Property Perfect bets on recovery by Q4

The Perfect Masterpiece Rama IX, with 319 upscale single houses, will be launched officially on May 20

The Perfect Masterpiece Rama IX, with 319 upscale single houses, will be launched officially on May 20

Expressing confidence that government stimulus measures will bring a recovery in the property sector by the fourth quarter, Property Perfect Plc (PF) plans to launch eight projects worth at least 10 billion baht within the first half of this year.

“The lowest point of the political crisis has passed,” said chief executive Chainid N. Sirimanee. “Signs of economic recovery in Asia have been clearer, starting from China to other countries. We believe consumer confidence will resume, following an economic and property market revival late this year.”

With the BTS extension across the Chao Phraya River from Sathon to Thon Buri area scheduled to start on Friday and and the Airport Rail Link on Aug 12, half of the company’s new developments stand to benefit because of their locations.

On May 20, the company will launch two projects in the Rama IX area near the Airport Rail Link: The Metro Rama IX with 472 townhouses worth 1.7 billion baht, and the 3.27-billion-baht Perfect Masterpiece Rama IX with 319 single houses.

In Thon Buri, PF will offer 321 townhouses in The Metro Sathorn worth 1.27 billion baht, and Metro Park Sathorn phase 3 with 2,200 condominium units worth 4.4 billion baht.

Another four projects will be single houses in the Ratchapreuk area, on Ramkhamhaeng Road and Sukhumvit 77. It will also launch 367-unit Metro Sky Ratchada condominium phase 1 worth 911 million baht on Ratchadaphisek Road near the MRT.

“Some of these projects were postponed from the first quarter and late last year due to poor market sentiment,” Mr Chainid said. “We will launch all of them in the second quarter for sale throughout the second half when we believe the Thai economy will recover.”

By the end of the year, PF expects to realise 7 billion baht from housing sales and 1 billion as extra income from selling plots of land to schools. They include 900 million baht from 400 rai to the University of the Thai Chamber of Commerce and 100 million baht from the sale of 50 rai to another university.

“Selling land plots to educational institutions does not generate much profit but it can add more value to our remaining plots close by,” he said. The company is considering apartments for rent and dormitories that would be sold to a property fund, as PF did single houses for rent in the Ekamai-Rarm Intra area.

The company is also in talks with some investors to develop an international kindergarten and primary schools in three locations - Ramkhamhaeng, Rattanathibet and Pak Kret. It expects to complete an educational master plan by the end of the year.

PF also has another master plan for community malls. It plans a joint venture with Singaporean partners. One potential plot covers 25 rai near the intersection of Sukhumvit and Bang Na-Trat roads, where it plans to develop a community mall and condominium worth billions of baht next year.

“Singaporean partners’ views on Thai politics have improved and they will be back to invest again by the end of the year if the political and economic situation clearly recovers,” said Mr Chainid. The partners postponed a joint-venture plan from late last year due to uncertainties in Thailand.

PF shares closed on Thursday at 3.34 baht, up two satang, in trade worth 101.7 million baht.

About the author

Kanana Katharangsiporn Kanana Katharangsiporn
Kanana Katharangsiporn is a senior journalist with The Bangkok Post, Thailand's first English language newspaper and specialises in property and real estate areas.
Other posts by Kanana Katharangsiporn ( 37 )
Website: http://www.bangkokpost.com/

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