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Earnings grow despite recent political unrest

Friday, 03 October 2008

The Nation October 2, 2008 Market leaders to record rises as smaller firms report drop Earnings grow despite recent political unrest Thailand's property market leaders have recorded sales growth in the third quarter of this year despite the government declaring a state of emergency in August, a survey conducted by The Nation showed. However, a number of small and medium sized property developer companies still faced tough times because homebuyers preferred buying residential properties from market leaders who own healthy brands and promise good product quality. Preuksa Real Estate director and chief operating officer Prasert Taedullayasatit said the company's sales in the third quarter were higher than in the same period last year. It recorded pre sales of about Bt4.8 billion in the period. "Homebuyers are still buying residential projects although the government announced a state of emergency and that can be seen through our presales, which stayed strong in the third quarter," he said. Aiming for aggressive growth, the company believes that its presales will achieve its target of Bt20 billion, which will in turn help the company generate revenues of Bt14 billion by the end of the year, he said. Preuksa Real Estate posted revฌenues of Bt5.5 billion and a net profit of Bt947.38 million in the first half. Asian Property Development chief executive Anuphong Assavabhokhin said the company's sales in the third quarter continued to record growth of up to 10 per cent compared to the preceding quarter. When the government announced a state of emergency in Bangkok, the number of visitors at its residential project dropped 3 per cent to 5 per cent. However, visitors returned to the projects and its sales have also recorded strong growth. As a result, presales in the third quarter still managed to grow, he said. However, small and mediumsized property companies said their residential projects had continued to face negative impact from the slow growth in the country's economy and because of the political turmoil. NC Housing has revised its presales target from Bt1.9 billion to between Bt1.5 billion and Bt1.6 bilฌlion, responding to a delay in homebuyers' decisions to purchase property owing to the country's political turmoil. "Our presales in the first eight months were just Bt1 billion, which is lower than our target. As a result, we have had to adjust our presales target from Bt1.9 billion to Bt1.5 billion or Bt1.6 billion this year. That may even affect our revenue target, which is now expected to be lower than our previous estimate of Bt1 billion by the end of the year," managing director Somchao Tanterdtham said. NC Housing recorded a total revenue of Bt383.39 million and a net loss of Bt7.53 million in the first half. The company is one of many property developers who faced a negative impact when homebuyers delayed their decision to buy detached houses or townhouses located far from the mas stransit system, and instead showed a preference for city condominiums located in the central busiฌness district. "We have experienced negative impact from the change in customer behaviour over the last two years but right now the main impact has come from the political problems," he said. Somchao said a number of homebuyers delayed their decision when antigovernment protestors siezed Government House two weeks ago. As a result, the number of potential customers visiting its residential projects reduced from an average of 15 to 20 visitors a project a day to 10.

 

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