Pruksa Real Estate aims to cash in on recovery in demand for residences

This will boost its total presales to Bt47 billion this year, up 20.2 per cent year on year. The company also targets total revenue of Bt47 billion, up 11.9 per cent year on year, thanks to the company’s total backlog worth Bt34.22 billion, which will be booked as total revenue until 2017, company president and chief executive officer Thongma Vijitpongpun said at press conference yesterday. 

He added that the company also has inventory from its 177 projects worth Bt78.53 billion that will generate total revenue until 2019. 

This will secure a sustainable business growth average of 20 per cent a year. 

Meanwhile, the company has set aside an investment budget of Bt8 billion to Bt10 billion to buy undeveloped land for developing residences this year. The budget will come from the company’s cash and project loans from banks, he said. 

He added that the government’s policy to invest in infrastructure projects, especially a railway system for Bangkok to its suburbs, would boost demand for residences around Bangkok. 

The government’s investment spending will also ensure economic growth this year is better than in the last year.

“We believe the property market will grow up to 10 per cent this year compared to last year, which recorded a drop of about 10 per cent,” Thongma said. 

In the first nine months of last year, Pruksa Real Estate Plc recorded total revenue of Bt30.54 billion and net profit of Bt4.77 billion. 

The company also transferred residences worth Bt43 billion to its customers in 2014.