Property firm NC Housing has launched two new residential projects worth a combined Bt900 million, focusing on the middle- to lower-income market in a bid to achieve its pre-sales target of Bt2 billion for the year.

Managing director Somchao Tanterdtham yesterday said the company had had to adjust its two new residential projects from the middle to upper market to the middle to lower market, following a drop in home-buyer purchasing power.

The first new residential project - Baan Pha Rangsit on Rangsit-Klong 7 - will offer town houses priced at only Bt800,000 per unit and detached houses at Bt1.9 million. The second project - Baan Piyarom Rangsit Klong 6 - will offer detached houses at Bt2.6 million, lower than its existing projects priced up to Bt3 million.

"We reviewed our construction costs and decided to save costs by 10 per cent. As a result we can offer our new residential projects at prices 10 per cent lower than our existing projects," Somchao said.

He added that demand for new residential projects had continued to grow, but most home-buyers have reduced their budget for buying new houses as their future earnings are unpredictable in the face of political and economic uncertainty.

Following the market trend, the company revised its residential projects to focus on the middle to lower market. This is to maintain pre-sales growth of 25 per cent to Bt2 billion this year, Somchao said.

The company also expects revenue to reach Bt1.6 billion this year - up 33 per cent from last year.

"We believe our pre-sales and revenue will achieve the target, after our pre-sales reached Bt486 million in the first quarter of the year," he said.

Meanwhile, the company will also run a special promotion campaign - free transfer, mortgage and down-payment fees - when customers sign up to buy at the Home & Condo Expo at Queen Sirikij Convention Centre from May 17-20.

NC Housing expects the campaign will speed up the decisions of home-buyers, after many delayed their purchases when the government announced last month that it might reduce transfer and mortgage fees and special taxes to help the property market.

Somchao said that on hearing this, most home-buyers delayed their decisions to buy and transfer their houses because they were waiting for government action.

"In my opinion, if the government plans to launch the measure to help the property industry, it has to announce it immediately. When the government says it is studying the proposal, it has the psychological effect of making home-buyers delay their decisions and wait for the government, resulting in a negative impact on the property market," he added.

Somluck Srimalee

The Nation