In recent times, there hasn't been much of a launch of horizontal projects in the area of "Chaeng Watthana - Pak Kret". One reason for this is the limited development space in the area, leading most real estate developers to focus on locations along the new subway lines, launching high-rise condominiums to accommodate the influx of the Pink Line, from Khae Rai to Min Buri. This route connects to five other lines (Red Line, Green Line, Gray Line, Purple Line, and Orange Line), revitalizing the overall residential market in the Chaeng Watthana - Pak Kret zone.

Currently, horizontal projects, especially townhomes in this area, account for about 20-25% of all residential projects. However, due to the city's continuous expansion, the demand for housing, particularly townhomes, has increased. If located near the city with convenient access by car, public transport, and the subway, some projects have prices that exceed the budget of Gen Y buyers, who, despite their desire to purchase, must also consider their financial limits.

The gap in real estate development has prompted Supalai to accelerate its expansion into horizontal markets across various segments to better meet customer needs. Mr. Traitecha Tangmattatham, Managing Director of Supalai Public Company Limited stated that the company is developing horizontal projects divided into three tiers: Tier 1, with prices ranging from 2-6 million baht, includes brands like bliss, Primo, bella, and PRIDE; Tier 2, with prices from 3-8 million baht, includes brands like Ville, GARDENVILLE, and PARK Ville; and Tier 3, with prices from 7-30 million baht, includes brands like ESSENC and PRIMA VILLA.

Most Tier 2 projects are single-family homes, while Tier 3 projects starting at 7 million baht are three-story single-family homes. Therefore, the company sees a gap in developing townhome projects priced between 3-5 million baht in high-potential locations near the city, catering to the lifestyle of Gen Y individuals who still wish to purchase townhomes. This has led to the creation of “URBANA”, a new three-story townhome brand with a fresh concept under the idea of “Living Urban Life”, transforming traditional living spaces into new challenges that can be designed as multifunctional areas according to lifestyle.

 

 

The first project is located at “URBANA Chaeng Watthana - Pak Kret”, covering 9 rai with a project value of 460 million baht. This area is seen as another high-potential location where prices are expected to continue rising. Over the past ten years, prices have increased from around 20,000 baht/sq.wa to the current 30,000 baht/sq.wa. The area has limited space for further development, making it difficult to consolidate large plots of land. Therefore, launching a townhome project in this area, with new house designs and innovations such as Home Automation and energy-efficient materials, at a price range of 3-5 million baht, should effectively meet the demand from Gen Y individuals aged 28-38 who are looking for living spaces to expand their families and businesses.

 

It is believed that the new townhome brand “URBANA” will receive a positive response from customers, with plans to launch another “URBANA” project in the eastern region by mid-year.

 

“We must acknowledge that in the first 1-2 months of this year, Supalai's sales in the horizontal segment have remained close to last year's levels. However, due to the overall economic situation and the COVID-19 outbreak, the number of customers walking in to view projects has decreased by over 15%. Nevertheless, we are confident that we will not adjust our business plans this year, as the horizontal segment has been less affected than the condominium segment. We still plan to launch 30 projects, with 25 in the horizontal segment and 5 in the condominium segment, totaling over 30 billion baht, aiming for pre-sales of 26 billion baht, with 65% from horizontal and 35% from condominiums.

Identifying gaps in the real estate business during a crisis quickly and being ready to develop and expand the customer base in areas with ongoing demand will be another way to keep the business moving forward in this era, alongside relying on interest rate policies and various government assistance measures.

 

Thank you: Supalai Public Company Limited