Big developer to add to land bank as presales soar

Vittakarn Chandavimol, deputy chief marketing officer, told a news conference yesterday that the company’s presales target for the first quarter of this year had to be raised to Bt5.5 billion from Bt4.7 billion after the first two months exceeded the target. Presales in the first quarter of last year were posted at Bt3.8 billion.
More than Bt300 million in presales will come from its “AP Aspiring Sense” home fair running until Sunday at CentralPlaza Ladprao. The event is showcasing three new townhouse projects worth Bt1.56 billion and 10 existing projects worth Bt1.27 billion.
The company spent Bt5.5 billion last year to acquire vacant land for developing residential projects this year.
“We reduced our investment budget to buy undeveloped land this year compared with last year as now land in central business districts is limited and we also have enough to develop residential projects this year,” he said.
This year 19 residential projects worth Bt22.5 billion will be launched, of which 11 will be for townhouses worth a combined Bt9.65 billion, two for detached houses worth Bt1.84 billion and six for condominiums worth Bt11.07 billion.
This will drive its presales to the target of Bt20 billion and revenue to the target of Bt17 billion this year. Up to 55 per cent of presales will come from low-rise residences, both detached homes and townhouses, and 45 per cent from condominiums.
“We believe that our presales and revenue will achieve the targets set for this year. Now we have an inventory of units for sale or for transfer to customers worth Bt28.21 billion, of which Bt11.4 billion will be booked as revenue this year,” he said.
Although demand for low-rise residences is generally soft compared with last year, and most property firms have changed their strategy to focus on condominiums due to the flooding of Greater Bangkok, the company believes that locations near business centres that never faced extended floods would still find customers.
Low-rise residences are still in demand especially along Ratchada and Lat Phrao roads. This is why 13 of the company’s 19 projects for this year are low-rises.
Three of the 11 new townhouse projects are located on Ratchada and Lat Phrao. Baan Klang Muang Ratchada 36 will offer 145 units, Baan Klang Muang Ladprao 87 will offer 120 units and Baan Klang Muang Ladprao 101 will offer 68 units starting at Bt3 million.
“We believe that demand for townhouses on Ratchada-Lat Phrao is strong. The absorption rate for residences priced over Bt3 million is 10-15 units per month.
We believe that our three new projects in this location will succeed in selling out this year,” Vittakarn said.
Residential demand is showing robust growth compared with the first quarter of last year and the fourth quarter, when many shoppers delayed their decision to buy a home. They are now back house-hunting, while some others are looking for a new place to live after their homes were inundated last year.