Supalai sales increase 30%

The listed developer Supalai Plc benefited from rising consumer confidence with housing sales of 1.55 billion baht in January and February, up 30% from the same period last year, according to deputy managing director Atip Bijanonda.

''Our increase in sales during the first two months was in the same direction as other developers as consumer confidence recovered,'' he said.

The company also generated 100 million baht in sales from the House & Condo Fair held last weekend. As a result, its total sales in the first quarter would be higher than its target, he said.

Most sales were from the company's existing developments and some from housing projects launched in Phuket property late last year. As of the end of February, its projects with take-up rates of less than half included townhouses in Wong Sawang, Rarm Intra phase 2, single houses on the Outer Ring Road, and a condominium on Charan Sanitwong Road near the Rama VII bridge.

Supalai plans to spend three billion baht to acquire new land for future development. This year it would launch 12 projects worth a combined 10 billion baht. Of the eight developments for which the company already has land, four are in Greater Bangkok and four in Phuket.

In the second quarter of the year, it would launch the City Home low-priced condominium worth 1.8 billion baht in the Rattanathibet area on a 13-rai site with unit prices starting at 1.1 million baht.

The largest Thailand property project would be a detached-housing estate in Pathum Thani on a 154-rai site with more than 1,000 units priced between two million and three million baht. It would also develop 57 rai in Prakasa in Samut Prakan with more than 200 houses priced between 2.5 million and three million baht.

Of the total sales, 73% came from condominiums, 20% from single houses and 7% from townhouses. It forecasts generating 55% of sales from condominiums, 31% from single houses and 14% from townhouses in 2008.

Supalai has 20 ongoing projects worth 15 billion baht, containing condominiums worth 8.29 billion baht, single houses worth 4.91 billion and townhouses worth 2.19 billion baht.

As at the end of 2007, the company had a sales reserve of about 12 billion baht, with 3 billion to be realized in 2008, 4.4 billion in 2009 and 4.5 billion in 2010. Its debt-to-equity ratio stood at 1.2 times, up from 0.9 times in 2006.

Supalai last year had incorporated revenue of 5.08 billion baht, up by 8% from 2006. Revenue from housing sales was 4.9 billion baht with a gross margin of 40%, down from 42% in 2006.

Net profit was 854 million baht, down 3% with a net margin of 17% down from 19% in 2006 as sentiment last year was not fortunate, Mr. Atip said.