SET-listed Central Pattana (CPN) plans to launch two new phases of Phyll Phuket, a condo project near Central Phuket Floresta, with 700 units worth a combined 3 billion baht next year as condo demand in Phuket remains robust, driven by the tourism sector.
Kree Dejchai, the company's president for residential business, said the Phuket property market posted significant growth since last year attributed to strong demand from foreign investors and local buyers.
"We launched phase one of the condo project during the pandemic and recorded a satisfactory sales rate as the tourism sector in Phuket has experienced a strong comeback," he said. "The island is a global destination."
Phase one of Phyll Phuket comprised three eight-storey towers and a total of 439 units worth 1.5 billion baht launched in late 2021. The phase recorded a 70% sales rate. Construction is scheduled to be finished next month, with units transferred to buyers.
Phase one is projected to be sold out by year-end and will realise revenue in the fourth quarter of 2023 and the first quarter next year as targeted because buyers in Phuket do not have problems obtaining mortgages following the tourism revival, said Mr Kree.
Though the project did not market to foreign buyers nor assign any agencies to assist in foreign markets, 15% of sales came from foreigners, both onsite and online, he said. The majority were Russians seeking a retirement home, followed by Chinese, said Mr Kree.
CPN bought a 20-rai plot on Muang Naka Road behind Central Phuket Floresta and near HeadStart International School in Muang district before the pandemic.
Roughly six rai was developed for phase one, with the remainder slated for phases two and three, which will be launched in 2024, he said.
For the remainder of this year, CPN plans to launch four new developments, comprising a condo project in Bang Na and three low-rise housing projects in near the Rama II Road, Ekkachai and Utthayan areas, all under the new brand Baan Nirada.
"We aim to achieve 5 billion baht in revenue from the residential development business this year, up from 3 billion last year," said Mr Kree.
"This will account for at least 10% of the group's total revenue, marking the first time it represents a double-digit proportion since we entered the residential sector a decade ago."
In the second quarter, CPN recorded 1.02 billion baht in revenue from residential development business, accounting for 9.18% of total revenue worth 11.1 billion baht.
The revenue rose from 670 million baht or 6.5% of total revenue in the first quarter.