Market ‘on the rise’, say developers / 20% more units sold in Q3 than in Q2
Market ‘on the rise’, say developers / 20% more units sold in Q3 than in Q2
The local property market continues to rebound thanks to stable interest rates, improved economic sentiment and stronger consumer confidence, say property developers.
Thongma Vijitpongpun, chief executive of Preuksa Real Estate Plc, the country’s second-largest developer, said the number of units sold in the third quarter increased by 20% over the second after bottoming out in the fourth quarter last year.
“Consumer confidence is picking up,” he said.
In the third quarter, the consumer confidence index rose to 74.5 from 72 in the second quarter, according to a University of the Thai Chamber of Commerce survey.
“Many research houses reported the same – that Thailand’s gross domestic product, which had dropped for four consecutive quarters, will bounce back,” he said.
The property market next year will grow by 5% to 10% in line with the improving economy, he said. This year the overall market is forecast to drop by 5% to 70,000 units worth 210 billion baht, he added.
Housing sales totalled 45,000 units worth 138 billion baht in the first nine months of the year – down from 73,000 units worth 212 billion baht in the same period last year.
Mr Thongma said the residential market this year had undergone some changes. Several townhouse projects were launched this year but with prices lowered to match demand.
The property market’s key drivers in 2010 will be the potential extension of tax breaks for buyers and developers, changes in Board of Investment Home regulations and an upward trend in interest rates, he said.
Kessara Thanyalakpark, executive director of the listed developer Sena Development Plc, said interest rates were expected to show an upward trend from mid-2010 and that from now until the second quarter of next year would be a good time to buy property.
“The economy is on an upward trends and interest rates are likely to be stable until mid-next year so purchasing power has improved,” she said. “Political crises in the past did not have a significant impact on home purchases, but have caused instability in the government and have had an impact on the government’s policy and its economic stimulus programmes.”
Mid-priced units were still the most active segment as the biggest buyer group in Bangkok is those with monthly incomes below 50,000 baht. So units priced at 2-3 million baht will continue to be the largest segment, she said.
Ms Kessara said the demand for housing would grow as Bangkok’s population continues to rise while unit sizes would decrease.
But developers’ sales are volatile with affordability being the main factor affecting buying decisions, as people continue to worry about their purchasing power, job security, interest rates and economic conditions, she said.
Published: 26/11/2009 at 12:00 AM
Newspaper section: Business
http://www.bangkokpost.com/business/marketing/28122/market-on-the-rise-say-developers
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on Nov 26 2009. Filed under Business.
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