Bangkok Apartments | Bangkok Condos | Bangkok Serviced Apartments

Home

Luxury home uptick likely

Bangkok Post Mar 13, 2009

The luxury home building market is forecast to grow by 2-4% in the first quarter while the small-to-medium segment is set to shrink 10%, according to the luxury home builder Master Plan 101 Co.

The company has seen better sentiment for the luxury segment in the first two months as it recorded sales of seven housing units worth a total of 101 million baht. In the first quarter last year, its sales of 33 million baht fell short of its 90 million target.

Managing director Anankorn Amornwatee said Master Plan had increased its sales forecast for the first quarter to 120 million baht from 60 million.

The company predicts sales to increase by 20% to 300 million baht this year after sales of 15 housing units worth 250 million baht last year, 10% short of its projection of 280 million.

Meanwhile, the home building market for houses priced below 5 million baht is expected to fall by 10% as consumers in this segment are seen as more sensitive to the economic situation.

"It's difficult to predict the sentiment of the high-end market as the economy normally has little impact on their purchasing power," he said. "High-end consumers make purchases when they find the products that best suit their needs and price is not the key factor."

Last year the company had to delay construction projects for the first time in a decade because of the slowdown. The projects were worth 39 million baht.

Master Plan housing is priced around 10-20 million baht on plots sized from 600 square metres. It plans to sell 50- million-baht units in the future.Although raw material prices have been stable the past two months and fuel prices are less volatile than last year, Mr Anankorn feels the company needs to keep an eye on the market. Flat growth is anticipated this year in the 50-billion-baht home-building industry.

Master Plan aims to launch its first showroom in the middle of this year in Lat Phrao. The showroom is expected to expand its sales channels.