Thailand’s second largest property developer, Preuksa Real Estate Plc, says its sales figures for the first two months of 2009 have improved markedly since December 2008, and the firm is now targeting sales of Bt3 billion for the first quarter of this year.
“It has come back, the recovery was shown in our figures in the first seven weeks of the year, which can be a benchmark of the overall market,” Preuksa’s chief operating officer Prasert Taedullayasatit told the Bangkok Post newspaper.
Preuksa’s sales stood at Bt1.3 billion between Feb 1 and 25 and Bt995 million in January, up from just Bt400 million in December. About 90 percent of the sales were from single houses and townhouses.
With a total of 82 projects on the market, comprising 14,108 unsold units worth Bt24.53 billion, the company’s sales backlog is now worth Bt11.36 billion, Bt8.57 billion of which would be recognised this year, said Prasert.
The company plans to launch 22 new projects worth a combined Bt15-18 billion in 2009, including its first overseas project in Bangalore, India.
Eight domestic projects are scheduled to launch in the first quarter alone, comprising 2,625 units worth a total Bt5.93 billion.
These include four townhouse projects in Rangsit Klong 3, Phetkasem 110, Wat Som Kliang and Lat Phrao 71 area; three single-housing projects in Lam Luk Ka Klong 4, Vacharapol and Wat Ko Non; and a low-rise condominium project in Yaowarat.
Other Thai developers are also demonstrating renewed confidence in the market, with a rash of new projects worth a total of Bt30 billion launched in the first quarter of this year.
Sansiri has launched 11 new projects since the start of the year, LPN Development has launched the second phase of its condominium project at Ram-Indra-Laksi, and Land & Houses has launched three new residential projects worth Bt3 billion. Supalai, Asian Property Development, Pace Development and Four Pattana have all launched at least one new project since the start of the year.
Optimism at the lower end of the market however contrasts with a more cautious outlook for the luxury and resort segments. High end condominium developer Raimon Land has frozen all new projects it planned to initiate this year, and is reviewing its development strategy following the resignation of former CEO Nigel Cornick at the beginning of March.
Sales of condominium units in resort destinations have been hard hit by the economic downturn, with foreign buyers forfeiting deposits on 20-30 percent of booked units, according to Real Estate Information Centre director Samma Kitsin. With economies in the US and Europe facing further contraction, many foreigners have started to sell their units to build up cash, said Samma.
Asia
Property Report
Whilst there is still caution at the higher end of the market, it is encouraging to see that optimism is beginning to creep in on the low end. Thailand has huge potential as a real estate market, and in recent years we have seen a steady increase in the number of investors looking to purchase property in Thailand.