“In the fiscal year 2023, the company strategically optimized high-value assets to ensure sustained profitability.”
In the fiscal year of 2023, the global economy faced significant challenges marked by heightened inflationary pressures. Central banks worldwide responded proactively by implementing strategic interest rate hikes to counter the impact of surging inflation. Concurrently, the ongoing protracted conflict in the Middle East added complexity to the international economic landscape, with no apparent signs of imminent resolution. This geopolitical tension continues to cast a shadow over the prospects of global economic stability.
Within this context, Thailand witnessed enhanced economic growth in fiscal year 2023, propelled by improvements in consumption and private investment rates, contributing to an overall positive economic trajectory. However, the real estate sector experienced a diminished growth rate compared to the previous year, primarily due to challenges stemming from elevated labor costs and persistent increases in construction material prices. Additionally, the sector grappled with the adverse impact of a heightened rate of bad debt within the economic system. In response, financial institutions adopted a more cautious approach, tightening loan approval criteria to effectively manage associated risks, adversely affecting the transfer of residential property ownership. Nirvana, despite economic challenges, strategically focused on residential development within high-potential economic growth zones, targeting exclusively the mid to high customer segmentation. This deliberate approach enabled Nirvana to successfully cultivate and expand its customer base during this challenging economic landscape.
In the fiscal year 2023, the company strategically optimized high-value assets to ensure sustained profitability. Flagship projects, including Nirvana BEYOND Rama2 and Nirvana DEFINE Ekkamairamintra, received significant support. In January 2023, Nirvana ABSOLUTE Ekkamai-ramintra, a single detached house priced at 17-15 million baht, achieved presales amounting to 42% of the overall project value within the first week of the sales period. In mid-2023, NVD launched an "Executive Event" to promote presales of Nirvana ABSOLUTE Krungthep Kreetha and Nirvana DEFINE Krungthep Kreetha. Nirvana Absolute Krungthep Kreetha, a three-story home comprising 127 units within the community and priced between 15-25 million baht, boasted a project value of 2,380 million baht. Similarly, Nirvana DEFINE Krungthep Kreetha, a townhome situated on Krungthep Kreetha Road and priced between 9-12 million baht, comprised 83 units with a project value of 860 million baht. Both projects received favorable responses from our discerning customers.
Furthermore, in September 2023, NVD hosted the exclusive "Unveiling the Collection Event" for Nirvana COLLECTION Krungthep Kreetha, granting access solely to private visits. This distinguished development, comprising a select 54 units spread across 32 rai of land, represents the epitome of ultra-luxury living, characterized by unparalleled privacy and exclusivity. Situated within the Nirvana Township Center, this project is designed to deliver unrivaled convenience and elevate the lifestyle of our esteemed residents, with an approximate project value of 5,000 million baht and prices ranging between 80-150 million baht. Additionally, we have meticulously realigned our development plan for The MOST Rattanathibet to harmonize with prevailing economic conditions, ensuring optimal strategic planning.
In 2024, Nirvana strategically aligns its business operations with the prevailing economic momentum and overall landscape, maintaining a steadfast focus on robust and sustained growth. Positioned across approximately 280 rais, within the Township Development concept in the Kruthep Kreetha area, Nirvana is poised to curate a comprehensive residential zone comprising a diverse range of high-end to ultra-luxury projects. As an integral component of the Township Center Project, the unveiling of "Nirvana Porch" signifies a meticulously crafted lifestyle community mall aimed at not only enhancing resident convenience but also providing a holistic living experience for patrons. With a scheduled launch set for mid-2024, the introduction of Nirvana Collection and Nirvana Porch represents a significant milestone in the company's unwavering commitment to delivering exceptional living environments.
In addition to that NVD has plan to develop home office under brand Nirvana @ WORK and develop a brand new concept of residential with basement on Krungthep Kreetha, including condominium project on high economic traffic like Sukhumvit 23 in 2024. The three project worth approximately 6,700 million baht.
On behalf of NVD management team, we would like to express our sincere appreciation and gratitude to shareholders, joint venture partners, business partners, customers, staffs, financial institutions, and all stakeholders for your continued trust and supports.
Mr. Sornsak Somwattana
Chief Executive Officer