The listed developer Major Development Plc (MJD) will continue its focus on luxury project development next year, with plans to launch at least two projects worth a combined 3-4 billion baht.
Chief executive Suriyon Poolvoralaks said the company had yet to consider entering the low to middle market as real demand for high-end condominiums still exists.
“There is ample room for growth in the luxury segment in the next two to three years and there are still few players targeting this market,” Mr Suriyon said.
Other developers in the high-end market include Raimon Land Plc and TCC Land.
Luxury condo supply priced from 100,000 baht per square metre is not high when compared with those priced about 70,000 baht, he said.
Details for new projects have not been disclosed, but Mr Suriyon said the company aimed to develop more projects that can generate fixed income such as hotels, community malls or office space in the long term with a target of 20-30% of total revenue generated from recurring income.
The company has not bought land plots for new projects yet. It is looking at areas in mid-Sukhumvit and the central business district such as Phloen Chit, Silom, Sathon and Soi Lang Suan.
He added condo supply is not worrying to the firm as long as real demand still dominates.
“We remain cautious, but it’s not yet time to panic,” Mr Suriyon said. “Products can still sell as long as [developers] have the right products at the right locations.”
MJD’s regular plan is to develop about two to three projects a year. However, last year MJD launched only one project due to economic and political uncertainties. This year, it has introduced three projects worth about 8 billion baht.
Among those is the company’s first mixed-use project worth 4 billion baht _ Equinox Phahol-Vibha _ which will include condominiums, retail and office spaces. The project is located on a 6.5-rai site on Vibhavadi-Rangsit Road in the Chatuchak area. Construction will start early next year and will be completed in 2013.
Mr Suriyon said the feedback for its two condominiums launched earlier this year _ M Phyathai and M Silom _ was satisfying, even though it is a new market to the company.
Starting unit sizes for M condos have been reduced to about 40 sq m to cater to this new market.
The company has a sales backlog of 4 billion baht to be realised in the next one to two years.
MJD shares closed on Friday on the SET at 3.18 baht, up two satang, in trade worth 1.7 million baht.
Source : bangkokpost.com
Related posts:
