SET-listed developer Property Perfect Plc (PF) plans to launch 17 new projects worth a combined 20 billion baht, mainly in the low-rise segment, as the property market will shrink by over 10% this year, led by the condo sector.
Chief executive Chainid Adhayanasakul said the contraction in the property market this year will be more than 10%, with condos set to take a dive.
"Condos in 2019 will drop for the first year because of a glut in some locations, the new lending curbs and a shrinking number of foreign buyers," he said.
While condos will drop by more than 10%, low-rise (single houses and townhouses) will grow by 10% because demand is real, Mr Chainid said. However, the overall property market will decline as condo market share accounts for 60% and low-rise 40%.
Property Perfect's new projects being launched this year will comprise 16 sites of single detached houses, townhouses and semi-detached houses worth a combined 18 billion baht.
The rest will be low-priced condos under the government's Baan Pracha Rat housing loan project. The project, Yuruay Condo, will occupy a 12.6-rai plot on Nawamin Soi 135 with 2,385 units worth 2.26 billion baht.
Grande Asset Hotels and Property Plc, an SET-listed firm and PF subsidiary, will launch three new projects worth a total of 18.3 billion baht, all of which are luxury projects.
They will comprise two condo projects in Bangkok with one in the Thong Lor area worth 6 billion baht and one on Charoen Nakhon Road by the Chao Phraya River worth 10 billion baht.
The two Bangkok condo sites will be joint ventures with Japanese firm Sumitomo Forestry.
The other will be a villa in Rayong worth 2.3 billion baht, to be launched in the third quarter.
Property Perfect aims to have 20.5 billion baht in presales, up from 17.21 billion baht in 2018, which was below the target of 20.5 billion baht set earlier.
Of the amount, 12 billion baht will be from single detached houses and townhouses, up from 10.22 billion baht. Seven billion baht will be from condos, up from 5.3 billion baht.
There will also be presales from an overseas condo project in Japan worth 1.5 billion baht.
Property Perfect has unsold units ready to transfer worth a combined 10 billion baht. This includes 3 billion baht from single houses and townhouses and 7 billion baht from 10 condo projects.
Revenue of the group will total 27.55 billion baht, comprising 20 billion baht from Property Perfect and 1.1 billion baht from Grande Asset.
Some 4.5 billion baht will be from seven hotels with 2,000 rooms, 1.74 billion baht from land sales to joint ventures and 215 million baht from the rental business.
PF shares closed yesterday on the Stock Exchange of Thailand at 0.77 baht, down one satang, in trade worth 4.7 million baht.