In the first quarter of 2021, the real estate market faced the third wave of COVID-19, prompting various companies to adopt different sales strategies to navigate this crisis. The performance results for this quarter showed mixed outcomes, with some companies performing well despite the market challenges.

TerraBKK summarizes the performance of real estate companies listed on the stock exchange for Q1/2021 and compares it with the same quarter in previous years as follows:

Net Revenue and Net Profit

From the changes in both revenue and net profit, it is evident that the market leaders have shifted from Land & Houses and Pruksa to Land & Houses and AP. Since the onset of the COVID-19 crisis in 2020, AP has adjusted its strategy to focus more on horizontal housing, aligning with the real demand for single-family homes and townhomes.

In Q1 2021, the overall real estate market saw an average revenue increase of 26%, while average net profit decreased by 70% compared to Q1 2020. The performance of each company is as follows:

- Land & Houses reported a net profit of 1,742 million baht, maintaining its leading position in the market with a growth of nearly 30% from Q1/2020, driven by a 41% increase in transfers, primarily from horizontal projects that remain in demand from real buyers.

- AP Thailand achieved the highest total revenue in the market at 9,226 million baht, growing dramatically by 70% from Q1/2020 and up 18% compared to Q1/2019 before the COVID-19 crisis. Its net profit stood at 1,403 million baht, growing significantly by 127%, mainly due to record transfers from horizontal projects totaling 8,040 million baht, along with existing condominium projects like Aspire Asoke-Ratchada.

- Origin Property saw revenue grow by 61% from Q1/2020, resulting in a net profit increase to 868 million baht, growing by 38%, the highest during the COVID-19 situation for the company. This growth was driven by accumulated backlog transfers from condominium projects such as Knightsbridge Space Ratchayothin, Knightsbridge Space Rama 9, Knightsbridge Kaset Society, and The Origin Sukhumvit 105.

- Sansiri experienced a net profit growth of 521%, rising from 62 million baht in Q1/2020 to 384 million baht in the current quarter, primarily due to increased revenue from transfers of horizontal projects and effective cost control.

- Pruksa saw both revenue and net profit decline from Q1/2020 and Q1/2019 due to decreased condominium transfers and profits affected by price reductions to clear inventory. However, presales in this quarter increased by 14% from Q1/2020, indicating a positive sign that could lead to improved performance.

- Supalai maintained stable performance compared to the first quarter of the previous year, despite ongoing transfers from the Supalai Oriental project. In Q1/2021, there were no condominium projects available for transfer, and the company faced increased selling expenses. However, presales in Q1/2021 were impressive at 7,229 million baht, up 27% compared to the same quarter in 2020, primarily from horizontal sales.

TOP 10 Companies with Highest NPM and ROE

Looking at the Net Profit Margin (NPM), which indicates each company's profitability, Asset Wise, which recently entered the stock market in April, has an NPM of 25.7%, growing nearly 120% from the same quarter last year, demonstrating strong profitability with continuous revenue recognition from accumulated backlog and effective cost control. Following closely are Sena with an NPM of 25.3%, Origin with 23.2%, and Land & Houses with 22.5%, all showing higher NPM than the market average, indicating strong profitability.

After just one quarter, comparing revenue generation against set targets reveals how much each company has earned and how much more is needed to reach their 2021 goals. The company that has achieved the highest percentage of its target is AP, reaching 30%, followed by Origin at 28%, Land & Houses at 27%, Sansiri at 25%, Lalin at 25%, Noble at 24%, Pruksa at 22%, SC Asset at 21%, Supalai at 13%, and Property Perfect at 12%. Companies achieving high revenue percentages will find it less challenging to meet their targets in the remaining quarters. In the first quarter of this year, the top five companies with the highest sales were AP, Origin, Land & Houses, Supalai, and Pruksa, primarily driven by sales of horizontal projects that are in demand from real buyers.

Although the COVID-19 situation remains unresolved, the performance of real estate companies in this first quarter shows that many developers have adapted well to the market conditions during the crisis. Several companies have begun to implement innovative strategies previously unseen in the real estate sector, such as purchasing condominiums with cryptocurrency. It will be essential to monitor the performance in upcoming quarters to see how each developer will strategize to navigate through the crisis and return to brighter days.

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