SET-listed developer Property Perfect halved its 2024 presales target to 8.2 billion baht and cut its revenue projection by 20% to 8.8 billion baht, marking the second revision this year, as it plans to sell riverside hotel Royal Orchid Sheraton for 6 billion baht next year.

Theerathat Singnarongthon, assistant chief support officer, said sluggish economic growth, high interest rates and elevated household debt continued from the second quarter to the third.

"The housing market has been slow throughout the first nine months," he said.

"Although property tax incentives introduced in April helped somewhat, the market remains subdued, primarily because of strict mortgage criteria."

In the third quarter, the company reported consolidated revenue of 1.92 billion baht, a decline of 13% year-on-year and 20% quarter-on-quarter.

The drop was primarily attributed to housing development, which posted a revenue decline of 22% year-on-year and 32% quarter-on-quarter.

In contrast, revenue from other businesses, including hotels and rental and services, rose 10% year-on-year, with quarter-on-quarter increases of 2% and 33%, respectively.

In the first nine months this year, Property Perfect recorded 6.15 billion baht in presales and 5.84 billion baht in residential unit transfers.

Targets for both were downgraded for a second time following the disappointing third-quarter results.

Earlier this year, the company set goals of 16.8 billion baht for presales and 11 billion for transfers.

After the second quarter, the targets were adjusted to 12 billion baht for presales and 10.5 billion for transfers.

"The market in the fourth quarter is expected to improve because of last month's interest rate cut and positive sentiment typically occurring in the final months of the year, which we hope will drive housing sales," said Mr Theerathat.

In 2025, the company plans to launch six new projects worth a combined 9.2 billion baht. These include five single detached house projects in the upper-end segment and one townhouse project targeting the middle- to lower-priced market.

Property Perfect set targets of 11 billion baht each for presales and transfers in 2025, representing growth of 34% and 35%, respectively, from 2024 goals.

Revenue from the hotel business is expected to decline by 46% to 1.5 billion baht next year, following the sale of Hyatt Regency Bangkok Sukhumvit Hotel last month for 5.05 billion baht.

The company also plans to sell the Royal Orchid Sheraton Hotel, its five-star property along the Chao Phraya River, for 6 billion baht next year.

"The sale of the Royal Orchid Sheraton is about 70-80% complete, with some financial details still being worked out. The deal is expected to be finalised within the first quarter of 2025," he said.

Proceeds from the hotel sale will strengthen the financial position of the company's subsidiary, Grande Asset Hotels and Property Plc.

The funds will be used to repay debts, improving the subsidiary's financial stability, said Mr Theerathat.