Supalai has decided to extend its reach into several provinces across Thailand by launching 14 residential projects worth a total of THB9 billion in some of the country’s main tourist destinations and business areas.
Tritecha Tangmatithum, Supalai’s managing director explained that 13 projects will be low rise developments comprising of single family homes and townhouses. The company will also build one condominium outside of Bangkok. That decision was made because demand for condos in areas outside of the capital is low due to oversupply.
However, demand for low rise projects in locations outside of Bangkok as there is only a limited amount of supply currently on the market. The provinces have seen a slow growth in the property market and presales numbers in these locations are stronger than they were at the start of the decade. Presales eight years ago were just five percent.
Supalai has also seen a rise in foreign customers for projects outside of Bangkok. The developer said that five percent of Supalai Monte, a Chiang Mai condominium, was taken up by Chinese, South Koreans and Japanese buyers. Two percent of the firm’s condominiums in Bangkok are purchased by foreign customers.
One thing to note was that foreign buyers aren’t purchasing these units as an investment and actually use them. The developer also believes that more foreigners could decide to buy units in tourist destinations if the country’s political becomes more stable in the near the future.
Supalai already has developments in 10 provinces – Chiang Mai, Surat Thani, Songkhla, Phuket, Udon Thani, Khon Kaen, Chon Buri, Rayong, Ubon Ratchathani and Nakhon Ratchasima. The developer already has plans to launch a single family home project in Nakhon Si Thammarat during 2016 which would be its first in the province.
