RML reported sales growth of 42% in the first half of 2023 following continued transfers of ‘The Estelle Phrom Phong’, with backlog of over 4,682 million baht and expected sales to meet target of 6,700 million baht this year
RML (Raimon Land Public Company Limited), a leading luxury and ultra-luxury real estate developer, reported strong operating result for the first half of 2023. Pre-sales reached a total of 1,072* million baht, an increase of 42%* compared to the same period last year of 753 million baht, driven by great response for ‘The Estelle Phrom Phong’, an ultra-luxury condominium, with ownership transfer accounted for 3,600 million baht** or approximately 85%** of units transferred. RML expected to reach 6,700 million baht in total sales from all projects this year.
Korn Narongdej, Chief Executive Officer of RML, said “Overview of the company’s operating results for the past 6 months (from January to June 2023) is considered successful as targeted. Presales have grown steadily since the first quarter, mainly from the success of ‘The Estelle Phrom Phong’, an ultra-luxury condominium located only a 2-minute walk from BTS Phrom Phong and The Em District which has now completed and is ready to transfer. At the same time, sales continue to grow well. All projects that are currently on sale are nearly sold out, with sales of ‘The Estelle Phrom Phong’ reached 90%** while sales of ‘Tait Sathorn 12’, a luxury condominium located right in the heart of Sathorn within a short 180-meter walk from BTS St. Louis, reached 95%**. Moreover, the company also gained more revenue from rental of our luxury Grade A+ office buildings including ‘OCC’ (One City Centre) which currently has achieved office and retail space occupancy rate as well as customer interest of approximately 70%**, not to mention great interest from customers. All of these reflect high demand for our luxury and ultra-luxury condominiums as well as Grade A+ office.”
“During the second quarter of 2023, the real estate business was affected by how the Monetary Policy Committee (MPC) has raised the policy interest rate from 1.75% to 2% per year. Price of construction material and labor cost has also increased. However, the company has not been affected much due to a well-planned management. RML has been able to maintain the cost of construction materials and labor costs of all current projects to be the same as when each project was launched. In addition, the company can also manage financial costs both in terms of floating and fixed interest rates very well,” added Korn.
As for the plan for the second half of 2023, RML has a total backlog of 4,682 million baht, as of 30 June 2023. The company will gradually recognize revenue from ‘The Estelle Phrom Phong’ and prepare to recognize revenue from the ‘Tait Sathorn 12’ which will start transferring ownership of the first condominium units in the third quarter after the construction is completed. The company will also continue to acquire tenancy for the ‘OCC’ which is currently constructing the sky bridge to connect BTS Ploenchit. The bridge is scheduled to be completed by the end of this year, which will help encourage more tenants to fill the remaining rental space to be fully occupied in 2024. In addition, the company is also preparing to launch a private sale of ‘Rosewood Residences Kamala’ project in Phuket and start selling a new ultra-luxury low-rise project located in Sukhumvit area around the end of the year which will create a huge buzz and further strengthen RML’s image as a leading luxury and ultra-luxury real estate developer.
*Information for the six-month period ended June 30, 2023.
**Accumulated data as of June 30, 2023.
