SET-listed housing developer Pruksa Holding has diversified into the apartment-for-rent business to secure recurring income amid a sluggish residential market, targeting a rental yield of 6-8%.
Piya Prayong, chief executive of Inno Home Construction Co (IHC), a subsidiary of Pruksa, said the company aims to increase its proportion of recurring income from rental housing under the new “iPlern” brand, with rents starting from 2,000 baht a month.
“We plan to invest about 100 million baht in the fourth quarter of this year to launch the first five iPlern projects in Rangsit, Lam Luk Ka and Bo Win — locations surrounded by factories and universities,” he said.
These projects are expected to generate about 1 million baht in annual recurring rental income, providing additional cash flow during the housing market downturn.
In the first half of 2025, Pruksa reported total revenue of 6.94 billion baht, down 30% from the same period last year, with about 74% deriving from residential sales. Net profit plunged 76% year-on-year to 90 million baht.
He said the apartment rental market in Thailand remains promising, with around 745,000 units worth around 27 billion baht, expanding about 3% annually.
The market enjoys an average occupancy rate of 90%, driven mainly by Gen Z renters, particularly students and first jobbers.
To capture this growing segment, IHC plans to redevelop Pruksa’s existing land previously allocated for townhouse and condo projects into apartment complexes in high-demand locations, such as industrial zones and university districts.
In 2026, the company expects to ramp up investment to 2 billion baht to develop 100 additional projects nationwide.
By 2029, IHC aims to operate 316 apartment projects, generating around 640 million baht in annual rental income and holding total assets worth 6.3 billion baht.
The firm plans to later divest these assets into a real estate investment trust (REIT) to fund future expansion.
“Our focus next year will be on major university areas across Thailand, such as Bangkok University and Kasetsart University,” Mr Piya said. The projects will target students (40%), factory workers (35%) and first jobbers (25%).
Rental rates will vary by location and room size, starting from 21 square metres. Apartments near universities are set with 4,000–5,000 baht a month, compared with condos at 7,000–10,000 baht.
Units near industrial zones will start from 2,000–3,000 baht, while those in city centres will command 8,000–10,000 baht a month.
Mr Piya said IHC aims to capture a lower purchasing segment than that of condos to avoid direct competition with Pruksa’s flagship Plum Condo brand, with the monthly rate of 7,000–8,000 baht.
In the longer term, IHC plans to introduce a hybrid “Plern” model combining apartments and affordable condos within the same development — though in separate buildings — with condo prices starting from 600,000 to 700,000 baht.
IHC projects an internal rate of return of 13–15% and an annual yield of 8–10% from its apartment portfolio.