NAKHON RATCHASIMA : Magnolia Quality Development Corporation Ltd, owned by the Chearavanont family, plans to launch a second villa project worth 1.7 billion baht in Khao Yai by the end of 2013.
One of the villas at the Magnolias French Country project in Khao Yai.
Yuthana Tantiyanon, director of real estate projects, said the scheme will be located on a 98-rai plot where it will develop 100-150 single houses priced lower than 10 million baht a unit.
Most single houses offered in Khao Yai are priced above 10 million baht as land plots are usually more than 100 square wah, unlike mass units in Bangkok sized 50 sq w.
"We will shift to units priced lower than 10 million baht to expand the market base. Demand for houses priced 20 million baht is also lower," said Mr Yuthana.
Several more projects, real estate and social, are in the pipeline, says Mr Yuthana.
In late 2011, the company launched Magnolias French Country on a 17.5-rai site on KM 13 of Thanarat Road in Khao Yai worth 302 million baht. Currently, 10 of the 18 villas priced 15-45 million baht have been sold and the company expects to close sales by the third quarter.
It is offering a 30-year guarantee on structure strength, roof leakage, doors and windows, and water pipe leakage. Usually, a guarantee period for a house is only five years for the structure and one year for finishing materials.
Magnolia also plans to spend 600 million baht to develop a hotel with 80 rooms on a 13.5-rai site close to the first villa project. Construction will start in the second quarter and operation will begin in mid-2014.
After a new city plan for Nakhon Ratchasima that would limit housing development in Khao Yai was delayed for revision until 2014-15, housing supply has slowed down.
Magnolia is owned by Tipaporn Chearavanont, the youngest daughter of Dhanin Chearavanont, who controls CP Group.
Mr Yuthana said CP Group and the family have many hundreds of rai of land in Khao Yai and nearby. The group plans to develop a training centre in Pak Chong district, a dhamma practice centre on a 50-rai site and a residential project in Khao Yai.