Most leading Thai property firms posted lower pre-sale values in the first 10 months of 2014 than in the same period last year, due to diminished purchasing power and low consumer confidence. However, with the pick-up in the economy, such developers are pulling out the stops to shore up sales in the remaining two months, according to a survey by The Nation.
The Government Housing Bank released data verifying that the first 10 months of this year saw 350 residential projects launched, comprising 94,200 units. This represented an over 10 percent decline from the same period last year.
On the whole, leading developers plan to launch 121 residential projects worth more than THB 156 billion in the final two months. For example, Supalai plans to launch 11 residential projects worth THB 13 billion this quarter; Land & Houses plans eight developments, including detached-housing projects and condominiums, worth THB 11.66 billion; and Pruksa Real Estate plans 34 launches worth THB 30 billion. Of the latter, 28 will be low-rise projects, such as detached houses, townhouses and duplexes, and the other six will be condominiums.
Many firms expressed confidence in reaching their annual pre-sales target. Supalai deputy managing director Tritecha Tangmatitham said, “We saw residential demand start to recover in June when the country’s political stability returned, so we believe that our revenue and pre-sales will achieve the target for this year.” Similarly, Ananda Development CEO Chanond Ruangkritya said the company saw demand for condominiums recover in the third quarter and as a result it decided to launch four new condo projects valued at THB 14.95 billion this quarter, which would boost pre-sales to the targeted THB 11.5 billion this year.
Moreover, Sansiri president Srettha Thavisin said the company cut its presale target early this year. With a backlog that will generate revenue through 2016, Sansiri is not feeling pressured to boost its presales this year.
