ASIAN PROPERTY EYES LUXURY CONDO MARKET revenue estimate based on demand for detached-house projects
Property firm Asian Property Development is studying the market with a view to expanding its business to luxury condominiums. It wants to develop units with a price range of Bt7 million to Bt10 million, reacting to the strong demand in the market, the company chief executive Anuphong Assavabhokhin said.
The company has also revised its revenue estimate from Bt8 billion to Bt9 billion for this year, given the strong demand for detached-house projects following the government’s tax stimulus package.
Anuphong said demand for city and luxury condominiums still holds growth potential especially for projects near the Central Business District and the mass-transit system.
Consequently, the company is looking for the best location to develop a luxury condominium-project which is suited to the existing customer demand.
“Before we launch our new product, we have to research the customer profile, the kind of product that meets our customer’s demand and how much our customer can pay,” he said.
As of now, the company has five brands that focus on the middlemarket segment for town-house and condominium developments.
The town-house brands include Baan Klang Muang – priced between Bt3 million and Bt4 million per unit – and Baan Klang Krung – average price Bt5 million per unit. The three condominium brands include The Life, in which pricing is between Bt2 million and Bt3 million per unit; The Address, average price Bt5 million; and The City with an average price of Bt5 million per unit.
Anuphong said the company has revised its pre-sales target for the year from Bt15 billion to about Bt17 billion for this year.
“We believe that our pre-sales figures will meet the new target after the first quarter of this year. Our sales growth has been 15 per cent higher than our estimate for detachedhouse and town-house projects in the first quarter,” he said.
The company has projects which garnered pre- sales Bt17.55 billion last year. This figure will reflect in the company’s revenues for this year to 2010.
The company also set aside an investment budget of Bt3 billion to buy land that it will develop next year. This sum is expected to come from the company’s cash flow.
The company will launch 13 residential projects this year. Of these, six will be town-house projects valued at Bt3.87 billion, five will be citycondominium projects worth Bt8.38 billion and two will be detachedhouse projects.
Asian Property Development posted a revenue of Bt7.87 billion and a net profit of Bt898.83 million last year.
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