The property sector is expected to see only moderate growth this year, despite tax breaks granted to home-buyers, as only the largest property developers have been able to derive much benefit from such incentives.
Listed property developers’ financial results showed strong revenue and net profit growth in the first nine months of this year over the same period of 2008, thanks largely to a recovery in demand for residential projects in the second half of the year.
Sansiri president Srettha Thavisin said the property developer’s revenue for the full year is expected to exceed its estimate of Bt17 billion, reaching Bt17.5 billion to Bt18 billion.
“We believe the property market this year could grow nearly 5 per cent over last year – more than we estimated early this year,” said Supalai deputy managing director Atip Bichanond, who is also president of the Thai Condominium Association.
Supalai’s sales have increased from 2008, Atip said, as prospective home-buyers – most of whom put off buying residential property last year when the global recession hit the Thai economy – have regained confidence.
However, demand for residences has shifted from projects priced between Bt3 million and Bt5 million per unit to the Bt2 million-Bt3 million range, he said.
Meanwhile, signs remain positive for luxury residential projects priced at more than Bt10 million per unit, Quality Houses president and chief executive officer Rutt Phanijphand said.
Higher-income home-buyers have been less adversely affected by the economic downturn, so demand for luxury residences has continued to grow, Rutt said. This sector’s continued strong performance has driven the company’s sales growth past last year’s level, the CEO said.
Preuksa Real Estate chief operating officer Prasert Taedullayasatit believed the property market in Bangkok and its suburbs would see growth over last year, forecasting new-residence registrations would exceed 2008’s approximately 77,000 units.
Prasert said Preuksa’s data also pointed to an overall improvement in the property market this year over last year due to a pick-up in demand for residences in the second half.
SC Asset Corporation chief operations officer Kree Dejchai was similarly upbeat, saying, “We have seen sales increase from Bt600 million in the first quarter of this year to Bt1.2 billion in the second quarter, to Bt1.5 billion in the third quarter. We’re recording sales of Bt200 million per week in the last quarter. That means sales for the year will exceed our estimate of Bt8 billion.”
He expected the property market in Bangkok and its suburbs to grow 5 to 10 per cent this year over last year.
But while the top 10 property developers are doing well, the news has not been so good for small and medium-sized property firms.
MK Real Estate Development director Chukiat Tangmatitham said the company’s sales in the first nine months of this year were down from last year, as the company had launched only one new residential project in the period.
NC Housing managing director Somchao Tanterdtham said small and medium-sized property firms had not benefited from the second-half recovery in the market because most of them had suspended new investments last year. As a result, they simply haven’t been able to compete with the big players as the market recovered, he said.
However, Somchao agreed that the overall property market was likely to grow between 5 and 10 per cent this year.
SOURCE: The Nation





