Fierce competition, limited land supply, portfolio-balancing behind move
With strong competition in the residential market in Bangkok, property firms are lining up to launch new residential projects in the provinces in the second half of the year, the developers told The Nation early this week.
Sansiri has introduced its latest condominium project, the Bt1.2-billion 23 Estate, in Khao Yai, while NC Housing has announced a single detached housing project worth Bt750 million in North Pattaya.
SC Asset Corporation plans to launch a second residential project worth nearly Bt2 billion in Hua Hin in the second half, after successfully selling out its first condominium project there, the Crest Santora Hua Hin, in the first half of this year.
Supalai plans to launch new residential projects in Chiang Mai, Chon Buri, Phuket and Surat Thani.
LPN Development plans to launch a new condominium project in Pattaya after successfully selling out two projects there last year and in the first half of this year.
Sansiri CEO Apichart Chutrakul said the company has expanded its provincial business for more than 10 years, but with a focus on Hua Hin. Now, the company is interested in expanding its investment in other provinces where demand is stronger among Thais.
These include the residential projects in Phuket and Khao Yai. The company is also interested in developing a condominium project in Khon Kaen in the second half of this year. Most of these projects focus on domestic demand. “We believe revenue from the provinces will account for nearly 10 per cent of our total presales this year,” he said.
NC Housing’s managing director Somchao Tanterdtham said the company has decided to launch new residential projects in Pattaya due to the strong demand there. It also seeks to balance its portfolio between residential projects in the provinces and Bangkok, where the market is facing strong competition and limited land for developing residential projects.
Noble Development managing director Thongchai Busaraphan said the company did not plan to develop residential projects in the provinces this year or next, but may do so two or three years from now, given the tough environment in Bangkok’s central business districts (CBDs).
“If we want to drive our business growth in the long term, we will have to expand in the provinces,” he said.