Property firm Supalai Plc is studying the possibility of developing residential projects in Asean Economy Community (AEC) member countries once the regional bloc takes effect in 2015, predicting a strong increase in demand.
Countries under consideration include Malaysia, Indonesia, Burma and the Philippines.
Company president Prathep Thanmatithum said at a press conference last weekend after surveying expansion opportunities in Udon Thani province that the company is also studying possibilities for investment in Sri Lanka, which has a large population and is seeing strong demand for residences amid economic growth.
“We will study the laws and the market for about two or three years before making decisions about which countries to invest in,” he said.
He said the company’s motivation for studying investment opportunities overseas is the achievement of sustainable growth in the long term.
In Thailand, the company is expanding into new provincial residential markets, following successful projects in Phuket, Khon Kaen, Chiang Mai and Songkhla.
Company director Tritecha Thanmatithum said Supalai will develop a single detached housing project in Surat Thani worth Bt880 million and another in Chon Buri province worth Bt760 million. Other provinces the firm is looking at include Nakhon Ratchasima, Udon Thani, Ubon Ratchathani, Phitsanulok, Nakhon Sawan, Nakhon Si Thammarat and Rayong.
“We expect total revenue from upcountry to account for 19 per cent of total revenue this year,” he said.
Supalai targets total pre-sales of Bt19 billion, revised up from Bt18 billion, due to faster-than-expected recovery from the floods last year. The company targets revenue of at least Bt13.5 billion at the end of this year, up 5 per cent from total revenue of Bt12.8 billion last year. Up to 70 per cent of its total revenue will come from condominium projects, and the rest from low-rise residences including single-detached houses, townhouses and twin houses.
The company plans to launch 22 to 24 projects worth Bt25 billion this year, 10 of them located in six provinces and the rest in Bangkok. They will be both low-rise residences and condominium projects, the company’s managing director, Atip Bichanond, said.
Porntip Thanasriwanitchai, president of the Udon Thani Property Club, said property firms in Bangkok are starting to expand their investment in Udon Thani. Land & Houses Plc has succeeded in purchasing land in Udon Thani that it may start to develop as residential projects this year or next. Supalai has found land on which to develop residential projects in the province.
Udon Thani’s property market is worth an average of Bt8 billion a year, one-third of it developed by 22 local developers, one-third by landowners hiring local contractors to build residences, and one third by local homebuilders who offer designs to landowners.
Demand for residences in Udon Thani comes from local people who marry foreigners, as well families of people who work overseas and send money to their families to buy residences, Porntip said.
“Once the AEC takes effect in 2015, Udon Thani will also be a destination for investment by those looking to expand operations in Vientiane,” she added.