Real estate agency Plus Property has revealed that its 2015 earnings stood at THB 965 million, an increase of 31 percent from the previous year.
Its strategy for 2016 is to focus on markets where it believes it has competitive advantage. The firm sees sees the property market is likely to expand marginally in 2016, due to the government’s property stimulus measures and low interest rates.
Risk factors, is said, include high household debt levels, droughts and higher land prices – but these factors will not affect the upper-class with high purchasing power who, the company noted, have recently started to invest more in high-return properties abroad such as in New York and London.
Poomipak Julmanichoti, Managing Director of Plus Property, said the company has seen remarkable growth in the year 2015, and was considered a highly accomplished year for the company.
Major revenues during the year came from property sales services for four high-end condominium projects of Sansiri worth altogether THB 12 billion. The company said it also manages 185 property projects (compared to 161 in 2014).
As for the outlook of the real-estate market in 2016, Plus Property said market sentiment in the first half is expected to be buoyed by the government’s stimulus measures. Residential projects priced below THB 3 million in peripheral areas of Bangkok would benefit from low interest rates as well as the infrastructure projects, particularly the government-backed mass-transit plans for Bangkok and its vicinity, such as the Orange line (Thai Cultural Center to Min Buri), the Pink line (Khae Rai to Min Buri), the South Purple line (Tao Pun to Rat Burana) and the Yellow line (Ladprao to Samrong), which might be able to proceed with biddings and constructions, and will contribute to opportunity for growth in real estate markets near these mass-transit routes.
“The outlook for the real estate market in 2016 prompts us to proceed prudently,” said Poomipak.
“However, despite the risk factors there are multiple positive influences, for example, the government’s property stimulus measures.
“The outlook of the customers’ purchasing power is adequate but the affordability among the high-end consumers is great as seen from sales of the newly-launched luxury property projects.
In addition some investors are also looking to invest in properties abroad, such as New York and London, where foreigners can own 100 percent of the properties, unlike in Thailand.
“Property prices, especially in New York, continue to surge,” concluded Poomipak.
