Single house market shines as budget condos struggle
IN-DEPTH analyses show that mid- to high-end single house market is doing the best this year with there being fierce competition and a scramble to clear stocks at the budget condo level, Thai News Agency quoted research executives as saying at Kiatnakin Bank’s KKP Focus Forum this morning ( March 28).
Dr Pipat Luengnaruemitchai, Phatra Securities’ assistant managing director and co-head of wealth management research, said at the forum that the Thai economy is slowly recovering and will likely expand by 3.2% this year. Supporting factors include exports, tourism and state investment but risks arise from consumption and investment within the country and US trade policies.
Jiraporn Linmaneechote, Phatra Securities’ assistant managing director for research, said new property launches and sales are expected to rise by 6 to 8% this year with this being partly due to two major developers, Land and Houses Plc and Sansiri Plc, having made plans to launch fewer projects in 2017.
At the same time small developers are facing problems raising capital because of the credit situation but big developers are still able to maintain their large market share as evident through their sales and launch figures.
While a glut is not clearly visible in the market and most projects are no older than four years, which is a normal lifespan of a new project, it is also apparent that condo stocks have mounted particularly those positioned below 2 million baht a unit. Developers at this segment are using various marketing strategies to clear their stocks but success depends on location and the ability of the buyer to get a loan.
It is expected that by yearend there will be 39,000 units of condos in developers’ stocks.
Meanwhile Dr Piyasak Manason, Kiatnakin Bank Plc’s vice president for industrial and economic research, said the overall picture shows that the property market is still slowing down but some segments are able to grow with one being the single house market in Bangkok and its suburbs as well as in the provinces particularly big cities there.
He urged developers to focus on this segment’s mid to high level because these people still have buying power.
Top: Experts from Phatra Securities and Kiatnakin Bank speaking at KKP Focus Forum this morning. Photo: Thai News Agency