Residential projects worth Bt100 billion to be launched
Buoyed by the high presales and total revenue in the first half of this year, the top-10 property firms listed in the Stock Exchange of Thailand (SET) plan to launch new residential projects worth more than Bt100 billion in the second half of this year.
A survey by The Nation early this week revealed that most developers plan to launch new residential projects -condominiums, single detached houses and townhouses – to boost their sales in the second half of the year. The companies recorded better financial results in the second quarter of this year than in the first quarter.
Some of their financial results in the first half of this year lagged the same period of last year mainly because of benefits from tax incentives in the first half of last year. However, they believe strong demand for residences in the second half of this year will drive growth.
Pruksa Real Estate plans to launch 40 new residential project worth Bt28 billion in the second half of this year. Sansiri will launch 16 new residential projects worth Bt22 billion. Asian Property Development plans to launch 8 new residential projects worth Bt10.22 billion.
Pruksa Real Estate director and chief business officer Prasert Taedullayasatit said that demand to buy residences priced lower than Bt3 million has shown continued growth. The company plans to launch townhouses under a new brand name – the Plum – focusing on the demand for townhouses located close to the city but more suitable for a family than a city condominium.
Other developers will launch new residential projects in the second half of this year that will be smaller in size and focus on low-rise residences. This will speed up efforts to achieve the presales target of Bt42 billion for the year.
Asian Property Development CEO Anuphong Asavabhokhin said that four of eight new residential projects launched in the second half of this year will be condominium projects, worth Bt7.65 billion while the next four will be townhouses, worth Bt2.57 billion. This will enable it to achieve its presales target of Bt20 billion for the year. The company has recorded presales of Bt9.5 billion in the first half of this year, Bt5.29 billion from low-rise residences, both single detached houses, and townhouses, while the balance Bt4.2 billion comes from condominium projects. The company now has a backlog of Bt26.88 billion – Bt4.2 billion from low-rise residences – both single detached houses and townhouses – and the rest 22.68 billion from condominium projects. They will generate revenue of about Bt5.28 billion in the second half of this year while the rest will be generated as revenue for the year 2012-2013.
“We plan to launch eight new projects in the second half of this year because we believe that after the election, the country’s political situation will be stable, at least during the honeymoon period of the first six months. This will boost the confidence of home-buyers,” he said.
Busaba Damapong, chairman of SC Asset Corporation, the property arm of the Shinawatra family, said the company has strong confidence that the property market will maintain growth, especially in the demand for residences priced at more than Bt4 million per unit. As a result, the company plans to launch 11 new projects worth Bt11 billion in the second half of this year.
Meanwhile, three property associations – Thai Real Estate Association, Business Housing Association, and Thai Condominium Association – will hold the Home & Condo Show from September 29-October 2 at Queen Sirikit National Convention Centre. The event is targeting sales of more than Bt2 billion. The event will exhibit more than 100 projects worth more than Bt100 billion from more than 100 property firms, both listed and non-listed companies. The event is a part of attempt to boost the property market in the second half of this year.
Real Estate Information Centre (REIC) director-general Samma Kitsin said that the property market dropped about 20 per cent in June and July this year as buyers adopted a wait-and-see approach. Most of them wanted clarity about the new government’s policy to launch the zero interest financial package for the first five years aimed at people buying their first homes, at prices lower than Bt4 million per unit.
“If the Cabinet approves this policy as soon as possible, it would drive growth in the rest of this year,” he said.
However, new registrations of residences in Bangkok and its suburbs recorded 39,412 units in the first half of this year, a 19-per-cent drop from the same period last year.