MK plans four projects

MK Real Estate Development plans to launch up to four projects with a combined value of Bt2 billion next year, in order to maintain sales growth in case the government does not extend property-tax privileges.

The company this year has introduced only one project, the Bt965-million Chuan Chuen Modus Chaengwattana.

Assistant managing director Chutima Tangmatitham yesterday said that if the government did not extend its tax privileges for the sector for another year, and if the company did not launch more than one new project, its revenue would be similar to that of this year.

MK has launched only one project this year because it has 16 ongoing projects totalling 1,700 units and a combined value of Bt5 billion, which is enough to maintain revenue growth for the year.

Under the government's property-tax privileges, the specific business tax has been decreased from 3 per cent to 0.1 per cent, while transfer fees have declined from 2 per cent to 0.01 per cent. The measures run until March 31 next year.

Chutima said MK had postponed its first condominium project and was now waiting for the right time to invest. To date it has constructed only low-rise projects for detached housing and townhouses.

"Condominium projects generate lower gross profit margins than low-rise projects. MK had a high gross profit margin at 39.8 per cent in the first half of the year, while the industry average was 32.69 per cent, and we want to maintain the margin at between 38 and 40 per cent by the end of the year," she said.

MK expects to generate revenue of Bt2.5 billion this year, an annual increase of 23 per cent from last year's Bt2.03 billion. In the first half, the company brought in revenue of Bt836 million.

It aims to accelerate transfer transactions to book revenue of Bt1.7 million in the current half.