“We showed strong growth in our revenue and net profit thanks to our portfolio, which covers all market segments, especially low-rise residences such as single family homes and townhouses that still enjoy strong growth compared with condominiums,” Thongma Vijitphongpun, president and CEO of Pruksa Real Estate, said yesterday.

Revenue at Pruksa was up 10.2 per cent to Bt43.02 billion and net profit up 14.6 per cent to Bt6.65 billion.

Land Houses recorded gains of 24.1 per cent in revenue to Bt31.93 billion and 44.7 per cent in net profit to Bt9.52 billion.

Quality Houses increased revenue by 6.9 per cent to Bt21.37 billion and net profit by 0.6 per cent to t3.32 billion.

Thongma said 80 per cent of Pruksa’s revenue was from low-rise residences.

Listed property firms focusing on condominium projects priced lower than Bt3 million per unit saw their financial results dip last year when demand dropped and banks became stricter on home loan approvals.

LPN Development, which is exclusively into condos going for lower than Bt2 million per unit, faced declines of 13.4 per cent in revenue to Bt11.78 billion and 20.5 per cent in net profit to Bt1.82 million.

The company had to delay launches amid the country’s political uncertainty. The rejection rate for its customers also rose from 10 per cent in 2013 to 15 per cent in 2014.

Noble Development suffered steep falls of 26.6 per cent in revenue to Bt2.2 billion and 50 per cent in net profit to Bt163 million because most of its condo projects were under construction and could not generate revenue.

Net profit margins up to 15 per cent

However, most listed property firms continued to maintain net profit margins in two digits – 12-20 per cent – thanks to their success in controlling construction, administration and marketing expenses.

Land and Houses’ net profit margin of 29.8 per cent – the envy of the industry – reflected an extraordinary gain of Bt1.5 billion from the sale of its right in the Terminal 21 shopping centre to LH Shopping Centres Leasehold Real Estate Investment Trust.

Pruksa propped up its net profit margin at 15.5 per cent by prudent management of its financial and marketing costs.

LPN Development, which reported lower revenue and net profit, turned in a net profit margin of 15.4 per cent by keeping its construction and marketing costs within budget.

Target growth

All listed property firms have set revenue and net profit growth at over 10 per cent this year in anticipation of a better economy and revived demand for residences.

Pruksa’s guideline for 2015 revenue is Bt47 billion this year, up 10 per cent from last year.

Land and Houses and Sansiri also estimate revenue growth in the double digits this year.

LPN Development is banking on revenue improving at least 10 per cent this year.

“We’re confident our revenue this year will better than last year thanks to the recovery of market demand following economic growth for 3.5-4 per cent this year,” Naporn Sunthornchitcharoen, president of Land and Houses, told a press conference last month.

Most leading firms look for the property market to spurt by 5-10 per cent this year as the economy sprints ahead and purchasing power returns after most consumers delayed their decision to buy a home last year.