Listed property firms have had lower total revenue and net profit in the first half of this year than the same period last year although results topped the last quarter of last year, thanks to increasing demand from buyers in the residential market.

Most listed property firms that announced financial results in the first half of this year to the Stock Exchange of Thailand last week had lower total revenue and net profit in the first half of this year than the same period last year. People delayed decisions about buying homes in the first quarter of this year after the huge flood that swamped the north of Bangkok and parts of the central region in the last quarter of last year.
But Asian Property Develop-ment still reported high |total revenue and net profit in |the first half of this year, com-|pared with the same period last year.
However, overall demand to buy residences started to recover in the second quarter of this year, driving listed firms’ financial results up to better than their estimates since early this year.
Pruksa Real Estate director and chief business officer Prasert Taedullayasatit said that the company’s total revenue in the second quarter of this year was Bt6.8 billion better than the first quarter, which saw total revenue of Bt4.6 billion.
That meant demand to buy |residences was starting to recover for both low-rise homes, plus |single detached houses, town-|houses, and high-rise homes.
“We believe that the property market this year will grow be-|tween 10 per cent and 15 per |cent compared to last year and that the overall property market in Bangkok and suburban areas will see sales of between Bt270 to Bt280 billion by the end of this year,” he said.
LPN Development managing director Opas Sripayak said that the company’s total revenue was lower than the same period last year because in the first half of this year it had only three condominium projects ready to transfer to its customers.
But the company would deliver Bt10 billion worth of residential projects to customers in the second half of this year. This should help drive its total revenue to Bt13 billion by the end of 2012. This follows its business plan early this year, he said.
Asian Property Development senior vice president of |finance and accounting Phumipat Sinacharoen said the company’s financial results in the first half of this year showed strong growth thanks to its condominium projects that had transferred units to customers in this period. That accounted for up to 40 per cent of its total revenue in the first half of this year, which was Bt7.08 billion, up 12.4 per cent from the same period last year.
The company’s net profit also grew 66 per cent in the first half compared with last year because the company enjoyed a benefit from the reduction in corporate tax from 30 per cent to be 23 per cent.
It also sold some of its stake in Pre-Built Plc, he said.

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