As land prices in Bangkok continue to rise, Piya Prayong, Pruksa Real Estate’s president of value business, told media that it has introduced plans to increase the price of homes by five percent during this year.
Land prices have risen by up to 20-30 percent since last year in some areas, according to Piya. While the stagnant prices of construction-materials has offset the additional land expenses in some regards, Pruksa felt that it was necessary to increase residential prices now in order to avoid larger jumps down the road.
And prices were not the only thing the developer increased recently. The Nation reported that Pruksa also raised its revenue target by THB1 billion from THB52 billion to THB53 billion. The government’s temporary real estate stimulus measures, which expired in April, helped the company earn more than previously expected.
The developer is very confident that it will be able to reach its new target this year because it has a significant backlog of homes valued at more than THB25 billion already sold and ready to be transferred to buyers. Pruska hopes around THB14 billion of this backlog will be transferred in 2016.
Pruska also has plans to launch 50 to 55 residential projects this year estimated to be worth around THB40 billion as it looks to increase its pre-sales totals. The company only launched 10 projects in the first quarter. Pre-sales for the developer are expected to come in at over THB50 billion for the year.
Despite the fact that the economy in Thailand is expected to struggle once again in 2016, Piya explained to The Nation that Pruska believes demand for homes in the Greater Bangkok area is still strong enough to target eight percent growth. It was also noted that most of the demand is for homes priced at THB7 million and below.
