SET-listed developer Nusasiri Plc is introducing a new business model that features hotel, wellness and residential segments in its new development projects to fend off intense competition and risks from high mortgage-rejection rates.
The firm plans to launch 10 new sites worth a combined 13 billion baht in 2017.
Chief executive Visanu Thepcharoen said the new business model will be applied from next year onwards.
"The new business model will target upper-end buyers who are much more concerned about health and wellness," he said. "These people have high purchasing power and no problem with mortgage loan rejections."
Of the 10 new projects it will launch next year, nine will have residential units for sale, hotels and wellness services combined on one site. They will be in Phuket, Chiang Mai, Pattaya, Khao Yai and Bangkok.
Phuket will see three projects launched, including Nusa Pakok Hotel worth 1.3 billion baht located on a 60.5-rai site in Pakok and comprising 120 hotel rooms and 71 villas.
In Cherng Talay of Thalang district in Phuket, there will be two projects -- the Nusa Laya Hotel with 300 rooms worth 1.65 billion baht and the Nusa Laya Condominium with three low-rise buildings and a total of 170 units worth 1.6 billion baht.
Two projects are slated for Pattaya, including the Legend Siam Pattaya Resort with 131 villas worth 800 million baht.
The Nusa Colmar Khao Yai Condominium will have 320 units and be worth 650 million baht.
The company aims to have two projects in Chiang Mai -- the Nusa Chiang Mai Hotel with 250 rooms worth 800 million baht and a low-rise condo project with 525 units worth 1.3 billion baht.
It aims to have 5 billion baht in presales and 4 billion in revenue in 2017, up from a target of 2 billion baht each this year.
The presales target for 2016 was decreased from 4 billion baht as Nusasiri postponed four projects worth a combined 3 billion baht for a launch next year. In the first nine months this year, it posted 1 billion baht in presales, half of the target.
"The lower-end segment had a problem with a high mortgage-rejection rate this year, which affected our unit transfers as 30% of our customers were rejected," said Mr Visanu. "That's why we decided to focus on the upper-end segment."
Because of the lower unit transfers, Nusasiri recorded 836 million baht in revenue in the first nine months, down from 915 million in the same period last year.
Nusasiri has unsold units worth 10.22 billion baht at 10 projects. Of this amount, 40% are in the lower-end segment.
NUSA shares closed yesterday on the Stock Exchange of Thailand at 50 satang, an increase of one satang, in trade worth 3 million baht.