Despite the absence of tax incentives, the property sector is expected to recover in the second half of the year, with large developers dominating the market, according to SET-listed developer Supalai Plc.
Chief executive Prateep Tangmatitham said the overall economic outlook was improving with positive factors including low interest rates, the government's economic stimulus measures and spending on megaprojects.
"Housing demand remains strong as the country's home ownership rate remains relatively low, with less than half of the population owning a home," he said yesterday.
Large developers will continue to dominate the market with their strong financial status, Mr Prateep said.
He said some small and medium-sized developers had struggled to get loans for condo projects from financial institutions as their sales rate might be too small.
Mr Prateep said the decrease in new supply launched in the first four months represented developers' business adjustment. Some needed to do smaller projects or launch projects phase by phase.
"If they were not confident to make sales, why did they need to launch a new project?" he said. "This was good for the market as demand and supply came to a balanced point."
Supalai managing director Tritecha Tangmatitham said the property market was not so poor for large developers.
"In unfavourable market sentiment, consumers prefer to choose reliable brands or developers. Even contractors choose to deal with large developers as they have fewer financial problems," he said.
As of May 25, Supalai had recorded 8.1 billion baht in presales and it aims to achieve 24.5 billion by year-end. In May alone, it recorded 1.5 billion baht, up 50% from April, showing that presales remained strong after tax incentives ended on April 28.
In April, it received 5 billion baht from transfers of residential units, its best month since the company was formed in 1992.
Supalai plans to launch 17 projects worth 25 billion baht in the second half after launching only seven projects worth 7.1 billion baht in the first five months.
Next month it will launch Supalai Elite Si Phraya condo worth 2.5 billion baht with 384 units sized 41-139 square metres and priced 110,000 baht per sq m on average.
SPALI shares closed yesterday on the SET at 19.80 baht, down 30 satang, in trade worth 147 million baht.