Kanda Property is gearing up for a strong entry into the single-family home market in 2022, preparing to launch 6 projects featuring a new English Garden style home and a new brand of townhomes, all under the new 5 Kanda Concept. The company is confident that the market will continue to grow, setting a sales target of over 3.3 billion baht.

Mr. Haskorn Boonyang, Deputy Managing Director of Kanda Property Co., Ltd., revealed the business plan for 2022, stating that the company plans to launch a total of 6 new residential projects worth approximately 4.7 billion baht. This includes projects in existing locations as well as expansions into new areas, along with the introduction of a new brand in the mid to upper mid-range townhome segment to meet diverse customer needs and broaden the revenue base.

The new projects set to launch in 2022 include:

  • iLeaf Prime, Lam Luk Ka, Klong 2 and iLeaf Prime 2, Pracha Uthit 90
  • iLeaf Proud, Rama 2, Km 14
  • iLeaf Proud, Ring Road-Rangsit, Klong 4

These will be new brand townhomes priced between 2-3 million baht, along with two new projects in new locations:

  • iLeaf Prime, Ram Inthra-Khubon
  • iLeaf Prime, Pattaya-Jomtien in Chonburi Province

In 2022, the company will have a total of 16 projects, both new and ongoing, across 11 locations in Bangkok, its suburbs, and regional areas, with a sales target of 3.3 billion baht and revenue target of 2.5 billion baht. In 2021, the company achieved sales of 3 billion baht and revenue of 2.05 billion baht, meeting its goals with only 2 new projects launched:

  • iLeaf Prime, Pracha Uthit 90
  • iLeaf Prime 2, Rama 2, Km 14

“The overall economy and real estate sector in 2022 are expected to grow compared to 2021, but the growth will be gradual. Despite the emergence of the Omicron variant of COVID-19, we believe that if the severity and death toll do not rise significantly, the pressure to implement lockdown measures will decrease. Thailand, along with many other countries, is focusing on addressing economic issues and the well-being of citizens alongside disease control, which will allow the economy to continue moving forward, even if growth is modest,”

Mr. Haskorn added that in the real estate sector, the relaxation of housing loan-to-value (LTV) measures and the extension of measures to reduce transfer and mortgage fees for homes priced below 3 million baht for another year are very important. This will positively impact the market by allowing buyers to apply for 100% financing and reducing the burden from the transfer fee reduction measures. At the same time, it will have a psychological effect as the government uses real estate as a tool to drive the economy, creating a favorable market atmosphere and instilling confidence in consumers.

Moreover, the reduction of transfer and mortgage fees will help developers delay price adjustments in response to rising construction material costs, which have increased by 5-30%. Given the current situation, developers are still prioritizing liquidity over profits, and the reduction in transfer fees will enable them to pass on benefits to consumers through promotions or by delaying price increases in line with rising costs.

“We expect the single-family home market to continue growing from 2021, partly benefiting from customers who previously lived in the city moving to suburban areas to purchase homes with more usable space, allowing them to live with larger families and enjoy more value from living arrangements as they adapt to working from home. Meanwhile, the condominium market will begin to recover but will not return to pre-2017 levels. Both single-family homes and condominiums will primarily target buyers looking for actual residences,”

Mr. Haskorn further stated that the COVID-19 pandemic over the past two years has been a challenging time for business operations, prompting the company to adapt in three main areas:

  • The first priority is managing liquidity, focusing on sales and construction to align revenue with expenses, with close coordination between construction planning and sales meetings.
  • The second is ensuring health and safety for employees and customers. Employees who have close contact with customers must take special precautions, including regular ATK testing and cleaning of show homes and sales offices. Cleaning and protective equipment are provided at all projects, and employees are encouraged to alternate working from home to reduce crowding at project sites, minimizing infection risks.
  • The third is improving the company's operational systems to align with changing circumstances both now and in the future. For instance, new home designs have been developed to accommodate the New Lifestyle that has emerged from changing consumer behaviors during the pandemic, featuring English Garden-style homes designed for diverse usage as consumers spend more time at home, creating a warm and relaxing atmosphere.

“The English Garden-style homes will have a classic feel, providing warmth and relaxation as consumers spend more time at home. This design has been implemented in the iLeaf Prime 2 project at Rama 2, Km 14, which launched in early December 2021, and will be applied to all new projects in 2022, starting with the iLeaf Prime Pattaya-Jomtien project expected to launch in February 2022,”

Additionally, the company has revised its project development concept from the previous 4 Kanda Concept to the new 5 Kanda Concept, which includes:

  • Eco Smart: Utilizing alternative energy based on the 3R principle - Reduce, Reuse, Recycle.
  • Easy Maintenance: Designing homes for easy future maintenance, using durable and environmentally friendly materials.
  • Multi-Generation: Designing homes that consider cohabitation across different age groups, catering to large family living.
  • Flood Protection: Designing projects with flood prevention systems.

The newly added fifth concept is:

  • Space Matter: Emphasizing usable space to accommodate diverse needs, such as designing a single home with four bedrooms, allowing for flexible room usage and appropriate functional design in other areas.

Mr. Haskorn concluded by stating that in the next 1-2 years, the company aims to expand into 1-2 new locations each year and launch 5-10 projects annually, targeting growth of 10-20% or revenues of approximately 2-2.5 billion baht. In the 3-5 year plan, the company aims for higher growth, expanding its business beyond its current online publishing operations and long-term leasing of existing assets, with future plans to diversify into other real estate formats, expecting revenues in the range of 3-3.5 billion baht.