NCH plans four projects worth B3.7bn

NCH plans four projects worth B3.7bn

SET-listed developer N.C. Housing Plc (NCH) plans to launch four new housing projects worth a combined 3.7 billion baht this year, aiming to have 2.75 billion baht in presales by year-end.

Chief executive Somchao Tanthathoedtham said the property market will fare better than last year, as the overall economy is expected to pick up and the government is actively investing in new mass transit lines that will help boost housing demand.

"Residential market growth will be mainly in the low-rise segment as the new mass transit lines expand to Bangkok's outskirts," he said. "Demand in housing units priced 5 million baht and lower remains strong as this is real demand."

NCH plans to launch single houses, duplexes and townhouses priced from 2 million baht a unit in four locations. It has land plots sized 30-40 rai each on hand in Lam Luk Ka Khlong 6 and Phutthamonthon 5. In Lam Luk Ka, the company is confident a skytrain extension from Mo Chit to Saphan Mai and Ku Kot near Lam Luk Ka Khlong 2 will help boost low-rise residential demand.

As mortgage rejections from banks remain a major problem, NCH plans to ask rejected customers to deposit a monthly amount into a bank account to display the creditworthiness required to buy a unit.

Last year, NCH had an average bank mortgage rejection rate of 30%, with the highest rate of 40% for units priced around 2 million baht.

NCH reported a net profit of 20.7 million baht on revenue of 1.43 billion in 2016, down from 125 million and 2.13 billion in 2015, respectively. It has a sales backlog of 350-400 million baht to be realised this year.

The company aims for 1.7 billion baht in revenue in 2017 and 2.75 billion in presales, up 10% from 2.4 billion last year. NCH had recurring income of 180 million baht per year from an apartment for rent with 200 rooms at a rate of 7,500 baht per month on Aroon Amarin Road.

It has 10 housing projects on hand with remaining units worth a combined of 3.5 billion baht. Of this amount, 1 billion is from units priced 10 million baht and above, and 1.9 billion from units priced below 10 million.

NCH shares closed yesterday on the SET at 1.22 baht, up one satang, in trade worth 559,480 baht.

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