By Nikki De Guzman:
Property developer Pruksa Real Estate is bullish that the Greater Bangkok property market will expand by seven to eight percent this year to hit Bt330 billion to Bt350 billion despite Q1’s sales of Bt88.39 billion, which was 0.4 percent down from the corresponding period last year, reported The Nation. Meanwhile, volume was two percent higher to 32,371 units.
Developers also reaped better revenue results in Q1. For instance, Pruksa saw its presales hit THB12.32 billion to yield significant increases in total revenue at THB6.34 billion and net profit at THB773 million.
While the Bank of Thailand (BoT) has earlier warned over a potential property bubble, the market is still driven more by real demand rather than speculation, noted Thongma Vijitpongpun, Pruksa Real Estate President and Chief Executive Officer.
The demand is seen mostly in low-rise homes such as townhouses, detached and semi-detached residential properties
“In those locations that show oversupply, most property firms have delayed launching new projects. This is why the value of new residential-project launches in the first quarter dropped from the same period last year while demand in terms of volume has continued to grow,” noted Prasert Taedullayasatit, Director and Chief Business Officer at Pruksa.
The total property market would still grow by seven to eight percent in 2013 within Bangkok and the provinces.
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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