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Published on February 2, 2008

It also plans three big residential projects in Chiang Mai.

The company expects to drive its annualised revenue to Bt12 billion, up 13 per cent from Bt10.6 billion last year. While Bt10.5 billion will come from property sales, Bt1.5 billion will come from rents. In 2007, 10 per cent of revenue came from rents, president and CEO Rutt Phanijphand said.

The target has been set though the company plans to maintain its housing prices until the second quarter.

"We'll review the prices and decide if they should be raised in the second quarter. Right now the prices remain the same, as all the houses were completed last year at the old construction costs. Before raising prices we need to know how much construction materials will increase in price. In any case, we're set to maintain our gross margin at nearly 30 per cent," he said.

With confidence in demand, Q House has set aside Bt3.5 billion to buy more land. It plans to launch three more housing projects in Chiang Mai in 2009-2010 worth nearly Bt3 billion after the completion of the three projects.

Aside from property for sale, Q House manages five office buildings in the Bangkok central business district - Q Houses at Phloenchit, Asoke, Sathorn, Lumpini and Convent - and seven serviced apartments: Centre Points at Silom, Phetchaburi, Sukhumvit, Thonglor, Lang Suan, Wireless and Sala Daeng.

Rutt added that the company also plans to change Centre Point Lang Suan, which is now under construction, from serviced apartments to condominiums for sale. The building has 209 units worth up to Bt3 billion for sale at a starting price of Bt180,000 per square metre.

"The location has high potential as a condominium. We can start the sales in 2009 after the construction is complete," he said.

The 11 residential projects that will be launched and generate the company's revenue this year include the first four projects to be developed under the brand Laddarom, offering detached houses at prices from Bt5 million up to Bt45 million per unit. These are at Kaset Nawamin worth Bt1.4 billion, Ratchapreuk-Rama V worth Bt2.3 billion, Ratchapreuk-Rattanathibet worth Bt1.8 billion and Chaipreuk-Chaeng Wattana Road worth Bt2.01 billion.

The next five projects will be detached houses under the brand Casa View, with market prices between Bt3 million and Bt5 million per unit. They will be at Ratchapreuk-Rattanathibet worth Bt1.74 billion, Ratchapreuk-Chaeng Wattana worth Bt2.5 billion, Watcharapol worth Bt1.75 billion, Bang Na-Suvarnabhumi worth Bt1.14 billion, and Rama II worth Bt1.3 billion. The next two projects will be town houses under the brand Casa City, worth between Bt3 million and Bt5 million per unit on Ekamai-Ram-Indra Sukhontawas and Ekamai-Ram-Indra Non Chan.

The last two projects will be condominium projects worth Bt2.5 billion. The first will be developed under the brand Q House Condo Sathorn worth Bt2 billion at Bt80,000 per square metre and the second, Casa Condo Ratchadaphisek-Tha Pra, worth Bt500 million, will be Bt50,000 per square metre. Both projects will be complete and ready for sale in 2009.

Q House is a subsidiary of Land & Houses, which holds 23 per cent. The company announced net profit of Bt758.25 million, or 9.8 per cent of its total revenue of Bt7.68 billion, in the first nine months of last year.

For refinancing and investment, QHouse will issue Bt2 billion in debentures in March and ask for shareholders' approval in May for the issuance of another Bt5 billion.

Somluck Srimalee

 The Nation

CHIANG MAI