INVENTORY OF NEW RESIDENCES FOR BANGKOK IN SHAINKING

       The combined inventory of residences held by listed property developers shrank 2 per cent year on year in the second quarter, due to strong demand from new-home buyers.
       The signigicant fallw as revealed in the second-quarter financial results of the listed firms. Their total inventory of residences in the quarter was valued at Bt177.11 billion, down from Bt180.34 billion in the first quarter.
       There are two reasons for the decline: some property firms delayed launching new projectes, because of deteriorating economic conditions, relying instead on inventory sales, and - contrary to many expectations - demand for residential properties grew aggressively in the quarter.
       Land & house senior executive vice president Naporn Soonthornchitcharoen said his company has adopted a policy of reducing its inventory, form sufficient stock to last an avergae two months last year to enough for only one-and-a-half months this year. This was part to the company's efforts to control its costs.
       Meanwhile, demand for new homes in the second quarter was higher than in the first, and that led to the shrinking inventory. L&H's inventory in the second quarter was much the same as in the first, although company revenue in the second quarter, he said.
       L&H achieved second-quarter revenue of Bt4.9 billion for a net profit of Bt1.08 billion, up 57 per cent and 71 per cent, respectively, quarter on quarter.
       LPN Development managing director Opas Sripayak said his company's inventory at the end of the second quarter was also much the same as at the end of the first, because the company launched new residential projects in the second quarter to replace those that had been sold.
       However, the company's inventory was down slightly in the second quarter, because of strong demand for residential projects.
       Noble Development president Thongchai Busrapan said his company's inventory shrank in the second quarter, because demand for residential projects recovered.
       "We succeeded in selling out Noble Reform within five days of opening presales, and our townhouse project on Srinakarin Road also sold 100 of its 100 units, thanks to strong market demand," he said.
       Research by the Real Estate Information Centre shows 9,650 new residences were registered in the greater Bangkok area in May alone. This figure drove the total number of new homes registered in the first five months of the year to 28,800 units, up 5 per cent year on year.

       There are two reasons for the decline: some property firms delayed launching new projects, because of deteriorating economic conditions, relying instead on inventory sales, and - contrary to many expectations - demand for residential properties grew aggressively in the quarter.