Property Developers Preparing For Busy 3rd Quarter

29 Jun 2017

The 3rd quarter is going to be a busy one for most Thai developers as they plan to launch a large number of projects, local media reports. The companies are doing this in an attempt to reach their sales target, which could prove to be difficult after growth in the 1st half of 2017 was lower than originally predicted.

The property market in Thailand grew by less than 5 per cent in the opening 6 months of this year when compared with the same half last year, according to a survey from The Nation. Property developers of all sizes will launch single-family home projects as well as townhouse and condo developments to increase sales between now and the end of the year. Most of the new launches will happen in the 3rd quarter since demand for homes in the 4th quarter is historically slower.

“We will speed up our sales in the 3rd quarter of this year because the market has signs of growing slightly or maybe dropping in the last quarter of this year,” says Wongsakorn Prasitwipat, Chief of Business Development at Property Perfect Plc, to local media.

The country’s poor economic performance hurt the real market in the 1st half as those considering home purchases delayed their decision until later in the year. This caused many companies to underperformed their sales estimates and are they are now in danger of missing yearly targets.

The condo market continued to struggle in the 1st half of 2017 with units priced lower than THB 2 million being the toughest for developers to sell. units in this price range continue to deal with high mortgage loan rejection rates from banks making transfers difficult. Several developers are moving away from this market segment, but still have condo inventory that must be unloaded.

Low-rise homes, including single-family homes and townhouses, are still performing well, however. This segment maintained growth on average of 5 per cent during the 1st half of this year.

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