Two SET-listed developers -- Sansiri Plc and U City Plc, a subsidiary of BTS Group Holdings -- will continue condo development joint ventures near mass transit lines after a five-year partnership deal expires this December.
Varangkana Artkarasatapon, Sansiri's assistant executive vice-president for finance and new business development, said the two firms will sign a new contract by the end of November.
"We have 12 plots on hand under the joint venture to launch new condo projects worth a combined 50 billion baht in the future," she said.
Under the current contract signed in 2015, Sansiri and U City, which consolidated the lion's share of BTS Group's property business in 2018, plan to develop 25 condo projects worth a total of 100 billion baht.
The pair have launched 14 projects worth a combined 50 billion baht, of which 70% of units worth 35 billion baht were sold.
Ms Varangkana said the number and value of joint venture condo projects launched were lower than planned as both companies agreed to slow down when the economy and property market became unfavourable.
"Some of the 12 plots are waiting for changes in Bangkok's new city plan, which will take effect next year," she said. "The new city plan will give more floor area ratio and a bonus to land plots near a mass transit station."
Many of the 12 plots are also situated in locations along new mass transit lines and extensions that will be completed in the future.
In the fourth quarter, Sansiri and U City will transfer four condo projects to be completed in the quarter. Of the combined value of 16.3 billion baht, 11.5 billion baht has been sold.
Although the recently approved property stimulus incentives are yet to become effective in the fourth quarter, Sansiri isn't worried about a delay in unit transfers, Ms Varangkana said.
Of the four projects scheduled to transfer, only one has units priced at 3 million baht or lower.
The cabinet on Oct 22 approved the property stimulus package that includes a temporary cut of mortgage and transfer fees to a single rate of 0.01% for homes priced at 3 million baht or less.
The package is meant to help developers dispose of inventory and will be enforced after the interior ministerial announcement takes effect, running until Dec 24, 2020.