As risks and uncertainties persist in 2025, SET-listed developer Frasers Property (Thailand) (FPT) aims to maintain investments and new project launches at last year's levels, targeting 11% annual revenue growth to 16 billion baht.
Country chief executive Thanapol Sirithanachai said several negative factors have carried over from last year, including sluggish economic growth, an anticipated export slowdown, a stagnant capital market, high household debt and an oversupply of property.
"One of the key risks and uncertainties is US president Donald Trump. He aims to end actual wars but start a trade war, which could impact Thailand's exports," said Mr Thanapol.
He said GDP growth this year is forecast at 2.9%, as many economic drivers, except for the tourism sector, remain ineffective.
However, tourism is highly sensitive, as evidenced by Chinese travellers cancelling trips following an incident involving Chinese actor Wang Xin in Thailand.
"Thailand received over 3,100 investment applications through the Board of Investment in 2024, amounting to 1.13 trillion baht -- the highest level since 2014. However, the impact of these investments will take a few years to materialise."
As the capital market remains volatile, making bond issuance challenging, many companies are opting to hold onto cash and delay investments this year.
FPT plans to invest 10 billion baht, matching last year's amount. The investment will include 2 billion baht for purchasing new land for housing developments in 2026 and 5 billion baht for constructing residential projects.
The remaining 3 billion baht will be allocated to expanding factory and warehouse spaces by an additional 150,000 square metres across Thailand, Indonesia and Vietnam, where the company currently manages a total of 3.66 million sq m.
"High household debt, exceeding 90% of GDP, is causing delays in home purchases, while banks are becoming stricter about granting mortgage loans," Mr Thanapol said.
"This has impacted both home purchasing power and developers' sales."
In fiscal 2024, ending Sept 30, FPT reported a 13.3% decline in total revenue, falling to 14.5 billion baht from 16.8 billion baht in the previous year.
The largest decrease came from the residential business, which saw a 16.6% drop to 9.17 billion baht from 11 billion baht.
Meanwhile, the commercial and hospitality business experienced a 5% decline, dropping in value to 1.35 billion baht, and industrial property revenue was down just 1% to 3.6 billion baht.
Occupancy in the industrial property business across three countries averaged 87%, up from 86% last year.
Office space occupancy declined slightly to 91% from 92%, while hotel occupancy increased to 72% from 70%, and retail occupancy improved to 95% from 90%.
For fiscal 2025, the company plans to launch six new projects worth a combined 9.8 billion baht, maintaining the same number of projects as 2024 but representing a slight increase in terms of value from 9.4 billion baht last year.
These six new projects, comprising four in Bangkok and one each in Nakhon Ratchasima and Khon Kaen, are intended to replace sold-out developments, following the closure of eight projects last year.
"Supply in the residential sector is rising while demand is dropping," he said. "Oversupply may also be seen in the industrial property sector, as the market is currently strong, attracting new players. This could affect supply levels in the next few years."
The commercial sector, particularly office space, is also seeing an increase in supply, with nearly 1 million sq m expected to be added over the next three years. This surge in supply will likely impact prices and lead to more discounts in the market.
