SET-listed developer Golden Land Property Development Plc (GOLD) plans to launch 21 new housing projects worth a combined 21 billion baht next year, aiming to have 18 billion baht in presales, a growth of 28% from 2016.
Managing director Saenphin Sukhee said the property market next year will continue growing due to strong demand, particularly in the low-rise segment where there is real demand from buyers, and not speculators or investors.
"There will be positive factors, including economic growth of 3%, driven by the government's investment in megaprojects, which will also boost consumer confidence," he said.
Risk factors like household debt as high as 80% will remain, which will have an impact on mortgage approval. A possible increase in interest rates will boost debt burden and expenses.
He said medium to small developers will face greater difficulty in getting funds for property development as financial institutions are strict in releasing project loans.
"Developers need to find new ways to draw buyer interest and seek selling points to meet the changing lifestyle of consumers."
The new projects it plans to launch next year comprise a single detached house project, three duplex house sites and 17 townhouse projects in Bangkok and provinces.
Despite postponing four projects worth combined 3 billion baht due to launch in the fourth quarter of this year to next year, presales and revenue will be on target at 14.6 billion baht and 10.5 billion baht respectively, increasing from 13.5 billion baht and 8.6 billion baht in 2015.
During the first nine months, it recorded 11.6 billion baht in presales and 8.14 billion baht in revenue, of which housing development brought in 7.22 billion baht and 918 million baht from others streams.
Golden Land has a sales backlogs of 3 billion baht to realise next year and targets to have 12 billion baht in revenue in 2017, 15 billion baht in 2018, 20.5 billion baht in 2019 and 25 billion baht in 2020.
To achieve this, it will speed up the construction period of a townhouse project from three months to two months.
It also plans to spend 7.8 billion baht to buy new plots of land for development in 2018, up from 5 billion baht it invested this year.
GOLD shares closed yesterday on the Stock Exchange of Thailand at 6.40 baht, down five satang, in trade worth 4.36 million baht.