Low-rise houses have helped presales growth at two SET-listed property developers -- AP (Thailand) and Sansiri Plc -- leading the former to revise the number of its new low-rise housing project launches this year.
AP chief executive, Anuphong Assavabhokhin, said the developer would launch 43 residential projects this year, worth a combined 64.75 billion baht, a new company record.
This is up from 34 projects, worth a total of 49 billion baht, announced earlier this year. The additional nine comprise four townhouse projects, four single detached house projects and one condo site.
"We revised our plan because the property market is booming," he said. "Market growth is driven by several positive factors including strong purchasing power and an uptick in the low-rise housing segment."
As its performance in the first quarter was better than expected, AP anticipated presales and revenue this year would outperform the target.
In the first quarter, AP recorded a net profit of more than 800 million baht on revenue of 6.53 billion baht, up 47% from 549 million baht and 27% from 5.12 billion baht respectively in the same period last year.
In the first quarter of 2018, the company recorded 10 billion baht in presales, representing 170% growth on the same period last year. Presales of low-rise homes grew by 64% to 5.2 billion baht and those of condominiums grew seven-fold to 4.8 million baht.
As of April 30, AP recorded 12.29 billion baht in presales which accounted for 37% of the target. By the end of the year, AP aims to have 33.5 billion baht in presales, compared with 43 billion baht last year.
AP expects 28.1 billion baht in revenue by the end of the year.
Elsewhere, another SET-listed developer, Sansiri Plc, reported growth of 82% in presales for single detached houses.
Single detached houses contributed 3.6 billion baht for the quarter, making for 90% of Sansiri's total presales worth 4 billion baht.
"This segment had strong purchasing power due to the improving economy," Wanchak Buranasiri, Sansiri Plc's chief financial office said.
Sansiri posted a net profit of 251.99 million baht, a 50.7% fall from 511.15 million baht in the first quarter last year.
Total revenue in the first quarter of this year amounted to 5.27 billion baht, down 26% from 7.12 billion baht in the first quarter of 2017. A decrease in total revenue was caused by a 29% decrease in revenue from project sales.
AP shares closed yesterday at 8.85 baht, up 35 satang, in trade worth 198.40 million baht, while SIRI's share prices closed at 1.69 baht, down three satang, in trade worth 86.61 million baht.