SET-listed contractor Pre-Built resumed the property development business this year with the launch of four new low-rise housing projects worth a combined 3 billion baht.
Managing director Wirot Charoentra said all of the projects are single detached houses and townhouses in outer Bangkok as demand there remains healthy.
“We have two plots of land for condo development, but we need to wait until the existing condo supply is absorbed, most likely within 1-2 years,” he said.
Those projects were planned in 2018 as an eight-storey condo worth 800 million baht and a high-rise condo worth 2 billion, located on Sukhumvit sois 26 and 24. Both received approval on environmental impact assessment reports and construction permits, but were held back due to a condo oversupply.
Last year the company shifted to low-rise housing development with the soft launch of Pannana single detached house project worth 1.25 billion baht in the Phutthamonthon Sai 3 area. It recorded 500 million baht in presales and expected to close sales by this year.
It was the company’s first property development project since it divested the development subsidiary Builtland in 2017 and set up a new one called Is Am Are in the same year with registered capital of 300 million baht.
Is Am Are was renamed Pre-Built Development in January 2021 to emphasise the Pre-Built brand, said Mr Wirot.
He said the company expects to invest around 1-2 billion baht per year in property development by launching 3-4 annual projects as property development generates a higher net margin than construction business, 12% against 5-6%.
Mr Wirot said the company was recently awarded a construction contract for the condo project Whizdom The Forestias in the Bang Na area with a construction value of 2 billion baht.
It also secured the construction of an officer tower in One Bangkok on Wireless Road worth 2 billion baht.
Pre-Built expects 4.5 billion baht in revenue from construction this year, up from 3.9 billion last year.
Revenue from precast materials is projected to rise 13% to 400-500 million baht this year, while that from property development business will grow to 772 million from 128 million in 2020, he said.