8 real estate stocks worth tens of billions are in severe turmoil, with prices plunging and taking them to record highs, down almost 60%.

Real estate stocks have been a safe haven for investors during bad economic times. But today real estate stocks are facing serious challenges. Although the government has measures to stimulate growth and should be a factor supporting the market, many entrepreneurs have been affected by economic recession in the past. Including the housing loan problem. In addition, political uncertainty and global economic factors apart, prices of attention-grabbing stocks like ANAN or Ananda Development Public Company Limited have been severely reduced. From the case of debentures

In this regard, “Krungthep Turakij” will make you penetrate ten billion in “real estate shares”. Still in deep volatility The current price on 11 June 2024 is down almost 60% compared to the 1 year or 52 week high.

1.Origin Property Public Company Limited ORI

• The 52-week high was 11.50 baht, compared to 4.98 baht on 11 June 2024, a change of 6.52 baht or 56.69%.
• The price is -41.07% since the beginning of the year.
• The market cap was 12,221.53 million baht, compared to 20,737.33 million baht at the end of the year, a decrease of 8,515.8 million baht.

2.SC Asset Corporation Public Company Limited SC

• The 52-week high was 4.70 baht, compared to 2.94 baht on 11 June 2024, a change of 1.76 baht or 37.44%.
• Price -12.20% YTD
• The market cap was 12,318.37 million baht, compared to 14,014.95 million baht at the end of the year, a decrease of 1,696.58 million baht.

3. Pruksa Holding Public Company Limited PSH

• The 52-week high was 13.60 baht, compared to 9.30 baht on 11 June 2024, a change of 4.3 baht or 31.62%.
• The price is -22.31% since the beginning of the year.
• The market cap was 20,571.95 million baht, compared to 26,480.91 million baht at the end of the year, a decrease of 5,908.96 million baht.

4.AP (Thailand) Public Company Limited AP

• The 52-week high was 12.80 baht, compared to 8.90 baht on 11 June 2024, a change of 3.9 baht or 30.47%.
• The price is -21.68% since the beginning of the year.
• The market cap was 27,841.21 million baht, compared to 35,548.66 million baht at the end of the year, a decrease of 7,707.45 million baht.

5.Land and Houses Public Company Limited LH

• The 52-week high was 8.65 baht, compared to 6.25 baht on June 11, 2024, a change of 2.4 baht or -27.75%.
• The price is -23.31% since the beginning of the year.
• The market cap was 74,685.71 million baht, compared to 97,390.16 million baht at the end of the year, a decrease of 22,704.45 million baht.

6. Chansiri Public Company Limited SIRI

• The 52-week high was 2.10 baht, compared to 1.60 baht on 11 June 2024, a change of 0.5 baht or 23.81%.
• The price is -10.17% since the beginning of the year.
• The market cap was 27,373.22 million baht, compared to 29,180.72 million baht at the end of the year, a decrease of 1,807.5 million baht.

7. Quality Homes Public Company Limited QH

• The 52-week high was 2.36 baht, compared to 1.89 baht on 11 June 2024, a change of 0.47 baht or 19.92%.
• Price -14.29% YTD
• The market cap was 20,571.61 million baht, compared to 24,000.21 million baht at the end of the year, a decrease of 3,428.60 million baht.

8. SUBALAI PUBLIC COMPANY LIMITED SPALI

• The 52-week high was 21.80 baht, compared to 17.60 baht on 11 June 2024, a change of 4.2 baht or -19.27%.
• Price -3.23% since the beginning of the year
• The market cap was 35,154.97 million baht, compared to 36,326.80 million baht at the end of the year, a decrease of 1,171.83 million baht.

Veerawat Virojphoka, Senior Director FSS International Investment Advisory Securities Co., Ltd. in Securities Analysis Department. FSS, a subsidiary of Financia Cyrus Securities, disclosed the overall picture of the stake in the real estate group to “Krungthep Durakij”. Too bad from the end of last year until the beginning of this year because of the economy, things were going in a very good direction. And banks are very strict in lending. Interest rates are higher than in the past. These factors put pressure on the real estate sector.

If you compare them separately, the prices of some of them are significantly lower. It is a unique factor in which market segment each company occupies. How much impact does it have? The horizontal market is much weaker than the condominium market, including last quarter. So, you should go and see. Any company that is more horizontally focused may be under more pressure than other companies that focus on condominium sales.

“If you go back to the Covid era. Low-rise projects sell better than condominiums. But the condominium projects opened up in the country since last year will get relatively better response.

However, during the season, the first quarter will not be good, will gradually improve and accelerate again to reach the target amount in the fourth quarter. Various campaigns will be recorded towards the end of the year to close the balance, so the pace will improve gradually. But it depends on the economic condition. How quickly can it recover according to seasonal factors? According to the picture of the Thai economy, it looks like it will return to QoQ growth in the 1st quarter of 2024, while the Bank of Thailand looks to be able to grow QoQ in every quarter of the year.

In this regard, AP and SIRI stocks are interesting. After the performance direction was very strong.

Abizad Bunjertkul Senior Director Strategic Analysis Division, TISCO Securities, provided additional information: The outlook for real estate stocks given the tightening of lending by banks. Also, consumers are unlikely to make decisions on purchasing durable goods with long-term obligations due to relatively high household debt burden. They will not have the power to purchase large items

Additionally, real estate stock prices have fallen sharply. Part of this also comes from dividend payments. And real estate stocks have high dividend payouts of 6-8%, which is another reason real estate stocks underperform.

Often in the second half of the year, entrepreneurs start more and more projects. Demand from overseas is also expected. Condominiums in particular are in demand from Taiwanese who are starting to buy more condos in Thailand. including Myanmar. Before that only the Chinese came to buy.

“AP can see that sales from the beginning of the year to now will come from high-rise condominiums.”

Advising investors to pick stocks with strong financial position, prices of AP and LH stocks in particular have fallen sharply and are still on the upside.