Listed property developer Quality Houses Public Company and its subsidiaries reported a 47 percent decline in operating performance for the nine-month period ending September 2015, according to a statement released to the Stock Exchange of Thailand yesterday (Monday).
In its Management Discussion and Analysis document, the company reported that its revenues from sales of real estate decreased while, on the plus side, the property rentals business generated higher revenues compared with the same period last year.
It said that the revenue derived from condominiums for the first nine-months of 2015 dropped by 61 percent compared with the same period last year.
It said that during 2014 there were six condominium projects completed and transferred while there were a limited number of condominium units with selling price of not exceeding THB 2 million that were transferred during the first nine months of 2015.
The company also contributed the decline to the delay in Thailand’s economic recovery, the lack of consumer confidence in purchasing real estate and the strict policy of banks granting mortgages which affected some customers’ affordability and ability to transfer ownership of the condominium units.
The revenue from the sales of houses and land also declined – by 6 percent in the first nine-months. It noted the delay in the country’s economic recovery is also affecting customers in the middle- to high-segments, who have the purchasing power but also lack confidence.