Supalai, a prominent real estate developer, remains optimistic about expanding its market share in 2025 despite a forecasted slowdown in the Thai property sector. The year is expected to witness the lowest number of new residential projects in 15 years, driven by a sluggish economy, high household debt, and a high loan rejection rate. However, Supalai’s managing director, Tritecha Tangmatitham, believes the company’s strong financial position will allow it to take advantage of limited market supply.
Tritecha noted that 2025 could see the fewest project launches in Bangkok since 2009, particularly for both condominium and low-rise housing developments. He also pointed to stricter environmental regulations, which have reduced the number of condo projects undergoing environmental impact assessments. Developers are hoping that further interest rate cuts and economic stimulus measures could provide a boost to the market.
For its part, Supalai has announced plans to launch 36 new projects in 2025, valued at a combined 46 billion baht, a decrease from last year’s record launch value of 52 billion baht. These projects include 28 low-rise developments worth 33.1 billion baht and eight condominium projects totaling 12.8 billion baht. Tritecha highlighted that the number of low-rise projects has remained stable in established markets such as Phuket, while condo developments are on the rise.
Notably, Tritecha also mentioned that condo prices have become more affordable, reverting to levels seen about five years ago, thanks to adjusted land prices and reduced construction costs. He added that the government’s “Houses for Thais” initiative is unlikely to affect developers, as it targets a different buyer segment, particularly those looking for apartments rather than condominiums.
Despite the ongoing challenges posed by high interest rates, stringent lending criteria, and weak consumer spending, Supalai’s CEO, Prateep Tangmatitham, remains optimistic. He pointed out that foreign investment and tourism continue to provide opportunities for growth. Supalai is actively pursuing investments both domestically and abroad, with over 300 projects under development.
The company’s overseas ventures include 24 projects in Australia, where it expects sales to grow by 100% year-on-year. Additionally, Supalai has allocated 8 billion baht for land acquisitions in 30 provinces across Thailand, including newer destinations like Lop Buri, Suphan Buri, and Koh Samui.
In its most recent financial results, Supalai reported a net profit of 4.2 billion baht for the first nine months of 2024, maintaining a low debt-to-equity ratio of 0.85. The company is also preparing to launch the Supalai Prima Villa Thanon Utthayan, a high-end single detached housing project in Bangkok, with 65 units priced from 17.9 million baht to 35 million baht. The project will open for sales on February 8-9, 2025.
The development and strategic moves underscore Supalai’s resilience and confidence as it navigates through a challenging economic landscape.
