Goldenland has overcome obstacles in the real estate market and continued to show total revenues of Baht 19,000 million while targeting for a sales of Baht 33,000 million for its low rise developments, with plans to launch 19 new projects with a combined value of Baht 25,000 million
In the past year Goldenland continued its sales growth with total revenues of Baht 17,168 million, or an increase of 8.6%. This year it targets to reach total revenues of Baht 19,000 million. It also revealed its business plan for low rise developments, its era of professional management, and its corporate goal of continued growth. It also anticipated that the economic outlook remains stable. Its sales target for the year is set at Baht 33,000 million, with 19 new projects, worth Baht 25,000 million, to be launched. It aims to emphasize on its highlight features, utilizable functions, and innovative designs.
Mr. Saenphin Sukhee, Chief Executive Officer of Golden Land Residence Co., Ltd., a subsidiary company of Goldenland Property Development PLC. disclosed that “In the past year the Company had total revenues of Baht 17,168 million, or an increase of 8.6% from 2018. The main income is derived from the sales of real estate developments of Baht 15,305 million, which accounted for 89% of the total revenues. This year the Company targets to recognize Baht 17,000 million in its revenues from the sales of its residential developments, which will be an 11% increase from the past year. The sales revenues will comprise Baht 8,800 million (52%) from townhomes, Baht 3,000 million (18%) from “Big Home” single detached houses, Baht 3,000 million (17%) from “Neo Home” semi-detached houses, and Baht 2,200 million (13%) from developments in the provincial areas. The Company plans to purchase 17 plots of land worth Baht 8,000 million.
This year the Company views that the general situation may not be supportive as the economic outlook is still sluggish, and there is also the impact of Loan-to-Value (LTV) policy on bank lending to homebuyers who are purchasing their second or third houses, as well as the strict measures on Debt Service Ratio (DSR) - Debt Service Ratio is the ratio that represents the ratio of debt payment to household incomes. This strict measure on DSR makes it harder for homebuyers to obtain their housing finance. Additionally, the household debt levels remain elevated, whereas the Thai baht continues to maintain its strength. The strength of the Thai baht, for example, will make foreign homebuyers delay their purchase decision. Nevertheless, there are other positive factors that may support the current business opportunities such as declining interest rates, stability and decline in construction materials prices, and abundant labor supply.
Ready to launch 19 new projects worth Baht 25,000 million
The Company prepares to launch 19 new projects this year. The first new launch was the Golden Town Chalermprakiat-Suanluang which was launched on 1-2 February 2020, with the sales exceeding its target for which the project was sold out upon launching. The project is worth Baht 500 million.
This year, the 19 new projects, worth Baht 25,000 million, comprise 6 townhome projects worth Baht 11,000 million, 6 “Neo Home” projects worth Baht 8,500 million, 2 provincial projects worth Baht 3,500 million, and 1 “Big Home” single detached house project worth Baht 2,000 million.
Strategy to Overcome Obstacles in the Real Estate Market for 2020
The corporate strategy involves the “Classic Model” that focuses on real demand, representing the customers who actually purchase residential developments for dwelling. The prices for each product are set to suit the purchasing power of their target market groups. The townhome market has product prices of Baht 2-5 million, the “Neo Home” market has product prices of Baht 5-8 million, and the “Big Home” single detached house market has product prices of Baht 8-15 million. Additionally, the construction needs to be properly managed to match the sales and transfer process. The Company intends to reduce its sales and administrative expenses by 3% by selecting materials of which it can control costs or use supplies whose prices tend to reduce such as sanitary ware, and land fill cost etc.
Goldenland’s Product Strategy
Goldenland’s houses have been known as innovative products which are well-accepted by the market. This year the Company is still focusing on the utilization functions of its products, and further emphasizes the design of the houses and the common areas that create the atmosphere of comfortable living.
