Ananda Development said it will only launch 12 projects in 2016 as Thailand’s economy has yet to improve and the global economy is still showing signs of volatility. The 12 projects to be launched by the developer will be worth a combined THB22 billion.
“The Thai economy remains uncertain with many negative factors lying ahead including high household debt and the volatile world economy, particularly in China,” said chief executive Chanond Ruangkritya. “We need to be careful and will evaluate the situation again in the second half.”
Nine of Ananda’s new projects will be condominiums. These will be worth THB18.7 billion. Three low-rise projects worth a total of THB3.3 billion will also be unveiled by the company some time this year. Five of the nine condominium projects will be joint ventures with Mitsui Fudosan, Japan’s largest property developer. Ananda is one of many Thai developers opting to launch new developments through joint ventures this year in order to mitigate risks.
Ananda added that it will revise its plans for 2016 if the government’s investment in megaprojects improves the economic situation. At the moment, the developer is bracing for a drop in total sales value of its new projects by 35 percent y-o-y. The company is expecting pre-sales this year to come in around the THB21 billion mark. This figure is much lower than the THB26.2 billion it earned in 2015.
In the short term, the developer will continue its cautious strategy, but it will continue buying land for future growth and projects. The developer hopes to spend THB8.66 billion on new land plots in 2016. This is an increase on the THB5.28 billion it spent on new land last year.
