Listed developers lower 2016 targets after Q4 drop-off in residential demand

 
Fourth-quarter demand from buyers has also fallen below the level for the same period last year.
“We have had to revise our estimated overall revenue down from Bt53 billion to Bt51 billion for this year, having seen residential demand in the final quarter falling below what we estimated earlier,” said Pruksa Real Estate’s co-chief executive officer, Lersak Chuladesa.
The company has also decided to delay the launch of two condominium projects worth Bt1 billion combined in the current quarter, he said.
Meanwhile, Sansiri, one of the largest real estate developers in Thailand, may cut its presales and revenue targets by about 5 per cent.
“We will consider at the end of this month whether to revise our presales and revenue targets downward, after seeing a drop-off in demand in October and the first two weeks of November. We may lower our earlier estimates by up to 5 per cent,” president Srettha Thavisin said.
The listed developer’s current full-year targets are Bt42 billion for presales and Bt33 billion for overall revenue. 
For the first nine months of the year, the company reported presales of Bt20 billion and revenue of Bt22.7 billion.
SC Asset Corp has revised down its full-year presales target, from B15billion to Bt12 billion, as the company accepts that its overall revenue will likely fall short of the target of Bt15 billion, Nuttaphong Kunakornwong, the company’s chief executive officer, said.
He added that residential demand in the current quarter was lower than SC Asset had previously estimated, as a result of which the company had decided to delay the launch of four projects worth Bt11 billion to the first half of next year. 
The postponements impact the developer’s previous presales and revenue targets for this year.
JSP Property has also revised down its 2016 presales target, from Bt5 billion to Bt4 billion, after witnessing presales of Bt3.8 billion during the first 10 months, CEO Tanongsak Manotamraksa said.
Another listed developer, Property Perfect, has reduced its presales estimate from Bt17 billion to Bt13 billion, following a downward revision of its overall revenue goal from Bt17 billion to Bt15 billion after reporting revenue of Bt11.19 billion for the first nine months of the year, chief business development officer Wongsakorn Prasitvipat said.