Major Development treads gently with condo launches

Construction News
Muniq Sukhumvit 23, a condo project completed last month, has 60 units remaining unsold from a total of 201.

Major Development treads gently with condo launches

SET-listed Major Development will continue its conservative strategy, launching only one big and one small project this year because of myriad uncertainties.

Managing director Suriya Poolvoralak said launching many projects amid an economic slowdown while the market is volatile and sensitive is risky as long as a vast amount of supply remains.

“We will be cautious of launching new projects,” he said. “Our policy is to develop only one signature project sized at 2-3 billion baht per year, plus a small-sized one worth 500 million baht if possible.”

The target customer is in the luxury segment, which is resilient to the economic sluggish and has seen less impact from the virus crisis. These customers tend to spend a longer time making decisions.

After introducing discounts and promotions in the second quarter to clear a large amount of unsold condo units, Major relaunched the remaining units at a newly completed condo project, Muniq Sukhumvit 23.

Completed last month, the project has 60 units remaining unsold from a total of 201 units. They will be offered with pre-sale prices at 220,000 baht per square metre.

The company expects to have 30 units sold by year-end. A discount campaign will be considered if the target is not achieved, Mr Suriya said.

Aliwassa Pathnadabutr, managing director of property consultant CBRE Thailand, said the luxury market remains robust.

“During the outbreak, we saw rising demand in the luxury condo segment, particularly for ready-to-move-in units,” she said. “Many bought a unit in the downtown area as a second home during the lockdown and for their children.”

Mr Suriya said Major Development this year will launch just one new condo project in the second half: Miles Ratchada-Ladprao, a low-rise condo project with 300 units worth 500 million baht priced at 80,000 baht per sq m and starting at 1.9 million baht a unit.

“Office developments are interesting, but they require high equity,” he said. “In these uncertain times, developers should have partners for a joint venture.”