Noble Development Public Company Limited - NOBLE is performing well as the real estate market recovers, driving first-quarter sales to a record high of over 6.4 billion baht, nearly matching the total sales for the entire year of 2021, which was 8.035 billion baht. This surge follows the launch of 5 projects at the beginning of the year, valued at a total of 15 billion baht, boosting the backlog to over 15.4 billion baht. Executive Mr. Thongchai Busarapant is set to unveil 5 new projects worth a total of 12.3 billion baht within the second quarter of this year, signaling that total revenue for 2023 is expected to reach 15 billion baht from the recognition of backlog and plans to launch additional new projects.

Mr. Thongchai Busarapant, Vice Chairman and Co-CEO of Noble Development Public Company Limited, a leader in real estate development for residential projects in prime locations of Bangkok and its suburbs, stated that the overall real estate market is showing clear signs of recovery. This is evident from the purchasing power of consumers, which is strengthening as the COVID-19 situation improves. At the same time, it must be acknowledged that the rising prices of construction materials are prompting potential homebuyers to make quicker decisions. These factors have contributed to continuous growth in the real estate market during the first quarter of 2022, as reflected in NOBLE's sales (pre-sales) for Q1/2022, which reached over 6.4 billion baht, an increase of 150% year-on-year and 155% quarter-on-quarter. This sales figure marks a new quarterly high and is nearly equivalent to the total sales for the entire year of 2021, which was 8.035 billion baht. The record-breaking sales were driven by ongoing projects from 2021, along with the launch of 5 new projects in Q1/2022, valued at over 15 billion baht, including:
1. Nue District R9
2. Nue Mega Plus Bangna
3. Nue Z-Square Suan Luang Station
4. Nue Evo Ari
5. Nue Connex Condo Don Mueang
All projects received a positive response, reflected in average sales of 40%-50% across all projects combined.

 

Additionally, the company plans to continue launching new projects as scheduled. In Q2/2022, the company plans to launch 5 new projects with a total value of 12.3 billion baht, including:
1. Noble Curate, a luxury land project
2. Nue Cross Khu Khot Station Phase 1, a low-rise condominium project
3. Noble Curve, a townhouse project
4. Noble Create, a high-rise condominium project
5. Noble Cove – North Ratchapruek, a townhouse project
The company has already launched the Noble Curate and Nue Cross Khu Khot Station Phase 1 projects in April.


Nue Cross Khu Khot Station Phase 1

Furthermore, in the second half of this year, the company plans to launch an additional 8 new projects with a total value of 20.4 billion baht, which will enable the company to meet its target of launching 18 new projects throughout the year, with a total project value of approximately 47.7 billion baht. The launches will diversify offerings across all directions of Bangkok.

“The current real estate market is becoming stronger, with customers being real demand groups purchasing for personal use and investors making quicker decisions to buy homes. This is driven by the rising prices of construction materials, which are expected to increase, leading to a rush in purchasing decisions. Additionally, the anticipated reopening of the country will help revive the economy and the income of people in the country, while also providing an opportunity to boost purchasing power from foreign buyers, especially Chinese customers who continue to show interest,”

However, regarding the performance in Q1/2022, the company reported total revenue of 1.496 billion baht, a decrease of 44% compared to the same period last year, due to the absence of new projects completed and ready for transfer in Q1/2022, unlike Q1/2021, which had new projects ready for transfer. The revenue recognized in Q1/2022 came from 4 main projects, including:
1. Noble B19 Sukhumvit
2. Nue Noble Chaeng Watthana
3. Nue Noble Connex House Don Mueang
4. Noble Gable Watcharapol
All 4 projects are ongoing projects that transferred ownership continuously from late 2021.

As a result of the significant sales growth in Q1/2022, the company's backlog has increased to over 15.4 billion baht, up from 10 billion baht at the end of 2021. This backlog will gradually be recognized as revenue throughout the remainder of this year and in the next 2-3 years. The company remains confident that in 2022, it will achieve revenue growth exceeding that of 2021 and expects to see revenue growth of 15 billion baht in 2023 from the recognition of backlog, along with plans to launch new horizontal projects that will allow for quicker revenue recognition.

The Co-CEO of NOBLE further stated that regarding investment plans in the United Kingdom, the company is adjusting its investment model to align with the situation, allowing for flexibility in investment through the acquisition of assets, either as bulk units or multiple room purchases (Bulk Deal), as purchasing units involves less competition than acquiring entire buildings and is quicker. This approach can yield an investment return rate (IRR) of around 20%, consistent with the core business in Thailand. In 2022, the company aims to acquire 550 real estate units in the UK with an investment budget of 100 million pounds (with NOBLE investing 45% of the proportion). In Q1/2022, the company has already acquired 84 real estate units.


Nue Cross Khu Khot Station Phase 1


Nue Cross Khu Khot Station Phase 1