The residential property sector in Thailand could expand by as much 15 percent this year due to the government stimulus measures designed to improve the market, Pruska Real Estate recently told media. The developer also announced that it is expected to surpass its full-year revenue target of THB 47 billion.
“Our initial projection for the rate of market expansion was 13 percent, before the government’s reduced-fees measures were introduced, but we now expect the market to grow by 15 percent this year based on the measures and the numbers that we are seeing for the third quarter,” Thongma Vijitphongpun, Pruska Real Estate’s president and chief executive officer, stated. “A 15-percent annual expansion rate for this sector is quite high, since its base growth is around five to seven percent per year.”
Pruska’s presales for the first nine months of 2015 were THB34.455 billion while the company’s revenue during this period was THB33.21 billion. That marks year-on-year growth of ten percent and 9.3 percent in each area respectively.
However, Pruska saw profits shrink during this period because of the delay in transfer and bookings as home buyers waited for the government’s measures to to come into effect in order to take advantage of lower transfer and mortgage fees.
“We are confident that we will surpass our total revenue target of more than THB47 billion as our presales already reached THB34.4 billion in the first nine months, which represents around 70 percent of our target, not including our existing backlog and active projects,” chief operating officer Lersak Chuladesa added.
The fourth quarter could be a big one for the developer as it has THB33.21 billion worth of backlog that could be transferred to customers. Sixty percent of this backlog is comprised of condominium units.
