Property firms upbeat for Q2 amid rise in demand

Listed property firms plan to launch new residential projects worth more than Bt50 billion in the second quarter of this year as they see a recovery in demand after the first quarter of this year.
Pruksa Real Estate Plc plans to launch 23 new residential projects worth Bt17 billion in the second quarter, as part of 72 new residential projects worth Bt60.8 billion it plans to launch this year.
Sansiri Plc plans to launch four new projects worth Bt12.6 billion in the second quarter of this year, AP (Thailand) Plc also plans to launch four new projects worth Bt15 billion in the second quarter.
Supalai Plc will launch four new projects worth Bt6 billion in the second quarter while Golden Land Property Development Plc plans two new projects worth Bt2 billion. Origin Property Plc is looking at launching four new projects worth Bt8.4 bilฌlion.
Pruksa Real Estate Plc’s chief executive officer, Piya Prayong, said the demand to buy residential property in the first quarter grew 14 per cent compared with the same period of last year. The company also saw strong presales growth, achieving Bt13 billion in the first quarter of this year, up 14 per cent from the same period of last year. It launched 11 residential projects worth Bt11 billion in the first quarter of this year.
Overall, the company plans to launch 23 new residential projects worth Bt17 billion in the second quarter by focusing on residential prices between Bt2 million and Bt5 million per unit, he said.
Sansiri Plc saw total presales of Bt7 billion in the first quarter, Bt1.7 billion being from foreign buyers who are interested in buy residential property in Thailand.
Following the rise in demand, Sansiri Plc plans to launch four new projects worth Bt12.6 billion in the second quarter, targeting total presales of Bt10 billion in the second quarter.
“We are confident that the country’s economy in the second quarter will be better than in the first quarter, thanks to the governฌment policy to boost the country’s economy by investing in infraฌstructure projects and promoting the tourism sector. This will drive demand for residential property in the second quarter, maintaining the momentum of the first quarter,” Sansiri president Srettha Thavisin said in a press release recently.
Supalai Plc showed total preฌsales of Bt7.56 billion in the first quarter, up 43 per cent from the same period of last year, thanks to an increase in demand for single detached houses and townhouses that showed presales worth Bt4.08 billion in the first quarter of this year.
Supalai Plc managing director Tritecha Tangmatitham said the demand to buy residential propฌerty in the first quarter showed signs of recovery, as a result the company plans to launch six new projects worth Bt4 billion to boost presales in the second quarter. This is a part of its attempt to boost presales to achieve Bt27 bilฌlion and total revenue of Bt24.5 billion at the end of this year.
According to Real Estate Information Centre of Government Housing Bank, the real estate confidence index in the first quarter of this year recorded 54.2 points, up from 53.5 points in the same period of last year. This means property developers have confidence in the property market in the first quarter and the second quarter.
Meanwhile, the Bank of Thailand (BOT) reported that new mortgages in the first quarter recorded a growth of 14 per cent year on year. The BOT also foreฌcast that new mortgages in the second quarter will maintain growth following the increase in demand.