Developer:
CMP Development
Project Review
Project Overview:
The project involves the development and construction of a residential complex consisting of 11 villas on a land plot of 64,000 square meters. Three finishing packages are offered: Base, Medium, and Premium.
Cost Structure and Proposed Prices:
For the Base Level, the construction cost is 28,000 THB per square meter (approximately $777.78) for an unfurnished villa. The proposed selling price is a minimum of 75,000 THB per square meter (approximately $2,083.33).
For the Medium Level, the construction cost is 35,000 THB per square meter (approximately $972.22), which includes furniture. The proposed selling price ranges from 85,000 to 87,000 THB per square meter (approximately $2,361.11 to $2,416.67).
For the Premium Level, the construction cost is 42,000 THB per square meter (approximately $1,166.67) with a full set of furnishings and equipment. The proposed selling price ranges from 90,000 to 100,000 THB per square meter (approximately $2,500 to $2,777.78).
Land Acquisition Costs:
The cost of the land plot is $1,550,000, including all fees and taxes. A second alternative for the land has been confirmed.
Project Implementation Plan:
The plan begins with investing 18 million THB ($500,000) as a deposit for the land. This is followed by signing a two-year leasehold contract. After the lease is registered with the Phuket Land Department, construction will commence. The strategy involves selling all villas during the construction phase and settling the full payment with the landowner within the two-year period.
Profitability Calculation:
The gross income is calculated as the difference between the total sales value of all villas and the sum of construction costs, including the land cost. The net income further accounts for additional expenses and depreciation.
Financial Projections:
For the Base Level, the projected gross income is $3,332,778, with a net income of $3,041,889.
For the Medium Level, the projected gross income is $3,644,444, with a net income of $3,280,833.
For the Premium Level, the projected gross income is $3,436,667, with a net income of $3,000,333.
