SET-listed developer N.C. Housing plans to keep launching new low-rise houses, with five projects slated for three locations worth a combined 4.5 billion baht, to capture rising demand in the sector.
Managing director Somnuek Tanthathoedtham said demand for single detached houses, duplex houses and townhouses was very strong last year and is continuing into 2022.
"Many buyers shifted from condominiums to low-rise houses after mass transit lines expanded to the Bangkok outskirts," he said.
"Units priced between 3-5 million baht were in strong demand, particularly from younger people and newlyweds."
Even though it has been difficult to hold a wedding during the pandemic, some buyers in the low-rise segment who planned to have a ceremony before moving into the house put that plan on hold and decided to relocate without a celebration, said Mr Somnuek.
Last year the company launched six new low-rise housing projects worth a combined 4.5 billion baht, the largest sales value it had released in a year, he said.
Driven by the new projects and novel housing designs, the company recorded 4.6 billion baht in presales, a record high and 29% higher than the target of 3.5 billion, said Mr Somnuek.
Three of the new projects in 2022 are single detached houses and duplex houses, while two are townhouses to balance the portfolio, he said.
Two of the projects are in familiar locations for the company -- the Lum Luk Ka district of Pathum Thani -- while three are in new areas along Ratchaphruek Road, as well as eastern and western Bangkok.
N.C. aims to have 4.6 billion baht in presales by the end of 2022, growth of 31% from the 2021 target.
The company expects to realise 2.5 billion baht in revenue in 2022, up 25% from the 2021 target, said Mr Somnuek.
During the first nine months of 2021, it recorded 1.9 billion baht in revenue, up 60% from the same period in 2020. Revenue in 2020 totalled 1.7 billion baht.
"The low-rise housing market continues to grow," he said.
"We posted 400 million baht in presales last month after we launched new projects with novel designs, compared with 200 million baht in a usual January."
To prime the market, Mr Somnuek suggested the government extend a cut in transfer and mortgage fees to 0.01% for housing units priced between 3-5 million baht, up from the current 3 million baht and lower.