The company has called on the incoming prime minister and cabinet to sustain economic stimulus initiatives.
Uten Lohachitpitaks, the group chief executive of Pruksa, expressed concerns about Thailand’s economic situation, citing high household debt, factory closures, and rising unemployment.
Mr. Uten noted that townhouse sales in the first half of the year decreased by 30% compared to the previous year, while sales of single-detached houses increased by 9%.
In light of these challenges, Pruksa has decided to scale back its residential projects for the year, reducing the planned number from 30 projects valued at 29 billion baht. The company has put two townhouse projects on hold and introduced a new premium single-house project priced over 25 million baht per unit, resulting in a total of 29 new projects slated for 2024.
Additionally, Pruksa has lowered its presales revenue forecast from 27 billion baht to 22.4 billion baht, reflecting a decrease in purchasing power.
The company’s strategy has shifted from developing townhouses priced at 2-3 million baht per unit to focusing on those priced at 3-5 million baht, along with single-detached houses ranging from 15-30 million baht, to address the increasing demand for premium properties.
In the first half of the year, Pruksa launched six projects totaling 7.5 billion baht, which included three townhouses and three single-detached houses.
The company reported a revenue of 9.86 billion baht for the first half, representing a 28% decline from the same period last year. This revenue included 8.3 billion baht from residential development and 1 billion baht from its hospital operations, with the remainder coming from other ventures like precast factories and construction.
In the second half, Pruksa plans to launch another 23 projects valued at 19.6 billion baht. Notable developments include a luxury single-house project known as The Palm Thawi Wattana, with units priced at 20-25 million baht, and The Palm Residences Pattanakarn, with units priced at 35-40 million baht.
Mr. Uten confirmed that the company aims to maintain its consolidated revenue target of 28 billion baht for the year 2024, as previously announced.
Currently, Pruksa has a sales backlog of 4.9 billion baht, with an expectation that 65% of this will be transferred within the year, while total inventory amounts to 62.5 billion baht.
The company has maintained a net gearing ratio of 0.39. Mr. Uten expressed optimism that purchasing power will improve in the second half of the year, aided by government budget disbursements and potential interest rate cuts. He emphasized that the new cabinet should persist with vital economic stimulus and projects to enhance local spending power.
