Thai property developers Noble Development and SC Asset Corporation plan record launches
SET-listed developers Noble Development and SC Asset Corporation are upbeat about their business prospects and overall market sentiment this year, with both planning record property launches.
In 2022, Noble plans to launch 18 new projects worth a combined 47.7 billion baht, while SC Asset has lined up 27 new projects worth a total of 38.9 billion baht.
Noble chairman and co-chief executive Thongchai Busrapan said the property market has rebounded and will recover this year, as the pandemic could end in 2022.
“Our goal in 2022 is very challenging,” he said. “We will launch our largest number and value of new projects, covering all pricing segments. The new launches are a perfect mix of products.”
Noble plans to launch 12 projects for low-rise houses, including single detached houses, townhouses and shophouses, worth 18.8 billion baht. The company also wants to introduce six projects worth 28.9 billion baht for condos priced from 1.09 million baht to more than 60 million baht.
Noble aims to achieve 28 billion baht in presales by the end of 2022, comprising 20 billion from condos and 8 billion from low-rise houses.
Of the total presales, 10 billion baht is projected from existing inventory and 18 billion from new projects, said Mr Thongchai.
Noble plans to spend 3 billion baht this year to buy 8-10 new plots of land for development of low-rise houses for launches from 2023 onwards.
Despite the pandemic, Noble’s presales and transfers from overseas markets remained strong last year, recording 1.65 billion baht for presales and 2.9 billion for transfers in the first nine months of 2021, accounting for 30% and 50% of the total, respectively.
Frank Leung, Noble’s co-chief executive, said there were four reasons people bought an overseas property: for immigration reasons, for children to live in during their education, as a holiday home, and for investment.
“Buying accommodation for children and for immigration remains robust, but for a holiday home or as an investment dropped during the pandemic, particularly from US, UK, Canadian and Australian markets. This trend is resuming now,” said Mr Leung.
Nuttaphong Kunakornwong, chief executive of SC Asset, said the company’s planned launches this year were the largest since it diversified into housing development in 2002.
Last year it launched eight projects worth a combined 9.73 billion baht and recorded 21.8 billion in presales, growth of 31% from 2020. The key driver was low-rise houses, which posted 17.4 billion baht, up 18%.
Single detached houses priced 10 million baht and above were the best sellers with 12.3 billion baht in presales, accounting for 71% of total presales from low-rise houses, up 33% from 2020.
Condo presales last year totalled 4.43 billion baht, up 140% year-on-year. A key reason was super-luxury condos, which accounted for 83%.
SC Asset also closed sales of two luxury projects: Saladaeng One and Beatniq Sukhumvit 23.
In 2021, the company spent 10 billion baht buying new plots for residential development in 2022-25, covering all price ranges and condos under a new brand to target Gen Y buyers.
Source: https://www.bangkokpost.com/business/2249679/bullish-developers-plan-record-launches
