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Construction jobs to grow amid condo revival

Construction jobs in the private sector are expected to rebound next year as the effects of the pandemic on the property sector, particularly the condo segment, are projected to end this year, according to SET-listed contractor Prebuilt Plc.

Chief executive Wirot Charoentra said new construction jobs, particularly those related to condo projects which were usually large in number, had slowed down since the pandemic.

“Construction jobs from developers in 2021-22 continued from 2019 and earlier years. They were completed and delivered in the past year,” he said.

“The pandemic didn’t affect our performance last year but its impact was felt this year as new condo projects slowed down in 2021-22.”

In the first nine months of 2023, Prebuilt recorded consolidated revenue of 3.7 billion baht, a 16.6% decrease from 4.4 billion baht in the corresponding period last year.

Revenue from construction jobs, the lion’s share, declined by 14.7% to 2.8 billion baht.

“Construction jobs in the property sector will likely pick up next year as the sector has bottomed out this year,” Mr Wirot said. “As well as the condo recovery, hospitals are on the rise.”

Prebuilt’s revenue from precast floor manufacturing rose 25% to 487 million baht from 390 million baht.

Its revenue from residential development business declined by 47% to 396 million baht from 747 million baht.

“The rise in interest rates has weakened housing demand, impacting presales, while mortgage loan rejections are affecting revenue,” he said.

“We will expedite transfers once customers secure mortgage loan approvals; otherwise, they may accumulate debt due to other expenses.”

Next week Prebuilt will launch Pimnara Salaya, a single detached house project worth 600 million baht. It will be located on a 16-rai plot in Bang Kruai district, Nonthaburi near Salaya and Phutthamonthon Sai 3.

The project will comprise 77 units priced from 5 million baht, which it claims are cheaper than competitors’ developments nearby offering units priced from 6 million baht.

This is due to self-construction, which helps reduce some overhead expenses.

Next year, it will launch a high-priced single detached house project in Thawi Watthana with 52 pool units priced between 18 and 25 million baht, a high-rise condo project and a low-rise condo project.

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