Supalai plans 12 housing projects next year

General news - Thursday December 13, 2007

PROPERTY / RESIDENTIAL, COMMERCIAL AND RESORT DEVELOPMENT

Supalai plans 12 housing projects next year

KANANA KATHARANGSIPORN

The listed developer Supalai Plc plans to launch 12 housing projects worth a combined 12 billion baht next year, aiming to achieve 9.9 billion baht in presales by the end of 2008, according to deputy managing director Atip Bijanonda.

Four projects worth two billion baht would be located in Phuket while eight projects _ four high-rises and four low-rises _ totalling 10 billion baht would be located in Greater Bangkok.

All would be built under energy-saving concepts.

''The property market next year will be a bit better than this year as the overall situation is clearer,'' he said.

''In the first half, interest rates will be stable but they may likely be revised again in the second half.''

He added that in line with oil prices, construction costs have risen by 5-10% and Supalai plans to raise its selling prices by that much after the presale of each project in 2008.

Currently, it has 30 projects in hand worth around 10 billion baht. The company expects to meet its sale target of 8.8 billion baht and realise revenue of at least 4.5 billion baht by the end of this year.

This month, it would spend 700 million baht to acquire four plots of land for future project developments. In 2008, it would invest two to 2.5 billion baht to buy more plots.

Tomorrow, the company will launch presales of its Supalai Premier Ratchada-Narathiwas-Sathorn condominium worth 2.1 billion baht. It would be located on a four-rai plot on Rama III Road near Central Rama III shopping complex and Tesco Lotus superstore.

The 27-storey building would have 630 units sized between 29.5 and 129 square metres and priced between 1.7 million and 7.9 million baht. Construction would start by mid-2008 and be completed in late 2010.

Mr Atip said the building would be a boomerang shape to avoid direct sunlight for all residents. Unit design and construction materials would also be energy-friendly.

Currently, the company has presales of 100 units worth 300 million baht from its customer base.

By early next year, the company would launch the sale of phase four of Supalai Casa Riva condominium with 200 units worth one billion baht. The project is located on Charoen Krung Road, on the bank of the Chao Phraya River.

The first three phases have been 65% sold for two billion baht, half of total project value. Unit sizes range from 80 to 421 square metres and prices start at 54,900 baht per sq m or between 4.4 million and 28 million baht.

''In the luxury condominium segment, there are very few players. However, the segment is not doing very well. Each year, there should be new supply of no more than 3,000 units in this segment,'' said Mr Atip.

Shares of Supalai closed unchanged yesterday on the Stock Exchange of Thailand at 3.60 baht, in trade worth 13.26 million baht.

Bangkok Post