Bangkok: Pruksa Holding Public Company Limited is advocating for the relaxation of Loan-to-Value (LTV) measures for an additional 2-3 years, extending this benefit to second and third homes. The company is preparing to submit a proposal to the Treasury by the end of March, with the backing of seven real estate associations.
According to Thai News Agency, Pruksa's Acting Group Chief Executive Officer, Mr. Thongma Vijitpongpun, has laid out a comprehensive business plan targeting a revenue of 23,500 million baht by 2025. The company aims to strengthen its position in the real estate and healthcare sectors by focusing on the middle to high-end housing market and expanding its precast and construction businesses. Pruksa also plans to establish itself as a leader in wellness residences by integrating healthcare services into its housing projects.
Mr. Thongma noted that the current economic situation poses challenges, particularly due to the high bank loan rejection rates. He emphasized that relaxing LTV measures would be more effective than interest rate cuts in stimulating the real estate sector, as these measures would allow for 100% loans plus an additional 10%, relaxing living conditions for homebuyers. He also touched upon potential amendments to the Property Rights Act and the increase in the foreign ownership quota for condominiums as positive developments for the real estate industry.
Pruksa's 2024 performance included a total revenue of 21 billion baht and a net profit of 456 million baht, maintaining a strong financial position with a low net gearing ratio. The company plans to adopt a dual strategy in 2025: a defensive approach focusing on efficient asset management and a proactive growth strategy by redefining residential designs aligned with healthcare standards. Pruksa also intends to launch 22 new projects worth 23.4 billion baht, focusing on wellness residences and premium brands like The Palm and The Reserve.
The precast and construction segment is set to expand, with Pruksa's factory being the largest green facility in Thailand. The company targets 2.1 billion baht in revenue from the precast business and 5.4 billion baht from construction, catering to both B2B and B2C markets.
In healthcare, Vimut Hospital, part of Pruksa's healthcare arm, aims for 2.6 billion baht in revenue by 2025. Plans include developing medical excellence centers and opening three specialized hospitals in prime Bangkok locations.
The strategic initiatives and growth targets outlined by Pruksa reflect its commitment to adapting to market demands and enhancing its service offerings in both real estate and healthcare sectors.