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Preuksa: Recovery seen since January

Bangkok Post Feb 27, 2009 Sentiment in the local housing market has recovered from the lows of late last year after the government announced economic stimulus measures, but the optimism is limited only to the low-rise segment, says a property executive. "It has come back. We can say that as we are a market leader and the recovery was shown in our figures in the first seven weeks of the year, which can be a benchmark of the overall market," said Prasert Taedullayasatit, chief operating officer of Preuksa Real Estate Plc (PS). Mr Prasert said that PS, the country's second largest developer after Land & Houses, last year delivered the industry's largest number of houses, at 8,913 units, up 26% from 2007. He said sales stood at 1.3 billion baht between Feb 1 and 25 and 995 million baht in January, up from 400 million in December. About 90% of the sales were from single houses and townhouses. At the same time, the number of site visits rose to 3,000 in January from 2,500 in December with the sales-closing ratio of 25%, rising from 23%. As a result, PS targeted to achieve total sales of three billion baht in the first quarter of the year. "We will campaign for the 2,000-baht cheques distributed to low-income earners as they are our target customers. They can use the cheque to book our units in which case we will double the value for them," he said. PS requires 5,000 to 10,000 baht as a booking deposit from customers. As of Jan 1, PS had a total of 82 projects on hand with 14,108 unsold units worth 24.53 billion baht, covering every segment. Its sales backlog is now worth 11.36 billion baht, 8.57 billion baht of which would be recognised this year. "Half of the target has already been committed," he added. It expected to have 17 billion baht in revenue, with presales of 18 billion baht at the end of the year. In 2009, the company plans to launch 22 new projects worth a combined 15-18 billion baht including a 1-billion-baht housing project in Bangalore. It planned to spend three billion baht to buy new plots this year for 14 projects. It now has plots for eight projects which would be launched in the first quarter, totalling 2,625 units worth 5.93 billion baht. They are four townhouse projects in Rangsit Klong 3, Phetkasem 110, Wat Som Kliang and Lat Phrao 71 area; three single-housing projects in Lam Luk Ka Klong 4, Vacharapol and Wat Ko Non; and a low-rise condominium project in Yaowarat. "It is a downward trend in land prices as fewer developers compete for land this year. Land prices would decline by 10% from last year," said Mr Prasert. PS yesterday reported 2008 net profit of 2.37 billion baht, an increase of 82% from 1.3 billion in 2007, on sales of 13 billion baht, up 43%. Fourth-quarter net profit rose 86% year-on-year to 868 million baht, on sales of 4.28 billion, up 45%. It would pay a dividend of 33 satang a share in April. PS shares closed yesterday on the Stock Exchange of Thailand at 3.94 baht, up two satang, in total trade of 9.88 million baht.

 

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