Pruksa expects to reach presales, revenue targets
Despite recording just one-third of its annual target in the first half, SET-listed developer Pruksa Holding Plc (PSH) maintained its 2022 presales and revenue goals of 31 and 33 billion baht, respectively, as it has confidence in its strategies and residential demand in the second half.
Uten Lohachitpitaks, the company's group chief executive, said an increase in the interest rate by 0.25% in the second half would be unlikely to affect homebuyers as most banks announced they would freeze their rates until the end of the year.
"If they [banks] raise their rates, homebuyers who use a mortgage loan will have to pay a monthly installment that is 3-4% higher," he said. "This situation will likely happen next year."
To maintain housing prices and boost sales amid a possible decrease in home purchasing power, PSH will redesign residential units, adjust construction materials and seek land plots in locations where land prices are lower.
As of the end of June 2022, PSH had a total sales backlog of 21.5 billion baht.
Of this amount, 14 billion baht from seven condo projects which would be completed in the second half would be realised in the period.
It expected 20% of the 14 billion baht would face a mortgage rejection.
To cope with this situation, the company would introduce two options for customers, including Pruksa Pass, a programme to allow customers to rent a unit and use the monthly rent paid to the company as a downpayment to be deducted from the unit price.
Rental payments would provide a financial record to apply for a mortgage loan.
Launched a few weeks ago, customers seeking around 100 condo units in total priced between 2-3 million baht each had applied for this programme.
Another option is to introduce customers to the company's other similar projects nearby which have lower unit prices.
PSH reported 11.6 billion baht in presales and 10.1 billion baht in revenue in the first half.
Both accounted for one-third of the annual target as it had labour shortage problems which delayed delivering units.
In the first half, the company invested 500 million baht in property technology and healthcare solutions.
They included digital preventive wellness Naluri from Malaysia and Amili, a precision gut microbiome company from Singapore.
It also had a joint venture with solar power firm Gunkul Engineering Plc in sharing a 50% stake to introduce solar roofs at its new residential projects.
- Pruksa Holding