SET-listed developer Supalai Plc (SPALI) will focus on affordable condos priced at 60,000-80,000 baht per square metre as buyers become more price-sensitive.
Managing director Tritecha Tangmatitham said increases in land prices at most locations in Bangkok have pushed the average price of new condo supply above 100,000 baht per sq m.
"The majority of condo buyers can afford 60,000-80,000 baht per sq m," he said. "They will not buy a unit above 100,000 baht per sq m."
Mr Tritecha said affordably priced condos will be the key to success this year. Last year Supalai recorded a greater amount of condo presales than the sales value of new condo launches.
2018 saw 33.3 billion baht in presales, up 8% from the year before. Of the amount, 52% or 17.3 billion baht was from condos, comprising 15.7 billion in Greater Bangkok, up 11%, and 1.67 billion in provinces, up 18%.
"Presales were higher than the value of new launches because we were able to clear inventory," Mr Tritecha said.
Supalai has unsold condo units ready to transfer worth a combined 10 billion baht. Half are in locations along the Purple Line and 3 billion baht worth are in the provinces of Phuket, Chon Buri, Rayong, Chiang Mai and Songkhla.
The company aims to have 35 billion baht in presales in 2019, up 5%. It plans to launch 34 projects worth a combined 40 billion baht, up 54% from 2018.
Six condo projects worth 19.2 billion baht will be in Greater Bangkok. Five of them will have units priced at 60,000-80,000 baht per sq m, and the other will be Supalai Icon on Sathon Road.
"Condos at affordable prices will be in the central business district's fringe areas where we had a good sales rate from new launches last year, like Ramkhamhaeng," Mr Tritecha said.
There will be 28 new single-house and townhouse projects, with 13 sites in Greater Bangkok and 15 in provinces.
Supalai yesterday reported 5.77 billion baht in 2018 net profit, down 1%, on revenue of 25.81 billion baht, up 1%.
SPALI shares closed yesterday on the Stock Exchange of Thailand at 19.60 baht, down 50 satang, in trade worth 113.1 million baht.
