Low-rise house demand in the upper-end segment will continue to be robust next year while condo market recovery will depend on foreign buyers, according to SET-listed developer SC Asset Corporation Plc.
Chief financial officer Pradthana Patsaman said low-rise houses priced 10 million baht and above per unit saw high growth in the first half as demand had less impact from the economic slump.
"Homebuyers in the upper-end segment were also stronger and had more financial stability to borrow," she said. "Our low-rise houses had good sales in all segments particularly high-priced units."
In the first half of 2021, it posted a new record high of 11.3 billion baht in presales, up 38% year-on-year.
About 83% or 9.4 billion baht derived from low-rise houses, while 17% or 1.95 billion baht came from condos.
A key driver of presales from low-rise houses mainly attributed to single detached houses priced 20 million baht and above per unit which saw year-on-year growth of 41%, followed by units priced 10-20 million baht with an increase of 35%.
Revenue in the first six months rose 11% to 8.71 billion baht with the largest share from low-rise houses at 6.82 billion baht.
Net profit grew 24% to 937 million baht while net profit margin increased to 10.7% of total revenue from 9.6%.
It also found a decrease in the bank rejection rate from low-rise houses to 9.4% in the first half of 2021 from 14.8% in 2020.
"Condo market slowed as it currently relies only on local demand," she said. "Its recovery will depend on the country's reopening which will allow foreign buyers to come back as they are main buyers of condos."
Next year SC will launch three new condo projects, one of which might be a joint venture with Japanese conglomerate Nishitetsu Group, following the first joint venture condo, The Crest Park Residences, valued at 3.1 billion baht this month.
"After the pandemic crisis, our growth will stabilise with more than 20 billion baht in revenue per year from 2023," she said. "We still maintain revenue and presales target of 19 billion baht and 20 billion baht, respectively, by the end of 2021."
The company plans to open three new hotels in Ratchawat, Ratchadaphisek and Pattaya with a total of 549 keys in 2022, 2023 and 2025, respectively, and expects to see net profit growth from recurring income at one third by 2023 from 5% this year.
At present, recurring income stems from six office buildings with a total lettable area of 119,385 square metres with an occupancy of 92%.