Mid-sized developer N.C. Housing Plc (NCH) remains cautious this year, planning to utilise its land bank to launch six new projects worth a combined 7.2 billion baht.
Managing director Somnuek Tanthathoedtham said the company owns land in several zones in Greater Bangkok, totalling hundreds of rai, with the largest in Pathum Thani. These plots can support new residential projects for 10 years, said Mr Somnuek.
"We have a budget of 1 billion baht to purchase new plots each year, but this year we are not confident because of external factors such as wars and the global economy," he said.
"We want to maintain our financial discipline to survive in case of a possible slowdown."
As of the end of September 2023, NCH had a debt-to-equity ratio of 0.84 times, one of the lowest in the industry. Its financial cost was around 5%.
Last year, NCH launched only three new projects, down from an earlier plan of 5-6 projects. It posted nearly 5 billion baht in presales, lower than the target of 5.5 billion baht, as the market was unfavourable in the second half.
"The market in the first half of 2023 was pretty good, but it was not the same in the second half due largely to the strong impact on housing demand from several hikes in interest rates," he said.
The downward trend from the second half of 2023 will continue into the first half of this year, before improving in the second half as interest rates are expected to decline gradually.
The six new projects NCH plans to launch will be mainly in locations they have launched housing projects.
Five of them will be in Pathum Thani worth 5.78 billion baht and one in Nakhon Pathom worth 1.43 billion baht.
All will be townhouses, duplex houses and single detached houses priced 3-20 million baht as the low-rise housing market remains robust, particularly in Bangkok's northern and western zones.