Jitradee Poolvoralaks (left), executive vice-president for Major Development, and Mr Suriyon stand in front of one of their projects.

MJ One Group, a property subsidiary of SET-listed developer Major Development Plc (MJD), plans to launch four luxury projects worth more than 5 billion baht as the segment has strong purchasing power amid a sluggish economy.

Chief executive Suriyon Poolvoralaks said the company will be more cautious in property development as the market is unfavourable.

"The local and global economies are both sluggish, which slows the property market," he said. "We will tap the luxury to super-luxury market as the segment is niche with limited supply."

The new projects will comprise two condo projects worth 2 billion baht each and two low-rise projects including townhouses and single detached houses. The low-rise projects will have construction completed before launching in June 2019.

The single detached house project will be Mavista Prestige Village Krungthep Kreetha worth 1.4 billion baht. It will be located on a 12-rai plot on Krungthep Kreetha Road with 14 three-storey units priced 90-170 million baht.

"We will complete construction of all units before launching sales as customers in this segment prefer touching and seeing an actual unit before making a decision," said Mr Suriyon, also MJD chief executive.

He said half of the investment spent on construction will be from debentures, with the rest from project finance.

Target buyers include business owners and wealthy big families that want to expand or relocate from living in a condo in the inner city.

"Krungthep Kreetha is not a new location, but with new transport routes, the location has higher potential and there are a lot of facilities nearby like an 18-hole golf course, international schools and a hospital," he said.

In the second half, MJ One plans to launch Mieler Sukhumvit 40 worth 600 million baht, a luxury low-rise condo on Sukhumvit Soi 40 with only 24 units priced 20 million baht each.

MJ One Group aims to have 1 billion baht in presales and revenue by the end of 2019, representing 25% of MJD's total revenue.

Mr Suriyon said MJD aims to have over 5 billion baht in revenue by year-end. At the end of 2018, it had a sales backlog of 15 billion baht, of which 20-35% will be realised within this year, he said.

MJD shares closed on Monday on the SET at 3.30 baht, up six satang, in trade worth 140,580 baht.