NCH aiming for at least B2bn

The listed developer NC Housing Plc (NCH) expects its sales to exceed this year’s target of 1.9 billion baht following projections the housing market will recover in the second half.

Duplex houses priced between 2.2 million and 2.8 million baht each have proved to be popular sinceNC began offering them at three projects on Rarm Intra Road, Rangsit Klong 3 and Pracha Uthit Road two months ago.

Deputy managing director Somnuek Tanthathoedtham said the company was confident the market would pick up in the third quarter after it was sluggish in the second quarter due to political turbulence.

So far this year, NCH has posted around 1 billion baht in sales despite the political crisis in May. It expects to have sales of at least 2 billion baht by the end of the year while revenue realisation would be 1.2 billion baht.

The company plans to raise housing prices by at least 5% after the expiry of property tax incentives at the end of this month. Construction materials like cement should increase as the housing supply could boom in the second half.

“The end of tax incentives has no impact on developers’ investments. Many firms plan to launch more units while others adjust their strategy to handle the situation,” he said.

NCH will expand development of lower-priced units (around 2.5 million baht each) to serve rising demand in the segment.

“Some condo residents live in a unit for three to four years and then want to switch to live in a larger unit like a single house. Our products will tap this demand,” he said.

The company has added duplex houses on lots sized from 38 square wah and priced between 2.2 million and 2.8 million baht each in its three existing projects on Rarm Intra Road, Rangsit Klong 3 and Pracha Uthit Road.

Since introducing the new unit price range two months ago, it has had presales of 50-60 units worth 150 million baht. It expects to have another 100 units worth 300 million baht available by the second half of the year.

Of the 500 to 600 units NCH sells each year, around 100 are duplex houses and the rest are single houses and townhouses. The company wants to double its sales of duplex units to 200 by the end of 2010.

NCH shares closed yesterday on the Stock Exchange of Thailand at 2.18 baht, unchanged, in trade worth 45,000 baht.

SOURCE: Bangkok Post