SET-listed developer Golden Land Property Development Plc (GOLD) plans to launch 34 new projects worth a combined 39.6 billion baht in Bangkok and provinces next year, aiming for growth of 34% in presales to 26.6 billion baht.
Saenphin Sukhee, managing director of the residential group, said the new projects will comprise 20 townhouse sites, eight duplex house projects, four single-house projects and one project each in Ayutthaya and Chiang Rai.
"The total number and sales value for the new projects being launched next year will double from this year because 2017 results beat their target," he said.
This year the company launched 14 projects worth a combined 15 billion baht and tallied 16.6 billion baht in presales for the first nine months, higher than the figure for all of 2016 at 14.5 billion.
It wants to have 20 billion baht in presales in 2017 and 12 billion in revenue, up from 14.5 billion and 11.1 billion, respectively, in 2016. Revenue in 2018 is projected to rise to 16.1 billion baht.
"We increased the land investment budget for 2018 to 13.2 billion baht from 8.13 billion this year as the company targets high growth in residential development the next few years," said Mr Saenphin.
The plot size of the new projects are at least 50 rai as large plots are better investments than small ones, he said. Unit prices will range from 1.5 to 40 million baht, said Mr Saenphin.
Three of the projects next year are slated to be quite large, on plots sized around 200 rai. They are at Nawamin Soi 42, on Kalpapruek Road and on Phetkasem Road in Bang Khae.
In the provinces, Golden Land will develop single houses, townhouses and duplexes with units priced between 1.5-3 million baht aimed at Muang districts to soak up real demand from salarypeople.
"This year we launched our first provincial project in Sri Racha, Chon Buri, as we saw opportunities in the government's Eastern Economic Corridor initiatives," he said.
Mr Saenphin said the mortgage rejection rate for banks this year was down slightly at 30%, but Golden Land will continue to focus on increasing sales.
"We don't think the mortgage rejection rate for our customers will decline next year," he said. "We will continue selling as many units as possible and will not pre-screen customers before allowing them to book a unit.
"If we applied pre-screening, we might lose some customers who were reluctant to buy a house because they were unsure of their ability to secure a loan. These folks may actually be able to borrow."
GOLD shares closed yesterday on the SET at 8.20 baht, down five satang, in trade worth 13.5 million baht.
