Supalai: A few years for condo market recovery

Supalai: A few years for condo market recovery

A digital rendition of Supalai Loft Sathorn-Ratchaphruek near Bang Wa station with 563 units, worth 1.4 billion baht.
A digital rendition of Supalai Loft Sathorn-Ratchaphruek near Bang Wa station with 563 units, worth 1.4 billion baht.

The condo market will rebound in the next few years with buyers prioritising price performance amid the economic slowdown, says SET-listed developer Supalai.

Managing director Tritecha Tangmatitham said the condo market saw a bigger impact from the coronavirus crisis than low-rise houses, as buyers were concerned about space and co-living.

"The impact on condos today is similar to what happened with the low-rise housing market in 2012," he said. "That year, market growth shrank as 95% of condo locations in Greater Bangkok were inundated in 2011."

In 2012, homebuyers shifted to condo units as the segment saw minimal impact from widespread flooding in 2011. The low-rise market picked up to normal in 2013.

Mr Tritecha said the condo market will follow the trend as lifestyles return to normal after a coronavirus vaccine is commercialised. Buyers will remain concerned about the economy and their money.

"Developers should seek plots in locations where they can develop a condo project with good price performance, as homebuyers' budget will be more important," he said.

Mr Tritecha said the property market in late April saw a rise in the number of customers visiting project sites.

Last month the number was better than last year's monthly average, showing higher consumer confidence.

"In the middle- to lower-end segment the market is improving, but the upper-end market remains sluggish as some business owners are reluctant to buy or change to a new house," Mr Tritecha said.

This year Supalai plans to launch a total of 30 new projects worth a combined 40 billion baht. In the second half, the company will launch 16 low-rise projects worth 13 billion baht.

Supalai will monitor feedback from the launch of a new condo project next month before launching four new condo projects worth a combined 8 billion baht in the second half.

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