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Major positions new condos for recovery

More Thai buyers seeking investments

Expecting a clearer property market recovery next year, Major Development Plc (MJD) is planning two new condominiums worth one billion baht each in early 2010.

The new Collezio condominium is among the properties featured at Major Development’s annual marketing event, which is being held at Siam Paragon until tomorrow. It is offering 200 to 300 units priced from 3 million to 60 million baht at six projects, with a target of 500 million baht in sales.

President Suriyon Poolvoralaks said the outlook for the second half of this year remained uncertain despite good signs in market sentiment since the second quarter. The risks that concern the company include the world economy and Thai politics.

"External factors are uncontrollable," he said. "We don't even have a presales target for this year. It depends on the situation. But we believe it will be better next year so we will start launching new projects."

In the first and second quarters, MJD recorded 100 million and 380 million baht in sales respectively, down from 500-600 million baht a quarter last year.

"Foreign demand for high-end property dropped as they were very careful of spending but they were replaced by Thai buyers seeking assets for investment," he added.

Mr Suriyon said the company had 800 million baht in revenue in the first half and expected to record two billion baht by the end of the year. As of the end of the second quarter, the company had a sales backlog of 4.5 billion baht.

It plans to transfer units at its Water Mark condominium on Charoen Nakorn Road, Mikonos in Hua Hin and Wind Sukhumvit 23 worth a combined 5.3 billion baht in the third quarter of this year and Auguston on Sukhumvit 22 by the end of the year.

Mr Suriyon said the two new projects would be located on plots of about one rai each in the Phaya Thai area near the Victory Monument BTS station, and on Surawong Road, with unit prices of at least 100,000 baht a square metre.

The company owns another plot in Sanam Bin Nam where it plans a condominium but not until work starts on the Purple Line mass-transit system.

The company froze launches in the first half because of poor sentiment. However, it launched sales of the Collezio worth 550 million baht last week and recorded 40% in sales.

The eight-storey building on a one-rai site on Soi Pipat between Sathon and Silom roads, has 94 units sized between 40 and 120 sq m and priced at 130,000 baht per sq m on average.

MJD shares closed on Friday on the SET at 2.42 baht, down two satang.