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Residential market set to rebound

Aug 11. 2016
The Baan Lumpini Suang Long Rama 9 readytostay townhome project by LPN Development offers discounts of up to Bt1 million per unit, in what is just one example of campaigns by residential developers to boost sales in the second half of the year.
The Baan Lumpini Suang Long Rama 9 readytostay townhome project by LPN Development offers discounts of up to Bt1 million per unit, in what is just one example of campaigns by residential developers to boost sales in the second half of the year.
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THE RESIDENTIAL property market in the second half of the year is showing signs of strong growth thanks to better-than-expected economic indicators, with the economy possibly expanding by 3.3 per cent this year, and the government’s acceleration of its in

“Although the property market in the second quarter fell by up to 10 per cent 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 10 per cent, worth Bt330 billion in total, in Bangkok and suburban areas,” Thongma Vijitpongpun, chief executive officer of leading developer Pruksa Real Estate, said recently during an interview with The Nation.

He said the residential market was continuing to show strong growth in the second half, with consumer confidence having recovered when the government kicked off its investment in infrastructure projects.

More recently, the country’s political situation has begun to look more stable after last Sunday’s referendum vote to accept the draft constitution, he added.

According to a survey by the Government Housing Bank’s Real Estate Information Centre, a total of 123 residential projects were launched in Bangkok and suburban areas in the first five months of the year – comprising 29,380 units – which was 22 per cent down on the same period last year.

SC Asset Corp’s CEO, Nuttaphong Kunakornwong, said the company believed the property market would, however, recover during the latter part of the year, given that several economic indicators had turned positive, which should contribute to a recovery in real-estate business.

As a result, the company is confident that its revenue this year will hit the target of Bt15 billion, he said.

Sansiri’s senior executive vice president of the project development division (high rise), Uthai Uthaisangsuk, said the company had achieved presales worth Bt14.5 billion in the first seven months of the year, thanks to rising demand.

The developer is confident it will be able to reach full-year presales of Bt42 billion as it plans to launch new projects worth up to Bt34.6 billion combined in the second half, he said.

Project launches

Given their strong confidence in the property market’s continued strong recovery, developers are expected to parade new residential projects worth more than Bt200 billion combined in Bangkok and the provinces during the second half, according to a recent survey by The Nation.

For example, Sansiri plans to launch 13 projects – both ready-to-stay homes and under-construction projects – together worth Bt37.45 billion during the period.

Pruksa Real Estate plans to launch 38 projects worth Bt30 billion in the latter half after reporting presales worth Bt21.63 billion, or 42 per cent of its full-year target of Bt51 billion.

LPN Development, meanwhile, plans to launch six new condominium projects worth Bt7 billion combined in the second half, while SC Asset Corp also has plans for six new residential projects, worth Bt14 billion.

Sena Development plans to launch five new projects worth Bt2.7 billion during the period, and

NC Housing has plans for two new launches worth between Bt2.6 billion and Bt2.7 billion combined.

AP (Thailand) plans to launch 12 projects worth Bt25.38 billion, while Golden Land Property Development has 15 new projects worth Bt15 billion ready for launch by the year’s end.

Special promotions

Following their generally aggressive launch plans for the second half of the year, most property firms are also launching special promotional campaigns to boost their sales in the period.

LPN Development, for example, is offering discounts of up to Bt1 million per unit for home-buyers that decide to snap up homes of its Baan Lumpini Suang Long Rama 9 project, at which town-homes are on offer from Bt14.5 million.

The company also has a special promotion for buyers at its Lumpini Township Rangsit-Klong 1 condominium project, under which they have the opportunity to rent a condo for the first year, with the amount paid then going towards a down payment on the property when applying for a mortgage.

Pruksa Real Estate, meanwhile, has launched a “Free to stay in the first year” promotion for its nine residential projects under the Pruksa Ville brand.

As usual, residential developers will also launch special promotions at the “35th Home and Condo Show”, which takes place from October 6-9 at the Queen Sirikit National Convention Centre.

These campaigns will include discounted purchase prices and special interest-rate offers, especially for those committing to buy during the show.

More than 200 companies will showcase projects worth over Bt100 billion at the four-day event, with their various promotional offerings expected to boost the property market during the remainder of the year, said Somnuek Tanthathoedthum, chairman of the board of representatives from three associations: the Thai Condominium Association, the Thai Real Estate Association and the Business Housing Association.

“We believe this event will boost the market and also [be a welcome] challenge for home-buyers to purchase a property in the second half of this year,” he added.

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