Many developers in Thailand are holding back on development of certain properties due to the financial results of Thailand’s top 10 stock exchange listed property companies. The results showed growth in the third quarter. The better than expected financial result is not the only reason for delays. Developers are also awaiting the changes to labour regulations which include the minimum daily wage rising to THB300(US$9.64) and the possible reduction of corporate income tax from 30 per cent to 23 per cent next year and to 20 per cent in 2013.
The development company Sansiri has curtailed the majority of their developments for this year in light of the financial results but the company is still pressing ahead with its luxury development on Wireless road in Bangkok. The luxury condominiums are being designed in partnership with the fashion company Ralph Lauren; who will design the interior of the development. Sansiri benefited from a better than expected pre sales and revenue in the third quarter. LPN Development also benefited from a better than anticipated third quarter. LPN’s Development managing director Opas Sripayak said,
“Our presales and revenue will be enough to drive our business growth in 2011.”
The financial results for the third quarter did not hit the estimates for every company. Pruksa real estate missed its estimate by THB3.6 billion (US$115 million) but the company has shown continued growth compared to 2010.
The property market in Thailand is continuing to grow and this can be seen by the increase in pre sales and revenue for companies and the interest shown at the 25th house and condo show last weekend. Over 100,000 people attended and home buyers spent THB3 billion (US$96.4 million) according to The Nation.
Source: Property Report