Housing projects set to take off

Sansiri Plc, for example, plans to launch 13 new residential projects – both ready-to-stay residences and under construction projects worth a combined Bt37.45 billion in the second half. The company reported presales worth Bt13 billion in the first half, or about 30 per cent of its presale target of Bt42 billion this year.
Pruksa Real Estate Plc plans to launch 38 new residential projects worth Bt30 billion in the second half after the company reported total presales worth Bt21.63 billion or 42 per cent of its presale target of Bt51 billion this year (see graphic).
“We have to launch more new residential projects in the second half of this year to boost our presales as we delayed launching new projects in the first half of this year,” Pruksa Real Estate’s co-chief executive officer Lersak Chuladesa said recently.
He said the company sped up its sale inventories in the first half after the government’s measure. So, it had to launch more new projects in the second half to boost presales to reach its achieve sales target for the year.
To boost sales, the company has maintained the campaign free transfer and mortgage fee like the government measure. But the campaign would end at the end of September, he said.
Meanwhile, LPN Development Plc plans to launch six new condominium projects worth Bt7 billion in the second half.
LPN Development managing director Opas Sripayak said the property market in the second quarter showed slight growth after the government’s measure expired. So, it had to speed up to the launch of new condominium projects in the second half to boost presales to achieve its target for the full year.
According to a survey by the Government Housing Bank’s Real Estate Information Centre (REIC) a total of 123 new residential projects were launched in Bangkok and suburban areas in the first five months of this year – a total of 29,380 units – which was a drop of 22 per cent from the same period last year.
REIC’s director-general Samma Kitsin said new residential projects launched in the first half was lower than the same period last year because property firms delayed launching new projects in the first half, when most sped up sales from their inventory to match the government’s measure, which cut transfer and mortgage fees to only 0.01 per cent.
So, most would now speed up the launch of new projects in the second half to boost presales and revenue before year-end, he said.
“We forecast new residential projects launched in Bangkok and its suburban areas for the year 2016 will be near last year – about 101,000 units – 60,000 condominium units and the rest single detached houses and townhouses,” he said.