Pruksa raising home prices by 5% due to higher land costs

The company has also raised its revenue target from Bt52 billion to Bt53 billion thanks to the government’s temporary stimulus measures for the real-estate market, he said. The stimulus expired last month.
He said land prices had risen by 20-30 per cent since last year. This extra cost has been mitigated somewhat as construction-material prices have not gone up, but Pruksa still sees the need to raise its residential prices.
Although the economy is not expected to grow much this year, the company believes that demand for homes is still strong enough to target 8-per-cent growth in the value of the Greater Bangkok residential market to Bt383.18 billion, Piya said.
Most of the demand is for homes priced at no more than Bt7 million.
Pruksa co-chief executive officer Lersuk Chuladesa said the company posted revenue of Bt10.28 billion and net profit of Bt1.26 billion in the first quarter, up 23.8 and 42.1 per cent respectively from the same period last year.
He attributed the increase partly to the government stimulus.
With an aggressive revenue target, the company plans to launch 50 to 55 residential projects worth up to Bt40 billion during the rest of this year after launching 10 worth Bt7.41 billion in the first quarter. Presales should be Bt51 billion this year, he said.
Meanwhile, the company is confident its revenue will reach the new target of Bt53 billion, as it has a backlog of homes already sold and awaiting transfer to its customers worth Bt25.46 billion, and up to Bt14.38 billion worth will be transferred this year, Lersuk said.
Golden Land Property Development also plans to launch 12 residential projects worth Bt16 billion during the rest of this year and targets 2016 revenue of Bt10 billion, company president Thanapol Sirithanachai said in a press release yesterday.
The company reported revenue of Bt2.4 billion and net profit of Bt198.41 million in the first quarter, up 46 and 56.4 per cent respectively from the same period of last year.
“Out financial results show strong growth thanks to the government’s measure to boost the demand in the market in the first four months of this year,” he said.
Most listed property firms reported strong growth in the first quarter thanks to the government measure that expired last month.
Supalai announced revenue of Bt6.27 billion and net profit of Bt1.4 billion, up 24.6 and 41.4 per cent respectively from the first quarter of last year.
Property Perfect recorded revenue of Bt4.36 billion and net profit of Bt384.94 million, up 75 and 283 per cent.
LPN Development’s revenue in the quarter was Bt4.42 billion and net profit Bt704.22 million, up 102 and 141 per cent.
Quality Houses recorded revenue of Bt5.25 billion and net profit of Bt744.41 million, increases of 32 and 33 per cent respectively from the first quarter of 2015.
Ananda Development reported revenue of Bt2.59 billion and net profit of Bt148 million, increases of 86 and 102 per cent.