The housing market looks set to pick up in Bangkok with several leading property developers, confident of a significant property market recovery, planning to launch new projects worth nearly Bt100 billion in the final months of the year, according to a report in The Nation.
A recent survey by the newspaper found the market leaders preparing strategies for a second half in which many are expecting renewed demand, combined with conditions strongly favouring buyers, that will give them strong financial growth this year after fears only six months ago of a year of inordinate difficulty.
Both Supalai and Sansiri will launch nine new residential projects in the second half, including condominiums and low-rise residences worth up to Bt 10bn for each company. Sansiri’s nine new projects will follow 10 residential projects in the first half.
Preuksa Real Estate plans to launch 23 residential projects worth Bt15 billion in the next four-and-a-half months, boosting its revenue to a target of Bt 17bn for the year and annual presales reaching Bt 18bn. Preuksa launched only six new projects in the first half.
Land & Houses plans to launch five new residential projects worth Bt 6bn in the coming months after launching seven residential projects in the first half.
Asian Property Development is planning six new residential projects worth Bt 12.57bn. Two of them will be low-rise projects worth Bt 3.17bn and the rest condominiums worth Bt 9.4bn.
Property Perfect plans eight new residential projects worth nearly Bt 10bn in the second half, and LPN Development says it will launch three new condominiums worth Bt 6bn by year-end after successfully pre-selling three condominiums in the first six months.
SC Asset plans to launch six new residential projects worth
Bt 4bn in the next five months.Supalai president Pratheep Tangmatitham believes that in the second half, the property market will recover from its recent slump. This is proven by his company’s second-quarter financial results showing revenue of Bt 2.56bn for a net profit of Bt 686m, up by 16 per cent and 44 per cent, respectively, year on year.
“Our products have received positive feedback from the market, so we’ll launch nine new residential projects in the second half,” he is quoted as saying.
Sansiri president Srettha Thavisin said his company had revised its business plan from launching 16 residential projects this year to 19, because it believed the property market would recover in the second half and it saw recovery as a business opportunity.
“Our first-half revenue and net profit confirm our confidence in a property-market recover,” he said.
Sansiri recorded first-half revenue of Bt 6.59bn, up 10.7 per cent year on year, for a net profit of Bt 507m, against a net loss of Bt79.61m in the same period last year.
Preuksa Real Estate director and chief operations officer Prasert Taedullayasatit said his company would launch 23 new residential projects worth nearly Bt 15bn in these last months of the year.
The company believes demand for residential projects has recovered. This is confirmed by five per cent growth in the number of new residences registered in May from those registered in May 2008, he said.
“We believe the property market will recover in the second half, and that will drive the number of newly registered residences in the greater Bangkok area this year 5-10 per cent beyond last year’s figure,” he said.