SET-listed developer Ananda Development plans to launch one project this year to focus on draining its 2,700 completed but unsold condo units worth 18 billion baht.
The company has a presales target of 20 billion baht and transfers worth 22 billion this year.
Chief executive Chanond Ruangkritya said the company will use a defensive model this year as there are both negative and positive factors, with a surfeit of uncertainties challenging the market.
"A five-year or even three-year business plan will not do, as this environment requires quickly adapting to the market," he said. "This year we will revise our plan on a monthly basis, not quarterly like last year."
One project would be the lowest number of launches since Ananda was founded in 1999.
The solo project is Ideo Phahol-Saphan Kwai, a condo project launched last year then delayed because of a low sales rate.
After changing designs, adjusting the number of units and lowering the price, the project is ready for relaunch, said Mr Chanond.
The project value will decrease to 8.5 billion baht from 10 billion, reflected in the lowered prices from 230,000 baht to 139,000 baht per square metre. The number of units has been increased from 1,119 to 1,356.
Chaiyuth Chunnahacha, chief financial officer, said the company has another seven projects worth a combined 28.6 billion baht in the pipeline. If the property market revives, they will be ready for more launches.
"Growth is key, but should be aligned with discipline," he said.
As of the end of 2019, the company had cash flow of 14.8 billion baht and a debt-to-equity ratio of 1.4 times.
By the end of 2020, Ananda aims to have 20 billion baht in presales, comprising 3.4 billion from the new project and 16.6 billion from unsold, completed condo units.
Last year, Ananda's total inventory was 95.4 billion baht. Of this amount, 31 billion baht was from sales backlog projected to be realised in 2020-22.
Unsold, completed condo units totalled around 2,700 units worth a combined 18 billion baht from 30 projects, which will become revenue once sold. Of this amount, 2,600 units are priced lower than 4 million baht a unit.
Seven condo projects are planned to be completed this year, worth a total 29.8 billion baht. Of these, 50-60% are sold on average. In other words, Ananda has an additional 12-13 billion baht as unsold, completed condo waiting for sales.
"Among the seven projects we will finish this year, one on Rama IX Road that will be completed in the third quarter had Chinese buyers making up a large percentage," said Mr Chaiyuth.
"We will extend the transfer period if they cannot travel to Thailand because of the coronavirus outbreak."
Ananda expects to transfer 22 billion baht by the end of 2020, up 10% from 20 billion in 2019. Of the 2019 transfers, 12.2 billion baht (60%) was from sales of inventory, up from 26% of transfers in 2018, worth 8.7 billion baht.