Developers Reduce Revenue Forecasts
Buyer sentiment deteriorates as economic crisis, political trouble hit spending power
Most of Thailand's property developers have modified their 2008 revenue forecasts downwards in the face of a down market that began to fall into trouble several months ago.
Potential home purchasers, with their immediate future clouded by the double effects of the global financial crisis and local political turmoil, are shying away from what is to a lot of of them the most prevalent economic commitment of their lives - purchasing a new home.
A recent study by The Nation has found that top property developers, together holding 70% of the Bt80billion property market have moved back from previous revenue targets and have set poorer figures.
Preuksa Real Estate, for instance, has modified estimated revenue down to Bt13 billion from its previous target of Bt14 billion. Land and Houses' revenue conjecture for this year is down from Bt21 billion - Bt16 billion, and Property Perfect has reduced its revenue target from Bt8 billion - Bt7.5 billion. Supalai has modified its presale target from Bt10 billion - Bt9 billion.
Property Perfect's managing director Chainid Ngowsirimanee said his company had modifdied its revenue target from Bt8 billion - Bt7.5 billion when home purchasers started postponing their decisions to purchase.
Purchasing power has fallen considerably in the last quarter of 2008, compared with the initial nine months, following protest stroke by the People's Alliance for Democracy (PAD) in closing Bangkok's airports, he said.
“Usually, the final quarter in every year is a peak season for selling housing projects; however in 2008 we have faced an unusual environment. The country's political uncertainty has had a greater pessimistic influence on Thailand's economic sentiment than the global recession,” he said.
The REIC considers that demand for housing projects with units priced between Bt2 million-Bt5 million will experience less influence from the recession as this is where current genuine demand exists in the market.
Luxury housing projects that are focused on purchasers from abroad, alternatively, will suffer a direct influence from the recession when foreign investors postpone their overseas spending.
Most of Thailand's property developers have modified their 2008 revenue forecasts downwards in the face of a down market that began to fall into trouble several months ago.
Potential home purchasers, with their immediate future clouded by the double effects of the global financial crisis and local political turmoil, are shying away from what is to a lot of of them the most prevalent economic commitment of their lives - purchasing a new home.
A recent study by The Nation has found that top property developers, together holding 70% of the Bt80billion property market have moved back from previous revenue targets and have set poorer figures.
Preuksa Real Estate, for instance, has modified estimated revenue down to Bt13 billion from its previous target of Bt14 billion. Land and Houses' revenue conjecture for this year is down from Bt21 billion - Bt16 billion, and Property Perfect has reduced its revenue target from Bt8 billion - Bt7.5 billion. Supalai has modified its presale target from Bt10 billion - Bt9 billion.
Property Perfect's managing director Chainid Ngowsirimanee said his company had modifdied its revenue target from Bt8 billion - Bt7.5 billion when home purchasers started postponing their decisions to purchase.
Purchasing power has fallen considerably in the last quarter of 2008, compared with the initial nine months, following protest stroke by the People's Alliance for Democracy (PAD) in closing Bangkok's airports, he said.
“Usually, the final quarter in every year is a peak season for selling housing projects; however in 2008 we have faced an unusual environment. The country's political uncertainty has had a greater pessimistic influence on Thailand's economic sentiment than the global recession,” he said.
The REIC considers that demand for housing projects with units priced between Bt2 million-Bt5 million will experience less influence from the recession as this is where current genuine demand exists in the market.
Luxury housing projects that are focused on purchasers from abroad, alternatively, will suffer a direct influence from the recession when foreign investors postpone their overseas spending.
Labels: Housing projects, property market, Thailand's property developers
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