Proud planning to diversify

Proud planning to diversify

MAI-listed developer Proud Real Estate wants to diversify to low-rise houses and put a greater emphasis on Bangkok, with at least three new projects worth a combined 5.8 billion baht next year.

Pumipat Sinacharoen, the company's director and chief executive, said Proud saw an opportunity in new residential projects in Bangkok, as newly launched housing supply had declined since last year.

New supply launched in Greater Bangkok in the first half of 2021 dropped 37% year-on-year to 86.4 billion baht, unsold inventory declined 6.4% to 950 billion baht, while demand only decreased by 9% to 145 billion.

The new residential projects the company plans to launch in 2022 comprise six luxury single detached houses on Aree Soi 3 worth 400 million baht, as well as a condo site in the central business district worth 3.4 billion baht that is slated for completion in 2025.

In Hua Hin, the company plans to launch a high-rise condo project worth 2 billion baht. The project will be completed and have revenue realisation in 2024-25, he said.

"From our new projects in the pipeline, we will turn to profit from 2022 onwards," said Mr Pumipat.

In the first nine months of 2021, Proud recorded a net loss of 56 million baht on revenue of 3.86 million, compared with a net loss of 31 million baht and revenue of 181 million in the same period last year. The firm had no new projects completed during this period.

In March 2022, Proud expects to complete construction of InterContinental Residences Hua Hin, a 3.86-billion-baht low-rise condo project, 80% of which has been sold.

The company expects to record 4 billion baht in revenue in 2022 as it had a sales backlog of 3 billion to realise. It also plans to spend 2.5 billion baht to acquire new plots.

Pasu Liptapanlop, Proud's executive director, said sales at the resort home project soared during the third wave of the pandemic as people looked for a second home to stay in and work from.

"We recorded 209 million baht in presales from the Hua Hin project in the third quarter this year once we reopened the sales gallery, with 124 million in October, a new record high," he said.

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