Demand for new homes in Thailand
The Nation: 6 Oct 2009
FINANCIAL RESULT
Demand for new homes
By Somluck SrimaleeDevelopers set to overshoot presales targets. Buoyant third quarter has leaders mulling revision of this year's goals
Many of Thailand's leading property firms believe they may exceed their presales targets for 2009, following a high rate of presales in the third quarter. Some are planning to revise their presales targets upwards.
Preuksa Real Estate director and chief operating officer Prasert Taedullyasatit said his company's presales might exceed its target of Bt18 billion before the end of this year, after presales of Bt15.1 billion in the first nine months.
However, Preuksa is maintaining its targets of presales worth Bt18 billion and revenue of Bt17 billion in 2009, he said.
Although demand for residential projects has begun to recover, it continues to focus on projects developed by the top-10 listed companies, rather than those of small and medium-sized property firms.
"The property market has now changed to one for leading firms, rather than small and medium-sized firms.
As a result, we cannot say that market recovery is strong, when a number of small and medium-sized firms continue to face hardship," he said.
Supalai director and deputy managing director Atip Bijanonda said his company recorded presales of Bt7 billion in the first nine months of 2009. Of this, Bt3 billion came from the third quarter .
"We cannot say whether our presales will exceed our estimate of Bt10 billion or not," he said.
However, Supalai plans to launch three new residential projects in the last quarter of this year, and this may drive its presales beyond the target, he said.
Atip said demand for low-rise residences, including single detached houses, twin houses and townhouses had shown significant recovery, while demand for condominium projects was much the same as it was last year.
Residences priced lower than an average of Bt5 million continued to be popular, he said. LPN Development managing director Opas Sripayak said his company had recorded presales worth Bt6.7 billion in the first nine months of this year. Of this, Bt2.2 billion came from presales in the third quarter.
Opas said LPN planned to launch three or four condominium projects worth between Bt3 billion and Bt4 billion in the final quarter of the year, and these could drive its presales over the target of Bt10 billion.
However, the company continues to focus on its existing targets of Bt10 billion in presales and Bt8 billion in revenue in 2009. It believes its revenue will reach Bt10 billion next year.
Opas said the number of sales this year had averaged 140 units per week, and that was better than 110 units per week last year, showing stronger recovery for residential projects in 2009 than last year.
Sansiri president Srettha Thavisin earlier said his company had recorded presales of Bt14 billion in the first nine months of 2009. Of this, Bt5 billion came from presales in the third quarter.
As a result, the company believes its presales for the whole year will reach its target of Bt20 billion. This target was set after adjusting the company's original presales target of Bt18 billion for 2009.
www.nationmultimedia.com/2009/10/06/business/business_30113820.php--------------------------
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