Supalai sanguine on presales goal

Supalai sanguine on presales goal

A digital rendition of Supalai Premier Siphraya-Samyan, a condo project with 384 units priced from 3.69 million baht.
A digital rendition of Supalai Premier Siphraya-Samyan, a condo project with 384 units priced from 3.69 million baht.

SET-listed developer Supalai is confident it can achieve its 2020 presales target, which has not changed despite the pandemic, as the firm launched new condo projects with prices below market value.

Managing director Tritecha Tangmatitham said new condo supply launched following the pandemic, amid unfavourable economic sentiment, should have attractive selling points, particularly prices.

"With a glut of unsold, completed condo units in the market offering discounts and campaigns, those deciding to buy a unit at an off-plan project launched this year are mostly people who are financially secure," he said.

These buyers are usually attracted by very good deals, such as selling prices that are much lower than the market average or neighbouring projects.

Unit sizes should be large enough for comfortable living, while locations should be in prime areas.

In July 2020, Supalai launched a new condo project near Bang Wa BTS station and recorded 70% of units sold, higher than the target of 40% because prices were more than 15% lower than market prices.

By the end of this month, the company plans on launching a new condo project, Supalai Premier Siphraya-Samyan, with 384 units worth 2.2 billion baht.

Sales prices start at 84,000 baht to 130,000 baht per square metre, or 99,000 baht on average.

Mr Tritecha said the company expects to sell 70% of units as other projects nearby launched during 2015-19 had unit prices of 120,000-240,000 baht per sq m.

"With the condo market slowing down, we expect a lower sales rate at new condo projects launched this year, down to only 40-50% from 70-80% when markets were robust," he said.

Mr Tritecha said the project can offer lower sales prices because the plot was purchased five years ago and construction prices dipped by 5-10% in 2017-20.

With good sales at new condo projects, Supalai expects to have 27 billion baht in presales by the end of the year, meeting the target it set in January 2020.

He said the condo market since July has improved, displaying a lower rejection rate and better sales rates.

In the last two months the rejection rate was 10%, down by half from 19-20% in January this year.

"If there is no hiccup such as a second wave of outbreaks, the condo market should be good until the end of the year," said Mr Tritecha.

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