BANGKOK, 15 May 2014, – According to the Prueksa Real Estate, the current political turmoil has greatly affected public spending, the economy, and the real estate sector; adding that the latter’s performance will likely contract by 5-10% this year.
According to Thongma Wijitpongpan, the CEO of the Prueksa Real Estate, this year’s national GDP is expected to grow by merely 2%, down from the 4-5% projected earlier, thanks to the prolonged political upheaval, which has severely impacted the sector.
He said his company’s first quarter sale figures declined by 33.5% year-on-year, elaborating that condominium sales contracted by 58.3%, townhouse down by 24.8%, and single house decreased by 2.4%.
The CEO predicted that the overall performance of the real estate sector would contract by 5-10% compared to the same period of last year, during which the sector generated in excess of 600 billion baht.
The Chief Operator also believed that the real estate sector would plunge even further if the political situation worsened to the point that a new government could not be formed, which would most likely hinder the mega-infrastructure and related projects.