Thailand developer Quality Houses will use its subsidiaries The Confidence Co and Casa Ville Co to help boost sales to Bt20 billion In 2013, president and chief executive officer Rutt Phanijphand said.
The company also plans to focus on the provinces as well as Bangkok, especially Chiang Rai, where it will develop condominiums targeting both locals and foreigners such as those from Myanmar who will need accommodation in that province after the Asean Economic Community comes into effect in 2015, he said.
"We have about six rai [1 hectare] of land in Chiang Rai that we will develop under the Casa brand for launch in the final quarter of the year," he said.
Meanwhile, the company has suspended a plan to launch a condominium project in Udon Thani after it saw the high competition in that province, he said.
Quality Houses plans to launch 20 residential projects in 2013 worth Bt19 billion. Of these, seven projects including detached houses, townhouses and condominiums worth Bt7.78 billion will be developed by The Confidence Co under the Trust brand, which offers prices of not over Bt7 million per unit, along with seven townhouse projects worth Bt7 billion under the Gusto brand.
Four projects worth about Bt4 billion will be developed by Casa Ville Co under the Casa brand, while two projects will be developed by the parent company, Quality Houses.
Presales this year are forecast at Bt20 billion and revenue at Bt18 billion, up 20% from last year, Rutt said.
The company recorded revenue of Bt14.4 billion and net profit of Bt2.39 billion in 2012.
He added that the company had to use |its subsidiaries to drive its business growth as demand from the middle market showed strong growth as the country's economy |is forecast to grow by 4.5-5% this |year.
The Confidence Co enjoyed revenue of Bt3.5 billion last year, up 360% from 2011.
This means this market segment, with prices not over Bt7 million per unit, has strong demand. As a result, the company's strategy is to use this subsidiary to drive its business growth, he said. The company targets The Confidence Co to generate revenue of Bt5 billion in 2013, up 42% from last year's figure.
Five of The Confidence Co's seven new Trust projects will be in Bangkok, and the other two will be condominiums in Pattaya and Nakhon Pathom.
Meanwhile, Casa Ville Co will develop four projects in three locations: Casa Seaside Rayong, Casa Seaside Cha-am, and Casa Regent and Casa Ville, both in Sri Racha district, Chon Buri province.
Quality Houses set a strategy in 2010 to use subsidiaries to drive the business because it needed to maintain the reputation of its parent company as a developer of luxury homes, while also responding to the growing demand for homes costing less than Bt10 million.