Chief executive Thongma Vijitpongpun says new overseas projects are unlikely for Pruksa this year.

Pruksa Real Estate, a property development arm of SET-listed Pruksa Holding Plc (PSH), plans to launch 72 new residential projects worth 60.8 billion baht this year.

According to chief executive Thongma Vijitpongpun, of the total planned development, townhouses will account for 39 projects worth 21.8 billion baht, with single detached houses making up 20 projects worth 17 billion baht, and condominiums constituting seven projects worth 12.1 billion baht.

Pruksa will also kick off six premium residential projects worth 9.9 billion baht for the first time this year, all in metropolitan areas.

They include The Reserve Thong Lor worth 1.7 billion baht, comprising 110 units, which will be launched during the first quarter.

According to Mr Thongma, new overseas projects are unlikely for Pruksa this year.

He said the property market in Bangkok and surrounding areas will increase in value by 5% this year to 379 billion baht driven by the government's 43 new mega-projects worth 1.77 trillion baht.

"Ten mass transit routes in Bangkok and surrounding provinces are under construction and I expect the construction will be completed over the next five or six years and boost up the property market over the next 10 years," he said.

Mr Thongma, Pruksa targets 52.9 billion baht in presales and 50.2 billion baht for revenue in 2017, representing rises of 19% and 9%, respectively.

Pruksa now has a backlog worth 24 billion baht that will be realised into revenue during 2017-2018.

He said the company would provide a budget of 16 billion baht to buy new land plots for developing projects in 2018.

Prasert Taedullayasatit, president for Pruksa's premium business, said although residential projects in the low to middle-end segment remain the company's core segment, Pruksa needs to look into the higher-end segment, as buyers in this market have higher purchasing power and low loan rejection rates.

"The residential projects priced 2.5-6 million baht per unit are for middle to low-end segment, but Pruksa's premium projects are positioned above 7 million baht," said Mr Prasert.

"Projects priced below 2 million baht are now very hard to be sold in Thai market because potential buyers are likely to be rejected for bank loans."

Mr Prasert expects the premium projects to represent around 30% of Pruksa's revenue by during 2019-2021.

Mr Thongma yesterday announced Pruksa Holding's new healthcare subsidiary will make its debut on February 17.

This new business unit is a part of the group's business restructuring, which began in February last year in strategic move to diversify into recurring-revenue property and non-residential developments, under which Pruksa Holding was established to buy all shares of formerly SET-listed Pruksa Real Estate Plc.

On November 30, Pruksa Real Estate delisted from the Stock Exchange of Thailand and Pruksa Holding was listed on the SET instead.

"We are prepared to spend about 1-2 billion baht annually on the group's new businesses," said Mr Thongma.

Last year, Pruksa Real Estate reported 44.4 billion baht worth in presales, up 4.8%, but its revenue fell 9% to 46 billion baht.

PSH shares closed yesterday on the Stock Exchange of Thailand at 23.80 baht, down 60 satang, in trade worth 278.02 million baht.