Developer Singha Estate has suspended the construction of new condominiums and will focus only on low-rise buildings in the expensive segment. Five new projects totaling 10 billion baht are planned for this year. The new projects will have houses priced from 10 to 200 million baht.
In the fourth quarter of last year, the firm recorded revenue of 830 million baht from the sale of seven properties in the luxury village of Siraninn Residences. Of the 28 houses, 26 have already been sold.
All new projects this year will be implemented in Greater Bangkok.
The condominium market has slowed down over the past two years, and most of the objects were apartments at a price of 3 million baht or lower, due to favorable conditions with the support of the state. Support measures have not been extended since the beginning of 2023.
A particular demand for condominiums was observed in places located near universities or workplaces. Clients bought real estate for their own use and as investors who would like to rent out their real estate.
Taking into account the cancellation of support measures, the increase in mortgage interest, as well as the rise in real estate prices this year, the condominium market is unlikely to be better than last year.
The developer will not make apartments this year, the stock of unsold apartments is still large.
This year, income from low-rise buildings is expected to increase to 70% of total income from housing compared to 50% previously.
In the first nine months of 2022, the revenue of Singha Estate amounted to about 8.5 billion baht, which is 65% more than in the same period of 2021.
The growth was driven by revenue from the hotel business in the amount of 6.1 billion baht compared to 2.77-billion-baht last year. Income from residential development fell to 1.22 billion baht from 1.57 billion.
Nevertheless, this year the firm expects revenue growth in the field of housing construction.