Net profit for the first quarter of 2025 among 10 SET-listed residential developers fell to 3.56 billion baht, marking the lowest level in over a decade and less than half the five-year average. Kasikorn Securities attributed the steep drop to the economic slowdown and subdued housing demand. Combined net profit declined 38% year-on-year and 51% quarter-on-quarter, with falling top-line revenue and shrinking operating margins as main drivers.
Sorapong Jakteerungkul, senior vice-president at Kasikorn Securities, explained that when revenue drops, selling, general, and administrative expenses rise as a proportion of sales, eroding economies of scale. In some quarters over the past decade, combined profits reached 12–13 billion baht, while the five-year quarterly average was 8.3 billion baht.
The 10 developers—AP Thailand, Britania, Land & Houses, L.P.N. Development, Origin Property, Pruksa Holding, Quality Houses, SC Asset Corporation, Sansiri, and Supalai—saw a slight improvement in housing gross margins compared to the previous quarter, as aggressive discounting in late 2024 gave way to more stable pricing. Despite this, weak demand and the pull-forward of transfers to the fourth quarter kept profits under pressure.
Developers responded by curbing new supply, launching fewer projects, and exercising caution in land acquisition and construction. Presales in the first quarter totalled 54 billion baht, while new project launches reached only 44 billion baht. These measures, along with reduced interest-bearing debt and lower net debt-to-equity ratios, aimed to balance supply and demand and manage financial risk.
First-quarter profits accounted for just 15% of projected full-year earnings. Kasikorn Securities forecasts a 15% year-on-year decline in 2025, citing persistent market softness. Factors that could support a modest recovery include property incentives, relaxed loan-to-value rules, new launches, pricing strategies, potential interest rate cuts, and increased condo backlog transfers. However, annual profits are still expected to lag behind historical averages. On Monday, in the afternoon, Sorapong highlighted that economic uncertainty remains the main challenge for Thailand’s housing sector.
