PSH to launch 55 properties

PSH to launch 55 properties

SET-listed developer Pruksa Holding Plc (PSH) plans to launch 55 new projects worth a combined 68.1 billion baht in 2019, aiming for presales growth of 5.7% to 54 billion baht by year-end.

Deputy chief executive Supattra Paopiamsap said the new projects this year will be similar in number to last year's, but the total sales value will be 28% higher as the company shifts towards the higher-priced segment.

"Buyers in the upper-end segment will face minimal impact from the new lending curbs," Mrs Supattra said. "With the new mortgage rules and high competition, overall market value in Greater Bangkok this year will grow slightly by 5% from 512.18 billion baht last year, which was up 18%."

Most of the new projects will be townhouses with a total of 28 sites worth a combined 26.5 billion baht, up 24% from 21.32 billion last year. Single houses will see 12 projects worth a combined 12.1 billion baht, up 17.5%.

Condos in the mid- to lower-priced segment will have 11 projects worth 20.9 billion baht, up 60%, while high-end condos will decline 2.4% to 8.6 billion baht from four projects.

Pruksa this year aims to have presales growth of 5.7% from last year's 51.1 billion baht, which was up 7.5% from the year before and was also the highest since the company's founding.

The lion's share of presales last year came from townhouses at 24.12 billion baht, up 11% from 2017. Mid- to lower-priced condos posted 10.7 billion baht, growth of 7%, and single houses recorded 9.75 billion baht, up 27%. High-end condos fell 19% to 6.5 billion baht.

Revenue in 2019 will grow by a forecast 4.7% to 47 billion baht from 44.9 billion baht, which was up 2.2% from 2017, with a net profit of 6 billion baht, a 10.4% rise.

The key driver for 2018 revenue was mid- to lower-priced condos, which posted 13.2% growth to 11.55 billion baht. Revenue from townhouses, single detached houses and high-priced condos dropped 0.6% to 22.56 billion baht, 2.6% to 8.9 billion baht and 0.4% to 1.86 billion baht respectively.

As of the end of 2018, Pruksa had a total sales backlog of 33.23 billion baht. Of this amount, 21.64 billion baht will be realised this year.

The company had a total of 187 active projects on hand with units for sale worth a combined 100.47 billion baht. Of this amount, 14.4 billion baht were ready-to-move-into units comprising townhouses worth 5.5 billion baht, single detached houses worth 3.1 billion baht, mid- to low-priced condos worth 5.5 billion baht and high-priced condos worth 300 million baht.

According to the company's research, unsold housing supply in Greater Bangkok as of the end of 2018 totalled 189,182 units, up 1.9% from 2017.

PSH shares closed yesterday on the SET at 18.70 baht, up 60 satang, in trade worth 66.6 million baht.

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