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Thailand Property – Top Developers have good 2013

By on Mar 06, 2014 in Property News

Despite political factor in Q4 backlog of units transferred in final quarter enables them to achieve decent full-year growth, but current market very sluggish.  Listed property firms’ financial results for 2013 show average growth of more than 10 per cent both in terms of revenue and net profit, despite the political turmoil dampening the economy in the final month of the year.  This was due to the high value of their backlog of properties booked in 2011 and 2012 and for which the units were completed and transferred to customers in the fourth quarter of last year.

Pruksa Real Estate president and CEO Thongma Vijitpongpun said that although the company’s presales in the final quarter had dropped by up to 30 per cent compared with the same period in 2012, it had been able to record full-year growth in both total revenue and net profit above what it had estimated.  Pruksa recorded revenue of Bt39.04 billion and net profit of Bt5.8 billion for last year, up 43.84 per cent and 52.63 per cent respectively from the 2012 levels. The company’s net profit margin was 14.85 per cent, against 14.33 per cent the year before.

The political turmoil is, however, directly affecting the property sector in the current quarter, with listed developers’ presales showing signs of coming in between 30 and 50 per cent lower than in the same period last year.

“We accept that the number of customers visiting our condominium projects in the first two months of this year has dropped by more than 20 per cent compared with the normal situation, as home-buyers are concerned about the political turbulence negatively hitting their earnings in the long term,” said LPN Development managing director Opas Sripayak.  Meanwhile, supply and demand for condominiums this year are showing signs of falling some 28 per cent below last year’s level, with home-buyers concerned about their future income and property developers reducing the number of new projects being launched at a time when they have more inventory, he said.

Three property associations – the Business Housing Association, Thai Real Estate Association and Thai Condominium Association – are hoping that the “30th House & Condo Show 2014” being held from March 13-16 at the Queen Sirikit National Convention Centre will boost demand in the currently sluggish market.  The participants will offer special promotional campaigns to boost sales at the event.  Meanwhile, commercial banks will also offer special financial packages for home-buyers who decide to purchase a property during the four-day show.  “We hope next month’s show will boost demand and we target sales worth up to Bt3 billion, which is nearly the same level as at last year’s event. But the targeted number of visitors is only 80,000, against some 100,000 who attended last year,” she said.

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