Mr. Chanond Ruangkitaya, Chief Executive Officer and Director of Ananda Development Public Company Limited, revealed that the 2020 trend for the real estate business sector is not very bright.
The 2020 business plan is a challenging year. Plans were made under the concept “Change the Plan Never the Goal” to align with the market and customer needs, reaffirming the business model as the market leader in condominiums along electric train lines, which currently have 100 stations and will have 221 stations within the next 5 years.
Ananda has launched its 2020 strategy of “Change the Plan Never the Goal”, setting a transfer target of 22 billion baht with plans to launch projects this year. This May, it is preparing to launch the “ideo Phalo-Khwaen” (Phahon-Saphan Kwai) condominium with 1,356 units, highlighted by a location 0 meters from the electric train station. The original project value of 9.6 billion baht has been adjusted to 8.5 billion baht.
The segment was repositioned from the luxury market to the high-end market under the ideo brand, with a new average launch price of 139,000 baht per square meter, or starting at over 3 million baht per unit. This makes Ananda the only real estate company in the market that has rapidly remodeled its business plan in step with change. In addition, in the second half of 2020, the company is ready to launch 7 new projects should the economic situation improve.
Ananda has launched its 2020 strategy of “Change the Plan Never the Goal”, setting a transfer target of 22 billion baht. For its joint venture business with the Mitsui Fudosan Group, it plans to invest in 1 new project and expand its recurring income portfolio. This year, 2 serviced apartment projects will be completed in partnership with The Ascott Limited, namely Sommerset Rama 9 and LYF Sukhumvit 8, expected to open and generate first-year revenue of 300 million baht. In 2021, additional projects will be completed, with revenue expected to increase to 1.8 billion baht.
Mr. Chanond said that another new development includes Ananda’s joint venture (JV) deal with BTS Group Holdings of the Kanjana Pas family to develop a mixed-use project on 200 rai of land located on Bang Na-Trad Road, near Suvarnabhumi International Airport.
Ananda has a strong backlog (sales awaiting transfer) of 31,000 million baht, supporting transfers over 3 years (2020-2022), of which 56% is scheduled for transfer within 2020. Cash flow has also increased, from 13,000 million baht in 2018 to 14,800 million baht at the end of 2019.
Ananda has unveiled its 2020 strategy “Steadfast in Goals, Flexible in Methods” with a transfer target of 22,000 million baht. This year’s business strategy consists of 3 main strategies as follows:
1. Residential projects, divided into 38 ready-to-move-in projects, which will be the main revenue generators this year, along with 7 new projects. If the economic situation improves, the company is ready to seize investment opportunities.
2. Corporate brand communication emphasizing its position as Urban Living Solutions, targeting Generation C as the main customer group.
3. Customer Experience — creating a good experience for customers at every step, with customer satisfaction measured across all dimensions.
“Although the market is volatile, demand still exists — we are just waiting for the right timing. This year is considered a great opportunity for customers to purchase housing at affordable prices,” said Mr. Chanon.
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