More than 300 new residential projects swamped, 226 others at high risk
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Altogether 311 residential projects with 34,908 units worth Bt98 billion that were under construction or for sale have been directly hit by the flooding, while 226 projects with 23,908 units worth Bt76.5 billion are at risk.
Sopon Pornchokchai, president of the Agency for Real Estate Affairs, said yesterday that the 311 flooded projects were in western Taling Chan-Suphan Buri, Tiwanond-Srongprapa Road, Nakorn-In Road, Navanakorn-Rapipat, Bang Bua Thong, Pathum Thani-345 Highway, Rangsit-Nakhon Nayok, Canals 1-7, Rangsit-Bang Poon, Ratchaphruek-Tha-It, Lum Luk Ka, and Bang Pa-in-Wang Noi. They were already open for presale and under construction.
The other 226 projects were in the high-risk areas of Klong Sam Wa-Nong Chok, Pinklao, Thon Buri, Rangsit-Canals 7-15, Ramkham-haeng, Min Buri, Suwinthawong, Lat Krabang and Sai Mai.
Developers whose residential projects are in flooded or high-risk areas face 5-per-cent additional costs to rebuild some of them. These projects, which have already been constructed and are ready for sale, are worth Bt11.6 billion.
Revenue generation might be delayed by about six months, which would drive up costs by about Bt6.7 billion, based on interest payments averaging 0.5 per cent a month.
“If the flood ends very soon, the loss will be lower than estimated. If not, the loss may be greater. It may have an impact on property companies’ financial results this quarter,” Sopon said.
