Golden Land Residence to launch six townhouse projects in second-half

This is in line with its 2015 business plan to launch eight townhouse projects worth Bt7.59 billion, two of which worth Bt995 million were launched in the first half. 

After the second-half launches, full-year presales are expected to be Bt10.6 billion, after the company recorded presales worth Bt3.5 billion in the first half, executive vice president Pawarun Udomsiri told a news conference yesterday.

The company also targets revenue of Bt7 billion this year, up 62 per cent from last year’s Bt4.3 billion.

“Although the demand to buy homes in the first half of this year grew only slightly as purchasing power dropped and the commercial banks restricted mortgage lending, our first-half presales worth Bt3.5 billion from townhouse projects exceeded our early estimation of Bt2.5 billion. This means the demand for townhouses is still strong,” he said.

He added that the main target customers for its townhouse projects were in the middle-income market, people looking for homes costing between Bt2.5 million and Bt3.5 million.

There is still demand in the middle market, while the lower-income market faces a high rejection rate for mortgages, he said.

Pawarun said the company’s customers had been facing a mortgage-rejection rate of 30-35 per cent this year, up from 20 per cent last year. As a result, the company has been conducting pre-approvals of its customers’ financial status before sales, and advises them on how to manage their finances by cutting their personal debt before apply for a mortgage.

“We are confident of reaching our presale target, as we believe demand in the second half of this year will be better than in the first half,” he said.