Project launches hit a slump

By The Nation
Published on August 21, 2008

The number of new residential projects launched last month decreased as much as 50 per cent compared to June after a number of property companies delayed project launches, a survey by the Agency For Real Estate Affairs (AREA) showed.

The survey said that only 21 proj¬ects were launched last month. The housing projects provided a com¬bined total of 3,820 residential units, with a cumulative worth of about Bt10.14 billion, which is much lower than the number of projects and units introduced in June.

The value of different units on offer in these residential projects also saw a significant decline.

The highest decline in the value of homes that came online last month was in townhouses, which dropped to as low as Bt1.38 billion, or a 61.8percent decline, from June's figure of Bt3.62 billion.

For condominiums, last month's cumulative value stood at Bt3.13 billion, marking a hefty 65.4percent decline from June's figure of Bt9.07 billion.

The industry body's survey of the realestate industry, which is filed every month, shows several changes in the type, prices and overall cost of developing such residential complexes.

For instance, since the beginning of the year, condominiums domi¬nated the scene among the new projects.

However, the number of condo¬miniums on offer last month was lower than the number of detached houses launched.

One reason for this may be that some condominiums remained unsold, adding to the supply of these types of projects. Another rea¬son could be the soaring cost of con¬struction, which translates into smaller developers having less money to spend as compared to the larger companies.

AREA's survey also found that most of the residential projects launched last month were by listed companies.

Fourteen of the new projects launched last month are located in intermediate areas, such as Sukhumvit Road, Sathorn and Ratchada.

Four other residential projects are located in the outer areas, par¬ticularly on the easily accessible road networks. These outer areas include Lamlukka Road, Songprapha Road, Chaeng Watthana Road, Ramkhamkaeng Road and the eastern segment of the Outer Ring Road.

Theparak Road, Sukhumvit Saikao Road, Rama 2 Road, Bang Kruysai Noi Road, Rangsit Klong Luang Road and PhahonyothinNavanakorn Road also come under this classification.

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Project launches hit a slump

The number of new residential projects launched last month decreased as much as 50 per cent compared to June after a number of property companies delayed project launches, a survey by the Agency For Real Estate Affairs (AREA) showed.

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