Chewathai goes ahead with 7 new property projects despite slump in market

[rooster59]

Chewathai goes ahead with 7 new property projects despite slump in market

By The Nation

 

 

Listed property firm Chewathai Plc has revised down its revenue target from Bt2.8 billion to Bt1.6 billion after demand for residential projects showed a slump in the first half of this year, the company’s managing director Boon Choon Kiet said on Friday.

 

He said the company’s total revenue of Bt618.65 million in the first half of this year was lower than estimated because the property market has been facing high competition due to a limited demand for residential property and restrictions on loans approved by commercial banks. 

 

However, the company has decided to go ahead with the launch of seven new residential projects worth Bt7.2 billion, two of which will be launched in the third quarter of this year worth a combined Bt2.64 billion and five projects in the fourth quarter worth Bt4.78 billion, he said.

 

Source: https://www.nationthailand.com/property/30374561

 

-- © Copyright The Nation Thailand 2019-08-11

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[RichardColeman]

6 hours ago, rooster59 said:

Chewathai goes ahead with 7 new property projects despite slump in market

 

6 hours ago, rooster59 said:

hewathai Plc has revised down its revenue target from Bt2.8 billion to Bt1.6 billion after demand for residential projects showed a slump in the first half of this year

 

6 hours ago, rooster59 said:

facing high competition due to a limited demand for residential property

So, Slump in the  market, slump in 1st half of the year and limited demand - the Thai business 'Build it and they will come' brain, truly an amazing thing

[Baerboxer]

31 minutes ago, RichardColeman said:

 

 

So, Slump in the  market, slump in 1st half of the year and limited demand - the Thai business 'Build it and they will come' brain, truly an amazing thing

 

Looking at the prices of of some of the recently launched residential prices they appear to all be targeting the same segments of the markets - upper middle class/wealthy Thais and foreigners. The former has a finite number which isn't necessarily going to grow quickly given the wealth distribution pattern. The latter are being put off by adverse exchange rates, a high price that compare similarly with other more developed locations around the world, difficult immigration requirements when compared to other locations and the enforcement of laws prohibiting short term rentals for those buying to let. Add the already over supply issues and the issues around people default on loans and new rules on loans imminent.

 

Interesting approaches to marketing though. 

[justin case]

and this is how you create bubbles

[geoffbezoz]

Perhaps all future investors in these projects will be offered a lobotomy + an iphone 50 prior to entering a contract to purchase "off plan"

[mercman24]

obviously this guy does not read the papers or got a telly ,,  did i read only last week a huge developement company have stopped a building phase as no condos are being sold..  hello ??l