THURSDAY, March 28, 2024
nationthailand

Origin Property expects stable growth through local buyers

Origin Property expects stable growth through local buyers

LISTED property firm Origin Property Plc has budgeted Bt6 billion to purchase land for residential development in Bangkok and the provinces in this year and next.

“Our investment budget will come from the both our initial cash and [results of our study into issuing] a debenture, but we cannot disclose how much our debenture issue will be this year,” the company’s CEO, Peerapong Jaroon-ek, said yesterday.
With the decision to invest in the land purchase behind them, the company plans to launch 15 new residential projects worth Bt26 billion this year under three brands – Park Origin, The Origin, and Britania – as well as open two hotels at year’s end.
The Park Origin brand will offer condominiums at a price range of Bt4 to Bt6 million per unit. Meanwhile, Origin condominiums will be priced between Bt1.6 and Bt2.4 million per unit. Britania brand will offer low-rise residences including townhomes, twin houses and single-detached houses spanning Bt2.5 to Bt6 million per unit.
Three of the 15 projects will be under Park Origin brand, for a combined worth of Bt9 billion, and located in three areas – Ratchathewi, Rama 4 and new CBD.
Seven of the eight projects under Origin brand will be launched in Bangkok, in Sukhumvit, Ratchada, Lat Phrao, Ramkamhaeng, and Ramindra, and worth a combined Bt9 billion. The eighth project, worth Bt2 billion, is to be located in Rayong province. The final four projects, under brand Britania, will be worth Bt6 billion, Peerapong said.
Combined with current projects, this year’s launches will boost presales to Bt28 billion, up 1.8 per cent from last year’s presales at Bt27.5 billion. Last year exceeded early estimates of Bt24 billion in presales by 14.58 per cent. The combined projects will boost total revenues to Bt19 billion by year-end, exceeding last year’s results, he said.
In the first nine months of last year, the company recorded Bt10.69 billion in total revenue and net profit of Bt2.39 billion, despite early estimates of achieving total revenue of Bt16 billion last year.
“We have continued confidence that the property market for this year will continue growth compared to last year. Although demand from foreign buyers will drop, the real demand in the domestic market is still growing, Peerapong said.
He added that the Bank of Thailand’s measure to tighten criteria for loans for second and third homes would not affect its business, because these are “real demand” from buyers. Recurring income for the company will be generated through the launch of two hotels to open this year, noted Kamonwan Wipulakorn, chief executive officer of One Origin Co Ltd, the recurring business arm under the Origin umbrella.
Five previously announced hotels are being built at a fast pace, most notably Staybridge Suites Bangkok, Thonglor and Holiday Inn & Suites, Sriracha. Both hotels are expected to commence operations in the fourth quarter, and begin generating recurring income, he said.
 Meanwhile, the company plans to launch two new 2019 projects – a hotel in Bangkok and a mixed-use project in Rayong – worth about Bt2 billion. The latter will enjoy high demand from the development of U-Tapao Airport and Smart Park in Map Ta Phut, which will be a new centre of the Eastern Economic Corridor, said Kamonwan.
 

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