Preuksa Real Estate, the country´s second-largest residential developer, will continue to expand through the current turbulence, with 2008 revenue expected to be 50 percent up from last year, according to CEO Thongma Vijitpongun.

The company last year recorded Bt9 billion in revenue and 13 billion in presales, and set a target of Bt14 billion for 2008. Thongma said Preuksa has already achieved 85 percent of this target.

Preuksa has however had to adapt its strategy in view of political and economic uncertainties. The company is now offering five to seven percent discounts on new units in an effort to boost sales that reflects the fall in construction prices.

After peaking in the first quarter of 2008, prices of construction raw materials have now fallen back to end 2006 levels. Thongma said the company did not lock the price of materials with its suppliers, and does not have a significant inventory of unsold units so it will be able to capitalise immediately on the price drop.

Thongma conceded that the credit crisis was still a worry, as mortgage rejection rates have risen from 25 to 35 percent since the beginning of the year.

Preuksa is now state-run lenders such as the Government Housing Bank and the Government Saving Bank to facilitate loans to low and middle income buyers, and is providing customers with close consultation to ensure the success of their mortgage applications.

Thongma also suggested the market should be propped up by the Government through the development of megaprojects and the extension of tax incentives to homebuyers.

For 2009 Thongma predicts the real estate market in general will slow by five to 10 percent on the back of lower consumer confidence, and says developers should focus on serving real demands and tapping more niche markets.