Real Asset looks to Greater Bangkok for growth
Real Asset Development Co, a property firm owned by Somporn Juangroongruangkit, is looking for land plots in outer-city locations near current mass transit lines and is open to joint ventures and acquisitions.
Chief executive Bodintorn Juangroongruangkit said the company this year is seeking new plots to develop condos, as well as looking to take over suspended condo projects that were shuttered because of the pandemic.
"The pandemic affected the growth of land prices last year, but prices of prime land in inner-city locations remain high as landlords are wealthy," he said.
This week the Crime Suppression Division said it will summon the company's major shareholder, Mrs Somporn, for questioning in connection with bribes given to an official at the Crown Property Bureau for a leasehold land in the Chidlom area.
Chidlom is one of the most sought-after locations for developers to build super-luxury condo projects. The Treasury Department reported the appraisal price of land on Chidlom Road is 500,000 baht per square wah.
"New supply of high-end condos in the inner city has declined as plots are scarce and have high prices," Mr Bodinthorn said yesterday.
He said mid-priced condos costing 150,000 baht per square metre and lower had a better sales rate, particularly those in outer-city locations near the Blue and Green lines, with prices below 100,000 baht per sq m seeing a sales rate of more than 70%.
"The property market this year will not be poor, but developers need to adjust strategies and develop products that match demand as market competition will remain high," said Mr Bodinthorn.
This year the company plans to launch five new projects worth a combined 7.19 billion baht. One is A Space Mega worth 4.3 billion baht, which it acquired from SET-listed developer Areeya Property last year.
Real Asset targets 2.31 billion baht in presales and 2.97 billion in revenue this year, up from 2 billion and 1.9 billion in 2020, respectively.
Presales and revenue were 1.7 billion and 1.75 billion baht, respectively, in 2019.
The company adopted a new logo and rebranded to tap target customers and boost its competency as competition in the residential sector ratcheted up, dominated by mid-sized to large developers whose connections and brands are strong.
"Consumer behaviour has changed," he said. "With social networks, a company's activities can go viral quickly. Consumers want standards and clarity. Any brand offering this has the chance to capture a new customer group."