MJD cashing in on Pattaya property

Major Development Plc (MJD) is riding the growth wave of the Pattaya property market with a plan for a luxury condominium worth 3.3 billion baht, says managing director Suriya Poolvoralaks. He said as much as one-third of the country’s real estate investment was now in the Eastern Seaboard.

Each year more than four million tourists from around the world visit Pattaya, bringing in at least seven billion baht.

The number of tourist arrivals to the area rose 14% in 2006 and 10% per year on average since 2000.”Property projects in Pattaya have shifted from the low to middle-end segment to more luxury,” he said. Average condominium unit prices have risen from a range of 28,000 to 60,000 baht per square metre to 89,000 baht and are expected to rise another 3-5% by the end of 2008.

The Reflection condominium would be located on a 10-rai site, with two high-rise buildings with a total of 432 sea-view units. Unit prices are 5-10 million baht or 80,000 to 200,000 baht per sq m. Bank of Ayudhya would finance 50% of the two-billion-baht project.

After one month of marketing, the company had sold 40% of the units _ 24% to foreigners and 16% Thais, said Mr Suriya.

During the first five months of this year, MJD recorded 2.5 billion baht in sales, up 30% from the same period last year. As at the end of the first quarter, it had a sales backlog of 4.8 billion baht, half of which would be realised this year.

MJD recorded a first-quarter net profit of 107.54 million baht, up 149% from the same period last year, on sales of 610 million, up 65%. Its gross margin rose to 33.75% from 33.32%.