SET-listed developer Major Development Plc (MJD) is set to launch four new projects worth a combined 8 billion baht in 2018 on the expectation of a rosier economic outlook for the country.
Next year the property market for condominiums is expected to thrive thanks to a spate of positive signs such as growing exports, the government's accelerated megaproject development and a clearer time frame for a general election, said managing director Suriya Poolvoralaks.
Of the four projects planned for next year, one is a luxury detached house on Krungthep Kreetha Road worth 1.5 billion baht. The other three are condominiums, one of which is a 3.3-billion-baht luxury freehold project on one rai on Lang Suan Road.
Information about the other two condominium projects has not been disclosed.
Mr Suriya said the detached house project will be launched by the middle of next year, while the Lang Suan condominium project is scheduled to be launched in the first quarter of next year. The remaining two projects will be launched by the third quarter of 2018.
"We've seen signs of market recovery since the second half of this year," he said. "We're ready to start launching new projects early next year to capitalise on the trend."
But Mr Suriya said for the remaining two months of the year, the company is unlikely to launch any new projects, citing the October mourning period and a normally inactive year-end period for the property market, as people opt to save money for spending on celebrations and travelling.
For the remaining months of the year, the company will focus on opening sales offices at Ekamai and Lat Phrao for MARU Ekkamai 2 and MARU Ladprao15, respectively.
He said the company will end this year with six new residential projects, with presales worth 8 billion baht and revenue targeted at 5.4 billion. More than 50% of units at the new projects have been booked.
Higher presales this year were attributed largely to completed and transfer units at Marque Sukhumvit worth 6.5 billion baht and M Jatujak worth 4.4 billion.
Last year, the company reported presales of 5.3 billion baht with revenue worth 5.4 billion.
Next year, the company expects its presales to cool down to 4 billion baht with revenue of 6 billion.
"It is noteworthy that there is growing purchase interest this year from foreign buyers, notably Chinese from Hong Kong, Taiwan and the mainland, mostly in the form of bulk purchases through property agents," said Mr Suriya.
"Growing foreign purchases are also partially thanks to the company's roadshows in Hong Kong and Singapore, while the purchases are mainly for investment and rental purpose."
Foreign clients now account for 30% of presales, with the proportion expected to increase next year thanks to the company's roadshows, he said.
Founded by the Poolvoralaks Family in 1999, with initial registered capital of only 1 million baht, Major Development is principally engaged in the development of properties for sale and hotel business, focusing on high-end condominiums.
The company currently has 17 active development projects, including a luxury condominium project in Pattaya -- Reflection Pattaya Jomtien Beach.
Mr Suriya said the overall high-end property market remains strong and promising, as rising land prices in Bangkok's prime residential locations and relatively low investment return in financial and capital markets have attracted wealthy people to invest in the luxury condo segment.
"We think the luxury segment will continue to thrive, with neither Thai nor foreign buyers likely to dump a unit for which they have made a down payment, as they won't feel much impact from the economic slowdown," said Mr Suriya. "It's rather the lower-end segment that struggles with purchasing power and mortgage loan rejections."
MJD shares closed Friday on the Stock Exchange of Thailand at 3.22 baht, up two satang, in trade worth 331 million baht.
