Quality Houses heads downmarket for 2012, Developer aims to boost presales growth by 30%
Quality Houses' business strategy for 2012 will focus on homes priced lower than Bt3 million in a bid to boost presales growth by at least 30 per cent, after its presales and revenue this year both missed the growth target of 20 per cent.
The company plans to launch 23 new residential projects worth a total of Bt21.35 billion in the new year, of which 13 will be detached-house projects, six townhouse projects, and the rest condominiums.
Meanwhile, it has budgeted Bt3 billion to buy undeveloped land.
Under its business plan, Quality Houses will issue debentures worth Bt5 billion during the year, Bt3 billion of which will be in the first half.
The company’s director and senior executive vice president, Suwanna Buddhaprasart, told a news conference that presales and revenue this year were lower than its earlier estimation because the flood hit its 12 current residential projects. However, both figures were nearly the same as last year’s, she said.
Meanwhile, Quality Houses will refocus its 2012 business plan from luxury homes priced over Bt10 million to residences costing less than Bt3 million.
According to its new strategy, it has established a subsidiary, Gusto Village Co, with registered capital of Bt1 billion. Gusto Village will develop detached houses and townhouses priced lower than Bt3 million. It will launch six projects worth a total of Bt3.05 billion in 2012, part of the total of 23 launches planned by Quality Houses.
"Gusto Village Co Ltd is fighting brand to develop residential to complete with property market leader in the market now," Pawarun Udomsiri, Gusto Village Co Ltd’s managing director said.
Meanwhile, the company will expand upcountry, including Cha-am, Rayong, and south of Pattaya. These developments will be under the Casa Ville brand, a subsidiary that concentrates on homes priced lower than Bt10 million.
Another subsidiary, The Confidence Co, will develop three of the 23 projects.
Currently, Quality Houses has three subsidiaries that develop projects offering units costing less than Bt10 million. These are The Confidence Co, which develops units costing less than Bt5 million under The Trust brand; Casa Ville Co, whose homes under the Casa Ville, Casa Grand, Casa City and Casa Legend brands are priced below Bt10 million; and Gusto Village, which develops homes priced price lower than Bt2.5 million and focuses on low-rise residences such as detached houses and townhouses.
Meanwhile, Quality Houses continues to develop luxury homes priced higher than Bt10 million.
Suwanna said the company targeted 60 per cent of its 2012 revenue to come from the medium- and lower-priced residential market, that is, less than Bt6 million per unit. The other 40 per cent would come from the high-end market. Currently, about 55 per cent comes from the medium-to-low-price market.
Meanwhile, its serviced-apartment business now generates about 8 per cent of the company’s revenue. Its serviced apartments recorded an occupancy rate averaging 80 per cent this year, Suwanna said.
That rate dropped to 60 per cent in October and November, but has recovered as foreigners have returned to the market, she said.
