The latest real estate developer to enter the high-end market is J.S.P. Property Plc after the company revealed that it is launching a high-end housing complex in 2018, reports local media. The developer is making the move in order to focus on improving its net profit margin..
“Products in the higher-end market can improve net profit margins. We expect to have a net profit margin of at least 10% next year and sustain it from 2019 onward,” says J.S.P. Property Managing Director Pairoj Wattanavarodom to the Bangkok Post.
The company is set to launch a duplex and single detached house development in the upper end segment next year. Duplex units will be priced from THB12.9 million while prices for the houses will start at THB35 million. The development will be located on a 9.5 rai plot of land on Kalapapruek Road. A total of 46 units worth THB700 million are set to be built on the site.
There are also plans in place to launch developments in eastern Bangkok and locations in Thailand’s eastern provinces including King Kaew in Samut Prakan, Bang Pakong in Chachoengsao, and Sri Racha in Chon Buri. J.S.P. Property is already working on a joint venture housing project with Chinese contractor Zhongtian Construction Group in Bang Saray.
The developer hopes the switch to upscale projects allows it to improve net profit margin. That figure came in at 0.9% in the 3rd quarter of this year but it wants to get the margin up above the 10% mark in 2018. The company’s net profit margin this year was impacted by losses at its rental properties. J.S.P. Property has 2 rental spaces: Sampeng 2 on Kalapapruek Road and Miami Bangpu in Muang Samut Prakan. It also has land for sale at its Bangpu site.
“To help improve net profit next year, we plan to sell more land at the Bangpu site, where land prices rose to THB20-25 million per rai from the THB5-6 million we paid years ago,” says J.S.P. Property Chief Financial Officer Sithipon Ratanaporn.
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