Developer Chewathai revealed that it intends to launch at least three new residential projects next year and will focusing largely on low-rise developments. Local media added that the total value of the projects is estimated to be a combined THB5.4 billion.
Managing director Boon Choon Kiat explained that Chewathai is shifting its building emphasis to single house and townhouse development as it attempts to balance its portfolio next year that is heavy on condominium projects.
“We can generate revenue from single houses or townhouses faster than from condos, which take up to 24 months for construction,” said Boon. “There is also an oversupply of condos in some locations, particularly along the Purple Line.”
There will be two low-rise projects launched by the developer in 2017. One of these will be located in the outskirts of Bangkok while the other is expected to be an inner city project. Chewathai also intends to launch a condo project next year as well as re-launch two additional projects in a bid to boost sales.
Chewathai Residence Asoke, a development it acquired from AQ Estate in June, is slated to be re-launched. At the moment, 50 percent of the units at the condo are available. Additionally, Chewathai Residence Bang Pho will be re-opened for sales next year after the launch of TCC Group’s Gateway Bangpho, a new retail development.
There are also plans for the developer to launch Chewarom Rangsit-Don Muang this year. The single house and duplex project is worth THB500 million and features 81 units. The launch of Chewathai Phetkasem 27 (imaged), a condo project, is also slated to go ahead this month.
Like many other developers in Thailand, Chewathai has struggled to find buyers for its units that qualify for mortgages. However, it seems to have found away around this by pre-approving it clients.
“At the moment, the problem is not about sales but transfers, as homebuyers have had more difficulty in getting loans from banks,” Boon noted. “But our mortgage rejection rate did drop from as high as 20 percent to lower than five percent after we went the pre-approval route.”
