One casualty will be a joint venture with the China Railway 20 Bureau Group to bid for construction of three new railways for the Chinese government in a Bt150-billion project.

Areeya has also reduced its estimated sales for this year, from Bt1.8 billion to Bt1.26 billion - 30 per cent below its target - after growth in the property market fell below 5 per cent.

The company showed sales of almost Bt419 million and a net loss of Bt4.7 million in the first half.

"We must wait and see when there will be a new election and new government before we decide to expand our investment," said chairman and managing director Visit Laohaphunrangsri.

Areeya has also suspended its plan to take over the Wandara Group, a property developer that has projects in Soi Onnuj.

The drop in demand for new homes has also made the company change its property strategy.

Visit said it had switched from focusing on high-end homes costing Bt7 million to Bt10 million to projects priced from Bt3 million to Bt5 million.

He said demand for new housing costing less than Bt5 million per unit continued to grow. Areeya is moving away from the high-end market to concentrate on the middle segment by reviewing its projects on Kaset-Nawamin, Metro Kaset-Nawamin, Chaba Kaset-Nawamin and Sawana Kaset-Nawamin roads.

Somluck Srimalee

The Nation