EMC revealed that it is planning to launch two new condominium projects worth a combined THB2 billion baht this year. The driving force behind the company’s decision is a desire to boost revenue from its property development business. Last year, property development made up 30 percent of the company’s revenue but hopes that number rises to 50 percent in 2016.
Kittiphun Ouiyamaphun, managing director for the real estate division of EMC, explained that EMC is focusing more on property development to help compensate for the revenue its construction business losses. EMC last year raised its registered capital by over THB4 billion when it diversified its portfolio and began investing in property development.
“In a good economy construction jobs boom, giving contractors more bargaining power in bidding on property projects,” Kittiphun noted. “But once a country plunges into an economic downturn, construction jobs slow. Our revenue, however, can be sustained if we concentrate on property development.”
The company will spend THB200-300 million on a new one-rai plot of land somewhere in Bangkok’s Sukhumvit area. EMC hopes to launch a new condo project in the second half of this year using the land it purchases. Low-rise condos no more than eight stories are EMC’s preferred type of development. This is because buildings this size can be completed within 24 months and bring with them lower risks in addition to being easier to sell.
EMC has already announced that it will launch Urbitia Thong Lo on 2nd April. The eight-story condominium will be located on a 395 sq. wah plot of land on Sukhumvit Soi 36. There will be a total of 130 units sized between 28 and 65 sqm and the entire development will cost THB930 million to build. The starting price at Urbitia Thong Lo is THB4.39 million per unit. The company is targeting to have 70 percent of the units sold by the launch date.
