Thai property market tipped to grow 5 percent

THE property market in Thailand is expected to expand at least 5 percent this year, according to consensus from listed developers that have posted double-digit growth for the first quarter compared with the yearearlier period.

Nine of the 11 developers that have announced their first-quarter results reported strong gains in net profit from the first three months of 2017, thanks to a recovery in the market.

Most of the property companies recorded net profit increases in the double digits. Ananda Development Plc trailed the pack with earnings growth of just 3.13 percent from the same period last year.

However, faring worse were LPN Development Plc and Sansiri Plc, which saw their net profits drop from the year-earlier quarter.

AP ( Thailand) Plc CEO Anupong Asavbhokhin said the company announced solid growth for the first quarter of 2018, with a result of more than 6.5 billion baht ($202 million). Net profit for the quarter grew 47 percent, rising by more than 800 million baht. AP Thailand believes this healthy performance, coupled with a business plan adjustment to be more assertive in the low-rise sector, is certain to contribute to better-than-projected presales and realised revenues.

Origin Property Plc CEO Peerapong Jaroon-Ek shares this optimistic view of the market.

The company announced net profit of 488.9 million baht in the first quarter of this year, soaring 184 percent from the same period last year. Most of the units in its condominium projects that had been launched over the past three years were transferred to its customers in that quarter, Peerapong said. The transfers to customers would continue throughout the rest of the year.

“Meanwhile, we also had success on the presales front, with a take of 5.09 billion baht in the first quarter, up 255 percent from the same period last year,” Peerapong said. “This is thanks to the strong demand in the residential market, enjoying a recovery in line with the improving economy.”

Pruksa Holding Plc deputy group CEO Supattra Paopiamsap said the company’s total revenue was 8.35 billion baht, a rise of 3.6 percent from the year-earlier quarter. The company recorded presales for the three months of 2.69 billion baht, representing 24 percent of its target of 53.74 billion baht for the year, Supattra said.

“This is thanks to the country’s economy posting strong growth and driving the demand for residential projects, with this recovery seen in the first quarter of this year compared with the same period of last year,” Supattra said.

The company’s financial results will maintain double-digit growth compared with last year.”

Sansiri Plc reported to the Stock Exchange of Thailand (SET) yesterday that its total revenue of 5.27 billion baht and net profit of 252 million baht in the first quarter marked a drop of 26 percent and 51 percent, respectively, from the same period last year.

The developer said its project transfers decreased 29 percent as its business management revenue dropped 23 percent for the three months. That had a direct impact on total revenue and net profit, resulting in declines from the year-earlier period.

LPN Development Plc, in its filing with the SET, said the company’s high marketing expenditure cut into its income growth for the quarter.

Total revenue came in at 2.49 billion baht, representing growth of 1.09 percent from the same period of last year and its net profit also declined.