Supalai sees no downsides
Developer to launch 35 projects this year
SET-listed developer Supalai Plc is bullish on sentiment this year, scheduled to launch 35 projects worth a combined 40 billion baht.
It wants to fetch 33 billion baht in presales by the end of the year, up more than 20% from 2017.
Supalai launched 20 projects last year, worth a total 31.2 billion baht. The company remains confident about economic and property market growth.
“We don’t see any negative factors this year,” said chief executive Prateep Tangmatitham. “The economy continues to improve, driven by the tourism sector and exports, and the general election is scheduled for later this year.”
He said interest rates remain low, boosting consumer confidence, while government spending on infrastructure projects will stimulate private investment and the overall economy.
“We will sustain growth of 15-20% per year,” said Mr Prateep.
Supalai’s new projects this year comprise condominiums, single houses, townhouses and duplex houses in Greater Bangkok and the provinces. It also plans to launch serviced apartments for the first time at Sathon Road.
The serviced apartments will be part of Supalai Icon, a new mixed-use project worth 18-20 billion baht that will comprise Grade A office spaces, retail, hotel and condos for sale.
With a construction area of over 100,000 square metres, Supalai Icon will be located on a nearly-eight-rai plot where the Australian Embassy was formerly located. The company last year bid 1.45 million baht per square wah to acquire it.
“We talked with several partners who are experts in retail and hospitality. They were interested in joining the project,” he said. “Construction will start within the first half of 2019 and will take at least 36 months to complete.”
Mr Prateep said the company is considering investing in the housing development business in Southeast Asia with the launch of at least one low-rise housing project this year. Attractive destinations include Cambodia, Indonesia, and the Philippines.
In Thailand, the company will launch five condominium projects in Greater Bangkok worth a combined 18 billion baht, 17 single house and townhouse projects in Greater Bangkok worth a total of 13 billion baht and 13 single house and townhouse projects worth 9 billion baht in other provinces.
Supalai, the largest Bangkok-based developer in the provincial market, will enter new destinations this year, including Chiang Rai, Prachuap Khiri Khan, Lamphun and Ayutthaya, adding to 20 provinces in which it already has developments.
Last year presales from provincial markets accounted for 24% of the total and Supalai expects this proportion will rise to 29% this year. The company aims to have 33 billion baht in presales, up 27% from 30.8 billion baht last year, which was 14% above their target.
“Our 2017 result outperformed the target as the property market and the economy last year was good and consumer confidence was strong,” said managing director Tritecha Tangmatitham.
SPALI shares closed yesterday on the SET 23.70 baht, unchanged, in trade worth 207 million baht.