Property Perfect banks on Bt20-bn projects

Chief operating officer Teerachon Manomaiphibul yesterday said most of its revenue from the new projects would be seen in 2009-2010.

"The company's target this year is to maintain revenue at Bt2 billion per quarter on average, increasing to Bt2.5 billion per quarter next year," he said.

Property Perfect expects revenue this year of roughly Bt8 billion, an increase of 30 per cent from Bt6.33 billion in the previous year. In the first half of this year it generated revenue of Bt3.9 billion and net profit of Bt452 million, up 1,657 per cent from Bt26 million in the same period last year.

The main boost to the developer's net profit this year was property-tax privilege, which decreased specific tax from 3 per cent to 0.1 per cent and transfer fees from 2 per cent to 0.01 per cent. As a result the company's net profit margin in the second quarter was 16.03 per cent, up from 1.39 per cent in the same period last year.

Teerachon said that of seven projects worth nearly Bt20 billion to be launched in August and November, Bt7.97 billion would go on four detached-house and town-house projects and the remainder on three condominium projects.

Property Perfect has work worth Bt2.8 billion on hand and expects revenue of at least Bt2.4 billion in the second half.

Teerachon said the company might not raise prices in the second half as construction costs had declined from the first half.