Plus Property adjusts strategy for slower growth after 20% surge last year

Real Estate February 26, 2014 00:00

By The Nation

2,249 Viewed

Sansiri property-management subsidiary Plus Property Co estimates that its revenue this year will grow by less than the 20-per-cent rate in enjoyed in 2013, as investment in real estate declines and doubts remain about the country's economic growth, manag

Last year, the company posted revenue of Bt790 million, up 20 per cent from 2012. A total of 55 per cent of revenue came from asset-management business, encompassing 1,800 properties. The rest came from facility management (residential and commercial), which currently covers 145 properties, he said.
The company plans to emphasise flexibility and adjust its business strategy to the economic environment. It will continue to provide complete real-estate services through its two main operations, which have both synergy and income diversity, he said. 
The asset-management arm aims at resale of ready-to-move-in condominiums because there have been delays in project launches, resulting in limited availability of new supply. 
In conjunction with the existing supply of real estate that was purchased for investment, Plus Property perceives that the market is favourable for customers who intend to purchase homes to live in. This is because ready-to-move-in condominiums are generally 30 per cent cheaper than similar under-construction properties. 
With regard to its property-sale service, Plus Property considers only those properties owned by developers that have a stable financial position, have experience in real-estate development, and are developing properties that correspond to market surveys. More important, the development project in question must be approved by the Environmental Impact Assessment Committee to prevent possible construction delays and reduce customer risks, Poomipak said.
The research and development department of Plus Property expects the real-estate market to start to show positive signs once the political situation returns to normal. This is especially true for condominiums located at the heart of the metropolitan area along the mass-transit train system because these are highly sought after by customers. Prices of detached homes and townhouses in the suburbs near major roads should also rise. 
Interest rates are expected either to remain stable or decrease, which is favourable for the industry.