Frasers Property Thailand moves into new segments
SET-listed developer Frasers Property Thailand (FPT) plans to launch at least 27 new residential projects worth a combined 35 billion baht in 2021, aiming to have a revenue growth of 10% to 16 billion baht.
Saenphin Sukhee, chief executive of Frasers Property Home (FPH), one of FPT's business units, said three projects will be in new segments: single detached houses in inner-city locations and luxury condos.
"The economy and property market will improve next year despite the uncertainty of the pandemic and the political situation," he said. "Market competition and household debt will remain high."
Frasers plans to launch a new luxury condo project worth 5 billion baht in either late 2021 or early 2022, as it plans to spend 2 billion baht for a new plot next year.
"Condos aimed at foreign buyers will have more potential, stimulated by the longer-term visa the government is offering," said Mr Saenphin.
Two of the new projects will be three-storey single detached houses and duplex houses priced 15-40 million baht in inner-city locations such as Vibhavadi Rangsit, Rama IX and Sathu Pradit. Plots will be sized 20 rai each for the development of 60-70 units.
"This product segment will be in locations where land prices are very high and normally unit prices of single detached houses are 10 million baht and above, but demand is for low-rise units priced 5-10 million baht," he said.
FPT also wants to launch nine townhouse projects worth 9.7 billion baht, five semi-detached house projects worth 7 billion, seven single detached house projects worth 11 billion and three projects in the provinces worth 2.1 billion in 2021.
FPH, formerly Golden Land Property Development, aims to have 16 billion baht in revenue next year, up 10% from 2020.
During the first nine months, FPH recorded 10.9 billion baht in revenue and expects to have 15 billion by year-end, down 5% from 15.3 billion baht last year.
"This will be the first year since 2013, the year our major shareholders purchased Golden Land through Univentures, that we will have a drop in revenue. This decrease is below the market average, which will see a 40% fall," said Mr Saenphin.
He said the company will miss the revenue target because of a rise in mortgage loan rejections from 30% last year to 32%.
Of the 2021 revenue target, 42% will be from townhouses, 23% from semi-detached houses, 21% from single detached houses and 14% from provinces.
FPH plans to spend 10.7 billion baht to buy new plots for residential development in 2022.