Low-rise houses boosted presales and revenue in the first half to hit their target as demand remained strong despite the pandemic, says SET-listed developer AP Thailand Plc.
Pamorn Prasertsan, chief of business group for townhouses, said low-rise market sentiment was still good in the second quarter, a period when the virus started to impact globally.
"The sentiment of low-rise homebuyers improved as all players in the industry used aggressive marketing strategies with attractive campaigns and prices amid a slowdown in the property sector, which was dampened by the condo market," he said.
In the first half, AP reported 20 billion baht in total revenue, a year-on-year gain of 23% from 16.2 billion baht, with a net profit of 1.83 billion baht, up 7%.
Revenue from low-rise houses grew by 20% to 11.13 billion baht from 9.22 billion baht, while those from condos increased to 8.8 billion baht from 6.9 billion baht.
Target revenue in 2020 is 40.5 billion baht.
Presales in the first half totalled 18.2 billion baht, accounting for 55% of the target of 33.5 billion baht.
The key driver was low-rise housing, which recorded a rise of 11% to 15.5 billion baht. It also represented 70% of the low-rise presales target of 22.5 billion baht by the end of this year.
Mr Pamorn said townhouse demand from younger buyers has surged. The portion of townhouse buyers aged 26-30 and earning 20,000-40,000 baht per household expanded from 31% in the pre-virus period to 40% in the second quarter.
"Many buyers shopped around for condo units but eventually decided to buy a townhouse instead after they spent more time working at home during the lockdown period," Mr Pamorn said. "They think living in a condo is too crowded and exercise space is very limited."
In the second half, AP plans to launch 13 new low-rise housing projects worth a combined 15.4 billion baht.
These will include eight townhouse projects worth a total of 7.5 billion baht with units priced from 2 million baht.
The other five projects worth a combined 7.85 billion baht will feature duplex houses and single detached houses with units starting from 4 million baht.
"Our low-rise houses will outperform condos this year, as the number of new condo projects being launched this year will be lower," Mr Pamorn said. "But we will maintain the presale and revenue targets set earlier."