Property developer Tararom Enterprise Plc plans to launch two projects worth a combined 1.2 billion baht next year as part of efforts to achieve 10% sales growth.
Managing director Wasant Kiangsiri said the residential market would be stable in 2015.
"Purchasing power remains sluggish because household debt is still high. Consumers also lack confidence in many issues such as property tax and an upward trend in value-added tax despite low interest rates," he said.
Due to high household debt, more customers are failing to obtain home loans.
Tararom has seen an increase in the rejection rate to 17% from 15% last year.
As housing prices next year will rise by 5% on average driven by higher land and material prices, the developer will raise down payments to match housing prices and reduce risk from rejected loans.
Tararom plans to spend 1.5 billion baht next year to buy three plots of land for 2016 development.
In 2015, it will launch a detached-house project worth 400 million baht on 14 rai in the Ramkhamhaeng Road area with 50 units priced from 7 million baht.
Another project will be on 15 rai in the Rom Klao Road area, where it will build 160 three-storey townhouses and home offices respectively priced from 4.5 and 5.5 million baht a unit.
"We have no plans to launch a condo project next year due to the large supply in the market, which will take some time to absorb," Mr Wasant said.
Tararom has a finished condo project, The Link Sukhumvit 64, with 120 units remaining for sale from a total of 160. They are sized from 35 square metres and priced from 2.4 million baht.
The company expects revenue of 1.3 billion baht this year, up by 30% from last year and higher than the targeted 1.2 billion.