PF, Nusasiri take aim at fresh pastures

Forecasting unfavourable sentiment in the residential market until the end of the year, two SET-listed developers have shifted to new locations where competition is less and demand is stronger.

Property Perfect Plc (PF) plans to launch eight projects worth a combined 11.5 billion baht in Greater Bangkok and Hua Hin in the fourth quarter alone, while Nusasiri Plc plans to launch projects in Pattaya and Khao Yai worth a combined 9.9 billion baht in the same quarter.

PF chief executive Chainid Attayansakul (formerly Ngowsirimanee) said most of its projects will be located in new locations, including Khao Tao in Hua Hin and Pracha Chuen and Krungthep Kritha Road in Bangkok.

“The fourth quarter will not be as active as usual due to the slowdown in homebuyers’ purchasing power, so we need to boost sales with projects in new locations as demand in existing locations is sluggish,” he said yesterday.

Construction costs are expected to increase by 10% next year alongside higher land costs, raising housing prices by at least 10%, Mr Chainid said.

PF aims for presales worth 6 billion baht in the fourth quarter after recording 8 billion baht during the first nine months.

It has cut its presales target from 16 billion to 14 billion baht this year as it needs to get an environmental impact assessment (EIA) approval for new condo projects before launching.

Aiming to realise revenue more quickly, PF will develop only eight-storey condo projects, not high-rises that take longer to build. It also plans to spend about 100 million baht to expand prefabrication capacity by 60% from 50 units per month to 80 next year.

In the fourth quarter, PF expects to have 5 billion baht in revenue comprising 2 billion from its condo backlog, 2.5 billion from low-rise units and 500 million from a property fund.

In 2014, PF plans to launch at least 10 new projects worth more than 20 billion baht, with targeted growth of 30% in presales and revenue as it has a sales backlog of about 5 billion baht to be realised in the next 15 months.

Nusasiri’s chief marketing officer Siriya Thepcharoen said the company has slowed the launch of projects along current and future mass transit lines due to high competition and EIA difficulties.

Nusasiri will launch its Nusa Chivani brand in both Pattaya and Khao Yai in Nakhon Ratchasima.

The Pattaya project will comprise 570 single houses priced from 8 million baht on a 162-rai site opposite Suan Nong Nuch, while the Khao Yai project will have 105 single houses priced from 12 million baht.

In Pattaya, 80% of the houses will be single-storey units, while all the Khao Yai houses will have only one storey.

In the first nine months, Nusasiri recorded 3.4 billion baht in presales, and it targets to have 4 billion baht by the end of the year. It aims for 2 billion baht in revenue this year.

Next year it will launch two single-house projects worth a combined 3.1 billion baht on Bangkok’s Rama II Road.

 

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