Most firms suspend new projects
Falling buying power, lack of confidence bite into sales
Most leading property firms have suspended new resi¬dential projects that were to be launched in the final month of 2008, under the threat of dwindling purchasing power and potential homebuyers
' lack of confidence in future earnings.However, a survey by The Nation earlier this week found that some companies will still go ahead with new residential projects in locations that they believe will continue to attract growth in demand.
Market leader Land and Houses has suspended new residential proj
¬ects with a value of Bt6 billion that were to be launched next month, a company source said, blaming con¬tinuing political uncertainty and the prospect of only meager economic growth.Property Perfect
's chief operating officer Teerachon Manomaiphibul said that after launching three new condominium projects with a col¬lective value of Bt12 billion this month, his company would halt plans to launch more new projects worth Bt8 billion next month."Although the last month of the year is normally a good time to sell residential projects, we had to sus
¬pend projects that were due to be launched next month because we see purchasing power falling at a time when most homebuyers are con¬cerned about their future earnings," he said.Asian Property Development is thinking of delaying new residential projects worth Bt6 billion in December after seeing the drop in consumer purchasing power since October, senior vice president Visanu Suchartlumpong said.
However, LPN Development will go ahead with plans to launch its lat
¬est condominium project, with a value of Bt300 million, in Bangkok's Bang Khae district next month, man¬aging director Opas Sripayak said."The new residential project in Bang Khae will be our pilot project in this location and our first project with only 200 units," he said.
LPN Development is downsizing its residential projects to match the state of the economy and the lack of consumer confidence arising from political uncertainty. It has set aside an investment budget of Bt1.5 billion to Bt2 billion to buy land in Bangkok for new residential projects to be developed next year, Opas said.
Preuksa Real Estate will also go ahead with two or three new resi
¬dential projects, with a market value of nearly Bt2 billion, before the end of this year, chief operating officer Prasert Taedullayasathit said."Although buyers' purchasing power has fallen significantly since October, we will go ahead with new projects in December because we believe there is real market demand for new residences.
However, we will tailor our proj
¬ects to match buyers' budgets and market demand," he said.OTHER BUSINESS
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