projects include Theparak Industrial Park and Royal Golf Country Club Ladkrabang.
All Seasons Place on Wireless Road is also under M. Thai Group. Having formed a joint venture with China Resources (Holdings) Co in 1989, the project is worth 10 billion baht.
At present, it has 10 remaining home-office units named Business Town for sale in the City Park Bangna mixed-used project.
Mr Veraphong said the company now owns over 1,000 rai of land plots for future development, all in Greater Bangkok.