TOUGH YEAR AHEAD FOR DEVELOPERS

Property developers believe res¬idential prices are showing signs of stabilising and could even drop in some locations over the next year, following a decline in construction rawmaterial costs. They also accept demand for residential projects could decline as a result of the serious economic crisis.

Sena Development director Kessara Thanyalakpark acknowl¬edges that these are hard times for property developers, despite the price of raw materials dropping by up to 50 per cent. Demand for residen¬tial projects is tending to fall and most developers are concerned about their future earnings.

"We believe property developers will have to adjust their project size and revise their project prices. That would speed up sales of inventory, which has increased following a fall in demand," she said.

However, property agency Harrison's senior vice president Kitisak Champatippong believes demand for residential projects in some locations continues to be strong, especially those situated close to the masstransit system, such as Lat Phrao and Sukhumvit Road.

Kitisak said residential prices in locations with continued good demand would be stable next year, while others with lower demand and higher inventory may see a decline in prices.

"However, we believe readytostay residential prices will maintain their current level or rise, because homebuyers' behaviour is now changing towards readytostay housing rather than purchasing before construction, which is a risky business during an economic crisis," he said.