Business News - Tuesday December 18, 2007
Tararom aiming for 15% growth in 2008
The property developer Tararom Enterprise Plc has set a goal of 15% business growth with 1.5 billion baht in revenue next year, based on an expected pickup in the single house and townhouse markets.
President Wasan Kiangsiri said that Tararom anticipated 1.3 billion baht in revenue this year as its sales had bounced back in the last five months.
The company believes that when the economy starts recovering, housing demand will rebound.
Tararom anticipates moderate expansion next year with no new projects, but the company would offer new housing designs. Tararom has four ongoing projects: Parkway Chalet Ramkhamhaeng, Garden Suite The Indy Home Ramkhamhaeng, Neighbour Home Watcharapol and Promenade Home Rama II Soi 47. All have land plots sufficient for development for three years with total value of 4.5 billion baht. It recently began pre-sales of townhomes at a new project, the 180-million-baht Parkway Place Ramkhamhaeng.
The company used to generate 70% of its sales from pre-built units, but next year the figure would be 30% as inventories have been depleted.Mr Wasan urged the new government to carefully consider real estate policies and infrastructure development as the property sector helped drive the country's economy. Construction value this year was estimated at 323 billion baht, representing 6.2% growth, which was above GDP growth.
''Several chronic issues remain unattended including legal amendments, which await decisions from the new administration. The property industry is an important industry,'' he said.