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PROPERTY
KANANA KATHARANGSIPORN
The listed developer Quality Houses (QH) has shifted to the lower-priced housing segment and is now developing townhouses priced at 2.3 million baht a unit to be sold in mid-2009.
''We want to test the low-end market. The locations for our new products in this segment will be within Bangkok, not far from the city,'' said president Rutt Phanijphand, adding that this would be the first time the luxury developer had entered the lower-end segment.
The project worth around 500 million baht, being developed under the Casa City brand, would be located on a 20-rai site in Ratchapruek-Rattanathibet area, comprising 200 pre-built units on lots of 20 square wah with usable area of 150 square metres.
During the second half of the year, QH plans to launch four new projects worth a combined 3.14 billion baht. They would be in the middle-priced segment under the Casa brand, to be located in Bang Na-Suvarnabhumi, Rama II, Rarm Intra-Sukhonthasawas and Rarm Intra-Nun Chan with a total of 723 units.
It also planned to launch two new condominium projects in early 2009, comprising Q Langsuan on a 2.1-rai site in the Lang Suan area with 204 units worth 3.51 billion baht and Q House Condo Sathon on a four-rai site with 533 units worth 2.3 billion baht.
The unit prices for the Lang Suan project would start from 200,000 baht per sq m while the Sathon condo would start from 80,000 baht.
''If K-Tech, the contractor for Q Lang Suan, cannot continue construction, now at 25%, we need to increase the construction cost by not more than 10% for the new contractor,'' said Mr Rutt, referring to the financially troubled builder. The Sathon project is constructed by Teka Construction.
QH decided to freeze its plan to invest in the residential market in Ho Chi Minh City as the Vietnamese economy is struggling to avoid a bubble bursting.
''It's lucky for us that we didn't jump into it. We may get bargain prices to acquire land over there,'' he said.
QH expects to generate 12 billion baht by the end of the year, up by 20% from the year before. About 10.5 billion baht would be from housing sales and 1.5 billion baht from rentals of office buildings and serviced apartments. It expects net profit growth for 2008 to rise from 10% last year to 14% in 2008.
The company expects net profit in the second half of the year to rise by 30% year-on-year from 230 million baht in the same period last year. At the same time, it expects to see sales grow 50% year-on-year from 2.2 billion baht in the second half of 2007.
The company would raise between 2.5 billion and three billion baht through the issuance of debentures next month, to mature in three to four years. Proceeds from the debentures would be used for new land acquisition and redemption of the existing debentures worth 1.5 billion baht which would expire within the year, and two billion baht due next year.
QH shares closed yesterday on the SET at 1.92 baht, up eight satang.
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