Thailand Listed Developers Plan More New Projects Worth Bt100 Billion Featured

Thailand leading property firms believe the residential market will continue to expand over the remainder of the year, despite indicators pointing to only slight economic growth.

Developers are confident of achieving presales and total revenue targets for the full year, driven by plans to launch residential projects worth more than Bt100 billion during the second half - and on the back of solid revenue and net-profit growth in the first six months.

Thirteen listed property companies announced their financial results yesterday, with each of them posting revenue of at least Bt1 billion for the first half of the year (see graphic).

Most of them also recorded a year-on-year increase in net profit, with the average earnings growth for the 13 firms coming in at 20%, thanks to the majority transferring units to customers in condominium projects launched in 2011 and 2102.

SC Asset Corp chief executive officer Bussaba Damapong said the company had presales worth Bt6.88 billion in the first half, 55% higher than in the same period last year.

This boosted first-half revenue to Bt4.43 billion, some 61 % above the level posted for same period last year.

The impressive numbers were down to SC Asset's three Centric condominium projects being ready for transfer to customers in the period, she said.

Pruksa Real Estate CEO Thongma Vijitpongpun said the company's revenue growth in the first six months was down to real-demand expansion, especially for homes priced up to Bt5 million.

This market segment represents the developer's main customer base, he added.

Meanwhile, MK Real Estate chief executive Chun Tangmathithum said the company's revenue in the first half had seen strong growth, thanks to the transfer of the Den Vibhawadee condominium in the second quarter.

This boosted revenue to Bt695.92 million and net profit to Bt113.78 million in the April to June period, and to Bt1.29 billion and Bt184.38 million, respectively, in the first half.

New projects top Bt100 billion

Following their successful sales performance during the first half, most property companies plan to launch new residential projects worth more than Bt100 billion in total in the second part of 2013, which is the high season for property sales.

Pruksa Real Estate plans to launch 45 condominium, townhouse and detached-housing projects worth Bt22.33 billion in the period, while SC Asset has eight new projects worth Bt10 billion. The latter launched five residential projects worth Bt10 billion in the first half of the year.

Land & Houses plans 15 residential projects worth about Bt24.2 billion in the second half, following nine projects valued at around Bt19.1 billion in the first part of the year.

Sansiri, meanwhile, will launch 23 projects worth Bt26 billion over the remainder of the year, 14 of them condominiums worth Bt19 billion and the other nine projects worth Bt7 billion being detached housing and townhouses.

The programme forms part of the developer's business plan for 45 new residential projects worth Bt61 billion over the full year.

LPN Development will launch seven projects worth Bt15 billion in the second half, while AP (Thailand) will launch another 16 projects worth Bt14.77 billion by year-end as the second part of a plan to launch 25 projects worth Bt29.76 billion in total over the course of the year.

"We are continuing to launch residential projects in the second half of the year because demand to buy homes will be higher than in the first half. The forecast of only slight economic growth will have little impact on the market, as customers who plan to buy a home will still do so. However, they may reduce their purchasing budget, which means the market for homes costing up to Bt5 million will still see growth," said Pruksa's Thongma.

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