Noble Development Public Company Limited, or "NOBLE," has demonstrated robust performance, defying market trends in the second quarter of 2024, achieving a profit of 124 million baht, an 11% increase, driven by revenue from property transfers soaring to 1.55 billion baht. This brings the net profit for the first half of the year to 200 million baht, a 10% growth compared to last year, while total sales reached 5.6 billion baht, bolstered by a surge in foreign sales. The company is aggressively building its sales backlog, which currently stands at approximately 21 billion baht, set to be recognized until 2027, as purchasing power in the segment above 5 million baht remains strong.

Mr. Thongchai Busarapant, Vice Chairman and Co-CEO of Noble Development Public Company Limited, a leader in residential property development in prime locations of Bangkok and its suburbs, revealed that the overall real estate market in the first half of 2024, despite a slowdown in domestic purchasing power, rising household debt, and high-interest rates, along with stricter lending from financial institutions, the company has managed to operate according to its planned strategy. This is reflected in the second quarter of 2024, where the company reported total revenue of 2.64 billion baht, a 13% increase year-on-year, and a net profit of 124 million baht, up 11% year-on-year. Consequently, for the first half of 2024, the company recorded total revenue of 4.425 billion baht and a net profit of 203 million baht, a 10% increase year-on-year, attributed to the delivery of backlog sales. In the second quarter of 2024, new completed projects included the Nue Connex Condo Don Mueang.

The highlight projects that generated significant property transfer revenue for the company in the first half include two main projects: 1. Nue Noble Ratchada Lat-Phrao, a joint venture project valued at 2 billion baht, which has achieved sales of 1.8 billion baht and has transferred ownership of 1.7 billion baht; and 2. Nue Connex Condo Don Mueang, which has recently completed construction and begun transferring ownership in the second quarter of 2024. Additionally, there are other ongoing projects such as Noble Around Ari, Noble State 39, and Nue Noble Fai Chai - Wang Lang, along with other horizontal projects.

In terms of sales (presales) for the first half of 2024 (January-June 2024), the company achieved sales of 5.6 billion baht, primarily driven by a significant increase in sales to foreign customers, who accounted for an average of 60% of total sales during this period. This has led the company to strategize on expanding its market, particularly targeting foreign markets to broaden its customer base and enhance opportunities for residential sales. In 2020, the company recorded sales from foreign customers at 1.8 billion baht.

In 2023, foreign sales increased to 5.3 billion baht, representing more than double the growth rate. In the first quarter of 2024, the company recorded foreign sales of 2.2 billion baht, while in the second quarter, foreign sales amounted to 1.1 billion baht.

“The projects that performed well in sales during the first half include The Embassy Wireless, a joint venture with the Hongkong Land group, which has seen high sales from foreign customers. Additionally, we launched new projects; in the first half of the year, we introduced two new single-house projects: 1. Noble Norse Krungthep Kreetha and 2. Nue Shade Ratchaphruek - Chaengwattana, both of which received positive responses,” he added.

Mr. Thongchai also discussed the business outlook for the second half of the year, stating that the company will continue to follow its planned strategy. As of June 30, 2024, the company has a backlog of approximately 21 billion baht, which will gradually be recognized in the second half of 2024, amounting to over 6 billion baht, while the remaining 15 billion baht will be recognized until 2027. The company also has a substantial inventory ready for sale, sufficient to meet future demand, and is prepared to develop those areas immediately if needed.

“The real estate market in the second half of the year, particularly for products priced below 5 million baht, is expected to slow down. However, products priced at 5 million baht and above, which are the main offerings of NOBLE, continue to see ongoing demand. The purchasing decisions in this segment may be delayed, but these customers already have purchasing power and are just waiting for the right timing. If the price and product meet their needs, they will decide to buy immediately. Regarding competition in the real estate market in the second half, we anticipate continued high competition, such as marketing campaigns and promotions from operators to stimulate sales. This presents an opportunity for those with purchasing power, and if interest rates are reduced, it could improve purchasing decisions,” Mr. Thongchai concluded.