"NOBLE" Showed 7M'22 Pre-Sales Performance breaking the Records of THB 12,540 million as Real Estate Sector Recovers. Confident the revenue of this year will grow from 5 new completed projects with backlog over THB 21,000 million
Noble Development Public Company Limited ("NOBLE") shows the first 7-months pre-sales making a new record-high reaching THB 12,540 million, with backlog surging to THB 21,000 million in line with the recovery of real estate sector. NOBLE is confident the revenue of this year will grow from 5 new completed projects with backlog over THB 21,000 million which more than THB 6,000 million will be recognized in 2022. Meanwhile, NOBLE plans to launch "Noble Curve" a townhome project worth more than THB 3,800 million in Ekamai - Ramindra Road, targeting medium to high-end customers.
Mr. Thongchai Busrapan, First Vice Chairman and Co-Chief Executive Officer of Noble Development Plc ("NOBLE"), a leading residential developer in prime locations of Greater Bangkok, revealed that the overall real estate market has shown a clear sign of recovery as the COVID-19 situation has much improved. This has reactivated both the market sentiment and consumers' purchasing power, resulting in continuous growth in property market. This reflects to NOBLE's pre-sales in the first 7-month of 2022, which were able to generate sales of THB 12,540 million, an increase of 173% YoY. This made a new growth record by quarter for NOBLE and more importantly, it is higher than full year pre-sales of 2021 at THB 8,035 million.
The pre-sales in the first 7-month of 2022 is divided into sales from high-rise condominium projects of THB 10,062 million, and sales from housing and low-rise condominium projects of THB 2,478 million. Also, the pre-sales is categorized into sales from inventory of THB 1,286 million, and new projects and under construction projects of THB 11,254 million. This year, the company has already launched 9 new projects with a total project value of THB 23,100 million. All these projects have gained good feedback from customers with average pre-sales of more than 50%. Besides, there are also existing projects that can generate pre-sales continuously such as Noble BE19, Noble Gable Watcharapol, Nue Connex House Don Mueang, and Noble Around 33.
Furthermore, the pre-sales has resulted in growth of NOBLE's backlog exceeding THB 21,000 million. The backlog will be gradually realized as revenue in the remainder of this year and the next two to three years which more than THB 6,000 million will be recognized in 2022. Thus, the company believes the growth in 2022 revenue will be higher than 2021 and 2023 revenue is anticipated to reach THB 15,000 million. Hence, with record-high backlog, this will help sustain the revenue, thereby, resulting in the company's capability to achieve targeted as planned and build investors' confidence in the long term.
As for the overall performance in the first half of 2022 (January - June), the company recorded a total revenue of THB 2,540 million, or decreased by 48% YoY, and net loss THB 21 million, or decreased by 103% YoY. For 2Q'22, the company recorded a total revenue of THB 1,043 million and net loss THB 14 million. The decrease was mainly from no new completed projects compared with the number of new completed projects in the same period last year. In the first half of 2022, the company recognized revenue from Noble BE19 Sukhumvit, Nue Changwattana, Nue Connex House Don Mueang, and Noble Gable Watcharapol. All the four projects are existing projects that have been transferred continually since the end of 2021.
Mr. Thongchai said that during the second half of 2022 (July-December), the operations will be improved continuously as a result of continuous delivery of new projects that are scheduled to complete, such as Noble State 39, Nue Ngamwongwan, Nue Srinakarin-Lasalle, Noble Around Ari, and the Nue Noble Center Bangna. There are also housing projects that are ready for transfer and ready for sale, such as Nue Connex House Don Mueang, Noble Curve, Noble Curate, and Noble Cove North-Ratchaphruek. At the same time, the company plans to launch new projects continuously, beginning with "Noble Curve" a new townhome with concept of "Urban Home" in the heart of the Ekamai-Ramindra Road, with prices ranging between THB 12-30 million per unit. The total project value worth more than THB 3,800 million and will be launched this coming August.
"Due to improving COVID-19 situation, the easing measures, and favorable economic activities, these have resulted in the continuous recovery of the real estate market. This can be seen from the positive feedback in the company's various projects. Furthermore, the re-opening of the country to welcome foreigner tourists who will improve the sentiment of local people to help restore the economy and generate income. In addition, it is also an opportunity to increase more foreign purchasing power especially Chinese customers with frequent inquiries. This also includes customers from other countries such as Singapore, Myanmar, and Europe, who are increasingly demanding to invest in Thai real estate. These are the markets that help drive the demand while China has not fully opened the country."