Thailand: Property revenue hits record highs
An economic revival fuelled by the return of tourists in the second half of this year has propelled the third-quarter presales and revenue of major SET-listed property developers to a record high.
Uthai Uthaisangsuk, chief operating officer at Sansiri Plc, said the company increased its presales target for 2022 to 47 billion baht. The previous presales goal was 35 billion baht, but presales for the first nine months have already tallied 37 billion.
“We recorded 18.5 billion baht in presales in the third quarter, the highest in three years since the pandemic, and a year-on-year uptick of 200% as well as 153% from the second quarter,” he said.
The firm’s nine-month tally of presales outperformed the full-year total of 33.5 billion baht in 2021.
The key driver for this 60% growth over nine months was presales of 27 billion baht from low-rise houses, a 110% rise, said Mr Uthai.
“This is a positive sign for the housing market, which should keep improving from the end of this year onwards,” he said.
Thongchai Busrapan, co-chief executive of Noble Development Plc, said a gradual economic recovery had improved market sentiment in the third quarter, with the company’s presales and revenue posting year-on-year growth of 100% and 150%, respectively.
“Both ready-to-transfer and newly launched units drove the third-quarter presales and revenue as homebuyers’ purchasing power resumed,” he said. “It was higher than expected.”
In the first 10 months, Noble recorded 14.8 billion baht in presales, up 136% year-on-year.
Revenue in the first nine months totalled 4.73 billion baht, with 2.2 billion in the third quarter alone.
AP Thailand Plc reported 45.4 billion baht in presales in the first 10 months, which accounted for 90% of the 2022 target of 50 billion, rising 46% from the same period last year.
“The key was low-rise houses with 36.1 billion baht in presales, up 26%,” said Vittakarn Chandavimol, AP’s chief of corporate strategy and creation. “Condos also showed signs of recovery as presales tripled to 9.25 billion baht.”
He said the presales total of 7.95 billion baht in October was the company’s highest monthly figure ever recorded.
AP’s revenue in the first nine months grew 24% year-on-year to 37.5 billion baht, a new record. It is targeting 47 billion baht in revenue by year-end.
Supalai Plc also set a record high, reporting 11.4 billion baht in revenue for the third quarter of 2022, the highest since its founding in 1989, representing year-on-year growth of 51%.
For the nine-month period, it posted 25.5 billion baht in total revenue, rising 37% and remaining on target for 29 billion baht by year-end. The firm’s presales in the first nine months totalled 25 billion baht, up 41%.