Despite a slight drop in housing sales during the first quarter of the year, the listed developer Quality Houses Plc (QH) is pleased with a 33% increase in net profit following successful project launches, said Suwanna Bhuddhaprasart, the senior executive vice-president.

The government tax incentives that took effect on March 28 slowed unit transfers as customers waited for the benefits, she said. In March, the company offered reductions at the same rate as the tax incentives but some customers still wanted to wait.

However, the company's gross margin in the first quarter rose to 32% from 26% in the same period last year as it launched more projects. Margins were helped by higher unit prices in line with the market prices in the same locations.

QH is aiming for revenue growth of 15% by the end of the year from 10 billion baht in 2007 and more than 30% in net profit growth, based on expected benefits of 300 million baht from the tax incentives.

The main revenue contributors would be low-rise residential units. The proportion of medium-priced and high-end units would be equal this year from 45% and 55% respectively at the end of 2007, said Mrs Suwanna.

Three condominiums worth a combined 5.5 billion baht would be launched from the second quarter of 2009 onward. The first would be a super-deluxe condominium with a new brand in the Langsuan area worth three billion baht, with 200 units sized between 60 and 100 square metres and priced from at least 180,000 baht per sq m.

Also planned are the 200-unit Casa Ratchadaphisek-Tha Phra worth 500 million baht and QH Condo with 500 units worth two billion baht, located near the future Charoen Nakorn BTS station.

''We will wait for an Environmental Impact Assessment approval before launching the projects,'' she said. ''We don't need to speed the launch as our projects will be located near the current mass-transit lines and their extensions where demand is so high.''

She said the Langsuan project was changed from serviced apartment to condominiums for sale as a lot of new serviced apartment supply is entering the market, and the company would be able to generate cash to reduce its debt-to-equity ratio from the current 1.4 times to one time.

Revenue from the condominiums would be booked from the fourth quarter of 2009. QH expects to maintain revenue of about two to three billion baht from condominiums from 2010 onward.

Since early this year it has spent 700 million baht, from a total budget of 3-4 billion baht, to buy three plots of land for low-rise housing.

''Confidence is back now that we have a new government but the situation in the first half is not as clear [as it will be in] the second half,'' Mrs Suwanna said.

QH on Friday reported a first-quarter net profit of 307 million baht, up 33% from 231 million baht a year earlier, on consolidated revenue of 2.44 billion baht, down 2%. Revenue from house sales was down by 5% but revenue from office rents and services rose 9% as QH raised rents for contract renewals and new customers. The average occupancy rate of its three office buildings on Convent, Sathon and Asok roads was 80%.

QH will pay a dividend of 0.07 baht per share on May 20. Its shares closed unchanged on Friday at 2.68 baht in trade worth 80.45 million baht