Bangkok-Based Developers Plans to Explore New Market Outside the Capital City
Some Bangkok-based developers have decided to explore new destinations to launching projects in pursuit of unmet demand and lower competition on the residential market.
Listed developer Property Perfect Plc (PF) will launch eight new projects in Greater Bangkok and Hua Hin worth THB11.5 billion (USD 370 million) before the end of 2013, and Nusasiri Plc. will present new projects in Pattaya and Khao Yai worth THB9.9 billion (USD 319 million).
“The fourth quarter will not be as active as usual due to the slowdown in homebuyers’ purchasing power, so we need to boost sales with projects in new locations as demand in existing locations is sluggish,” Chainid Attayansakul, chief executive of Property Perfect Plc. told the Bangkok Post.
Mr. Chainid predicts the cost of construction materials will rise by 10 percent in 2014, leading to a 10 percent increase in housing prices.
PF has set up a presales target of THB6 billion (USD 193 million) before the end of year, and has reportedly collected THB8 billion (USD 257 million) already in 2013. PF also announced plans to launch 10 new projects in 2014 worth a combined THB20 billion (USD 644 million).
Increased competition in areas close to mass transit lines and difficulties with EIA forced Nusasiri Plc. to explore different market opportunities. Its new Nusa Chivani brand will launch several projects in Pattaya and Khao Yai. The new development in Pattaya will present 570 Tuscan-style houses with a starting price of THB8 million (USD 257 million), while the project in Khao Yai will feature 105 houses starting from THB12 million (USD 386 million).