Town Homes: “Golden Town” is the Company’s all-time leading brand, renowned for its prototype with more special features that offer happiness to dwellers. The Company focuses on expanding these townhome developments into every prime location; the northern zone along the Skytrain Green Line, the eastern and southern zones in the locations where there is a combination of high demand and limited supply of housing. A point of emphasis for this product is the innovative and incomparable townhomes with unique features such as a prayer room, a private home theater room, and an innovative Thai style kitchen known as “Golden Kitchen”. As for specification and designs, the construction materials used for this brand are comparable to those used for constructing a single detached house whereas the designs present luxurious Italian and English housing styles. The extra facilities include a grandiose club house with a fitness gym, and swimming pool in every project.
Neo Homes: The Company’s semi-detached houses are still in great demand with the development concept of “beautiful, complete, worthwhile, and close to the city”. This development targets middle-class to upper-middle-class clientele who are looking for a residential location close to the city, with easy access to transportation, and complete housing functions that are comparable to single detached houses. The market for “Neo Home” is expanding every year. Last year the Company recognized Baht 3,114 million in revenues from its Neo Home” development brand, showing a 92% growth from 2018. The product highlights are:
- More Beautiful: The housing designs are in Italian and English styles with many more new designs for this year.
- More Complete: Its utilization functions are comparable to a single detached house with other special functions offered such as a prayer room, a laundry room with a “laundry glass house” where dwellers can dry their clothes without any worry of rain and dust, an upstairs living room, and a bed room for elderly family members, etc.
- More Worthwhile: This development brand provides complete and luxurious common facilities such as a club house, a garden, a grandiose entrance gate, and a security system. The “Neo Home” project offers the ambiance equivalent to that of a Baht 10-20 million housing unit project.
- Closer to the City: The location of a “Neo Home” project is selected to be close to the city, with easy access to transportation and nearby conveniences. This ensures that all the Goldenland’s “Neo Home” projects are well accepted by the market.
Big Homes: The Company’s single detached houses under the “Big Home” brand are designed to fulfil the wishes of any homebuyer with a “Big Home” concept that offers the luxurious ambiance in a locale close to the city. The “Big Home” consists of bigger sized houses in grandiose European design, with complete functions, optimized space utilization, and superb common facilities. The locations are convenient, close to the city, nearby shopping malls and the expressway. The housing prices are Baht 8-15 million.
Provincial Projects: The Company has created a new phenomenon with homebuyers queuing to make housing reservation on the launching dates of the projects which echo the similar experiences as the launching dates of the Company’s projects in Bangkok. The projects, such as in South Pattaya, were also sold out on the launching dates. The Company continues its strategy to penetrate in the major provincial areas and focus on the city location with full utilization functions, beautiful housing designs whereby each development project has a clear incomparable development concept; for example, the first lake in Chiang Rai, and English style housing with English garden fountain in Ayutthaya, etc. This year the Company plans to launch two more projects in Chiang Mai – Kad Ruamchok which will be townhomes in the location suitable for a condominium project, and in Ang Sila to support the expansion of communities in Chonburi Province. Additionally, the Company plans to expand their marketing coverage to the major cities in the provincial areas such as Khon Kaen, Udon Thani , Puket, and Hat Yai.
Condominiums: The Company plans to expand its condominium project as it perceives that there remains some real demand, particularly for the urban population who work inside the city and would like to avoid the trouble of traffic jams. Another method is to invest in the projects that are ready for sales by taking them over to further develop and sell, so that the Company will be able to immediately recognize the income.
Mr. Saenphin Sukhee views that for a company to create its strong sales amid this year’s marketing turmoil, it requires professional skill and appropriate pricing. Pricing is the key success. If a company correctly prices its products, it has a tendency to be success in its sales. Location, pricing, and products are the key elements. Like a chef, measurement of the ingredients and the recipe are important. Ingredients alone can be found by anybody but to cook a delicious dish requires professional techniques and experiences. Each chef has his own cooking techniques which differ. Similarly, Goldenland has its own development techniques that make its housing incomparable and outstanding.
