SET-listed developer Pruksa Holding Plc (PSH) wants to increase the number of off-plan houses and high-rise condo projects in its portfolio to extend the down payment period and prepare customers for new loan-to-value (LTV) limits.
Supattra Paopiamsap, deputy group chief executive for Pruksa, said the Bank of Thailand's new LTV requirements will have a slight impact on the company because most customers are first-time buyers representing real demand.
"Some 20% of our customers are those seeking a second mortgage, while units priced at 10 million baht and above account for only 4%," Mrs Supattra said.
Pruksa is considering revising its portfolio to focus on off-plan houses, which will give customers more time to make a down payment, potentially helping them deal with the new LTV limits set to take effect on April 1.
The company will also develop more high-rise condos than low-rise because high-rise buildings take a longer construction period. This strategy will give buyers more time to make a higher down payment if required by the Bank of Thailand.
"We have used the pre-built house and low-rise condo development strategy since last year to realise revenue faster," Mrs Supattra said. "We will shift to off-plan houses and high-rise condos."
She said the company will spend 200 million baht to run a campaign to sell condos, single house and townhouse units worth a combined 13 billion baht.
The aim is for sales of 4 billion baht from the campaign.
In the fourth quarter, Pruksa plans to launch 15 new projects worth a combined 11.4 billion baht, comprising 12 single-house and townhouse sites and three condo projects.
This year the number of new residential projects launched will total 55 sites worth a combined 49.9 billion baht, lower than the earlier plan for 68 projects worth a combined 61.4 billion baht set in mid-year and 77 projects worth a combined 67.8 billion baht earlier in the year.
Pruksa is maintaining revenue and presale targets of 47 billion and 53.7 billion baht, respectively.
Yesterday Pruksa reported a net profit of 4 billion baht on revenue of 30.48 billion in the first nine months, a rise of 8.1% and a drop of 0.4% from the same period last year.
Presales grew by 3% to 39.2 billion baht from 38 billion baht, maintaining Pruksa's position as the market leader in Greater Bangkok with a share of 10% of total market value and 21% of the townhouse market.
PSH shares closed yesterday on the Stock Exchange of Thailand at 20 baht, up 10 satang, in trade worth 21.5 million baht.