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Thailand Property – Developers Stick to 2014 Targets

By on Apr 26, 2014 in Property News, Residential

At the “Thailand Property Day” seminar, organised by SCBS Investment Research, Land & Houses (L&H) assistant vice president Siribhorn Laophaekit and Pornchan Suwanprakorn, who is the company’s budgeting and investor relations manager, said the company was sticking to its full-year presales target of Bt32 billion, up 6 per cent from last year.

L&H is also maintaining its revenue target of Bt25 billion for the year, up 9 per cent from last year’s level, despite missing its presales target in the first quarter.

LPN Development managing director Opas Sripayak said the company was maintaining its presales target of Bt26.4 billion for this year, up 10 per cent from last year, despite recording presales worth Bt3.2 billion in the first quarter.  Most presales income was from the Lumpini Ville Onnut 46, Lumpini Ville Onnut-Pattanakarn and Lumpini Mega City Bang Na projects, and from the resale of Lumpini Park Rama 9. Despite the cut in new project launches this year, LPN is maintaining its overall full-year revenue target of Bt15.2 billion, which represents a 10-per-cent rise from income generated in 2013.

Supalai managing director Tritecah Tangmatitham told the seminar that the company was adhering to its presales target of Bt22 billion for the year, up 8 per cent from last year’s presales income, led by more new launches, especially of low-rise projects. Overall revenue is expected to achieve the target of Bt20 billion this year, some 56 per cent higher than last year’s level, with 35-40 per cent being booked in the first half.

Agency for Real Estate Affairs (AREA) president Sophon Pornchockchai said new housing supply was now expected to fall 22 per cent in terms of units and 23 per cent in value terms in 2014. The market correction will reduce the risk of oversupply, and the agency is not concerned about the housing market at present, as the ratio of unsold outstanding stock to housing stock is only 3.6 per cent, below the 5 per cent seen during the 1997 financial crisis, he said.

He cited the main factors influencing property prices as infrastructure, including new mass-transit routes; the expanding economy; and the upcoming Asean Economic Community, which is helping to push up land prices.  Prime land prices have hit Bt1.65 million per square wah (4 square metres), said Sophon. This includes land at and around Siam Square, Ploenchit and Chidlom, where only commercial development is economically feasible. Land prices as a whole in Bangkok and its suburbs have grown 4-5 per cent per annum since the 1997 financial crisis.

AREA expects land prices to be stable amid the current sluggish economy and political unrest. At the same time, prices could drop in some areas that shot up on speculation of a high-speed rail route passing through, he added.

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