Thai SET-listed developer Property Perfect aims to launch 15 low-rise projects

Construction News
A depiction of Lake Legend Bangna-Suvarnabhumi, a joint venture project of Property Perfect and Hongkong Land.

Thai SET-listed developer Property Perfect aims to launch 15 low-rise projects

SET-listed developer Property Perfect Plc (PF) plans to launch 15 low-rise housing projects worth a combined 26.2 billion baht, of which nearly half are joint ventures with Hongkong Land and Sumitomo.

Managing director Wongsakorn Prasitvipat said a recovery in the housing market will continue from last year, adding that there is still strong demand for low-rise houses despite a weak condo market.

“We will have no new condo projects for the fourth consecutive year,” he said. “This year will be another robust year for low-rise houses, particularly in the upper-end segment.”

Mr Wongsakorn said 40% of condo demand was from foreign buyers led by Chinese citizens, followed by citizens of Singapore and Hong Kong.

As a result, the condo market should fully resume when foreigners return, he said.

There are more negative factors, including an uptrend in interest rates, a high level of household debt, lower purchasing power, stricter lending rules and rising prices of construction materials, said Mr Wongsakorn.

Meanwhile, positive factors are the high rate of vaccination, the mild symptomatic Omicron variant, the state’s property incentives and more progress in the construction of new mass transit lines.

“Buyers of luxury houses today are younger,” he said. “Of the 15 new projects we will launch, 40% each will be in the super luxury and upper-end segments, while 20% will tap the middle-end segment.”

Among the new projects, three valued at 11.4 billion baht are joint ventures with two foreign partners. Two of the projects are with Hong Kong-based investment group Hongkong Land and one project is with the Japanese timber firm and home builder Sumitomo Forestry.

All will be super luxury single detached houses which will including lakes within the projects.

Unit prices will run from 25 to 100 million baht, with the focus on the Bang Na area, Chaeng Watthana and Ratchaphruek roads.

The firm aims to have 18 billion baht in presales by the end of 2022, up from 14.3 billion last year.

Of the total presales, 5 billion baht will be from joint ventures, up from 1.58 billion, 10.5 billion from low-rise houses, and 2.5 billion from condos.

Chief executive Sanith Adhyana- sakul said the company will focus on strengthening its financial status, with the aim of reducing the debt to equity ratio from 1.7 in 2021 to 1.2 in 2022.

It expects to have a total revenue of 28.3 billion baht, comprising 12 billion from its own residential development, 5 billion from joint ventures and 2.8 billion from hotel business under one of its units Grande Asset Hotels & Property.

The remaining 8.5 billion baht will derive from land sales and the establishment of a real estate investment trust.

“This year Grande Asset will realise revenue from a new rubber glove production business which will have a total of 16 production lines this year,” Mr Sanith said.