SET-listed Central Pattana (CPN) plans to unveils two additional segments of Phyll Phuket, a condominium venture near Central Phuket Floresta, offering 700 units valued at 3 billion baht next year.
This move comes as the demand for condominiums in Phuket continues to be strong, propelled by the tourism industry.
Kree Dejchai, the company’s president for residential business, noted that the property market in Phuket has seen considerable expansion since the previous year, a trend fueled by high interest from both international investors and domestic purchasers.
“We launched phase one of the condo project during the pandemic and recorded a satisfactory sales rate as the tourism sector in Phuket has experienced a strong comeback. The island is a global destination”, he stated.
The initial stage of Phyll Phuket featured three buildings, each rising to eight storeys, and a cumulative of 439 units valued at 1.5 billion baht, which were introduced in the latter part of 2021. This segment achieved a sales success rate of 70%.
The construction process is slated to conclude in the coming month, at which point the units will be handed over to the purchasers.
It is anticipated that the first phase will be completely acquired by the close of this year, generating income in the last quarter of 2023 and the early part of the following year, meeting the set objectives.
This is primarily because individuals buying in Phuket are not encountering difficulties in securing mortgages, a positive outcome of the rejuvenated tourism sector, remarked Mr. Kree.
Despite the absence of targeted marketing strategies towards international clientele or the involvement of agencies to foster engagements in foreign markets, about 15% of the total sales were credited to foreign buyers, both in person and digitally, he detailed.
A significant portion of these were Russian nationals exploring retirement residence options, succeeded by individuals from China, Mr. Kree added.
Prior to the pandemic, CPN acquired a parcel of land spanning 20 rai on Muang Naka Road, situated behind Central Phuket Floresta and in proximity to HeadStart International School in the Muang region.
Approximately six rai were utilized for the initial phase, with the residual land earmarked for the upcoming second and third phases, projected to be initiated in 2024, he disclosed.
For the remainder of this year, CPN plans to roll out four new projects, inclusive of a condo venture in Bang Na and three low-rise residential developments in the vicinities of Rama II Road, Ekkachai, and Utthayan, all being introduced under the new brand Baan Nirada.
“We aim to achieve 5 billion baht in revenue from the residential development business this year, up from 3 billion last year,” disclosed Mr Kree.
“This will account for at least 10% of the group’s total revenue, marking the first time it represents a double-digit proportion since we entered the residential sector a decade ago.”
In the preceding quarter, CPN noted a revenue of 1.02 billion baht stemming from the residential development division, contributing to 9.18% of the cumulative revenue amounting to 11.1 billion baht.
This financial influx marked an elevation from 670 million baht, or 6.5% of the cumulative revenue noted in the initial quarter.