Upbeat Thai Developers Expect Growth of 10% in 2013

According to reports by “The Nation”, Thai listed property firms will announce investments totaling at least Bt150 billion in each of the next two years, with 216 residential projects expected to be launched during 2013.

Some Bt150 billion is expected to be the value of the projects themselves while a similar amount is expected to be the capital required over two years to buy the land for development of the estates.

Half of the overall Bt300 billion will come from developers’ cash flow, and the other half from the issuance of debentures and bank borrowings.

Pruksa Real Estate director and chief business officer Prasert Taedullayasatit said the company planned to launch 78 residential projects worth Bt54.6 billion this year. Up to 70 percent will be low-rise detached housing and townhouses, with the remainder being condominium projects.

Sansiri, another leading property firm, will launch at least 50 residential projects worth more than Bt40 billion during the year.

“We believe the property market this year will grow further after last year’s expansion, both in Bangkok and in the provinces. This will drive business growth of more than 10 per cent compared with last year,” president Srettha Thavisin told The Nation.

With the number of residential projects expected to be launched, developers believe the property market will growth at least 10 percent over the course of the year.

Land & Houses senior executive vice president Naporn Sunthornchitcharoen said the market would see significant growth compared with last year, when property firms expanded their investments in Bangkok and upcountry. “We believe the market will grow nearly 10 percent during the year,” he said.

A survey by the Real Estate Information Centre is reported to show that the property market grew between 5 and 10 percent last year.

LPN Development managing director Opas Sripayak said demand for condominiums priced lower than Bt2 million per unit is continuing to expand. This will drive strong property market growth for both low- and high-rise residential projects.

As a result, the company plans to launch 13 condo projects worth more than Bt20 billion combined this year. They will be located both in Bangkok and provincial centres such as Chon Buri and Pattaya.

Meanwhile, SC Asset Corp chief operating officer Kree Dejchai said the property market would continue to grow this year thanks to consumer confidence in the country’s economic expansion.

Given these bright prospects, SC Asset plans to launch 14 projects together worth more than Bt17 billion during the course of 2013