NVD readies seven new projects for second half

After freezing new project launches for almost two years, SET-listed developer Nirvana Daii (NVD) plans to introduce seven new residential projects worth a combined 11 billion baht in the second half.

Chief investment officer Jiradej Nusthit said six projects are planned as lowrise houses under a township development, of which five will be in the same locations — three in Krungthep Kreetha and two in Ekamai-Ram Intra.

The other low-rise house project is slated for Bang Na after its first project in that location, Nirvana Element, recorded a healthy sales rate since its launch in August 2020, which marked the last new offering for the company.

“In addition to the pandemic, another challenge is global inflation,” he said. “If we just sit back we might not survive, so we need to rebuild cautiously.”

The company will be more selective in terms of market segment and product, such as pre-sale houses for the luxury segment because this strategy matches buyers’ requirements for customisation.

Pre-sale units also do not require high capital to invest, said Mr Jiradej.

One of the new projects represents a shift towards units priced lower than 10 million baht as buyers in this segment are growing, with greater potential in terms of borrowing capability.

He said Nirvana Daii expects to have 5 billion baht in presales and more than 4 billion in revenue by the end of 2022, up from 2.6 billion and 3 billion last year, respectively.

“Our presales improved in the first quarter with a higher conversion rate [to bookings] despite a dip in the number of customers at project sites, which was attributed to the Omicron variant, global inflation and geopolitical tensions,” Mr Jiradej said.

The company saw 598 customers visit projects in the first quarter of 2022, down from 716 in the fourth quarter last year. However, the conversion rate improved to 15% from 9%.

Presales rose to 811 million baht from 758 million in the fourth quarter last year.

Condo presales rebounded to 368 million baht from 169 million, while revenue increased to 1.02 billion baht from 738 million baht, the highest tally since the third quarter of 2020.