Thai Property Developers: Unwavering and Unhampered
There is just no stopping property developers in Thailand from launching their 2013 projects. Real estate firms such as Pruksa, LPN Development and Sansiri will continue to create more residential projects and push through with their launches for 2013, despite the looming threat of property oversupply and the viable anti-speculation methods coming from the Central Bank. Motivation stays strong within the circle of property developers, who do not feel the looming threat of another property bubble. For them, the real demand for housing projects still remains strong.
'The Entire Market Is Not Oversupplied' -Pruksa
One of the many undeterred property firm heads is Prasert Taedullaya, who is the Chief Business Officer of Pruksa Real Estate. According to Taedullaya, his company will push through with its plans of constructing 78 housing projects, all of which are projected to cost THB 55 billion. Pruksa will continue with its development projects despite the incessant warnings of the Bank of Thailand. Taedullaya believes that some areas are oversupplied, however, he thinks that it does not apply for the entire market. For him, his company’s clients represent true real estate demand, as they purchase homes that they actually stay in. Because of this, Pruksa does not expect any negative effects on its projects, even if the Bank of Thailand decides to go forth with its activities to control assumptions in the second-home market. Although Pruksa does not see a property bubble forming up and exploding soon, it enforces measure to deter speculation which can harm the company’s standings. In fact, the Pruksa blacklists customers who wish to form an unstable real estate market by purchasing more than 10 housing units.
'Our Customers are Mostly First-Time Buyers'-LPN Development
Just as relaxed with the current state of real estate is LPN Development, which raked THB 6.7 billion in presales for the first quarter of 2013. Even with the Bank of Thailand’s measures for second-home deals, the firm is not worried about their possible effects since most of its customers are first-time home buyers. The Bank of Thailand has issued warnings on the real estate market early on in 2013, and they already had affected the sentiment of the market. However, it will have no effect on the firm’s plan of constructing 13 new condominium projects with a combined value of THB 20 billion, according to Opas Sripayak, LPN Development Managing Director.
'Our Payments are Mostly Cash'- Sansiri
Also continuing with its 2013 repertoire is Sansiri, which is poised to launch 45 residential projects surmounting to THB 61 billion. Although the curbs for second-home buyers are present, Srettha Thavisin, president of Sansiri, is not worried at all. After all, the customers usually pay by cash. And with the company’s record-breaking presales of THB 21 billion in the first quarter of 2013, Sansiri is bent on continuing with its projects for the year. Despite the Bank of Thailand’s repeated calls to curb speculation, the faith in property firms such as Pruksa, LPN Development and Sansiri shows that they will continue with their projects for the year 2013.