PROPERTY

The listed developer Quality Houses Plc (QH) will launch 23 projects worth 21.4 billion baht in 2012, focusing on middle- and low-end markets, condos and upcountry areas, but holding off on new land plots until the second half.

Suwanna Buddhaprasart, director and senior executive vice-president, said the company spent a large sum on new plots of land over the past two years, with an investment of 5 billion baht in 2011.

The current number of plots, totalling more than 20, should suffice for new housing projects in 2012. QH is awaiting the government’s water management plan before resuming land acquisition.

Like other housing developers, the company will apply protective methods in flood-prone areas, including raising project land and building stronger fences.

“Flooding is an unusual situation,” Mrs Suwanna said. “Our business strategy stays the same. It’s the government’s job to improve water management and protection from future floods so that consumer confidence will improve.”

QH has a positive cash flow of 3 billion baht for buying new plots beginning in the second quarter of 2012, if necessary for business growth.

For 2011 it expects to have 15 billion baht in presales, up from 14 billion baht last year. Fourth-quarter presales were 30% lower than the average of the first three quarters, due to flood impact.

The company had earlier planned to launch four new projects, all single-house and townhouse developments in flooded zones, but postponed them to 2012.

Of the 23 new projects, 12 are single-house projects worth 12.58 billion baht, six are townhouse projects worth 2.91 billion baht, and five are condominium projects worth 5.85 billion baht.

Among the total will be condominiums in Chiang Mai and North Pattaya and two single-house projects in Chon Buri.

Prices will be 3-7 million baht for the middle-end segment and 2-3 million baht or less for the lower-end segment.

The high-end segment will drop to 40% of the total portfolio in 2012.

New condo projects in Bangkok will include Q House Sukhumvit 79, with 484 units worth 1.76 billion baht; Casa Ratchada-Tha Phra 2, with 627 units worth 1.23 billion baht; and Casa Charoen Nakorn, with 720 units worth 1.67 billion baht.

QH shares closed yesterday on the Stock Exchange of Thailand at 1.49 baht, unchanged, in trade worth 12.6 million baht.

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About the author

Writer: Kanana Katharangsiporn
Position: Business Reporter