CPN plans 3 billion baht expansion of Phuket condos

Central Pattana (CPN), a company listed on the Stock Exchange of Thailand (SET), announced its intentions to introduce two additional phases to its condominium project, Phyll Phuket, near Central Phuket Floresta. The Phuket condos expansion, which includes nearly 700 units worth a total of 3 billion baht, is set to launch in the forthcoming year. This decision is motivated by the consistent demand for condos in Phuket, primarily fuelled by the thriving tourism sector.

Kree Dejchai, the President of Residential Business at CPN, revealed that the Phuket property market has demonstrated significant growth since the previous year. This upward trend is attributed to the robust demand from both foreign investors and local buyers.

“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.”

Phyll Phuket’s first phase consisted of three eight-storey towers, with a cumulative total of 439 units, worth 1.5 billion baht. This phase was launched in the latter part of 2021 and has recorded a sales rate of 70%. Its construction is set to conclude in the next month, after which the units will be transferred to the buyers.

Kree predicts that by the end of this year, phase one will be sold out. The revenue from this phase is expected to be realised in the fourth quarter of this year and the first quarter of the subsequent year, owing to buyers in Phuket facing no issues in securing mortgages following the revival of tourism.

Surprisingly, despite not actively marketing to foreign buyers or assigning agencies for foreign markets, 15% of sales have originated from foreigners, both onsite and online. The majority of these buyers are Russians looking for retirement homes, followed by the Chinese.

Prior to the pandemic, CPN acquired a 20-rai plot on Mueang Naka Road, located behind Central Phuket Floresta and in proximity to HeadStart International School in Mueang district. Approximately six rai of this land has been utilised for the first phase, with the remaining portion earmarked for phases two and three, due to be launched next year, reported Bangkok Post.

For the rest of this year, CPN has plans to launch four new developments for Phuket condos. These include a condo project in Bang Na and three low-rise housing projects near Rama II Road, Ekkachai, and Utthayan areas. These projects will be undertaken under the new brand, Baan Nirada, said Kree.

“We aim to achieve 5 billion baht in revenue from the residential development business this year, up from 3 billion last year. 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.”

CPN recorded 1.02 billion baht in revenue from the residential development business in the second quarter, contributing to 9.18% of the total revenue worth 11.1 billion baht. This indicates an increase from 670 million baht, or 6.5% of total revenue, in the first quarter.

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