Developers Focus on Townhouse Rentals over Condo Sales, Generating Faster Income

Developers in Bangkok are beginning to focus more on their rental businesses than selling properties in order to maintain a steady income while waiting out the political unrest. As a result, many are now creating townhouse and detached housing projects, as these types of developments take less than eight months to complete.

While some condominiums are still in the works this year, they typically take between 18 months and three years to complete and do not fit in well with a quick-turn-around sales plan. Supalai is attempting to keep a diverse portfolio by including the minimal number of eight condominium projects, but the big income-driver for the company this year will be the 18 detached housing and townhouse projects they are working on.

Pruksa Real Estate is also focused on detached housing projects, worth a combined total of THB1.4 billion with plans to introduce the Delight Rattanathibeth-Tha and the Delight Bhuthamonthon-Salaya. Thanasiri Group is part of the trend as well, as it recently introduced THB390-million townhouse project called Thanasio Rattanathibet.

Sena Development is dedicating three out of seven projects for this year to developing housing and townhouses for short term income, but is also developing retail, hospitality and golf businesses to generate a sustainable long-term growth pattern.