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Upbeat developers to launch 216 housing projects this year

By on Jan 07, 2013 in Property News

Listed property firms will announce investments totalling at least Bt150 billion in each of the next two years, with 216 residential projects expected to be launched during 2013. According to a survey by The Nation, some Bt150 billion is the value of the projects themselves, while a similar amount is the capital required over two years to buy the land for development of the estates.

Half of the overall Bt300 billion will come from developers’ cash flow, and the other half from the issuance of debentures and bank borrowings.

Pruksa Real Estate director and chief business officer Prasert Taedullayasatit said the company planned to launch 78 residential projects worth Bt54.6 billion this year. Up to 70 per cent will be low-rise detached housing and townhouses, with the remainder being condominium projects.

This is expected to drive revenue to Bt34 billion this year, up 30 per cent from Bt26 billion last year.

The company will finance the investment through a mixture of cash flow, bank borrowings and a debenture. This will maintain its debt-to-equity ratio at no more than 1.5:1, he said.

Sansiri, another leading property firm, will launch at least 50 residential projects worth more than Bt40 billion during the year.

“We believe the property market this year will grow further after last year’s expansion, both in Bangkok and in the provinces. This will drive business growth of more than 10 per cent compared with last year,” president Srettha Thavisin told The Nation.

The investment budget will come from both its cash flow and the issuance of a debenture, he said.

Market to grow at least 10%

With the number of residential projects expected to be launched, developers believe the property market will growth at least 10 per cent over the course of the year.

Land & Houses senior executive vice president Naporn Sunthornchitcharoen said the market would see significant growth compared with last year, when property firms expanded their investments in Bangkok and upcountry. “We believe the market will grow nearly 10 per cent during the year,” he said.

A survey by the Real Estate Information Centre shows that the property market grew between 5 and 10 per cent last year.

LPN Development managing director Opas Sripayak said demand for condominiums priced lower than Bt2 million per unit is continuing to expand. This will drive strong property market growth for both low- and high-rise residential projects.

As a result, the company plans to launch 13 condo projects worth more than Bt20 billion combined this year. They will be located both in Bangkok and provincial centres such as Chon Buri and Pattaya.

“Our investment budget will come from the both our cash flow and project loans from the bank,” he said.

Meanwhile, SC Asset Corp chief operating officer Kree Dejchai said the property market would continue to grow this year thanks to consumer confidence in the country’s economic expansion.

“We believe the property market will grow 10 per cent this year compared with last year,” he said.

Given these bright prospects, SC Asset plans to launch 14 projects together worth more than Bt17 billion during the course of 2013.

“Half of our investment budget will come from our cash flow, and the rest will be from bank borrowings and the issuance of a debenture,” he added.

Source : The Nation 4 January 2013

Nora has been in the Corporate Communications arena for a number of years. Nora's role is to communicate all newsworthy items that are of a PR nature.

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