Bangkok property developers anticipate economic rebound

Bangkok-based property developers on the Stock Exchange of Thailand are optimistic about an economic bounce back in the latter half of the year, expecting it to help meet their annual performance targets after a subdued start to the year.

Property Perfect Plc., under the management of Wongsakorn Prasitvipat, is set to launch nine fresh housing ventures in the second half. These projects, valued at a cumulative 13.3 billion baht, contrast with the firm’s single venture in the first half which was valued at 1 billion baht.

“We foresee a more robust growth trajectory for the second half of the year compared to the first.”

He noted that a good chunk of their forthcoming projects would be upscale, low-rise dwellings located in the vicinity of international schools, in response to a substantial hike in demand.

Property Perfect is targeting a total annual revenue of 13 billion baht, divided between 9.6 billion from housing development, 2.85 billion from hotels, and the remainder from rent and services. For the first half, it registered revenues of 4.95 billion baht, marking an increase of 17.2% year-on-year. Hotels were the highest growth segment with numbers reaching 125%.

The firm saw a remarkable increase in its hotel business in Bangkok as foreign travel resumed, with hotel occupancy soaring to 70% from last year’s first-half rate of 35%.

Wongsakorn added that this positive trend is expected to continue into the second half.

Thitima Rungkwansiriroj, the CEO of Singha Estate Plc, revealed the company’s plan to launch five new low-rise housing projects, incurring a combined cost of 10 billion baht for the latter half of the year. There were two projects launched in the first half, amounting to 1.5 billion baht.

“The projects slated for the second half are forecast to significantly ramp up our revenue recognition, helping us reach a record high for the full year.”

In the first half, Singha Estate recorded a revenue of 6.84 billion baht, marking a leap of 33% year-on-year. A considerable revenue growth of 80% from 2022 is expected for the complete year, with residential development yielding 1.17 billion baht in the first half and projected to top at 4.5 billion baht by year-end.

Sansiri Plc and Supalai Plc stated confidence in accomplishing their yearly revenue objectives following an encouraging first half. Sansiri’s first-half revenue clocked at 18.5 billion baht, a 42% incline, and is projected to reach 41 billion at year-end. Supalai posted a first-half revenue of 14.3 billion baht and targets 36 billion by the end of 2023.

In related news, Delta Electronics informed the SET about their share price fluctuations. Click HERE to find out what happened.