Experts and developers continue to predict a strong second half for Bangkok’s residential property market with better than expected economic indicators giving everyone cause for optimism. According to local media, Thailand’s economy is predicted to expand by as much as 3.3 percent in 2016 and this, along with the government’s significant investment in infrastructure projects, could see the sluggish property market come to life during the next few months.
“Although the property market in the second quarter fell by up to ten percent compared with the same period last year, we have confidence that the market will recover in the second half and will drive overall growth for the full year of up to ten percent, worth THB330 billion in total, in Bangkok and suburban areas,” Thongma Vijitpongpun, Pruksa Real Estate’s chief executive officer, explained to The Nation.
Both Sansiri and SC Asset are bullish on the property market as well with both developers believing they will meet pre-sales and revenue targets. Nuttaphong Kunakornwong, CEO of SC Asset, stated that he believes the property market is set for recovery this year with several positive economic indicators contributing to real estate turnaround.
With a predicted property market recovery forming, developers will likely ramp up their efforts in launching residential projects. The Nation reported that more than THB200 billion worth of launches are slated to take place in Bangkok and Thailand’s other provinces during the second half of 2016.
Sansiri intends to launch 13 projects worth a total of THB37.45 billion during the second half while LPN Development is looking to launch six new condo developments and SC Asset also expects to launch six new residential projects valued at THB14 billion. However, Pruksa Real Estate will be the most aggressive developer with plans to launch nearly 40 projects worth THB30 billion during the next four months.
