‘Prueksa’ builds health port to deal with political risk factors in the second half of the year

Q : How do you see the trend in the second half of the year?

In the second half of 2023, the view should be better than the first half of the year. Accept that politics is at risk Because I don't know how to come out Weighting risk factors If the indicators are 100%, concerns about political factors are 40% risky.

Pruksa Real Estate's management is actually not investing progressively. Currently, the company's risk management policy focuses on the conceptual investment style.

Latest update, the stock used to be 20 billion baht, left 10 billion, mostly 70% condominiums, the other 30% are low-rise houses.

Which this level of stock normally takes 4-5 months to drain. I think it is enough to clear to finish in 2023 because the average transfer can already cover ten billion.

This year, Pruksa set up a budget to buy 16-20 plots of land. The project value is 20,000-30,000 million baht for 2 years of project development. If you can buy it all because every plot is not easy to buy.

Q : Investment strategy

The company adjusts the investment portfolio, focusing on penetrating the middle-upper market more. Put the health as well. Therefore, financially, we are very strong now. Currently, the company's stock has a large middle-lower market portfolio. The main group is products that cost 3-5 million baht. New investment products Want to switch the pole from the middle-bot

Mainly focusing on low-rise houses rather than condos. Focus on the price is 10-50 million baht, but we will not make a hundred million houses. The main group is the price of 10-20 million baht through the Ban Passorn brand and The Palm.

The reason is because in the past, customers who earn less than 30,000 baht have quite a problem with applying for a home loan. Especially if the price is less than 2 million, quite severe problems The loan amount does not pass higher than 50%, while 2-3 million baht, the problem may be less. But the loan rejection is still high as well

In terms of financial costs, it's very low. Now D/E (debt to equity) is only 0.4 and we borrow very little. My condo is now fully built. Waiting to return as a cash only.

We control the launch of new projects. As for the condo, it doesn't open a lot. On average, 4-5 projects are left per year. Most of them are low buildings. Because there are 2 advantages 1. Demand in this era The demand for condominiums is not so much that you have to make a 20-30-storey high-rise building to sell with 2. The business model of the low-rise condo is 8 floors high. It is similar to making a low-rise house. Rotate quickly Buying land can be cleared in 2 years, similar to a low-rise house.

Average low-rise condo, area 10,000 square meters, 200-300 rooms, enter the investment mode as a safe zone. Investment is not very risky.

Q : Does the energy cost put pressure on it?

The cost of project development is a hidden energy cost in the form of materials and construction costs that come up to an average of 5-7% overall. Pruksa has adjusted the port. Want to make the project development port healthier and healthier From the original, most of them sell cheap things turned to sell expensive things. Therefore, at this point, it possible to put the cost of diversifying into the

Because even if you really can't do the same segment, there are 2 problems with mid-lower market products. 1. The cost increases, but 2. The purchasing power is not very good, so the company has to leave it out, when adjusting the segment makes it easier for us to breathe.

In addition, there is also a campaign policy of 450 baht. This is very pressured. I think it causes Thailand to have problems. If adjusting immediately, the people who benefit a lot are neighboring countries, Myanmar, Cambodia, Laos.

As for the investor sector, he thinks he will move the factory, move the investment away from us a lot. In fact, we see many industries that have moved away. Clearly, such as Rangsit Zone, which is a production base for export. Residential market in Rangsit zone today The lower market segment has a lot of purchasing power. The middle purchasing power is still enough. It means that

Q : Is there an investment plan review in the second half of the year?

Regarding the review of the plan, there is no because we didn't invest as much as before. Recently, in 2023, we planned 23 new investment projects. Most of us adjusted the detached house investment plan for 10 million baht, which is a segment that even though the economy fluctuates. Or how does it affect the cost of project development This group of customers can still

At present, the development of the project is not very large. Originally launched 50-60 new projects, the project value used to go up to 50,000-60,000 million baht per year, but did not focus, so it spread too much. Like we opened a lot of 7-Eleven convenience stores Some branches do not work.

Now focus on launching a new project. And turned to focus on clearing the existing port And new things, we don't want to do the bottom market anymore because the project is opened and there are a lot of problems. When adjusting the port takes a long time Which I have done this for 3-4 years Old stock has been cleared a lot. Like jogging until the body Corporate health

In the second half of the year, what we did. First, turn to focus on the middle-upper segment. The development of the project has put the story of health. Put the lifestyle that we have My House. The model is the development of housing projects. We synergy with affiliated businesses such as My House that are smart home. Another story is Sustainable Solar Home that is our

In Pruksa House, there will be a house design for the elderly, no step, universal design, solar, energy saving house, home automation, try to do these because we originally caught the low-end segment market. These costs can't bear it.

At the same time, the provincial market has adjusted the weight as well. By focusing on investing in the EEC zone as the old part, the existing stock is gone. Which actually the provincial market has begun to come back a little better

Customer financial strategy Our own finance

Now we add Valu for customers Move the customer segment higher Add health to the home function The original lower market group is cleared.

Q : The first 3 things I want the new government to do.

First, I want the new government to promote investment, not give away money, but to stimulate private investment. The focus is that SME entrepreneurs must live as well. Now there is a problem with credit access. Must have special options Because otherwise, the bigger companies run The gap is even more apart. But if the new government makes SMEs better The business will be good as well.

The second story wants the government to do for foreign customers to invest. Come to shop in Thailand Which in the real estate sector already knows Want the new government to promote and stimulate foreign customer purchasing power

And the 3rd story would like to review the campaign policy, the minimum wage is 450 baht because how can we go 2-3 times better than our neighbors? If it is raised, it will be close to Singapore. While the skillful skills are different

Category: News
Tags: property