Despite the property market slowdown, SET-listed developer Pruksa Holding (PSH) has pledged to retain its 10% market share with 40 billion baht in revenue projected for 2020.
Deputy chief executive Supattra Paopiamsap said the market this year will either be flat or contract based on negative factors dampening demand.
Last year the property market value in Greater Bangkok fell by 24% to 387 billion baht. The condo segment suffered the most, plunging 28% to 210 billion baht.
By unit, the market decreased by 20% to 96,893 units, with single detached houses seeing the largest drop of 24%. Total housing transfer value edged down to 409 billion baht from 411 billion baht.
"The first quarter this year will be a difficult period, particularly for the Chinese buyer market," Mrs Supattra said. "But we got a good sign they will come back in the second half with a larger number."
Pruksa had sold condo units worth about 1.8 billion baht to Chinese buyers as of the end of 2019.
As the housing market is likely to slow, Pruksa will use its remaining capacity for precast factories to supply other developers and contractors, aiming to generate 100 million baht by the end of 2020 and 500 million baht in 2022.
Precast factories have a total production capacity of 700 million baht. Of this amount, 70% was used last year. Pruksa estimates only 50% will be used this year.
The company plans to launch 30 new projects worth a combined 36 billion baht in 2020, down from 36 projects worth 41.2 billion baht last year.
Launches last year were cut four times, down from 55 projects worth 68 billion baht in an outlook from early 2019.
The company aims to have 38 billion baht in presales and 40 billion baht in revenue, up from 35.6 billion baht and 39.9 billion baht in 2019.
Presales from townhouses and single detached houses fell by 34% to 16 billion baht and 6.44 billion baht. Presales of condos declined by 22% to 13.2 billion baht.
The bank mortgage rejection rate last year rose to 12% from 5% in 2018. The bulk of rejections, 39%, were in the fourth quarter, mostly attributable to townhouses priced at less than 3 million baht a unit.
Pruksa yesterday reported a net profit of 5.36 billion baht in 2019, down 11% from 6 billion baht in 2018.
PSH shares closed yesterday on the Stock Exchange of Thailand at 15 baht, up 20 satang, in trade worth 69.7 million baht.