Despite overall property downturn, demand for detached homes growing, Pruksa finds

Real Estate June 13, 2014 00:00

By Somluck Srimalee
The Nation

Driven by the strong demand from the middle- and upper-income segments, demand for detached houses grew by 2 per cent in the first quarter although the overall Greater Bangkok property market dropped by 10 per cent, said Nimit Poonsawat, Pruksa Real Estat

“Sales of detached houses this year look like increasing by 2-3 per cent from last year,” he said. 
Given this strong demand, Pruksa plans to launch between 15 and 17 new detached-housing projects worth Bt15 billion in the second half of this year, on top of the 12 projects worth Bt11 billion launched in the first half. 
The firm aims for presales in detached-housing projects of between Bt10 billion and Bt12 billion this year, about 20 per cent of its revenue target of Bt40 billion to Bt42 billion, he said. The company recorded presales worth Bt3 billion in the first quarter, up 1 per cent from the same period last year.
Nimit said the main target customers for detached houses were in the middle-to-upper-income market, people who buy homes priced between Bt3 million and Bt7 million.
Demand for luxury houses has also continued to grow, as proved by Bt500 million worth of presales from its luxury brand The Palm at Pattanakan Soi 38. These houses cost from Bt9 million to Bt25 million. The main target customers in this category are entrepreneurs who have not suffered any ill effects from the coup, he said.  
Given the initial success of this luxury project, Pruksa plans to launch another project under The Palm brand next year, he said.