Bangkok Commercial Asset Management (BAM) has revised upward this year's targeted asset purchases from financial institutions from Bt19 billion to Bt25 billion, having already bought assets worth Bt15 billion in the first half.
The company is, meanwhile, maintaining its expected 2010 asset sales at Bt12 billion after recording sales of more than Bt7.39 billion in the first six months, president Bunyong Visatemongkolchai said after opening a Real Estate Cafe branch on the third floor of Seacon Square yesterday.
The cafe is BAM's second Bangkok shoppingcentre outlet, following the one opened at Central Plaza Chaeng Wattana in the previous quarter. The company also plans to open two more Real Estate Cafe outlets in the final quarter.
Bunyong said resaleresidential demand had continued to outpace growth in the firsthome market because of the lower prices on offer.
"We cannot say how much the overall resalehome market is rising, but our sales recorded growth of more than 20 per cent in the first half of the year, compared with firsthome market growth averaging 5 per cent," he said.
He added that although interest rates were likely to rise over the remainder of the year, there would only be a small impact on the property market because rates here are still lower than in other countries.
Meanwhile, MR Pridiyathorn Devakula, former deputy prime minister who presided over BAM's opening ceremony yesterday, said the Thai economy was on the recovery road after bottoming out last year.
The property market will also recover despite the rising interestrate trend, he said.
"We don't see any business risk for the country as long as our politics is stable," he added.
Pridiyathorn said gradual economic growth was better than rapid growth, as it would be more sustainable in the long term.
However, the export market may suffer a small impact from the economic problems in the US and Europe, which are recovering only slowly. That means Thai exports could expand at a lower rate than previously estimated.
He said the Thai economy would, nonetheless, perform better than last year.
As regards BAM's strategy to be listed on the Stock Exchange of Thailand, Bunyong said the board would have to reconsider the previously agreed plan.
He cited the company's plan to join the bidding for nonperforming assets and nonperforming loans from the Thai Asset Management Corp, which will close for business next year. BAM's board will see how this develops before deciding on the listing plan.
However, he believes the plan will be finalised during the course of 2011.
BAM is 100 per cent held by the Financial Institutions Development Fund.