The first quarter of 2024 posed challenges for many real estate operators. The ongoing economic slowdown and household debt issues have weakened purchasing power in Thailand. However, despite these difficulties, many companies have demonstrated strong management capabilities, especially the top three real estate operators.

Among all real estate operators, Sansiri stood out in the first quarter of 2024, claiming the dual championship in revenue and profit. Its revenue exceeded 256.7 billion baht, with a net profit of 1.1 billion baht, far surpassing its competitors. This positions Sansiri as a market leader.

In the fourth quarter of last year, real estate operators saw an increase in profits and revenue, mainly due to reductions in ownership transfer fees and mortgage fees. These fees were reduced from 2% to 0.01%, providing significant financial advantages to operators. This measure took effect at the end of last year and ended in early this year, positively impacting the market.

livinginsider.com

However, in the first quarter of this year, most real estate operators experienced significant profit declines. The end of previous government stimulus measures and the lack of new incentive policies led to delayed consumer purchasing decisions and weakened market demand. Consequently, compared to the fourth quarter of last year, only Sansiri and Pruksa Group saw increases in profits, while other companies faced declining profits.

Surachet Kongcheep, Managing Director of Property DNA, stated that the government's measures to stimulate the real estate market announced on February 9th this year are a positive signal, expected to take effect in the second quarter. These measures aim to boost market purchasing power and expand the group benefiting from the expansion of the housing price cap, raising the price cap per unit to 30,000 baht, covering 70% of Thailand's housing market.

It is expected that housing ownership transfers this year will increase by 5-6% compared to last year, with transfer values potentially reaching 1 trillion baht, driving GDP growth by 1.1%. This provides opportunities for high-revenue companies like Sansiri to maintain their leading positions while bringing more income growth potential for other companies.

For the overall real estate market, this year is one where real estate operators need to manage their risks and outstanding inventory carefully. In addition to continuing to develop new projects, operators must adjust their strategies based on market demand and purchasing power. Many entrepreneurs have begun to introduce various measures and policies to assist potential buyers. For example, educating buyers on the process of applying for bank loans and offering options such as pre-approval and rent-to-buy before signing purchase contracts are strategies receiving widespread attention this year.