Major to launch low-rise projects aimed at the rich

SET-listed developer Major Development Plc plans to launch low-rise housing projects in the super-luxury segment this year as high net worth Thais are still spending despite the virus crisis.

Petrada Poolvoralaks, the company’s executive director, said housing demand among wealthy buyers remained strong, even though their time to make a decision was longer.

“In prime locations where land is scarce or has high prices, many families that live in those locations and want to extend their living spaces cannot find a new low-rise house to buy,” she said.

Most new residential supply launched in such locations has been condos, but many buyers prefer a low-rise house as they need spacious units, while penthouses are limited and unaffordable.

To capitalise on this demand, the company acquired two plots sized around 1.5 rai each on Sukhumvit Soi 31 and Phahon Yothin Soi 8 (Soi Sailom in Ari) three years ago to develop fourstorey townhouses.

Under the Malton Private Residences brand, the Sukhumvit site is scheduled for launch on Aug 1 with seven units.

The Ari plot is slated for July 18 with eight units priced between 62 and 85 million baht.

All 15 units are ready to transfer and two have been booked. The company expects to close sales by year-end.

“It is not the right time to launch new condo projects, so we delayed two projects worth a combined 9 billion baht to launch next year from the second half this year,” Ms Petrada said.

She said the company was looking for plots to develop a low-rise housing project with units priced between 30 and 50 million baht in the inner city area as the low-rise market was robust.

Major has completed, unsold condo units in Bangkok worth a total of 8 billion baht, down from a peak of more than 10 billion as discounts and campaigns boosted sales in the first quarter.

The company posted 700 million baht from the campaign, which offered discounts of up to 30%, driving firstquarter consolidated revenue to 2 billion baht, growth of 37% year-on-year, said Ms Petrada.

Revenue from real estate was 1.82 billion baht, up 41% year-on-year, while the debt-to-equity ratio fell from 2.5 in 2019 to lower than 2 times. It expects flat revenue or slightly higher than last year, when it posted 6.28 billion baht.