One prominent Thailand property developer has postponed the launch of three condominium projects on the back of what it says is oversupply combined with high land prices.
Stock Exchange of Thailand-listed Quality Houses has moved the launch of the three condo projects until 2019, but it still intends to debut 12 projects this year – a mix of townhouses, single detached properties and duplexes.
Speaking to the Bangkok Post, Chief Executive Officer Chadchart Sittipunt commented on what he described as being relatively weak market sentiment during the first six months of 2018.
He also noted oversupply in some locations, focusing on the “Purple” mass-transit line which runs from Nonthaburi in the north west of Bangkok through the city.
He said that soaring land prices have made many new condominiums in popular locations “unaffordable” for the mass market.
He suggested that properties priced at more than THB 5 million are not affordable for “working people”.
The company, which has yet to report the news to the Stock Exchange at the time of publishing, added it will relaunch its high-profile Q Sukhumvit before the end of the year.
Sales at the THB 300,000 per sqm property, or between THB 30 million and THB 120 million per unit, which is adjacent to Nana BTS station (pictured), were first debuted in 2015 before activity was suspended with the sales rate reported as being just 20 percent.
Despite these postponements the company is aiming for a 10 percent rise in pre-sales and a 10 percent growth in its net profits before the end of 2018.