Upmarket developer sets sights on condo projects in prime locations
Frasers Property Home (Thailand) is entering the condo market as part of its effort to reach its revenue target of 13 billion baht this year, the developer announced on Wednesday.
Saenphin Sukhee, CEO of the company’s Residential Property Business unit, told a press conference that it is adding condominium development due to promising growth trends in the segment.
Saenphin said the company will focus on price and location. The price will range between 3 million and 5 million baht per unit to tap demand from young workers, its primary target for condo sales, he added. Each project will be located within 300 metres of a skytrain or subway station, as well as a department store or shopping mall, Saenphin said.
The first Frasers Property Home (Thailand) condominium project will be located on Ratchada Road, with sales commencing in the middle of this year. Saenphin said many more projects are planned for “great locations” in the coming years. He said they would be built in Ladprao, Ramindra, and Charansanitwong roads.
Thailand’s recovery from the pandemic, combined with the tourism industry's rapid recovery, is contributing to increased domestic consumption and demand for housing, the CEO said. Young workers prefer their own space, while foreign nationals, particularly those from China, will increase demand, Saenphin added.
He made the announcement while unveiling the company's business plan and strategy for maintaining its status as one Thailand's top real-estate developers.
"Our primary focus will remain on the premium segment group, which is [where buyers are] looking for detached houses with more luxury and privacy. The price ranges from 15 million to 150 million baht," he said.
As the purchasing power of Thailand's middle class strengthens, the condo market will expand and this is why Frasers is entering the segment, Saenphin said.
Frasers Property Home (Thailand) will launch 11 new projects with a combined value of more than 17.5 billion baht this year, he said. They comprise seven luxury detached housing projects, two townhouse projects, one semi-detached housing project, and one condominium project, he said.
The company will grow 14% this year and reach its revenue target of 13 billion baht, Saenphin said. Single detached housing will generate the most revenue (39%), followed by townhouses (32%).
Saenphin said the company is also looking at new locations outside of Bangkok. It plans to purchase more land in the east, where the government's Eastern Economic Corridor is developing rapidly.
Frasers Property Home (Thailand) is a subsidiary of Frasers Property Group, a global integrated real estate company. It owns residential, industrial, commercial, and hospitality properties in Thailand.
Frasers Property Home (Thailand) saw net profit increase 63% year on year last year to 1.47 billion baht, primarily through sales of luxury single-detached housing.