Competition in Thailand’s real estate market is higher than ever before with big players dominating. However, by being agile, smaller property developers can spot gaps in the market, do more market research and create products and services that larger companies are unable to match.
Lertmongkol Waravenuch, managing director of property developer Legend Property Co, tells local media that small developers can create new segments as well as find areas that big companies are not serving or cannot profit from.
“Many large developers are not interested in small-scale projects. Projects sized smaller than 5 rai for single house or townhouse sites or those with less than 80 units for condos are unlikely to attract interest from big firms. That’s where the small developers step in,” says Lertmongkol to the Bangkok Post.
Among the projects being built by Legend Property is The Ace on Ekkamai Soi 12. The 8-storey condo has less than 70 units and is worth THB 250 million. The ACE was launched nearly 3 years ago and is currently 80 per cent sold.
“It is not necessary for a condo project to cling to a mass transit station. Your project can be located on a soi but it needs to have a selling point. The selling point of my project is its proximity to an international school where demand comes from parents,” says Lertmongkol
Asset Wise is another smaller developer who has been able to find success by being different. Since the company was established in 2013, it has launched 9 projects worth over THB 5 billion. It has focused on building low-rise condo projects in non-central business district locations. It has launched projects in Lat Phrao, Saphan Mai, Ngam Wong Wan, Ram Intra, Min Buri and Ratchadaphisek.
“We need to analyse where strong demand is as there are many locations with too much condo supply. We should find a zone where demand and purchasing power are strong but supply is limited,” says Kromchet Viphanphong, managing director of Asset Wise Co.
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