SET-listed developer AssetWise achieved a record revenue in the second quarter, driven by strong performances from its campus condo and Phuket projects, with expectations to sustain this momentum in the second half of the year.
Chief Executive Kromchet Vipanpong announced that the company recorded revenue of 2.88 billion baht in the second quarter, representing a remarkable year-on-year growth of 127% and raising first-half revenue to 4.6 billion baht, a 54% increase compared to the previous year.
The major contributor to this growth was the Kave Town Island condo project, located near Bangkok University’s Rangsit campus, which alone generated 1.1 billion baht in revenue during the second quarter.
Kromchet highlighted that campus condos benefit from a low mortgage rejection rate from banks, at below 20%, since most buyers are investors looking to quickly rent out their units. In contrast, other condo projects face rejection rates of up to 50%.
In the first half of the year, presales reached 10.7 billion baht, which is a 35% increase from the previous year, achieving 60% of the annual target of 17.8 billion baht. Notably, two newly launched condo projects in Phuket, valued at a combined 10 billion baht, accounted for 46% of the total presales in the first half.
The company currently has four condo projects in Phuket, collectively valued at 16 billion baht, with an average of 50% sold, and expects to record this revenue between 2024 and 2026, primarily from buyers in Russia.
AssetWise plans to introduce at least three new condo projects in Phuket in the fourth quarter of 2024 and the first quarter of 2025. Additionally, six new projects worth a total of 12 billion baht are slated for launch in the second half of the year. The largest among these will be Aquarous Jomtien Pattaya, a luxury condo project valued at 4.5 billion baht, marking the company’s first entry into Pattaya, with a target market of Russians, Europeans, and Chinese buyers.
Furthermore, the company intends to offer a leasehold purchase option on the foreign quota exceeding 49%, similar to options provided for its Phuket projects.
“International buyers not only enhance our revenue and presales during periods of weak domestic demand but also improve our financial standing,” stated Mr. Kromchet. “Our cash flow has strengthened, and our interest-bearing debt has decreased, thanks to significant advance deposits from foreign buyers. Payment terms are structured with 25% due at booking, upon the completion of the first floor, at the progress of interior decoration, and the remaining balance upon transfer.”
