Supalai targets 45bn baht presales as Thai property market consolidates

 

 

Developer banks on Australian expansion and financial strength to capture market share amid 20-year low in transactions.

 

 

Thai property developer Supalai has set an ambitious presales target of 45 billion baht for 2026, banking on its strong financial position and expanding Australian operations to capitalise on a consolidating domestic market.

 

The company aims to generate 30 billion baht in presales from Thailand and 15 billion baht from Australia, with total revenue recognition targeted at 37.5 billion baht, executives announced at a press conference on Tuesday.

 

Dr Prateep Tangmatitham, Supalai's president, said the current market downturn differs fundamentally from the 1997 "Tom Yum Gung" financial crisis, with interest rates providing a more stable foundation. 

 

 

 

"The helping factor is the interest rate, which is clearly different from the Tom Yum Gung crisis, like polar opposites," he said.

 

During the 1997 crisis, the base lending rate skyrocketed from 13% to 27-28%, paralysing the market. Current interest rates remain considerably lower and more manageable, Dr Prateep noted.

 

He said significant purchasing power remains untapped despite transaction volumes hitting a 20-year low. 

 

"Salaried middle-class employees, civil servants, and individuals with stable employment in large corporations" retain their purchasing power, benefiting from a low-inflation environment and intact bank savings.

 

Dr Prateep argued that revitalising the property sector could boost national GDP, noting the market downturn has erased an estimated 150 billion baht from the economy. 

 

He said stimulating the sector would trigger positive effects across domestic material suppliers, labour and associated industries.
 

 

 

 

Australian operations drive growth

Supalai director of the board Dr Prasas Tangmatitham, who oversees international operations, highlighted Australia's growing importance to the group's strategy.

 

The Australian portfolio now comprises 25 projects across four states with a total project value of 176.5 billion baht, accounting for one-third of group presales targets.

 

 

He said the Australian market benefits from favourable federal government policies, including a 5% down payment guarantee scheme and a shared equity programme allowing government co-investment of up to 40% for new homes.

 

These policies effectively de-risk home purchases for buyers whilst enhancing revenue security for developers.

 

Australian operations are projected to contribute 10.5 billion baht in recognised revenue, representing nearly 30% of the group's total.

 

 

 

 

Domestic expansion continues

Supalai managing director Tritecha Tangmatitham, responsible for domestic operations, said Supalai will launch 28 new projects in Thailand worth 35 billion baht in 2026.

 

The pipeline includes 23 low-rise projects targeting demand for single-detached houses and townhomes, plus five condominium developments in key urban areas.
 

The company's financial strength provides a competitive advantage in the consolidating market, he noted.

 

 

With a debt-to-equity ratio of approximately 47% and average financial costs of just 2.17%, Supalai can acquire land and launch projects without financing constraints that hamper competitors.

 

"We don't need to ask the bank before buying a plot," Tritecha said, describing 2026 as a "Year of Strength" for the company.
 

 

 

 

 

Diversification and technology

Beyond residential development, Supalai is diversifying into recurring revenue streams including serviced apartments, office rentals and logistics facilities.

 

The company has entered a joint venture with Hong Kong-registered AU Group to develop a 1.6 billion baht warehouse facility in Phanat Nikhom, Chonburi, structured with 51% Thai and 49% Chinese ownership.

 

The developer is also investing in digital transformation through its "Data Frontier" platform, which consolidates data across all operations and powers over 250 monitoring dashboards.

 

The company's "Supalai Sabai" mobile application saw downloads increase by more than 60% from 2024 to 2025, with transactions growing over 70%.

 

Supalai has launched Thailand's first online home loan platform allowing customers to submit applications to multiple banks simultaneously, reducing approval times for 46% of users.

 

The company operates across 30 provinces in Thailand and maintains a commitment to environmental, social and governance principles, with a stated goal of becoming a low-carbon organisation.