MAI-listed developer Chewathai is preparing 600 million baht to acquire new land plots and launch four residential projects worth a combined 3.7 billion baht, aiming for a 5% increase in revenue to reach 2 billion baht this year.
Managing director Boon Choon Kiat said the housing market in 2024 would still face several negative factors, such as a projected economic growth of only 3.2%, household debt reaching 90%, low consumer confidence and high interest rates.
"Stimulus policies are inadequate, compounded by halted growth due to ongoing conflicts in Ukraine and the Middle East," he said. "These factors contribute to financial institutions being stricter about mortgage loans."
He said the impact was greater on middle- and lower-income earners or those buying units priced at 3 million baht and lower. This also directly affected the company and caused a decrease in revenue in 2023.
Last year, Chewathai recorded 1.9 billion baht in revenue, down by 11.6% from 2.15 billion baht in 2022.
Of the total, revenue from condos declined 9.7% to 1.2 billion baht, while that from single detached houses dropped 18.5% to 308 million baht.
The largest decrease was in townhouses, plunging 20% to 281 million baht, as new townhouse supply exceeded demand, which resulted in a price war to reduce stock.
"However, we still see opportunities for growth in the housing market, particularly in low-rise houses priced below 10 million baht and in the market for low-rise condos in prime locations at affordable prices," said Mr Boon.
It plans to launch four new residential projects which will comprise three low-rise condo projects worth a total of 3 billion baht and a single detached house project worth 700 million baht.
One of the new condo projects will be a joint venture with Japanese developer Nippon Steel Kowa Real Estate (NSKRE), in which Chewathai holds 51% and NSKRE holds 49%.
With 415 units worth 1 billion baht, Chewathai Hallmark Ekkamai-Raminthra will be located on Nuan Chan Road. Revenue from the project will be realised by the fourth quarter of 2025.
Chewathai also has a joint venture with the industrial property business, UWork 999 Co, a contractor and construction consultant, for four rental factories in Amata City Rayong Industrial Estate.