The top three residential developers -- AP Thailand, Sansiri and Supalai -- are maintaining their plans to launch 73 projects worth a combined 93 billion baht in Greater Bangkok and the provinces during the second half of this year, following a strong performance in the second quarter.
Tritecha Tangmatitham, managing director of Supalai Plc, said the company plans to launch 20 new projects worth 27.3 billion baht in the second half, as projected earlier this year.
"The market was gloomy for the first 4-5 months of the year, but gradually improved from late May," he said.
"We are bullish about the second half due to the decline in new supply launched in the first half. Despite decreasing demand, the reduction in new supply presents a significant opportunity for us to launch new projects."
In the first half, Supalai launched 20 low-rise house projects worth 22.7 billion baht.
For the second half, the company plans to introduce four condo projects and at least two low-rise house projects in new provinces, including Ratchaburi and Lampang.
The industry's largest new launches in the second half will come from Sansiri, with 26 projects valued at 38.7 billion baht. AP Thailand follows with 25 projects worth 27.4 billion baht.
These three developers reported the industry's highest revenue in the second quarter despite a challenging market.
AP Thailand led the pack with revenue of 11.6 billion baht, a 20.8% increase year-on-year, followed by Sansiri at 9.61 billion baht, a slight decline of 3.7%.
Supalai came third with 8.13 billion baht, down 4%, but reported the highest net profit of 1.59 billion baht, followed by Sansiri at 1.38 billion baht and AP Thailand at 1.26 billion baht.
Land & Houses and Pruksa Holding ranked fourth and fifth, with consolidated revenues of 6.6 billion baht and 5.7 billion baht, reflecting declines of 20% and 4%, respectively.
The remaining SET-listed residential developers reported revenues of less than 3 billion baht.
Vichai Viratkapan, acting director-general of the Real Estate Information Center, said real demand in the residential sector weakened in the second quarter as the majority of Thais were burdened by debt.
"Foreign buyers continued to get condo transfers in the second quarter, but these units were primarily purchased in 2022 and partly in 2023," he said.
Phattarachai Taweewong, director of the research department at property consultant Colliers Thailand, said the residential market in the second quarter was unfavourable due to slowing economic growth.
"Condo sales for many developers in the second quarter fell short of their projections," he said. "This was largely due to bank mortgage rejections and high interest rates heavily impacting home demand."