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Apartments in Bangkok – Property Market Could Contract by up to 10%

By on May 22, 2014 in Property News, Residential

THE RESIDENTIAL property market could fall by between 5 and 10 per cent this year because of the prolonged nature of the country’s political conflict, according to the head of leading developer Pruksa Real Estate.  The overall property market in Bangkok and the provinces was worth about Bt650 billion last year, but could come in below Bt600 billion this year, with people having delayed their purchasing decisions since the final quarter of 2013 through to February, said Thongma Vijitpongpun, chairman of the executive committee and chief executive officer of the listed company.

“We have maintained our presales and revenue targets after seeing residential demand recover in March and April,” he said.  Thongma said revenue and earnings growth had been achieved thanks to the company’s backlog from both condominium and low-rise projects (detached housing and townhouses), which had speeded up overall construction time and enabled the developer to deliver units to customers on time.

Residential demand has improved since the beginning of March both in Bangkok and the provinces, he said, adding that this had boosted presales in the first four months of the year.

Pruksa is also continuing to expand by investing overseas, with plans to launch its first entirely new foreign project worth Bt1 billion in Indonesia. It is negotiating to buy land for the project at a site about 20 kilometres from Jakarta. When due diligence for the land purchase is complete, the company will launch a condominium project on the site, he said.  Indonesia will be the third foreign country in which Pruksa has invested, after Maldives and India. Another project, in Vietnam, is still planned, but discussions over buying the land have taken place since 2012 without any deal being reached as yet, he added.

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