Supalai Plc plans to launch at least 28 property projects worth 33 billion baht in the next 18 months, says executive director Tritecha Tangmatitham.
The company has 26 plots of land and is in talks with owners of two more plots for future development. Half of the total would accommodate 13 new developments, mainly low-rise units, worth around 13 billion baht over the rest of this year. Another 15 projects worth a combined 20 billion baht would be launched next year.
Supalai has already used up its annual budget of 3.5 billion to acquire land this year. It plans to invest another 1 billion in more plots.
“We are being more aggressive in acquiring new plots of land this year because sales were better than our expectations and we have a good chance to compete in buying land at a time when other small and medium-sized developers are slowing their investment,” Mr Tritecha said.
In the first seven months, Supalai introduced only two projects worth a combined 4 billion baht due to the political crisis. During the same period, it recorded 8.1 billion baht in presales, up 20% from the same period last year. Of the total sales, 55% came from condominiums and the rest from single houses and townhouses.
With more new projects planned for the rest of the year, it expects presales to exceed its 15-billion-baht target.
During the first half, it transferred residential units worth 5 billion baht to buyers and expects full-year transfers to exceed the target of 11 billion baht because its current sales backlog of 18.7 billion is higher than its target. Of the backlog, at least 5.4 billion baht would be realised by the end of the year.
Mr Tritecha said the expiry of tax incentives in June pushed down Supalai’s net profit margin in the second quarter to 22% from 26% while its gross margin in the first half was 43%.
Managing director Atip Bhijanonda said the 9% rise in the cost of development in the second half would reflect the expiry of of tax incentives, from which developers also benefited, to a total of 4%, with the remaining 5% from higher material costs. Contractors have increased their charges by 3-5%, he said, but any rise in housing prices would depend on competition and location.
Mr Tritecha said home demand would also be affected by higher interest rates.
The company plans to launch the BoI-supported City Home Srinakarin condominium with 1,320 units sized at 30-32 square metres and priced from 30,500 baht per sq m next weekend.