Sunday, September 20, 2020

Supalai, Areeya to focus on developing low-rise residential projects in 2016

Nov 25. 2015
Facebook Twitter

By THE NATION

SOME PROPERTY firms will focus on detached-housing and townhouse projects next year amid signs of an oversupply of condominiums.

Yesterday, two companies announced their business plans concentrating on low-rise residences in 2016.

Supalai plans to launch 20 such projects worth up to Bt20 billion next year.

In the first nine months of this year, the company recorded Bt8 billion in presales of detached houses and townhouses and targets Bt10 billion for the full year.

Supalai launched 19 detached-housing and townhouse projects worth Bt18.16 billion this year, deputy managing director Tritecha Thangmatitham told a news conference yesterday.

Areeya Property, meanwhile, has set aside an investment budget of Bt2 billion to buy land for detached-housing and townhouse developments next year after seeing strong demand in this market segment, the company’s chairman, chief executive officer and managing director Wisit Laohapoonrungsee said at a press conference yesterday.

Tritecha said demand for detached houses and townhouses enjoyed stable growth of 5-10 per cent a year, as the demand in this market segment is from those who actually want to live in these homes, as opposed to speculators or investors in the condominium segment.

“The [mortgage] rejection rate for detached houses and townhouses is also lower than for condominium projects, and as a result we will focus on this market segment next year,” he said.

Wisit said Areeya Property would focus on low-rise homes in 2016 and 2017 because demand in this market was stable.

The company targets revenue of Bt10 billion in 2017 from both condominiums and low-rise residences.

To ensure that it meets its revenue target for 2017, Areeya Property has budgeted an average of Bt2 billion a year to buy undeveloped land.

Next year, this land-investment money will come from the company’s internal cash flow, and it plans to issue two- or three-year debentures worth Bt2 billion in 2016, he said.

Areeya targets revenue of Bt5 billion this year after reporting revenue of Bt4.08 billion and net profit of Bt198.79 million in the first nine months, up 151 and 641 per cent respectively from the same period last year.

 

Tags:
Facebook Twitter
More in Property
Editor’s Picks
wmg-logo
Top News
wmg-logo