Asset Five Group Plc, a residential developer owned by a third-generation member of the Panchasarp family, aims for growth of 30%-50% per year after listing on the Market for Alternative Investment (MAI) in the first quarter.
Because real estate is a highly capital-intensive business, chief executive Supachoke Panchasarp said the company wanted MAI fundraising to expand its residential development with growth of 30% in 2022.
"The residential market this year will improve from 2021 with consistent demand being driven by the easing of loan-to-value limits, a cut of transfer and mortgage fees, and low interest rates -- despite a possible adjustment," he said.
The company will introduce housing units with flexible functions and provision of a work-life balance to tap new-generation buyers.
Most buyers have opted for a self-built home as units in many housing development projects did not meet their requirements.
"We will tap those wanting to have a self-built home or a unit different from others," Mr Supachoke said. "The self-built home market is valued at around 200 million baht per year while the housing development market is valued at 500 billion baht, but the latter is more competitive."
In 2022, the company plans to launch three new projects worth a combined 3.2 billion baht.
One of them will be a luxury single detached house project in the Krungthep Kritha area worth 2.7 billion baht.
Two low-rise houses in Udon Thani will be worth a combined 500 million baht as some of the existing local stock was nearly sold out.
The company is aiming for 1 billion baht in revenue by the end of 2022, comprising 80% from Bangkok and 20% from Udon Thani.
In the first nine months of 2021, Asset Five posted revenue of around 600 million baht.
"We are a small developer with revenue under 1 billion baht. But we have the potential to grow to 3, 5 or 10 billion baht in the future," said Mr Supachoke, a grandson of Chokchai Panchasarp, the developer who started his first housing project in 1953.
After joining the family business in 2005 as a foreman before becoming a manager, Mr Supachoke founded Asset Five in 2013 to strike out on his own.
