Developers Move Concentration to Smaller Projects
Property companies have modified their policies and will build up smaller residential projects to accelerate their sales in the last quarter of 2008 until 2009 for the reason of the pessimistic impact of the country's political chaos and worldwide economy slump.
Preuksa Real Estate chief executive Thongma Vijitpongpun said the company will modify its business plan to start on small residential projects with 100150 units.
"We want to boost our sales and cut down the construction procedure to produce more cash flow, which will help us build up other projects. This appears to be a better alternative than developing large scale projects," he said. He said the company's presales might be lesser than the predictable target of Bt20 billion for 2008, as the first nine months got presales of only Bt14 billion.
Because of the political inconsistency in the country, home purchasers have postponed their resolution to get residences in the third quarter of 2008. The global economic recession has also influenced their poise and the trend is likely to carry on until 2009. Consequently, Preuksa has had to modify its business policy and shift focus to build up small sized projects, he said.
Land and Houses senior executive vice president Naporn Soonthornchitcharoen said his company would go on with the launch of 15 residential projects of value Bt12 billion in the 2009 although build in areas situated near to mass transit. It will build up small projects to increase sales and sustain cash flow, he said.
Thai developers have understood that cash flow is the mean to exist in the financial calamity. To sustain enough liquidity, they will have to regulate construction dealings, and make them shorter and quicker.
"Our business policy will concentrate on reducing inventory and launching small projects in the final quarter of 2008 and in 2009, which will help us increase sales and produce more cash," he said.
Preuksa Real Estate chief executive Thongma Vijitpongpun said the company will modify its business plan to start on small residential projects with 100150 units.
"We want to boost our sales and cut down the construction procedure to produce more cash flow, which will help us build up other projects. This appears to be a better alternative than developing large scale projects," he said. He said the company's presales might be lesser than the predictable target of Bt20 billion for 2008, as the first nine months got presales of only Bt14 billion.
Because of the political inconsistency in the country, home purchasers have postponed their resolution to get residences in the third quarter of 2008. The global economic recession has also influenced their poise and the trend is likely to carry on until 2009. Consequently, Preuksa has had to modify its business policy and shift focus to build up small sized projects, he said.
Land and Houses senior executive vice president Naporn Soonthornchitcharoen said his company would go on with the launch of 15 residential projects of value Bt12 billion in the 2009 although build in areas situated near to mass transit. It will build up small projects to increase sales and sustain cash flow, he said.
Thai developers have understood that cash flow is the mean to exist in the financial calamity. To sustain enough liquidity, they will have to regulate construction dealings, and make them shorter and quicker.
"Our business policy will concentrate on reducing inventory and launching small projects in the final quarter of 2008 and in 2009, which will help us increase sales and produce more cash," he said.
Labels: developers, real estate, residential projects
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