SET-listed developer Sansiri Plc will monitor the formation of the new government over the next few weeks before deciding to revise down or maintain targets for project launches, presales and revenue this year.
Uthai Uthaisangsuk, chief operating officer, said the property sector depends largely on the country's economic performance. With GDP growth being revised down gradually, Sansiri might consider lowering its presales and revenue targets.
"Market sentiment is currently hit by the new lending curbs, which have been applied since April 1," Mr Uthai said. "If sentiment after the establishment of the new government is unfavourable, we may slow new projects being launched in the second half."
Earlier in the year, Sansiri announced the launch of 28 new residential projects worth a combined 46.6 billion baht. It aims to have 36 billion baht in presales and 29 billion baht in revenue by the end of 2019.
"If there is any policy to help GDP grow by 4%, it will help stimulate the real estate market," Mr Uthai said.
According to the Real Estate Information Center (REIC), the sentiment index of housing developers in Greater Bangkok dropped to 42.2 in the second quarter of 2019 from 50.4 in the first quarter.
Vichai Viratkapan, the REIC's acting director-general, said the decline mirrored developers' lack of confidence in the economy as they wait for clarity on the new government's policies.
There was a significant drop among listed firms, from 52.2 to 41.9, marking the first time the index was below the median 50 since the first quarter of 2014, a time of political conflict.
The sentiment index of non-listed firms fell to 42.7 from 47.7. Their sentiment has been below the median since the first quarter of 2015.
The housing developers' expectations index over the next six months edged down to 58.0 from 58.4. It was higher than the median, showing that developers saw the positive side of the property sector in the second half.
The expectations index of listed firms was 61.3 in the second quarter, up from 59.9 in the first quarter, as they expressed confidence that with the formation of a new government, economic sentiment and investment outlook in the next six months would recover.
Sansiri yesterday joined PTT Global Chemical Plc to use waste plastic bottles through upcycling to produce fabric for sofas, pillows and curtains, which will be designed by Sansiri and manufactured by furniture and bedding producers SB Furniture and Pasaya.
Mr Uthai said Sansiri will display these furniture and home decor items in show units at 32 housing projects this quarter before merchandising them in the fourth quarter.