Golden Land Property and Development was the best performer in the industry with a 189-per-cent improved performance. It swung back to a net profit of Bt271.13 million from a net loss of Bt302.51 million a year earlier on a 40-per-cent rise in sales and an 11-per-cent increase in its rental fees.

A 17-per-cent drop in its sales and administrative expenses also gave the company a boost.

Eastern Star Real Estate was the second-best performer, with 114-per-cent improved results. It posted a net profit of Bt19.9 million in 2006 against a Bt141-million net loss the year before.

Asian Property recorded a stunning net profit of Bt1.34 billion, compared with Bt764.86 million in net earnings the previous year. This was due to a 20.7-per-cent rise in revenue to Bt6.34 billion and a gain of Bt752 million (before selling and administrative expenses and tax) from the sale of its investment in City Asset Fund.

Prinsiri's net profit in 2006 rose 46 per cent to Bt447.8 million, while Quality Houses announced that its net profit had increased 22 per cent from Bt822.32 million in 2005 to Bt1.01 billion.

Raimon Land emerged as the worst performer among listed property developers in 2006, with a 202-per-cent negative turnaround in its results. The company plunged into a net loss of Bt165.82 million, against a net profit of Bt161.04 million in 2005.

Property Perfect's net profit fell 99 per cent in 2006, from Bt1.09 billion the year before to Bt11.99 million. Sansiri saw its net profit last year slump more than 50 per cent, from Bt903.58 million in 2005 to Bt880.08 million.

Thailand's largest property firm, Land & Houses, saw its net profit tumble 36 per cent from Bt5.12 billion to Bt3.25 billion. Its gross margin fell from 33 per cent to 31 per cent.

SC Asset was in the same league. The firm's net profit declined 22 per cent from Bt432.01 million in 2005 to Bt333.6 million.

Siam City Securities has lowered its investment weighting recommendation for the sector from "bullish" to "neutral" in anticipation that economic growth this year will be lower than in 2006.

Residential demand will recover in the second half of the year after domestic interest rates stabilise, the brokerage said.

Siam City Securities analyst Mayuree Chowvikran said the ratio of town houses and condominiums in the real-estate market would increase this year.

About 12,000 to 15,000 new housing units are expected to come on stream this year.

"The detached-housing market, which showed strong growth in the past one or two years, is now in oversupply. Property developers will focus on selling existing units and this might lower their margin," Mayuree said.

Asia Plus Securities analyst Therdsak Thaveeteeratham said competition in the property market this year would be more intense because all companies want to speed up their sales. An issue of concern is that competition might lower margins and increase sales and administrative expenses, he said, adding that downward interest rates will not stimulate demand.

Siriporn Chanjindamanee

The Nation