Property developers maintain sales targets

Property developers maintain sales targets

An artist's rendition of Lake Legend Chaeng Wattana, a joint venture between Property Perfect Plc and Hongkong Land Ltd.
An artist's rendition of Lake Legend Chaeng Wattana, a joint venture between Property Perfect Plc and Hongkong Land Ltd.

SET-listed residential developers Sansiri (SIRI), Property Perfect (PF) and Origin Property (ORI) are maintaining their annual presales and revenue targets as market sentiment is improving in the second half for low-rise houses.

All three developers' new projects in the second half are mainly single houses, townhouses or duplexes as the condo market was sluggish in the first half.

Condo market value in the first half dropped 17% year-on-year to 104 billion baht, while single detached houses fell 12% to 51.5 billion. The townhouse segment was down 5% to 41.2 billion baht, according to Pruksa Holding Plc.

Wongsakorn Prasitwipat, PF managing director, said the company will launch 11 new projects worth a combined 29 billion baht in the second half. Ten will be single houses, townhouses or duplexes worth a total of 17 billion baht.

One is a joint venture with Hong Kong-based property investment firm Hongkong Land Ltd. The project, Lake Legend Chaeng Wattana, worth 5 billion baht, will have 177 luxury single detached houses priced 19-60 million baht a unit.

PF aims to have 22.4 billion baht in presales and 19.3 billion in revenue by year-end. In the first half, it recorded 10 billion baht in revenue, up 15% from the same period last year.

He said the second-half performance should exceed the first as its sales backlog will be realised in the period, including 4.7 billion baht from domestic sales and 1.8 billion from condo Yu Kiroro in Japan.

Varangkana Artkarasatapon, Sansiri's assistant executive vice-president for finance and new business development, said the company maintained presales and revenue targets of 30 billion baht and 32 billion, respectively.

"We will focus on single houses, townhouses and duplexes as well as transfers of condos as real demand is strong and will improve after home loan co-signers are no longer regarded as borrowers," she said.

In the second half, Sansiri expects to launch 16 new projects worth a combined 24 billion baht. Ten will be low-rise projects worth a combined 13 billion baht and six will be condos worth 11 billion.

It recorded 10.9 billion baht in revenue in the first half, of which 82% was from single houses, townhouses and duplexes.

Origin Property plans to launch 11 new projects worth a combined 17.8 billion baht. Five will be single houses and duplexes worth a combined 8.5 billion baht.

"As market sentiment is improving, we expect to have 28 billion baht in presales and 19 billion in revenue by year-end as earlier targeted," said Origin chief executive Peerapong Jaroon-ek.

Ananda Development Plc (ANAN) cut its 2019 presales and revenue targets by 20% from 36 billion baht each to 28.3 billion and 29 billion, respectively, in line with market sentiment. In the first half, Ananda posted a drop of 26% in revenue to 3.86 billion baht year-on-year. Revenue from residential sales fell by 51% to 1.64 billion baht.

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