Supalai looks to provincial prospects
SET-listed developer Supalai expects an economic recovery in 2021 as it aims for sales growth and plans to expand low-rise housing projects into additional provinces to diversify risk.
Chairman and chief executive Prateep Tangmatitham said the company planned to launch at least 30 new residential projects next year with only 10-20% of them being condo projects.
"We will launch only 3-5 condo projects depending on locations as there is a large amount of unsold condo inventory in the market," he said. "We should wait for a while for them to be absorbed."
The remainder of the projects Supalai will launch next year will be low-rise houses, including single detached houses, semi-detached houses and town houses. The target market for the properties will be new generations who are building a family as demand in this segment remains strong.
In 2021, the company will expand into new provinces including Chachoengsao, Phetchaburi, Prachuap Khiri Khan and Lamphun. Supalai already has projects in 12 other provinces.
It is forecast that one third of the company's total revenue and pre-sales will be generated in the provinces this year.
Supalai has also been expanding overseas. Australia represents its largest portfolio overseas, representing 10 billion baht in value from 12 projects. The company also has interests in the Philippines, Malaysia and Vietnam, where it has invested in shares of property firms. Indonesia is also currently under consideration, Mr Prateep said.
"An expansion into the provinces and overseas helps boost our growth in the future and diversify risk away from Greater Bangkok," said Mr Prateep.
He added that the property market next year will improve as the economy will be on an upward trend, resulting from the country's ability to handle the pandemic and due to the progress made in the development of coronavirus vaccines.
On Tuesday, Supalai announced the winners of a design contest in cooperation with Chulalongkorn University under the concept of future living. The designs produced by the university's architecture students will be showcased at the Bangkok Art and Culture Center until Dec 13.
Mr Prateep said the company was establishing a real estate investment trust (REIT) through which it would sell Supalai Grand Tower on Rama III Road.
At full occupancy and with an average monthly rent of 500 baht per square metre, the office tower is expected to have a value of at least 3 billion baht.