SET-listed developer Supalai Plc will launch four new condo projects worth a combined 5.74 billion baht in the fourth quarter, after freezing new condo launches for over a year, with the market now recovering.
Managing director Tritecha Tangmatitham said the residential market has seen a gradual recovery with rising numbers of customers visiting project sites since late August this year.
"The condo market slowed down last year, shrinking by 50% from 2019, and we expect a continuing drop in 2021," he said.
"But we see a large amount of new condo supply planned to launch in the fourth quarter. As a result, the total number of new condo supply launched this year will be the same amount as last year."
According to property consultant Colliers International Thailand, new Bangkok condo supply rose to 5,393 units in the third quarter, from 2,471 units in the second quarter and 3,608 units in the first quarter.
"So far, there will be 6,913 new condo units being launched in the fourth quarter," said Phattarachai Taweewong, associate director of the research and communications department at Colliers. "But we expect the actual amount will exceed 8,000 units."
As the market bottomed out last month, Mr Tritecha said Supalai will launch four new condo projects in the fourth quarter of the year after its most recent project was launched in September 2020.
"This year we will launch the largest number of new projects since our establishment 32 years ago, but the projects launched in the first nine months were only low-rise houses," he said. "We hold onto new condo launches as they need good sentiment."
One of the new condo projects it plans to launch will be Supalai Premier Samsen-Ratchawat, with 248 units worth 1.5 billion baht, on Oct 30. The target customers will be local people and those working in the area, particularly medical staff.
The company has also revised up its presales target to 80-90% of the total units during a launch period, up from 60-70% it aimed for earlier in the year, as the number of customers interested in booking a unit has risen.
The three other new condo projects Supalai plans to launch will comprise two in Greater Bangkok worth a combined 4 billion baht and a provincial one worth 250 million baht, Mr Tritecha added.
During the first nine months of 2021, Supalai recorded 17.55 billion baht in presales, which comprised 13.74 billion baht from low-rise houses and 3.81 billion baht from condos. All the condo presales were from existing inventory.
It maintained its presales target of 27 billion baht for 2021.