Performance among developers in Q1 mixed
Sansiri’s earnings up 20% in first quarter
The first-quarter revenue of major listed developers reflected varying trends, with a decline year-on-year among those targeting the lower-end segment, while those focusing on the middle to upper segments continued to witness growth.
Sansiri Plc reported a consolidated revenue growth of 20% to 10.1 billion baht in the first quarter of 2024 compared with the corresponding period last year, with a net profit of 1.3 billion baht, marking a 17% decline due to extra profit being recorded last year.
“We are growing amid fierce competition and a property market that is gradually rebounding,” said Wichan Wiriyaphusit, Sansiri’s chief financial officer. “We are confident that the property measures will stimulate the market in 2024.”
The key driver of Sansiri’s revenue growth in the first quarter stemmed from residential sales which surged by 32% to 8.9 billion baht, notably fuelled by sales from luxury and super-luxury single detached housing projects.
Single detached houses recorded the most significant level of revenue growth, surging by 113% to 5.1 billion baht, followed by mixed projects of single detached houses and twin houses which grew by 37% to 942 million baht.
Conversely, condo revenue declined by 24% to 2 billion baht. Townhouse revenue dropped by 17% to 793 million baht, with the majority of revenue coming from units priced at 24 million baht and above.
Singha Estate Plc, which focuses on the high-end segment, reported a consolidated revenue of 4 billion baht with a net profit of 104 million baht in the first quarter of 2024, up 21% and 46%
‘‘ We are growing amid fierce competition and a property market that is gradually rebounding. WICHAN WIRIYAPHUSIT Chief financial officer, Sansiri
year-on-year, respectively.
Excluding revenue from land sales within an industrial estate in Ang Thong, which is the company’s new business and surged from 36 million baht to 219 million baht, revenue from residential sales had the largest growth, soaring by 85% to 778 million baht.
The key driver was condo transfers at The Extro Phayathai Rangnam project, with units priced from 7.4 million baht.
Revenue from low-rise houses was generated from transfers of single detached houses priced at 40 million baht and 80 million baht a unit.
However, the largest portion of Singha Estate’s revenue came from its hotel business, amounting to 2.74 billion baht, marking an 8% increase from the same period last year due to the introduction of new types of rooms. This also led to a rise of 24% in the average daily rate.
Ananda Development Plc, which offers properties in a variety of price ranges, recorded a revenue jump of over four times from residential sales, reaching 1.8 billion baht from 417 million baht in the corresponding period last year.
This substantial increase led to its consolidated revenue tripling to 2.1 billion baht from 731 million baht.
The key drivers to revenue growth were condos priced from 6.5 million baht a unit and low-rise houses with unit prices starting from 35 million baht per unit.
Meanwhile, Pruksa Holding Plc reported a 37% decrease in consolidated revenue in the first quarter to 4.17 billion baht. This decline was primarily influenced by a 42% year-on-year drop in revenue from residential sales which fell to 3.4 billion baht.
It reported that the residential sector was still affected by high interest rates, prompting banks to tighten lending policies, particularly for lower-income earners. Consequently, there was a surge of more than 50% in mortgage loan rejections.