The top-ten listed property firms have inventory and undeveloped land worth Bt200.29 billion in the first quarter of this year, higher than last year’s average of 5 per cent.
This is due to the slowdown in the demand for residences in the first quarter of this year following last year’s floods.
According to the filing to the Stock Exchange of Thailand for the period ended March 31, most property firms showed their inventory and land banks of underdeveloped residential projects higher than at the end of 2011 due to delays in construction.
Most property firms face labour shortage which has led to delay in construction.
Pruksa Real Estate has shown inventory, land bank and development of residential projects worth Bt36.87 billion as of March 31, 2012, up 1.99 per cent from the end of last year. Sansiri recorded inventory, land bank and development of residential projects worth Bt27.39 billion as of March 31, up 6.95 per cent from the end of last year. Asian Property Development shows inventory, undeveloped land, and developing residential projects worth Bt27.23 billion, up 2.32 per cent from the end of year 2011.
Pruksa Real Estate director and chief business officer Prasert Taedullayasatit said that the company’s inventory is worth less than Bt2 billion, while the rest of the total Bt36.87 billion is undeveloped land.
He acknowledged that the company’s inventory had risen due to buyers delaying their decision to buy residences after last year’s floods. The market started to recover in March but that was not enough to match the company’s inventory, especially residences at locations that faced floods last year such as Rangsit, Bang Bua Thong, and other places.
SC Asset Corporation’s chief operating officer Kree Dejchai said the company’s inventory rose as the company had accumulated undeveloped land to develop residential projects this year and next year. That supports its target growth average of 10 per cent for the year.
“Our sales in the first quarter of this year met our target as none of our residential projects were hit by the floods last year,” he said.
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