Property giant Q House plans 20-per-cent revenue boost next year
Quality Houses Plc (Q House) plans to launch at least 30 residential projects worth up to Bt50 billion in 2015 in a bid to boost its revenue by 20 per cent next year.This year, the company revised its revenue target from Bt19.4 billion to over Bt20 billion after its revenue in the first nine months exceeded expectations.The Bt17.04 billion booked resulted in a net profit of Bt2.68 billion, up nine per cent and four per cent respectively on the same period last year, president and chief executive Rutt Phanijphand said.
Rutt spoke yesterday after visiting the company’s condominium projects Q Seaside Hua Hin and The Trust Hua Hin.
He said half the company’s investment budget would come from cash flow after a Bt4 billion or Bt5 billion debenture issuance. The rest would come from loans.
He said an investment budget of up to Bt8 billion would be set aside next year, adding that the company had spent Bt7.5 billion on buying undeveloped land this year.
“We now have undeveloped land for developing residential projects at 27 plots next year and about three plots are in the negotiation phase,” said Quality Houses’ senior executive vice-president Suwanna Buddhaprasart.
She said 18 plots were in Bangkok and the rest in provinces, including Chon Buri and Rayong.
Rutt said the company was interested in launching residential projects in new locations such as Ayutthaya, Phitsanulok and Chachoengsao.
Quality Houses expects revenue from its residential projects in the provinces to account for about 22 per cent of its total revenue next year, up from 15 per cent this year.
“When we expand our investment in the provinces, we will select locations that are close to industrial estates, tourist destinations and education centres,” he said.
“And there would also be demand from locals in eastern Thailand, such as Chon Buri, Rayong and Chachoengsao, that matches our business strategy.”
Rutt said the company was investing aggressively next year because demand was recovering in the last quarter this year, while it was confident the economy would grow at least four per cent in 2015.
This would boost property market growth at least 10 per cent after a 10 per cent drop this year.
Residential prices in 2015 would rise up to five per cent due to the price of land and the price of raw materials used in construction rising, he said.
Credit: The Nation