Supalai upbeat on B35bn target

Construction News
An artist’s rendition of Supalai Icon Sathorn, a mixed-use project worth 20 billion baht the company plans to launch next month.

Supalai upbeat on B35bn target

12 April 2019

SET-listed developer Supalai Plc remains confident of securing presales of 35 billion baht this year as targeted despite a dip in the first quarter.

Managing director Tritecha Tangmatitham said the company’s plan to launch a high-value condo project in May will help boost presales in the remaining months this year.

In the first quarter, Supalai recorded 6.28 billion baht in presales, down 27.1% from 8.61 billion the same period last year.

The biggest drop was from condos in Greater Bangkok, with a year-on-year fall of 52%.

“Presales in the first quarter last year were phenomenal, driven by sales of condo units at Supalai Oriental Sukhumvit 39, which we sold mainly to foreign buyers,” he said.

The company reported single house and townhouse presales in Greater Bangkok also dropped by 31%, while presales of both condos and single houses and townhouses in the provinces grew by 32% and 23%, respectively.

Mr Tritecha said presales in the second quarter may slow because of long holidays in April and the coronation ceremony in May. A political vacuum may have a slight impact on homebuyer sentiment, he said.

“This year, despite a number of challenges, we are confident we will outperform the market,” said Mr Tritecha. “If the economy is better than expected, our growth will exceed the target.”

Supalai is confident it will have 5% growth in presales to 35 billion baht by year-end. Of the amount, 47% is projected from condos in Greater Bangkok, with 26% and 24% from single houses and townhouses in Greater Bangkok and the provinces, respectively.

He said single house and townhouse projects it plans to launch this year will shift to the upper-end segment, including a three-storey single house priced 8-16 million baht and a unit on a 100-square-wah plot priced 12-15 million baht. These segments had good sales last year.

On May 25, the company scheduled the launch of Supalai Icon Sathorn, a 56-storey condo project on a seven-rai plot on Sathon Road where the Australian embassy was formerly located. It spent 4.6 billion baht to buy the plot.

Units will range from one to four bedrooms sized 42-350 square metres with penthouses sized 970 sq m. Unit prices will run from 8.2 to 280 million baht.

Chief executive Prateep Tangmatitham said there will be an A-grade office tower on this plot with a construction area of 20,000 sq m and retail space. Construction is estimated to take four years to complete.

Supalai expects to have 28 billion baht in revenue in 2019, a rise of 8% from 25.8 billion last year. As of the end of December 2018, it had a sales backlog of 42.5 billion baht. Of the amount, 13.4 billion baht will be realised this year, said Mr Prateep.

SPALI shares closed on Thursday on the Stock Exchange of Thailand at 20.10 baht, up 10 satang, in trade worth 50.6 million baht.