The property market in Bangkok is expected to decline further after a deadly blast rocked the city recently. Demand for property was already soft before the bombing, and residential developers will reconsider, postpone and even scale down plans in the next four months, reported The Bangkok Post.
Supalai, Property Perfect, Major Development and Noble Development are just a few of the developers that have postponed launches scheduled for this year. Thailand’s largest developer, Pruksa Real Estate, is also considering delaying some of its launches, while AP (Thailand) is now focusing on safer single-house and townhouse projects.
“Developers should be more cautious of new investment, particularly in large projects that take a few years to develop,” Atip Bijanonda, President of the Housing Business Association, told the newspaper. “Maintaining financial liquidity with cash on hand enough for one year amid an uncertain situation is a must, as this year’s fourth quarter may not be a hot time for the sector to boost new residential sales.”
Developers are better off focusing on smaller projects that can close sales and be completed in a shorter time, he noted.
Suriya Poolvoralaks, Managing Director of Major, said the company has already converted a large condominium into a smaller eight-storey project of only 200 units to quicken sales and revenue.
Pruksa will delay its projects to next year due to the unfavourable market conditions, but the company isn’t sure how many will be pushed back. “It is hard to have new sales,” said Managing Director Prasert Taedullayasatit. “We will try to transfer our condo sales backlog to have revenue as targeted.”
Theeraphon Voranithiphong, Executive Vice-President of Noble, said the company has decided to postpone all four of its projects scheduled to launch in the coming months to 2016. These include condo developments in Thong Lor, Ari and a site that has yet to be determined.
Supalai will not launch any residential developments until it believes demand has returned. “We will not launch condo projects when we are not sure of their locations because launches come with expenses,” said Deputy Managing Director Tritecha Tangmatitham.
Fragrant Property CEO James Duan said the group postponed two new projects scheduled to launch in the fourth quarter to next year, including one on Soi Sukhumvit 36.
This article was first published on DDproperty.com, Thailand’s leading property site.
