Despite missed targets in H1, NC Housing believes it is on track

Real Estate July 16, 2014 00:00

By Somluck Srimalee
The Nation

NC Housing is keeping its residential presales target at Bt3.2 billion and revenue target at Bt1.8 billion for this whole year even though it missed its first-half presales target of Bt1.4 billion by 12.5 per cent.

“We saw demand recover in the second quarter, so we have confidence that our presales and revenues will recover to meet the target,” chief executive officer Somchao Tanterdtham said yesterday.
The company will introduce two low-rise projects worth Bt2.3 billion this month after the launch of two projects in the first half. The new projects have detached houses, townhouses and duplexes. 
One is Baan Fa Greenery Pinklao-Buddha Mondhol Sai 5 worth Bt1.6 billion and the other is Baan Fa Piyarom Rangsit worth Bt700 million. 
The company earned Bt6.22 million on revenue of Bt325.55 million in the first quarter.
The company also targets its net profit margin at about 10 per cent this year thanks to its Bt600-million condominium project in Pattaya, which will be booked as revenue next quarter.
Of the company’s Bt1.3-billion backlog of units already sold and due to be transferred to customers when construction is completed, more than 60 per cent will be booked as revenue this year and the rest next year. 
With the two new projects, the com-pany will have 14 residential projects on the go. Two of them are condo projects in Chiang Mai and Pattaya. 
There is still demand for units costing no more than Bt5 million, but the mortgage-rejection rate in this segment jumped from 15 per cent last year to 20-30 per cent this year after commercial banks tightened up approvals for home loans. 
“We have to help our customers get a mortgage by applying for pre-approval before making a down payment. If the customers’ financial statements cannot pass, the company will suggest that they revise their financial status until they get the approval,” Somchao said.