Metro Bangkok property market to grow 7-8% this year, Pruksa ...

Home ? business ? Metro Bangkok property market to grow 7-8% this year, Pruksa predicts

Realty

Somluck Srimalee
The Nation May 15, 2013 1:00 am

The property market in Greater Bangkok will grow by 7-8 per cent this year to a value between Bt330 billion and Bt350 billion, leading developer Pruksa Real Estate estimates.

Last year the nationwide property market was valued at Bt626 billion, Bt314 billion in the provinces and the rest in Bangkok and its suburbs.

In the first quarter of this year, the Greater Bangkok market recorded sales worth Bt88.39 billion, down 0.4 per cent from the same period last year. In terms of volume, however, the metropolitan market increased 2 per cent year on year to 32,371 units.

Most listed property firms reported improved revenue in the first quarter of this year, and some of them, such as Pruksa and LPN Development, showed strong growth in net profit. Others enjoyed lower profits, while Sansiri saw a loss.

Pruksa reported presales worth Bt12.32 billion generating total revenue of Bt6.34 billion and net profit of Bt773 million in the first quarter, up 117 per cent, 36 per cent and 22 per cent respectively from the same period of 2012.

Land and Houses announced revenue of Bt5.9 billion in the first quarter, up 25 per cent year on year, while net profit of Bt1.4 billion reflected a drop of 6 per cent.

Sansiri recorded presales worth Bt21 billion for total revenue of Bt5.18 billion and a net loss of Bt86.43 million in the first quarter. The company reported to the Stock Exchange of Thailand that the loss was due to higher marketing costs.

Raimon Land posted a net profit of Bt142 million for the first quarter, compared with a net loss of Bt70 million in the same quarter of 2012.

Ananda Development recorded a net loss of Bt83 million in the first quarter compared with a net loss of Bt202 million in the same period of last year. But the company's consolidated account recorded a net profit of Bt4.87 million in the quarter, turning around a net loss of Bt258.20 million in the first three months of last year.

Lalin Property Development recorded revenue of Bt623 million and net profit of Bt117.65 million in the first quarter, up 94.7 per cent and 185 per cent respectively year on year.

LPN Development reported revenue of Bt2.4 billion and net profit of Bt360.07 million, up 14 per cent and 22 per cent respectively from the first quarter of 2012.

Property Perfect announced revenue of Bt2.45 billion, up 31 per cent year on year, and net profit of Bt116.5 million, down 7.3 per cent.

Pruksa Real Estate president and chief executive officer Thongma Vijitpongpun said that despite the Bank of Thailand's warning about a bubble developing in the property sector, the market still was driven more by real demand than speculation. Demand is especially strong for low-rise homes including townhouses and detached and semi-detached houses.

However, he accepted that condominiums may have experienced speculation in some locations, and said developers were being careful to investigate the market before deciding to expand projects.

Pruksa director and chief business officer Prasert Taedullayasatit said: "In those locations that show oversupply, most property firms have delayed launching new projects. This is why the value of new residential-project launches in the first quarter dropped from the same period last year while demand in terms of volume has continued to grow."

However, he believes that the total property market will continue to grow by 7-8 per cent this year in both Bangkok and the provinces. As a result, the company is sticking with its plan to launch 78 projects worth Bt55 billion this year, including the 19 worth Bt22.49 billion launched in the first quarter. Pruksa is also maintaining its targets of Bt35.4 billion in presales and total revenue of Bt33 billion for 2013.

Meanwhile, the company's investment plan overseas has continued, and is now in the process of transferring Bt336 million worth of its Bt796-million residential project in Bangalore, India, in the first quarter. It plans to launch its first project in Vietnam in the second half of the year, Thongma said.

The company may also expand into Indonesia this year or next, he said.

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Source: http://www.nationmultimedia.com/business/Metro-Bangkok-property-market-to-grow-7-8-this-yea-30206145.html

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