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Low Cost Units Push Thai Profits Down

Category: Real estate, Posted:03 Jul 2013 | 06:00 am

Thailand's listed property developers continue to see strong sales growth but in many cases the flow through to the bottom line is not being achieved.
Two key deterrents to the 'flow through' are spiraling construction costs and sales and marketing.
Thailand is still seeing strong inflation pressure, which is pushing commodities and labor higher.
In addition a key trend is that the low cost small condo's have skinny margins and there is very little room for doubt if project costs overrun.
For now the broad market is seeing increased competition and the battle of the bottom line is being hit hard.

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