SET-listed M.K. Real Estate Development Plc plans to launch six projects worth a combined 5.9 billion baht in a bid to achieve 50% growth in presales.
The move reflects its confidence in both the economic recovery and government megaproject spending.
Chief executive Chuan Tangmatitham yesterday said the property market would enjoy an upward trend this year, driven by economic growth and new mass-transit lines and transport networks.
Low fuel prices have stabilised prices of construction materials, which in turn is slowing the pace of increase in home prices, he said.
Homebuyers' borrowing ability has also been raised by low interest rates.
On the other hand, rising household debt has hurt purchasing power, while the launch of megaprojects will cause labour shortages in the property sector, driving up wages.
Mr Chuan said due to these conflicting factors, the company will adopt a more flexible strategy this year.
"We'll launch both low-rise and condo projects while maintaining our debt-to-equity (D/E) ratio at not more than 1," he said.
As of Dec 31, M.K.'s D/E ratio was only 0.3, sufficient to allow expansion of condo development.
The six new projects will include four single-house developments, in the Ekkachai-Bang Bon and Rama V areas and on Krungthep-Pathum Thani and Vacharapol roads.
The other two projects will be condominiums — one on Arun Amarin Road with 308 units worth 730 million baht and the other on Suk Sawat Road with 900 units worth 2 billion.
M.K. now has 15 projects on hand with 5.5 billion baht worth of units still for sale.
It expects 3 billion baht in revenue this year, up by 30% from last year, and 4 billion in presales, up by 50%.
Of the presales target, 2.8 billion baht will come from single houses and townhouses and the rest from condominiums.
MK shares closed yesterday on the SET at six baht, up 15 satang, in trade worth 181 million baht.