Pruksa confident of stimulus boost

Pruksa confident of stimulus boost

Developer plans to launch 60-65 projects this year

SET-listed developer Pruksa Real Estate Plc (PS) expects to gain more than 9 billion baht in presales in the first quarter this year, fuelled by two government stimulus measures.

Chief operating officer Lersuk Chuladesa said property tax incentives and the low-priced housing scheme had helped boost housing demand in the middle-to-lower-priced segment, where Pruksa is strong and controls a large market share.

The company reported 5.36 billion baht in presales in the first two months of the year.

"We are confident in housing demand in the middle-to-lower-end segment and are not worried about the customer's ability to get a unit transferred as we have pre-approval measures in place to help screen customers," Mr Lersuk said.

In the first quarter, Pruksa's cancellation rate and rejection rate remained on track at 18-20% and 5% respectively, while the cancellation rate in the lower-end segment was 25% and the rejection rate was higher than average.

This year it plans to launch four projects worth a combined 4 billion baht under the Plum brand with unit prices ranging from less than 1 million baht to 1.5 million baht.

"Our plan to launch seven condo projects worth a combined 12 billion baht this year remains on track as economic sentiment is improving, unlike last year when we postponed the launch of four condo projects," Mr Lersuk said.

In 2016, Pruksa plans to launch 60-65 residential projects worth a combined 50-54 billion baht, aiming to have 51 billion in presales and 52 billion in revenue by year-end.

Of the targeted revenue, 27% will be from condo transfers, down from 33-35% recorded last year.

The four new condo projects in the lower-priced segment will be in Chaeng Watthana, Pin Klao, Ramkhamhaeng and Ratchayothin.

"Condo demand is strong from people aged 25-35 with a monthly income of around 20,000 baht," Mr Lersuk said.

On Saturday, Pruksa will launch phase one of Plum Condo Chaengwattana Station with 804 units worth 1 billion baht. Unit sizes will range from 22-45 square metres with prices of 55,000 baht per sq m or from 990,000 baht a unit.

The project's four phases will build 4,000 units worth 5 billion baht.

PS shares closed yesterday on the Stock Exchange of Thailand at 26.50 baht, up 25 satang, in trade worth 79.7 million baht.

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