Pruksa to build more low-price condos

Pruksa Real Estate is moving into the low-price condo market and plans to launch at least two projects in this segment worth between Bt15 billion and Bt20 billion next year, said Prasert Taedullayasatit, the company’s managing director for condominiums.

The two new projects will be close to new mass-transit routes. This follows the company’s successful sale in the second quarter of this year of Bt2.7 billion worth of condos priced at less than Bt1 million – 3,000 units – at its Plum Phahonyothin 89 development. This project has 7,700 units in total worth Bt7 billion, the largest in the company’s portfolio. 

“This is the first time we have launched condominiums with prices between Bt699,000 and Bt1 million per unit. When it earned positive feedback from the market, that challenged us to launch the same concept in other areas and to focus on this market segment,” he said. 

In the first nine months of the year, condos priced at or below Bt1 million accounted for 20 per cent of Pruksa’s condominium presales totalling Bt13 billion. For the full year, it targets presales worth between Bt14 billion and Bt15 billion, well beyond the early target Bt7 billion. 

The revenue target from condominiums has also been adjusted to between Bt7 billion and Bt8 billion, from Bt5 billion earlier, Prasert said. 

As the company expands into the low-price segment, it is working with the commercial banks to ensure its customers can get mortgages. The first bank to join this campaign is Thanachart Bank. 

“People who buy our Plum Phahonyothin 89 units and want to join this campaign have to open a deposit account with the bank and deposit an amount equal to their monthly instalment,” Pruksa executive vice president Wanna Chaisupatanakul said. They will pay instalments from the time of booking until taking delivery. 

“They will automatically get a mortgage. This helps our customer make sure they will get the loan and be able to buy a home.” 

Plum Condo Phahonyothin 89 is in the Rangsit area. Construction will start in the second half of next year and will be complete a year later.