Preuksa currently has 29 projects in Bangkok's Don Muang district, Nonthaburi's Bang Yai and Rattanathibate areas and Rangsit in Pathum Thani.

The company will also pre-sell its first condominium project on Theparak Kilometre 2 in Samut Prakan in the fourth quarter. It will target the lower-income market by offering condos priced at Bt600,000 per unit.

Thongma said his company was also considering developing a new condominium project with access to the mass-transit system next year on land it would buy this year.

Following rises in both oil prices and interest rates, consumer spending has dropped, he said. As a result, the company must move its focus away from detached houses costing Bt2 million to Bt5 million per unit and concentrate instead on town houses and condos priced Bt600,000 to Bt1.2 million. With this new strategy, 61 per cent of Preuksa's total revenues are expected to come from town house projects, up from 58 per cent last year.

Revenue from detached houses dropped from 42 per cent last year to 39 per cent in this year's first half. The company reported total first-half sales of Bt4.2 billion for a net profit of Bt1.6 billion, up 25 per cent and 16 per cent, respectively, year on year.

The company believes that focusing on the town house market will allow it to achieve this year's sales target of Bt9 billion. Thongma said it already had presales of Bt4 billion to be transferred and recorded as second-half revenue, a strong indication the target would be reached.

The company's gross margin before operating costs and taxes in the first half dropped to 32.6 per cent from 34 per cent for the same period last year.

"Our gross margin dropped because our construction costs increased following a rise in transportation costs," he said.

However, Thongma said his company planned to cut costs by using new technology to reduce the construction period from an average of 4.5 months per unit now to four months next year.

Somluck Srimalee, The Nation