Developers eye strong growth

Real Estate January 09, 2018 01:00


LEADING property companies have expressed confidence the market will grow by up to 7 per cent in 2018 from last year, reaping the benefits of the government’s proposed investments of more than Bt500 billion in massive infrastructure projects.

Sansiri Plc president Srettha Thavisin, in an interview with the Nation recently, said that the expectations of market growth of as much as 7 per cent were also underpinned by widely shared forecasts for economic expansion of more than 4 per cent this year.

He said the fact that the government’s investments in the big infrastructure projects were due to start flowing this year was a key driver for growth in the property market.

Lalin Property Plc chief executive officer Chaiyan Chakarakul also had confidence that the market growth this year would come in at around 7 per cent. Chaiyun shares the views that the state-led investments in infrastructure development will spur property sales and highlights the boost in demand to come from the planned expansion of the mass transit route in Bangkok and surrounding areas.

The CEO says the improved transport links will stoke demand for residential projects near the new stations.

In line with the company’s optimism, Lalin Property plans to launch as many as 10 residential projects worth up to Bt5 billion this year, with expectations for presales of Bt4.4 billion, shading last year’s tally of around Bt4 billion. This would mark a 15 per cent rise from last year, Chaiyan said.

Asia Plus Securities Co Ltd also is looking to a strong property market this year, boosted by construction starts on some of the big-ticket infrastructure projects this year.

Asia Plus Securities Co Ltd’s deputy director of its research department, Nuanpun Noiruchchukorn, said the company forecasts that presale values in Bangkok and suburban areas will reach Bt330 billion in 2018, up 6 per cent from the Bt313 billion posted last year. This will boost listed property firms' net profit to Bt43 billion this year, up 10 per cent from estimated net profit of about Bt39 billion last year.

Government Housing Bank estimates that new loans for residential properties this year will reach Bt600 billion, an increase of 4 per cent from 2017.

The bank expects new loans for residential projects alone will hit Bt180 billion, the bank’s senior executive vice president Laiwan Pongsangiam said recently.