SET-listed developer Frasers Property (Thailand) (FPT) has continued to tighten its expenses and reduce inventory amid a sluggish housing market during the first eight months of the year, with the outlook for the fourth quarter remaining uncertain.
Pawarun Udomsiri, Senior Executive Vice-President for Housing Project Development at FPT, cited ongoing economic and political uncertainties that have influenced potential homebuyers’ purchasing decisions.
“Cost-cutting efforts must persist, building on strategies we initiated at the start of the pandemic,” he stated. “We have advised employees to adapt over the years, avoiding unnecessary expenses as we focus on reducing costs as much as possible.”
Additionally, the company scaled back construction of low-rise housing by half to ease financial pressure. For instance, at one townhouse project, only three blocks are being developed instead of the original five.
Mr. Pawarun explained that the low-rise housing market during the first eight months was quite volatile. The market sharply contracted in the first quarter due to a sluggish economy and the expiration of property stimulus measures at the end of 2024. A rebound occurred in the second quarter as some demand shifted from condominiums to low-rise houses, especially after the March 28 earthquake damaged many high-rise condos in Bangkok. However, the market declined again in July and August amid economic slowdowns.
The upper-end segment was particularly impacted, as many buyers in this category are entrepreneurs whose businesses have been affected by economic challenges and US tariffs, he added.
Despite these challenges, FPT announced that it achieved 17 billion baht in presales from its housing development segment in the first eight months, maintaining its full-year target of 20 billion baht.
“Healthy demand persists among working professionals, especially in the mid-range segment with household incomes around 100,000 baht per month,” Mr. Pawarun noted. Buyers in this group are seeking and able to afford low-rise homes priced between 5-10 million baht, typically located close to city centers, where land costs make single-detached houses less affordable.
To attract this demographic, FPT launched two new three-storey townhouse projects under the Goldina brand in the Bearing and Kalapapruek areas, with unit prices starting at 6 million baht. These units feature pet rooms and a pet park in common areas, aligning with current lifestyle trends.
Following its mid-July launch, the Bearing project secured 350 million baht in presales.