A recent article by The Nation reported that while the overall demand to buy residences in Thailand has begun to recover in Q2 of this year, listed firms have enjoyed perhaps the best financial results, in many cases, topping their estimates made earlier this year. The director and chief business officer of Pruksa Real Estate, Prasert Taedullayasatit confirmed that the total revenue of his company in Q2 was THB6.8 billion (US$215 million) higher than in Q1 which saw a total revenue of THB4.6 billion (US$145 million).
It has been inferred by this that the demand to purchase residences was beginning to gradually recover for single detached houses, townhouses, low-rise homes and high-rise homes. “We believe that the property market this year will grow between 10 percent and 15 percent compared to last year and that the overall property market in Bangkok and suburban areas will see sales of between THB270 to THB280 billion (US$8.5- 8.8 million) by the end of this year,” said Taedullayasatit. On the other hand, the managing director of LPN Development, Opas Sripayak, said that because the company had just three condominium projects set to be transferred to its customers in the first half of 2012, the total revenue of the company was in fact lower than it had been in the same period of the previous year.
That said, the company remained optimistic since it plans to deliver THB10 billion (US$317 million) worth of residential projects over the course of Q3 and Q4 this year. It is anticipated that this will contribute to driving its total revenue up to THB13 billion (US$412 million) by the end of 2012. In contrast, the senior vice president of finance and accounting at Asian Property Development, Phumipat Sinacharoen, said that it was primarily down to the company’s condominium projects launched in the first half of this year that the company’s financial results had experienced strong growth during that period.
The condominium projects were accountable for as much as 40 percent of the company’s revenue in the first half of the year which was a total of THB7.08 billion (US$224.5 million), an increase of 12.4 percent from Q1 and Q2 of last year. Furthermore, compared to that period in last year, the company enjoyed an increase in net profit by 66 percent, partly down to the recent reduction in corporate tax from 30 percent to 23 percent.