Developers bullish on H2
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Developers bullish on H2

People check out property deals at a house and condo fair. (Photo: Houseandcondoshow Facebook page)
People check out property deals at a house and condo fair. (Photo: Houseandcondoshow Facebook page)

SET-listed developers are hoping an economic recovery in the second half will help them achieve their performance goals this year after modest first-half results.

Wongsakorn Prasitvipat, managing director of Property Perfect Plc, said the company plans to launch nine new residential projects worth a combined 13.3 billion baht in the second half after introducing just one 1-billion-baht project in the first half.

"We expect stronger growth in the second half compared with the first half," he said.

"Many of our upcoming projects will comprise luxury low-rise houses located near international schools, driven by a substantial increase in demand."

Property Perfect aims to achieve total revenue of 13 billion baht this year, comprising 9.6 billion from housing development, 2.85 billion from hotels, and the remainder from rent and services.

In the first half, it recorded 4.95 billion baht in revenue, growth of 17.2% year-on-year. The segment with the highest growth was hotels at 125%.

"Revenue from hotels in Bangkok gained as foreign tourists returned, with the occupancy rate rising to 70% from 35% in the first half last year," said Mr Wongsakorn. "Gross profit also soared to 48.2% from 6.3%. This momentum will carry on in the second half."

Thitima Rungkwansiriroj, chief executive of Singha Estate Plc, said the company will launch five low-rise housing projects worth a combined 10 billion baht in the second half after launching two projects worth a total of 1.5 billion in the first half.

"The projects in the second half should significantly increase our revenue recognition for the period, helping our full-year total to reach a record high," she said.

In the first half, Singha Estate recorded 6.84 billion baht in revenue, up 33% year-on-year.

Revenue from residential development tallied 1.17 billion baht for the first half and is expected to total 4.5 billion for the full year, growth of 80% from 2022.

Some 4.82 billion baht in revenue was derived from the company's hotel business. This portion is expected to reach 10 billion baht by the end of 2023 based on stronger demand and additional flights and routes.

Noble Development Plc reported 4.47 billion baht in revenue in the first half, up 76% year-on-year. The company targets 15 billion baht in revenue by year-end.

"We have a positive outlook for the second half, attributed to a market rebound, both domestically and internationally," said Thongchai Busrapan, co-chief executive of Noble.

"We saw a distinct market resurgence in the first half, even though Chinese customers have not fully returned."

Sena Development Plc posted 3.84 billion baht in revenue from housing development in the first half.

Two developers believe they are on target for their annual revenue goals after a promising first half. Sansiri Plc reported 18.5 billion baht in first-half revenue, up 42%, and expects to tally 41 billion by year-end.

Supalai Plc recorded 14.3 billion baht in revenue in the first half and aims for 36 billion by the end of 2023.

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