Supalai upbeat on 30 new projects
SET-listed developer Supalai Plc remains bullish on a plan to spend 20 billion baht on land and construction of 30 new projects worth a combined 30 billion baht, as financial costs are less of a burden.
Managing director Tritecha Tangmatitham said the company’s financial cost is half that of many developers with the same level of presales.
“The lower the financial cost, the larger the investment opportunity,” he said. “Financial advantage allows us to buy new plots of land for future development amid the market slowdown.”
Of the total investment budget this year, land purchases will rise to 8 billion baht from 5.2 billion baht last year, while construction will cost 12 billion baht, up from 9.6 billion baht.
“Amid a sluggish market, some developers choose to hold back and wait for a better sentiment to resume the investment,” Mr Tritecha said. “But we see it differently, as the poor market will not persist in the long run.”
Only the high-priced condo segment and the foreign buyer market have a weak performance, he said.
Opportunity remains bright in massmarket condos, as the dominant players in the segment may pause new launches as they deal with burdensome debt.
One of the planned condo projects is Supalai City Resort Charan 91 worth 2.1 billion baht. It will occupy an 11-rai plot on Charan Sanitwong Soi 91, 190 metres from Bang O MRT station.
The project will have five eight-storey towers with a total of 1,036 units sized at 27-57 square metres.
Priced from 1.39 million baht or 55,000 baht per sq m on average, the project is a good fit for the mass market, Mr Tritecha said.
Of the 30 new projects, 25 will feature single detached houses, duplex houses or townhouses, the highest number of low-rise housing projects since Supalai’s founding in 1989. The other five will be condos.
Some low-rise projects will introduce Phitsanulok, Ayutthaya and Chachoengsao as new destinations.
At present, Supalai has residential projects in 12 major provinces nationwide, making it the largest player in provincial market.
“We are shifting focus to the low-rise housing segment because it portrays real demand,” Mr Tritecha said. “More than 80% of our new projects will be in the middle- to lower-end market, as demand is solid.”