Political crisis, slowing economy dent consumer confidence, but leading firms expect market recover in 2nd half. Listed property firms have posted only slight year-on-year growth in their overall revenue and net profit for the first quarter, due to home-buyers deferring their decision to have units transferred to them amid the prevailing political uncertainty and economic slowdown.A notable exception to the first-quarter trend is Pruksa Real Estate, whose president and CEO Thongma Vijitpongpun said the company’s financial results showed revenue of Bt8 billion, up 26.9 per cent from the same period last year, while net profit came in at Bt1 billion – some 42 per cent higher. However, the company has tried to manage its business by transferring completed units to its customers in accordance with its business plan, even though its presales may have come in lower than originally estimated.LPN Development managing director Opas Sripayak said the fact that some customers had postponed their decisions to have condominium units transferred to them had impacted directly on the company’s revenue, which grew by just 4.16 per cent from Bt2.4 billion in the first quarter of last year to Bt2.5 billion in the same period this year. First-quarter net profit, meanwhile, was lower than a year ago. Condominium projects will be completed and delivered to customers on time, he said, adding that the company would therefore maintain its presales and total revenue targets of Bt26.4 billion and Bt15.2 billion, respectively, for the full year.
Sammakorn managing director Kittipol Pramote Na Ayudhya said the company’s net profit in the first quarter had dropped by 69 per cent compared with the same period a year ago, due mainly to a slight rise in sales coupled with increasing land costs.
Earlier, TRIS Rating forecast that the property sector this year would contract from the 2013 level, thanks to a decline in consumer confidence, plus commercial banks restricting the provision of both project funding and mortgages to developers and home-buyers, respectively.
These factors would directly affect the financial results of both listed and non-listed property firms, the company said.
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