Leading property firms are launching residential projects worth more than Bt10 billion combined this month, after delaying putting new projects on the market since the beginning of December.
“We have had to launch new projects in order to boost our sales in the first quarter, during which the market has dropped due to the country’s political problems,” said Pruksa Real Estate managing director Prasert Taedullayasatit.
The company has decided to launch six condominium projects with a combined value of over Bt5 billion this month and next, he said.
The company waited since the beginning of December for the political impasse to be sorted out, but the situation seems to be showing no signs of resolution, leaving Pruksa with no alternative other than to go ahead with new business, he said.
As a result, the company decided to launch the six condo projects in a bid to boost first-quarter presales.
Pruksa recorded condominium presales worth Bt2.3 billion in the first two months of the year, which was about 20 per cent below target, he added.
Supalai, meanwhile, is launching its first three condominium projects of the year this month. Worth Bt3.1 billion, the company had originally planned to put them on the market in January and February.
The decision to launch them now is aimed at boosting first-quarter presales, which during the first two months of the year fell 15 per cent from the same period last year. Presales of just Bt2 billion in the two-month period were well behind the level needed to achieve Supalai’s target of Bt4 billion for the current quarter.
“We have to generate presales worth up to Bt2 billion this month if we are going to achieve the target of Bt4 billion for the first quarter.
“As a result, we have decided to launch three projects this month,” said managing director Atip Bichanond.
LPN Development’s managing director, Opas Sripayak, said the company had delayed the launch of two condominium projects worth Bt3.2 billion in January, but had brought them to the market this month.
LPN defers two other projects
However, the developer has decided to defer the launch of another two condo projects until the second quarter.
“The launch of our two new condominium projects this month has generated presales worth Bt1.32 billion. This shows there is continued housing demand, albeit at a slower pace than in the same period last year. But it is a good sign for the business,” he said.
Despite the slower market, LPN’s first-quarter presales are on target due to existing condominium projects, for which construction has been completed and units are ready to be transferred to customers, he added.
Fragrant Group, meanwhile, has also launched a condominium – the Circle Sukhumvit 31 – this month.
The Bt1.5-billion project was originally scheduled for launch in January.
AP (Thailand) – another major residential developer – last month began to launch three detached-housing and townhouse projects, worth Bt2.65 billion combined, that had been postponed from December and January.