Villa Kunalai Public Company Limited "KUN" has showcased impressive performance in the first 9 months, highlighting 7 projects that meet real demand in the housing market, achieving sales of 1.1 billion baht, a growth of 5.8% compared to the same period last year, which recorded 1.04 billion baht. The company is confident that by the end of 2022, sales will exceed 1.7 billion baht. Additionally, the "Kunalai Navara" project has unofficially opened for sale since September, with over 40 million baht in reservations, and the company is accelerating construction to officially launch sales in Q1/2023.

Mrs. Prawirat Tevaakson, CEO of Villa Kunalai Public Company Limited ("KUN"), a developer of low-rise real estate projects in suburban areas, stated that the market for low-rise homes continues to be popular, and the overall real estate business is returning to normalcy as it was before the COVID-19 pandemic, alongside the gradual recovery of the national economy. Recently, the company achieved a total presale of 1.1 billion baht during the first 9 months (January-September 2022), marking a 5.8% increase compared to the same period last year, which recorded 1.04 billion baht. The presales came from 7 projects, including 1.) Kunalai Courtyard, 2.) Kunalai Begins 2, 3.) Kunalai Preem, 4.) Kunalai Joy On 314, 5.) Kunalai Pargo, 6.) Kunalai Daisy, and 7.) Kunalai Navara. As a result, by the end of Q3/2022, the company had a backlog of 260 million baht, which is expected to be recognized as revenue in the remaining months of 2022.

"The increase in sales means that by the end of Q3, we have achieved 65% of our annual sales target of 1.7 billion baht for 2022. According to the company's data over the past 5 years, sales and transfers in Q4 of every year are higher than in any other quarter. Therefore, we are confident that we will meet our sales target. The Kunalai Daisy project, which started selling in Q2, has received very positive feedback, with sales reaching 130 million baht by the end of Q3. Meanwhile, the Kunalai Navara project, which had an unofficial sale in September, received unexpected positive responses, as evidenced by reservations totaling 40 million baht from a total project value of 3.5 billion baht. Currently, construction is being expedited to ensure the project is ready for an official launch in Q2/2023.

Furthermore, the outlook for the real estate business at the end of 2022 is optimistic, as the overall property market is showing signs of improvement due to the economic situation in the country during Q4/2022, which is clearly recovering. The number of foreign tourists is expected to reach 8 to 10 million, which will increase tourism revenue and subsequently boost economic growth. Additionally, the relaxation of loan-to-value (LTV) regulations and the reduction of transfer and mortgage fees, which will expire at the end of this year, along with the anticipated rise in interest rates into next year, will accelerate consumers' decisions to purchase homes. Given these factors, we expect a higher demand for housing in the final quarter.

"The relaxation of LTV regulations and the reduction of transfer and mortgage fees, which will end on December 31, 2022, will encourage those planning to buy homes to make their decisions sooner to take advantage of these government measures. Regarding the rising interest rates, this will impact customers applying for loans, leading to increased monthly payment burdens. An increase of 0.25% in interest rates per year will raise monthly payments by approximately 2% to 5% from the original amount, resulting in banks becoming stricter in assessing repayment capabilities. However, the impact will vary depending on each bank's policies."

Mrs. Prawirat concluded by stating that to stimulate consumer purchasing decisions in the final stretch of this year, the company has launched a campaign for KUN project customers, offering a five-tier prize system: Tier 1 offers discounts on every house or a free 1-baht gold necklace, Tier 2 offers free transfer fees, Tier 3 offers free mortgage fees, Tier 4 offers free air conditioning, and Tier 5 offers free electrical appliances. This campaign is available for customers who purchase homes in KUN projects and transfer ownership by the end of the year.