Mid-sized developer N.C. Housing Plc (NCH) plans to launch five new projects worth a combined 3 billion baht to replace sold-out projects, with a target of 4 billion baht in presales and 2 billion baht in revenue.
Managing director Somnuek Tanthathoedtham said the number and value of new projects this year are both higher than last year, when the company launched only two projects worth a combined 2 billion baht, down from the five projects it initially planned to launch.
"Some of the new projects being launched this year were postponed from last year due to unfavourable conditions in the residential market, with several negative factors carrying over into this year," he said.
Despite these challenges, NCH will launch more projects as demand persists, with hopes that the market will consolidate in the first half of 2025 and gradually recover in the second half.
He added that all of the new projects being launched this year are located on land from the company's existing land bank, requiring no new investment, eliminating concerns about funding.
All projects will also be low-rise houses, which carry less risk as their development will be driven by sales. NCH's debt-to-equity ratio is 0.7 times, and it is less reliant on debentures and project loans, instead utilising funds from housing sales.
Early last month, NCH repaid 300 million baht in matured debentures and has 200 million baht remaining, which will mature in the next few years.
Despite the unfavourable debenture market, the company plans to issue new debentures in the first half of the year to maintain its debenture investor base.
Without a replacement, investors might turn to other options, and the market could lose awareness of the firm.
"Despite the unfavourable market, we have to launch new products, not only to replace those that are nearly sold out but also to stimulate demand from customers seeking new designs and innovations," he said.