Property firms hopeful of recovery in second half

Real Estate May 31, 2014 00:00

By Somluck Srimalee
The Nation

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The property market could recover in the second half as the National Council for Peace and Order (NCPO) gets the economy back on track by kick-starting long-delayed state spending and paying off farmers owed under the rice-pledging programme, a seminar he

However, the overall market is likely to slump by at least 20 per cent so far this year, said Thai Condominium Association president Prasert Taedullayasatit, who is also managing director of Pruksa Real Estate’s condo department.
Samma Kitsin, director-general of the Real Estate Information Centre of Government Housing Bank, said that although launches of townhouse and detached-housing projects in the first four months had dropped by only 15 per cent, condominium launches had plunged by 40 per cent. However, now that the military is running the country and paying off the farmers, the economy should improve and consumer confidence return. This means the second half will be better for the property market.
Prasert agreed that there were indications the market in the second half would be better than in the first six months, but warned that property firms would have to wait and see whether people would speed up their decisions to buy a home.
He added that condominium projects had a rough time so far this year, with presales dropping 46 per cent in the first quarter year on year. Low-rise presales were also down, but not nearly as much: Those for detached houses dropped 1 per cent, and 9 per cent for townhouses. 
“Although there are signals that the country’s economy in the second half will improve, we cannot assume that the demand will recover that soon. 
It may take time for people to decide to buy, especially in condominium projects,” he said.
Prasert believes that the property market in Bangkok and its suburbs this year will drop by about 20 per cent in total market value from Bt348.5 billion in 2013.