Thai Developers Register Excellent Presales for the First Quarter of 2013
Despite cautionary reminders from the Bank of Thailand regarding real estate oversupply, listed property developers managed to rake in impressive presales figures for the first quarter of 2013.In a survey conducted by “The Nation,” results showed that four developers boosted their presales figures.
Sansiri experienced immense growth in presales from THB 16.2 billion in the fourth quarter of 2012, to THB 21 billion in the opening of year 2013. Consequently, these figures bring Sansiri inches closer to its target sales of THB 48 billion for the entire year. According to Sretta Thavisin, Sansiri president, the improved sales can be attributed to the strong demand for real estate in Bangkok and other areas. She also ascribes this to her company’s project expansion in the nearby provinces of Phuket, Pattaya, Hua Hin, Khon Kaen and Rayong, as well as the positive feedback that the land developer has received for these projects. Apart from its impressive presales figures, plans on boosting their profits further with the launch of more real estate projects. The company’s newest venture is the dCondo, a property that is highly accessible to the country’s top universities. The demand for real estate is still ‘real,’ and not speculative demand that is why land developers continue to prosper, according to Thavisin. Despite the concern of the Bank of Thailand, Thavisin says that the speculative demand is still under 10%, which is why Thai land developers are expected to boost their presales figures for the rest of the year.
The Pruksa Profits
Apart from Sansiri, another land developer that has managed to rake bountiful presales figures is Pruksa Real Estate, whose 117% improvement in profits has given the company a total deal of THB 12.3 billion for the first quarter of 2013 alone. This is more than 1/3 of Pruksa’s 2013 presales target of THB 35 million. Prasert Taedullayasatit, Pruksa’s Chief Business Officer, credits 70% of the company’s total presales value to its low-rise detached townhouses and homes, as well as its numerous condominium units.
Profiting incredible presales for the first quarter as well are LPN Development with THB 6.7 million and Property Perfect with THB 3 Billion. Despite launching only three projects during the first quarter of 2013, LPN Development has managed to register strong sales, according to its Managing Director, Opas Sripayak. Sripayak adds that most of its clients are pre-buying units with titles that can be transferred to their names after the construction is complete. From the pool, only 5% of the clients transfer their deeds to another person in a span of 1-2 years. With these statistics, Sripayak infers that their buyers correspond to real demand, and are actually purchasing homes so that they can actually live in it. Despite the warning of the Bank of Thailand, it proves to be that the demand for Thai real estate is still strong. With the aforementioned companies scoring phenomenal presales in the first quarter of 2013, it is projected that the rates will continue to rise for the rest of the year.