Property shares: Is it time to invest?

property shares index
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Property shares of Thailand developers are likely to generate high returns during 2018.

That’s according to research reports from a number of securities companies.

Never one to believe everything we’re told, we have decided to put this prediction to the text, by buying theoretical property shares today (December 29) at the closing prices last night for 16 random public property companies listed on the Stock Exchange of Thailand.

Throughout the year we will monitor the simplistic ‘ThailandProperty.News Property Shares’ Index, which should provide a fair indication of how the Thailand property sector is performing.

One company, Tisco Securities, has suggested investors should move into the property sector now because it has shown signs of strong growth in 2018.

Some market watchers would not entirely agree with that statement.

Recent research from Tisco noted the Thai government’s proposed investment in big infrastructure projects, which is due to start next year, will boost demand for residential projects around new mass-transit routes.

One analyst from Bualuang Securities reported that during November, many listed property firms launched more residential project to boost sales during the last quarter of this year, compared with the first three quarters of this year. This will boost their presales in the last quarter to growth of up to 15 per cent from the same period of last year.

The 16 listed property companies we have chosen to form our first property shares Index are: Ananda Development, AP (Thailand), Eastern Star, Golden Land, Land and Houses, LPN Development, Major Development, Origin Property, Prinsiri, Pruksa, Quality Houses, Raimon Land, Singha Estate, SC Asset Corporation, Sansiri and Supalai.

As of close of business on December 28, buying just one share of each of these companies will cost THB 132.60.

That’s the starting point of our Thailand property shares Index; let’s see where it goes and whether these predictions are right.

Stay tuned for regular updated.

Andrew Batt
The author of this article is Andrew Batt, the founder and editor of Andrew has been writing about property and real estate issues in Thailand and Southeast Asia for more than 10 years. He has worked for PropertyGuru Group, DDproperty, Dot Property Group, Hipflat and AsiaRents. He has also produced content for leading Thailand property developers and real estate agencies.

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