SET-listed developer Everland Plc (EVER) will launch 10 new projects worth at least 6 billion baht combined in 2019, focusing on low-rise development.
Chairman Swechak Lochaya said the company from this year on will focus on single-house and townhouse projects.
"The condo market is now saturated," he said. "Demand from domestic buyers has slowed amid new supply launched in a great amount over the past five years."
Condo sales rates have dropped as foreign demand slows. Chinese buyers in particular have internal problems such as the slowing mainland economy and difficulty in outbound money transfers.
Mr Swechak said the new lending curbs requiring a higher down payment will have an impact on the overall housing market because most Thai homebuyers have no savings.
Developers typically collect a down payment of just 5-10% of the unit price.
With this market trend, Everland will shift to low-rise (single detached house and townhouse) development with nine low-rise projects out of a total of 10 planned for launch this year.
A single house will be priced between 4 million and 6 million baht and a townhouse between 3 million and 4 million baht.
Townhouses under the Ever City brand will target first-jobbers, Mr Swechak said, while single houses under My Home Avenue are aimed at those moving from townhouses for family expansion.
There will be only one condo project, an eight-storey tower, to realise revenue faster.
"Homebuyers have shifted to low-rise houses when a condo in the inner city is priced higher than they can afford," Mr Swechak said. "Due to higher land costs, a condo at an affordable price needs to be outside the inner city, where a low-rise house in the same price bracket is available."
The company has secured three land plots for low-rise projects so far and will spend between 1.5 billion and 2 billion baht to buy new land plots for development of the rest to be launched this year.
Land cost for townhouse development will be between 8 million and 12 million baht per rai.
Next month will see the launch of three townhouse projects worth a combined 2 billion baht. Each will be situated on a 20-rai plot, with a two-storey townhouse starting at 3 million baht.
The locations are Suksawad Soi 30 with 144 units worth 540 million baht, Nham Daeng in Samut Prakan with 249 units worth 870 million baht, and Ram Intra-Chatu Chote with 172 units worth 600 million baht.
Mr Swechak said the company aims to have 5 billion baht in revenue by the end of 2019 and turn a profit after making losses for three straight years.
"A huge investment in high-rise condo development three years ago led to a freeze in new investment because it takes up to three years for completion and revenue generation," he said.
Everland expected to record 1 billion baht in revenue last year, half of which would be from housing development business and the rest from hospitals.
A few years ago the company acquired three hospitals in Chiang Mai, Phitsanulok and Nakhon Ratchasima at a total investment of 8 billion baht. The hospitals generated about 500 million baht in annual revenue during 2016-18.
This year Everland will spend 30-50 million baht per hospital to renovate them for the first time since acquisition.
The company has three condo projects with units remaining for sale. All are in the Sanam Bin Nam area.
The eight-storey Politan Breeze with four towers and a total of 566 units worth 2 billion baht is completed and 40% of units are sold.
Politan Rive, a 57-storey building with 2,300 units worth 6.3 billion baht, was completed last month. It has sold 2,000 units.
The company is building the 61-storey Politan Aqua with 2,700 units worth 6.7 billion baht, of which 70% of units are sold.
Everland aims to have 5 billion baht in revenue from condo transfers by the end of the year and 500 million baht from the hospital business.
EVER shares closed Friday on the Stock Exchange of Thailand at 0.52 baht, unchanged, in trade worth 1.3 million baht.
