Norm Boon Real Estate has ventured into the Khon Kaen property market after seeing strong demand from entrepreneurs who continue expand their businesses in the region. Until recently, Norm Boon has operated almost exclusively in the Samut Prakan province but sees an opportunity in Khon Kaen with the ASEAN economic community going into full effect.
“Khon Kaen is the center of the East-West Corridor, as China is developing a high-speed rail link from Kunming to Vientiane in Laos. The government also plans to build a double-track rail system to Khon Kaen,” Norm Boon managing director Mana Jiranapakul said at a news conference. “Khon Kaen is a hub for logistics businesses that will link the region’s east and west.”
In November, the developer introduced a detached-housing project in Khon Kaen worth THB900 million called Le Neo Bypass-Srichan. It has sold ten of a total of 199 units and was the company’s first project in the region. Mira added that Norm Boon plans to launch its next project in Khon Kaen before 2019.
There are also plans to launch a THB550 million project called Le Neo Erawan in the Samut Prakan province in April. This is in line with Norm Boon’s goal of launching an average of one to two residential projects worth THB500 million each year.
“Our revenue last year dropped 65 percent from THB580 million in 2014 because we launched only one new residential project, Le Neo Bypass-Srichan, in November,” Mira stated. “Demand to buy homes last year saw only slight growth along with the country’s economic growth of less than three percent. However, we are confident our revenue this year will achieve the target of THB300 million thanks to our backlog and the demand to buy homes in Khon Kaen.”
The company will continue to focus exclusively on the Samut Prakan and Khon Kaen provinces during the next two years. The company believes that Khon Kaen has high potential because of the amount of new manufacturing investment there while Samut Prakan is where the base of its operations are located.
