Mr Leung (left) and Mr Thongchai expect proceeds from the sale of commercial properties to be used for residential development.

SET-listed developer Noble Development Plc looks set to boost sales from Chinese buyers, divest its commercial properties, clear its condo inventory and expand to outer city locations as it aims for 10-12 billion baht in revenue per year during 2019-21.

Chairman and president Thongchai Busrapan said Chinese buyers are on the rise in the Bangkok condo market, with those from second-tier cities eager to purchase.

"Chinese are interested in other locations near mass transit stations rather than only the central business district, as condos in those areas have more opportunities to generate higher capital gains," he said.

In the first quarter of 2019, Noble recorded 1.5 billion baht in sales from overseas buyers, of which the Chinese accounted for two-thirds. It aims to have 4 billion baht in overseas sales by the end of the year, up from 2.5 billion in 2018.

Frank Leung, vice-chairman and co-chief executive, said Chinese buyers increased last year as Noble's key foreign market shifted from Hong Kong and Singapore to China, which accounted for 60-70% of total overseas sales.

Noble will sell condo units to Chinese buyers via its strong network at Fulcrum Global Capital, a Hong Kong-based investment firm owned by Mr Leung, which has 400 distributors and more than 6,000 agents in China.

"Sales from Chinese buyers are just the tip of the iceberg. There will be many snowballs following," said Mr Thongchai, who on Thursday outlined the new strategies after taking office three days ago.

Mr Thongchai is Noble's second largest shareholder with a 23.3% stake. He returned to the developer after resigning as managing director in October 2012. He had been with Noble since his fourth year at Chulalongkorn University in 1991.

Through a joint venture with the Liptapanlop family, he founded Proud Residence Co in 2013 to develop luxury condo project Park 24 on Sukhumvit Soi 24, where Fulcrum bought around 500 units worth over 4 billion baht.

Proud Residence was acquired by SET-listed developer Origin Property Plc in 2017.

Mr Thongchai said Noble will sell all commercial properties on hand at four projects worth a combined 3 billion baht and will solely focus on residential development.

"There are many long-term investors eager to buy commercial properties, which can generate a yield of 5-7% per year," he said. "It does not make sense for us to hold those properties and rental income is not worth the investment."

Mr Thongchai said the company can generate a profit of 25-30% per year if it uses proceeds from the sale of commercial properties to invest in residential development.

This year Noble plans to launch 4-5 new condo projects worth a combined 15 billion baht. Two of them will be on Wireless Road and Soi Thong Lor for the luxury segment.

The Thong Lor site will be on a three-rai plot near Soi 18. Noble bought the plot from liquor tycoon Charoen Sirivadhanabhakdi.

Noble has a plot on Srinakarin Road to develop a condo project next year. It also has 60 rai on Ekamai-Ramintra Road to launch low-rise houses worth 7 billion baht in 2020.

It has a sales backlog of 17 billion baht, of which 3.5 billion should be realised this year. Noble has remaining units worth a combined 17 billion baht on hand.

Of the amount, completed condo units at six projects ready to transfer represent 6.4 billion baht. The largest amount was at Noble Ploenchit, with 283 units worth 4.2 billion baht.