Pruksa Announces 2017 Business Plan, Targeting Sales and Transfers at Over 50,000 Million Bahts with Over 10,000 Million Baht Worth Premium Projects To Be Launched
Mr. Thongma Vijitpongpun, Chairman of Executive Committee and Chief Executive Officer, Pruksa Holding Public Company Limited, announced Pruksa’s business plan for the year of 2017 that “this year, Pruksa aims to achieve 52,900 million Baht in total sales and 50,200 million Baht in transfers, representing approximately 19% and 9% growth from the previous year, respectively. As for this year strategic plan, the Company still emphasizes on developing the residential real estate projects for low to middle income customers (Value Segment), as this market has the potential to grow continuously, as well as striving to increase its market share in the high-end segment in order to reach out to all customer segments. Besides, Pruksa has undergone the organizational restructuring so as to improve the Company’s effectiveness and agility to expand new businesses that can generate recurring revenue. Currently, Pruksa is also exploring new potential business opportunities to ensure the stable and sustainable growth in the future.”
Mr. Prasert Taedullayasatit, CEO, Pruksa Real Estate - Premium, revealed that “the real estate market in Bangkok and its surrounding areas in 2017 is anticipated to increase in value by 5% from the previous year, with the total market value of approximately 379,000 million Baht. This outlook is driven by the government's planned investment in Transport Infrastructure Development projects worth approximately 1,770,000 million baht. This year, the real estate business is expected to encounter huge changes ranging from the business structure, high competitions among various entrepreneurs and the new pattern of project development. The Premium segment is the new target market that Pruksa Real Estate expects to compete for the market share due to the fact that the market value in this segment has steadily been growing every year. At present, the Premium segment contributes to around 22-32% of the overall market. The Company has planned to launch 6 Premium Residential projects, equal to 9,900 million baht in total value, constituting 5 condominium projects, 8,800 million baht worth, and a horizontal property project, 1,100 million baht worth."
Mr. Piya Prayong, CEO, Pruksa Real Estate, addressed that “The Value segment market has currently account for 70-80% of the total residential real estate market value while Pruksa has achieved over 15% of the market share in this segment."
"As for the strategies and action plan, Pruksa has devised 3 approaches to accomplish this year's goal. First, the Company aims to shorten its business cycle time. The current business cycle time which starts from the booking of the customers to the transfer of ownership, takes 49 days for townhouses, 91 days for single-detached houses, 425 days low-rise condominiums and 754 days for high-rise condominiums. Second, the Company is launching 72 new residential projects valued at 60,800 million baht, consisting of 39 townhouse projects, 20 single-detached house projects, 7 condominiums and 6 premium residential projects as well as other 176 active residential projects currently for sale. Third, Pruksa still highlights the ready-to-move-in house strategy in its townhouse and single-detached house projects. With these three strategies, it is certain that the Company can successfully meet this year sales and revenue target.”