Thailand’s leading real estate players will continue to launch residential projects in accordance with their plan for this year, despite a potential glut in the market and possible anti-speculation measures from the central bank.
This because property developers believe a property bubble is unlikely as there is still real demand for houses.
According to Pruksa Real Estate’s Chief Business Officer Prasert Taedullaya, the company is sticking to its plan to roll-out 78 residential projects with a combined worth of THB55 billion this year, despite the Bank of Thailand’s (BOT) warning on a looming glut.
“Some locations may be oversupplied, but not the overall market. Our customers represent real demand, buying homes in which to stay rather than for speculation. As a result, our business will not be negatively affected if the BOT introduces measures to control speculation in the second-home market,” he said.
Pruksa also has its own curbs to deter speculation. One of which is to blacklist buyers who intend to buy more than 10 units, he noted.
Meanwhile, LPN Development is not worried over BOT’s likely measures for second-home purchases as most of its clients are first-time buyers.
“The BOT has been warning about the property market since early this year, and it has already had an impact on market sentiment.” But it has no bearing on the company’s plan to launch 13 new condo projects collectively worth THB20 billion this year, said Opas Sripayak, Managing Director of LPN Development.
Likewise, Sansiri is not deviating from its plan, which is to unveil 45 residential projects with a combined worth of THB61 billion.
Despite possibilities of curbs for second-home buyers, “the company will not be affected as this category of buyers pay by cash,” added Sansiri President Srettha Thavisin.
Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@allproperty.com.sg
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