Many developers in Thailand are halting their developments on certain properties due to their financial results, according to Property Report.
The financial results, which were better than expected, was not the only reason for the delays, as developers are also waiting for the amendment to labour regulations, which will include the increase of minimum daily wages and the possible reduction of corporate income tax.
Meanwhile, real estate developer Sansiri has restricted the majority of its developments this year, but the company is continuing with its luxury development on Wireless Road in Bangkok.
Q3 financial results did not hit the estimates for every company. Pruksa Real Estate missed its target by THB3.6 billion (US$115 million), although it has shown continued growth this year. Sansiri benefited from better than expected pre-sales and revenue in Q3, while LPN Development also benefited from a better than anticipated Q3.
“Our presales and revenue will be enough to drive our business growth in 2011,” said Opas Sripayak, Managing Director of LPN Development.
Thailand’s property market is continuing to grow, evident in the increase in pre-sales and revenue for companies, as well as the interest shown at the 25th house and condo show last weekend, which was attended by more than 100,000 visitors, according to The Nation.
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