Villa Kunlaya Public Company Limited <\/span>“<\/strong>KUN” achieved sales of 640 million baht in the first 5 months, growing 16% (YOY), accounting for over 38% of the annual target of 1.7 billion baht.<\/span> The company noted that COVID-19 has changed the mindset of home buying and lifestyle behaviors, leading to a new normal. Additionally, government measures have supported the continuous growth of the real estate business. They believe that the second half of the year presents opportunities for recovery, with plans to launch the "Kunlaya Navara" single-house project in the southern region valued at 3.5 billion baht, confident that this year's performance will meet targets.<\/p>

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Ms. Prawirat Tevaakson, CEO of Villa Kunlaya Public Company Limited ("<\/strong>KUN”<\/strong> <\/span>the developer of horizontal real estate projects in suburban areas, revealed that the company has developed projects under the concept of "Kunlaya: Creating Spaces, Creating Happiness," incorporating various innovations into the development of housing projects that focus on enhancing the happiness of living in a new normal lifestyle. This includes increasing privacy for all family members to prepare for various changing situations while enjoying a comfortable atmosphere that promotes better health around the clock. The projects also emphasize energy efficiency using various materials and clean energy, such as solar rooftops, contributing to the company's success.

In terms of sales (Presale), during the first 5 months of 2022 (January-May), the company achieved cumulative sales of 640 million baht, growing approximately 16% compared to the same period last year, which was 550 million baht (YoY), accounting for 37.6% of the target set for 2022 at 1.7 billion baht.<\/strong><\/span>

            The main reason for this growth is the COVID-19 pandemic, which has significantly changed the mindset regarding home buying and lifestyle behaviors, leading to a new way of utilizing home space, such as working from home and increased online commerce, prompting customers to continuously seek horizontal housing. Additionally, government support measures, including the extension of reduced transfer and mortgage fees for properties priced below 3 million baht to 0.01%, and the Bank of Thailand's relaxation of housing loan regulations (LTV measures), allowing a loan-to-value ratio of 100% until December 31, 2022, have increased customers' opportunities to apply for loans.

Moreover, with rising inflation and increased construction material costs, home prices are expected to rise in the second half of the year, prompting customers looking for housing to make decisions before prices increase. Earlier this year, the company launched the Grand Opening of the Kunlaya Park project, featuring 96 single houses starting at 4.89 million baht, which is the first modern Italian-style single house in the Bang Bua Thong area. The project's main concept is to accommodate families of various generations living together in one house. Currently, over 15% of the units have been sold, and the company believes this project will drive future sales as it meets the needs of residents comprehensively.

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Ms. Prawirat Tevaakson, CEO of KUN, also discussed the overall real estate market outlook for the second half of the year, stating that the real estate market is expected to recover positively as the COVID-19 situation improves. The reopening of the country and the resumption of economic activities are factors that instill confidence that the positive direction will drive KUN's sales and revenue to meet the growth targets set by the company, which is expected to expand by 10-15% from last year's revenue of 1 billion baht. In the second half of the year, the company plans to launch the Kunlaya Navara project valued at approximately 3.5 billion baht, located in the southern region along Rama 2 Road, featuring single houses.

  “The reopening of the country in the second half of the year will benefit the tourism sector, including hotels, airlines, hospitals treating foreign patients, restaurants, and other related businesses. This will increase the income of workers in the tourism sector, positively impacting the overall economy of the country. The recovery of the tourism sector will gradually revive high-rise real estate businesses, such as condominiums, while horizontal real estate will also benefit from increased employment in tourism, leading to a rise in genuine demand for home purchases.

For the overall purchasing power in 2022, it is expected to increase due to improved economic conditions, concerns about rising home prices, and various government stimulus measures ending in December 2022, which will accelerate customers' decisions to buy homes this year. Currently, consumer purchasing power remains at a good level, continuing from last year.”

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The overall competition is now returning to normal, as real estate operators are starting to launch new projects, both horizontal and vertical, leading to increased competition in the second half of the year. This situation benefits consumers by providing more choices in housing due to various campaigns from developers aimed at attracting interest in their projects.

However, on the flip side, real estate developers will face rising land costs, which will continue to increase. Therefore, new horizontal real estate projects will have higher selling prices in line with rising costs, both from land and construction. The competition in horizontal real estate will focus on project design and pricing that meets the changing demands of customers.

Given the factors mentioned above, KUN acknowledges that it has a competitive advantage over other operators in the same zone, as the company has land at original costs. Currently, the company has 90 rai of land in the Bang Bua Thong area awaiting development, which can be developed over the next 3-5 years. This gives KUN an advantage in development costs for each project, especially in the Bang Bua Thong area, where the company is a leader in horizontal real estate development. KUN is committed to applying its business model based on urban development concepts to three other directions around Bangkok to achieve the company's goals.

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