SET-listed developer Property Perfect Plc (PF) is confident the property market will recover this year, and plans to launch 16 new projects worth a combined 22.2 billion baht.
It aims for 80% growth in presales to 18.3 billion baht by the end of the year.
Chief executive Chainid Adhyanasakul said the company this year will spend only 3 billion baht to buy new plots of land for future project development as most of the new projects being launched this year will be located on existing plots.
"Using our own land banks to develop projects will improve our gross margin as we have held them for many decades," he said.
PF's gross margin was 33.7% in the first nine months of last year, up from 30.4% in 2015. The rate is expected to rise to 35% this year.
Currently, PF has a sizeable 1,455 rai in land banks on hand worth 9 billion baht. Large-scaled plots are in six locations, including 1,500 rai in the Rattanathibet area, where it has 15% remaining for future developments.
It has 1,000 rai on Ramkhamhaeng Road with 15% remaining, 500 rai each in the Rangsit area and on Sukhumvit 77, with 5% and 15% remaining, respectively.
Two other plots will be developed this year, including 340 rai on Krungthep Kreetha Road and 400 rai in the Chaeng Wattana area, as there will be new roads running through them.
Srinakarin-Rom Klao Road, connecting with Krungthep Kreetha Road, will open in September this year. In this location, PF will launch three low-rise residential projects worth a combined 5.1 billion baht.
In the Chaeng Watthana area, there will be a new road, called the Thai Chamber of Commerce Road, linking 345 Road and Chaiyaphruek Road.
"Other than us, there are three large developers including Pruksa Real Estate, SC Asset Corporation Plc and Sansiri Plc planning to develop residential projects worth a combined 10 billion baht in this location," he added.
All three firms have bought land from PF including the University of the Thai Chamber of Commerce, which acquired a plot worth 200 million baht for the development of a new campus.
Of the 16 new projects PF plans to launch this year, 11 worth a combined 14.3 billion baht will be single house and townhouse projects in five locations comprising four in Rangsit area, three on Krungthep Kreetha Road and two each on Bang Na Road and in the Chaeng Wattana area.
The other five projects will be condos worth a combined 7.9 billion baht on Charan Sanitwong 13, Wuttakart Road, Phahon Yothin Road, Seri Thai Road and Sukhumvit Soi 77.
The company aims to have 18.3 billion baht in presales by the end of the year, up from 10.8 billion last year. It will comprise 10.7 billion baht from low-rise projects, up from 7.11 billion, and 7.6 billion from condos, up from 3.64 billion.
Revenue is forecast at 22.1 billion baht, rising 50% from 14.7 billion. It will come from 8.5 billion baht each for low-rises and condos, up from 6.36 and 5 billion, respectively.
The rest will be generated by the hotel business of its SET-listed hotel subsidiary, Grande Asset Hotels & Property Plc, projected at 2.9 billion baht, an increase from 2.3 billion last year; 2 billion from land sales; and 150 million from its retail business.
Grande Asset this year plans to launch a 200-room hotel and villas for sale worth a combined 4.7 billion baht on a 100-rai hillside plot in Rayong.
Mr Chainid said the property market this year will grow by 10% to 420 billion baht.
PF shares closed yesterday on the SET at 0.92 baht, down three satang, in trade worth 19 million baht.
