Lalin keeps low-rise focus in the East

Lalin keeps low-rise focus in the East

Negative growth seen in all other regions

SET-listed developer Lalin Property Plc will continue housing development along the Eastern Seaboard due to stronger demand than in other regions.

Deputy managing director Churat Chakarakul said several industrial estates in Chon Buri, Chachoengsao and Rayong provinces were driving housing demand from people working or relocating to work there.

"Other than those three provinces, all others nationwide had negative growth in new single houses, duplexes, townhouses and shophouses receiving land allotment permits," he said.

The Lands Department said the largest drop was in the North, with a dip of 27% to 4,616 units in Chiang Mai and and 20% to 792 units in Phitsanulok during the first half of this year.

Permits in the Northeast’s four major provinces of Khon Kaen, Nakhon Ratchasima, Ubon Ratchathani and Udon Thani also tumbled 10% to 4,487 units, 5% to 8,252 units, 4% to 928 units and 2% to 950 units, respectively. The decrease represented sluggish sales, making developers uneasy about future demand.

In the South the strongest market was Phuket, where permits rose by only 1% to 2,705 units over the same period.

Among the three eastern provinces, Chon Buri has the highest potential, as it recorded the largest number of new low-rise housing unit permits with 13,264, up by 25%.

Chachoengsao is an emerging market, up by 27% to 2,779 units, while in Rayong permits rose 5% to 3,094 units.

Lalin plans to launch three new housing projects worth a combined 1.8 billion baht in the fourth quarter, with one in a novel eastern province for the company. All are low-rise housing projects.

"Condo sales are still sluggish due to an oversupply in some provinces and in Bangkok," he said.

Lalin has launched only low-rise projects since late last year. Since 2010, it has launched housing projects in Nakhon Ratchasima, Chon Buri, Rayong and Chachoengsao.

This year, sales from provincial markets have accounted for 25% of the total, with the proportion expected to reach 30-40% in three years.

In the first nine months it recorded 2.5 billion baht in presales and expects 3.2 billion by year-end, with 2.7 billion in revenue, for 15% growth.

"The overall housing market in Greater Bangkok grows by only 5-10% a year. If our target growth is at least 15%, we need to diversify upcountry," Mr Churat said.

LALIN shares closed yesterday on the SET at 4.64 baht, up six satang, in trade worth 26.4 million baht.

Do you like the content of this article?
COMMENT