Mr.Korn Narongdej, Chief Executive Officer of RML, said "RML is moving forward according to business plan with our focus on financial management to maintain stability and increase efficiency of the company's operations. We continuously organize marketing activities to boost sales. Therefore, our overall sales during the first 9 months of the year (January - September 2023) continued to be doing well. The projects that are currently being sold have received very good feedback from customers both in terms of sales and ownership transfer. 'The Estelle Phrom Phong' is almost 100% sold out, with only 1 unit remaining for sale with quota for foreign customers were full. As for 'Tait Sathorn 12', which has just recently completed construction, it also had good response and sales has already reached 97%, with 40% of the quota for foreign customers were sold. In addition, the company also gained income from rental and service from 'OCC' (One City Centre), the Grade A+ luxury office building that is highest in Thailand. Currently, the building has achieved office and retail space occupancy rates as well as customer interest of approximately 70%.
As of September 30, 2023, RML has a total backlog of 3,081 million baht. And the company will gradually recognize income from ownership transfer of The Estelle Phrom Phong and Tait Sathorn 12 which are expected to reach the target of 5,000 million baht. As for the commercial property portfolio, the OCC is expected to gain continuous rental and service income. When the sky bridge that connects to BTS Ploenchit is completed by the end of this year, it will help bring tenants to rent more space at the building.
According to the business plan from the end of this year until the beginning of 2024, RML plans to pre-launch a new low-rise project located in the Sukhumvit area exclusively for customers with highest purchases from RML database. The starting price for each unit is about 300 million baht. This project is a very special project built in the rarest area offering elegant design with comprehensive and superior home facilities - a reflection of a real leader in the ultra-luxury segment like RML. The company is confident that this project will be in high demand from clients both domestic and international since there are no competitors in the segment.
"For the overall look of real estate market in 2024, I think it is a year that developers continue to face many challenges from increasing household debts and increasing interest rate to inflation rate that is expected to be around 2.6%. However, there are a few positive factors including how the economy tends to grow by 4.4% which is more than expected at 3.8% due to the recovery of the tourism sector and the export sector, not to mention positive momentum from government policy. It is important for real estate developers to be able to adapt quickly and keep up with the situation. Our target customers are the High Net Worth Individual (HNWI) group that has slightly been affected by negative factors but as a developer of ultra luxury projects, RML has always monitored market situation very closely. And we adapt our projects to meet customers' needs that may change and always come up with pricing strategy that is appropriate with the situation. This is how we take part in adding value and promoting sustainable growth for the luxury and ultra-luxury real estate market as well as maintaining good operating result for our company amidst many challenges," concluded Mr. Korn.
Source: Ogilvy Thailand
