Property developer Habitat Group plans to shift to low-rise residential development to target real demand as the condo market faces tepid growth for a few years.
Chief executive Chanin Vanijwongse said the company is revising strategies for its 2021 business plan by gearing towards single detached houses, duplex houses and townhouses, with local buyers as the main target group.
"The low-rise housing development we are planning will likely be residences or vacation homes," Mr Chanin said. "Our locations are in Bangkok and Pattaya, two markets we are strong in."
The company has three plots in Bangkok sized 1-2 rai each to launch new low-rise projects next year.
These plots in the Asok and Phrom Phong areas were earlier planned for condo projects.
"As the condo market slows down, we should not add new supply to the market or in locations where we've launched or developed," Mr Chanin said. "Condo buyers perceive that if they buy a unit today they should have a discount."
He said the vacation home market has been robust during the pandemic, particularly in destinations within a few hours' drive of Bangkok, as many buyers looked for a place to stay during the lockdown.
The company's sales in June picked up to 300 million baht from 140 million baht in May and 75 million baht in April, higher than the usual monthly sales of 100 million baht. Key drivers were units in Pattaya.
In the first half of the year, Habitat recorded 1.18 billion baht in total revenue. It aims to achieve 2.45 billion baht by the end of the year, up from 767 million baht last year and 255 million baht in 2018.
Mr Chanin said June sales were driven by pent-up demand during the lockdown.
Habitat's projects in Pattaya are hotel-branded residences with an offer of an annual yield. Investment buyers are the target customers.
During the lockdown, the average occupancy rate of pool villas rose to 80% from the usual 60%. Those residences were fully booked during weekends as people sought privacy while unable to venture out, Mr Chanin said.