Habitat Group sees Q3 recovery
Property market recovery will be delayed for at least three months to the third quarter as the resurgent pandemic is still causing high daily infections, according to property developer Habitat Group.
The group’s chief executive Chanin Vanijwongse said the high number of new Covid-19 cases suggested that the pandemic situation is unlikely to improve within a month or two, but will take longer than three months.
“In the first quarter, the market may not see any new project launches,” he said. “The new launch activities in the second quarter will be mostly from listed developers.”
Meanwhile, non-listed or smalland medium-sized developers will continue with a wait-and-see approach and focus on clearing condo inventory in the first half or shifting to low-rise housing development.
Before the new pandemic started in mid-December, the group earlier forecast recovery would occur in the second quarter.
However, it now looks for a pickup in the third quarter under a base-case scenario, and it could be the fourth quarter in a worst-case scenario.
“The property comeback will be no longer than the fourth quarter this year as we are getting the vaccinations in mid-year,” he added. “Property is one of the four requisites and also one of the investment tools.”
Habitat this year will continue focusing on lifestyle investment with development of property for investment in major tourist destinations.
It will be branded and managed by hotel chains and offering a yield to investment buyers.
“With vaccine availability, foreign tourists may come back in the second half, but a good level like in 2018-19 will be seen again in 2022,” said Mr Chanin.
He said 2022 will see the recovery of around 70% of 2019 level, before improving to 80% in 2023.
He said the Covid-19 outbreak boosted competition in the property
We want to shift to low-rise housing development in Bangkok and Pattaya instead. CHANIN VANIJWONGSE Chief executive, Habitat Group
sector. Developers need to use various strategies to differentiate their products, such as designs, functions, services and partners.
In the second half of 2021, the group plans to launch one or two new high-rise condo projects in Pattaya in popular locations like Wong Amat and Na Jomtien.
It was in talks with some foreign investors to have a joint venture in these projects.
It also aims to develop a low-rise housing project in Na Jomtien with a wellness concept, targeting both real demand and investment buyers with units priced from 5-10 million baht.
Even though CP Group changed a high-speed train development plan, shifting Pattaya station from the city to an outer location, Pattaya will remain attractive with new landmarks in the future.
Mr Chanin said the group last year sold two plots of land in Bangkok, comprising a one-rai plot on Sukhumvit Soi 8 and a 300-square-wah plot on Sukhumvit Soi 31 worth a combined 900 million baht after condo sales in the locations slowed.
“We want to shift to low-rise housing development in Bangkok and Pattaya instead and will continue selling our condo inventory in Bangkok,” he added.