Thai Construction Industry

Property firms have enjoyed a high rate of presales in the first quarter of this year despite the Bank of Thailand's measure limiting loans to 90% of the value of condominium units, which came into force on January 1. A survey by The Nation early this week found that the top 10 listed property developers recorded presales worth nearly Bt40 billion between January 1 and the middle of this month.

The Housing Finance Association expects growth in new home loans this year to slow to 8%, down from 9.2% last year, because of rising interest rates and cessation of tax incentives.

Second-hand units will see more demand. Housing prices are forecast to rise by at least 5% this year, reflecting the higher costs of construction, wages and land, says the Housing Business Association.

The supply of new condominiums in Bangkok grew a massive 182 per cent last year compared to 2009, however fears of an oversupply appear to be subsiding as developers moderate the number of new developments they are offering to the market.

Raimon Land announces positive earnings for 2010. Sales growth and rationalization last year are platform for sustainable cashflow outlook and share rerating.

Pruksa Real Estate has introduced eight new detached homes projects in the first two months of 2011 and hopes to lead the country’s market in the segment in two years time. Pruksa currently controls 21 per cent of the THB70 billion (US$2.3 billion) per year detached house market.

Trinity Property Fund will start trading on The Stock Exchange of Thailand (SET) under the symbol of “TNPF” from March 8, making it the second property fund to be listed on the SET this year.

Thai listed developer Supalai recently revealed its plan to launch 16 new projects in Bangkok and expected to generate THB17 billion (US$ 557 million) in sales this year.

With strong demand for townhouses in the Wongwaen-Bang Khae area, Pruksa Real Estate has introduced a three-storey townhouse development, "Connect Up3 Wongwaen-Bang Khae", worth Bt699m. The project comprises 233 units on 22 rai at a starting price of Bt2.68m per unit.

W Bangkok has been topped off and construction is on schedule for completion mid 2012.