In the past year, 2019, the real estate sector experienced a slowdown due to LTV measures that reduced consumer purchasing power, making project sales increasingly difficult. Additionally, the prices of houses and condos have seen less increase compared to previous years due to a high supply in the market. According to the announcement of new project launches for 2020 by 10 major real estate developers, a total of 178 projects worth 230.44 billion baht will be launched, which is a decrease in both the number and value of projects compared to the previous year, which had 189 projects worth 272.34 billion baht.

Data collection shows that almost every company has reduced their launches from 2019, with only two companies increasing their launches compared to the previous year. TerraBKK would like to take everyone through how much each company has decreased or increased their launches and what strategies and operational plans they have for conducting business in 2020.

AP Thailand

This year, AP Thailand plans to launch a total of 37 projects, consisting of 33 horizontal projects and 4 condominiums, with a total value of over 47 billion baht. This is an increase from last year, where 27 projects worth over 47.86 billion baht were launched. Both horizontal and condominium projects received good responses, especially single houses, which had an average of no less than 280 visits per week, generating over 460 million baht in sales in just two days. Despite the real estate market being in a downturn last year, AP Thailand managed to generate total revenue of over 32.45 billion baht and a net profit of 3.06 billion baht by accurately forecasting market trends and adjusting their development plans to focus on affordable horizontal projects.

This year, they will continue to focus on developing horizontal projects and for the first time will expand project development to provinces, following the MASTERPLAN FOR TOMORROW to broaden the scope of real estate project development while ensuring quality construction.

Supalai

In 2020, Supalai plans to launch 30 projects, with 25 horizontal projects and 5 condominiums, totaling 30 billion baht. This is an increase from last year, where 24 projects worth 34.38 billion baht were launched, achieving a net profit of 5.40 billion baht. Supalai sees several positive factors, as the Bank of Thailand has relaxed LTV measures and the supply in the market, especially for condos, has decreased as other developers have reduced their new project launches. Additionally, horizontal projects remain in demand, as their sales have not decreased significantly compared to condominiums.

This year, the company will continue to expand investments, leveraging its advantage of the lowest construction costs in the market, and will reduce prices in certain locations to align with the economy, focusing more on developing horizontal projects and launching new projects in provinces targeting the middle-market segment.

-- In the next episode, TerraBKK will delve deeper into AP and Supalai to explore why they are increasing their launches. Stay tuned! --

Pruksa

In 2020, Pruksa plans to launch 30 projects, consisting of 18 townhomes, 16 single houses, and 6 condominiums, with a total value of 36 billion baht, down from 36 projects worth 41.17 billion baht in 2019. The decrease in launches is due to the real estate market being in a slowdown, and the company's performance in 2019 saw a 30% decline.

The company has adjusted its strategy to cautiously pursue real estate business in all aspects to ensure growth amid a sluggish market, establishing two new task forces: one to assist customers in securing loans from financial institutions and another marketing team segmented by customer groups to drive sales this year to meet set targets.

Sansiri

After a 56% drop in pre-sales in 2019 due to LTV measures and the current economic situation, Sansiri has reduced its project launches this year from 20 projects worth 30 billion baht in 2019 to a target of 18 projects worth 24 billion baht.

The focus will be on developing smaller projects to close sales quickly and reduce the burden of land and building taxes, focusing on mass market projects for middle and lower-income customers, while halting luxury project launches and emphasizing the sale of existing stock, ongoing projects, and completed projects ready for transfer.

Land & Houses

In 2020, Land & Houses will launch a total of 16 horizontal projects, the same number as in 2019, but the project value has decreased from 30.54 billion baht to 28.44 billion baht. The company views the real estate market trend this year as stable at best, with no positive factors to support it, and a significant amount of condo supply still in the market, leading the company to slow down condo investments.

This year, Land & Houses will continue the same project launch strategy as last year, which is not to launch any condominiums (although they did launch one last year that sold out within days), and will expand their product line to include twin houses with a fully developed new brand. They will also develop projects across Bangkok and provinces and improve internal organizational efficiency, developing personnel and systems to keep expenses below 15%.

Origin

Origin plans to launch a total of 14 projects, consisting of 4 condominiums and 10 horizontal projects, with a total value of 20 billion baht, a decrease from 20 projects launched last year, which included 16 condos and 4 horizontal projects. It is evident that this year they are reducing the proportion of condo launches due to the sluggish condo market.

This year, Origin is clearly pushing into the horizontal market, having launched three new horizontal brands that focus on developing projects in key economic provinces or EEC. The company is also open to all forms of partnerships, whether with capital groups or landowners, to enhance capabilities and support each other.

SC Asset

This year, SC Asset plans to launch 13 new projects, consisting of 12 horizontal projects and 1 condominium, with a total value of 16 billion baht, the same number of projects as last year, but with a reduced proportion of condo launches due to the sluggish condo market.

This year, they will adjust their investment portfolio by focusing on developing horizontal projects and launching projects to cover every segment, increasing investment in projects priced below 10 million baht to align with the current market situation, diversify risks, and increase regular income from hotels and apartments.

Sena

This year, Sena plans to launch a total of 10 new projects, consisting of 6 condominiums and 4 horizontal projects, with a total value of 7.5 billion baht, a slight decrease from 11 projects worth 12 billion baht launched in 2019.

The company will develop projects targeting real demand, focusing on actual buyers at accessible price levels, expanding its customer base to the middle and lower segments, and will partner with allies to enter the townhome market for the first time.

LPN

In 2020, LPN plans to launch 9 new projects, consisting of 5 condominiums and 4 horizontal projects, with a total value of 13 billion baht, a decrease from 16 projects worth 20 billion baht launched last year, due to lower-than-expected sales and revenue in 2019 amid a sluggish real estate market.

LPN has strategized for 2020 to focus on efficiency, improving profitability, diversifying income to reduce risks, and managing financial liquidity. In terms of land acquisition, they will purchase land located in alleys not far from main roads and BTS stations to lower costs and develop projects at price levels that match current customer purchasing power.

Ananda

Due to the uncertain economic situation caused by various negative factors, this year Ananda plans to launch only 1 project worth 8.5 billion baht. However, if the situation improves in the second half of the year, they are prepared to launch 7 more projects.

This year, the company's business approach will prioritize its core business, which is condominiums, by offering existing stock at special prices and emphasizing Urban Living Solutions for city dwellers, while also creating a positive experience for customers at every step.

It can be seen that each company has different strategies, such as focusing on developing horizontal projects, expanding into provinces, and developing projects at more accessible prices, which are strategies that can effectively cope with the current market conditions. We will have to wait and see if there will be any positive or negative factors affecting the real estate sector further, or if any companies will announce increases or decreases in their new project launch plans. TerraBKK hopes for positive factors to help support the economy and the real estate sector to improve. We wish all businesses in the real estate sector and beyond the best in overcoming these challenges together.