Crisis dents Property Perfect's revenue goal

Chief executive officer Chainid Ngowsirimanee yesterday said revenue is, in fact, now expected to come in at about the same level as last year, at Bt8 billion. The developer generated Bt6.2 billion during the first nine months.

He said the flooding had caused people to delay their plans to buy a new home. As a result, although consumer spending power is expected to return early next year, the company will also have to review its 2012 revenue target.

For the current quarter, Property Perfect has lowered its presales value to Bt3 billion from the previous estimate of Bt4.5 billion, due to the flooding.

However, it still expects to meet the full-year presales target of Bt11 billion, of which Bt9.5 billion was achieved in the first 11 months and another Bt1.5 billion is expected in December. Condominium projects will be the main contributor next month, he said.

Next year, the company will introduce about 10 real-estate projects, five of them worth a combined Bt6 billion being projects originally scheduled for launch this quarter, but which were delayed due to the floods.

Chainid said that following the current crisis, the company would focus more on condominium projects than detached housing or townhouses, as potential buyers were now more interested in higher-rise properties.

Next year, the sales proportion of condominium projects is expected to rise to 50 per cent of overall sales, up from 30 per cent this year, with the ratio for other types of home falling accordingly.

Property Perfect will also focus on launching projects in new locations such as Chiang Mai, as well as in Nonthaburi and Samut Prakan, which will eventually be serviced by mass-transit systems.

The company intends to launch more than 10 projects each year to add to its current 27 projects, he added.

The company has also reduced its budget for land purchase this year and next to Bt2.5 billion a year, in order to allocate more funds for creating a flood-prevention system for its new projects, which would boost customer confidence in its estates.