
The real estate sector might record the lowest number of new residential projects launched in 15 years in 2025, attributed to a sluggish economy, high household debt and an elevated loan rejection rate, according to SET-listed developer Supalai.
"2025 is a year for those who are prepared. Supalai has a strong financial status and can use this opportunity to expand our market share amid limited supply," said Tritecha Tangmatitham, managing director of Supalai.
Mr Tritecha said this year should have the lowest number of project launches in Bangkok, both condos and low-rise houses, since 2009.
Due to stricter environmental laws, the rate of condo environmental impact assessment report applications is already at a low level, he said.
Developers are hoping for further rate cuts and economic stimulus that can lift the market, said Mr Tritecha.
Supalai plans to launch 36 projects this year worth a combined 46 billion baht, down from a record value of 52 billion baht from launches last year.
These will comprise 28 low-rise projects valued at 33.1 billion baht, and eight condo projects worth 12.8 billion baht across Bangkok and the provinces.
Mr Tritecha said the number of low-rise projects remains stable in most of the established markets, such as in Phuket, while the number of condos has doubled from 2024.
He said condo buyers today can get an affordable price of around the same level as five years ago, due to adjusted land prices and reduced construction and material costs.
Given the government's Houses for Thais project, Mr Tritecha said it should not impact developers as they target different buyer segments. He said the government-sponsored project might compete with apartments rather than condos.
Chief executive Prateep Tangmatitham said there are still opportunities for growth amid ongoing challenges posed by high interest rates, strict lending rules and weak spending power, as foreign investment and tourism remain strong.
He said the company has a continuous investment plan in Thailand and overseas, with over 300 projects under development.
Supalai has invested in 24 projects in Australia and expects sales there to increase by 100% year-on-year.
The company has allocated 8 billion baht for land purchases in areas offering potential across 30 provinces in Thailand, including new destinations, such as Lop Buri, Suphan Buri and Koh Samui.
During the first nine months of 2024, Supalai reported 4.2 billion baht in net profit, while maintaining a low debt-to-equity ratio of 0.85.
Supalai also launched Supalai Prima Villa Thanon Utthayan, a new single detached housing project comprising 65 units, priced from 17.9-35 million baht. It is expected to open for sale on Feb 8-9.