Supalai readies 37 residential projects
published : 24 Jan 2023 at 06:55
newspaper section: Business
writer: Kanana Katharangsiporn
SET-listed developer Supalai Plc plans to launch 37 new residential projects nationwide worth a combined 41 billion baht, the largest figures for both since its establishment, of which more than half would be in the provinces.
Chairman Prateep Tangmatitham said economic growth would continue this year with a strong momentum in terms of the tourism recovery which would drive higher income and increasing employment nationwide.
"When weighed with negative factors such as rising costs, higher interest rates and inflation, GDP growth will drive the economic outlook in a positive way," he said.
Despite the negative factors, the property measures with a cut of the mortgage fee from 1% to 0.01% remaining and a cut of transfer fee from 2% to 1% which changed from 2% to 0.01% for units priced three million baht and lower would help buoy housing demand.
The company will launch 17 new projects in Greater Bangkok, comprising 14 low-rise housing projects and three condo projects.
The remaining 20 projects will be low-rise housing projects in the provinces.
At least five of them will be in what would be five new provinces for the company, namely Lamphun, Lampang, Nakhon Pathom, Chanthaburi and Ratchaburi, in addition to the existing 28 provinces.
At present, Supalai has more than 45 projects on hand in the provinces which comprise ongoing ones and those still undergoing the design process.
The largest number was in Chon Buri with 17 projects.
In the second half, it will launch S Avenue -- a community mall and market -- on a 25-rai plot in Rayong's Ban Khai district, which will be its first retail project.
In this location, Supalai had over 200 rai of land for property development.
In the past two years, it launched two residential projects and recorded more than 200 units sold. It also sold a 20-rai plot to Singaporean International School (SISB).
"We can expand housing development in many provinces nationwide because we have a provincial home buyer insight, for example, using tiles instead of laminate wood for houses in southern provinces where there is frequently rainy weather for easy cleaning," said Mr Prateep.
The company's housing units also had competitive prices as it got the same prices of construction materials to those in Greater Bangkok from manufacturers. Usually, construction prices in the provinces are higher.
It will also expand the luxury low-rise segment with units priced 10-30 million baht as it recorded a growth of 155% in units priced between 10-20 million baht and a jump of 157% in units priced from 20 million baht.
Mr Prateep said the company aims to have 36 billion baht in presales and revenue by the end of 2023.
Last year it recorded 32.4 billion baht in presales, a jump of 35% from 24 billion baht in 2021 and higher than its target of 28 billion baht.
Besides S Avenue, It will add new recurring income businesses this year from the rental office at the mixed-use project Supalai Icon Sathorn, a serviced condo in Hua Hin and at Supalai Icon Sathorn and a co-working space at its headquarters.
In Australia, the firm invested 9.75 billion baht over the past decade to develop 12 residential projects worth 52.6 billion baht and would continue investment this year.