SET-listed L.P.N. Development Plc plans to launch 12 condominium projects worth a combined 20 billion baht in a bid to see growth of 18% to 20 billion baht in presales this year.
Managing director Opas Sripayak said condos would continue to be the main residential product, driven by rising land costs and people's new lifestyle.
"Before 1997, our condo market share was only 25%, as our main market was townhouses. Now it is 50-60% and peaked at 70% in some years, taking over the townhouse share," he said.
The company plans to spend 4 billion baht to buy new land for development this year and in the future.
Due to political problems last year, L.P.N. recorded presales of only 17 billion baht, lower than its target of 26.4 billion, with revenue of 11.7 billion baht also falling below the target of 15.2 billion. Both declined from 24.4 billion and 13.5 billion baht in 2013, respectively.
"We tried to boost sales with attractive marketing campaigns regularly throughout last year, but sales remained sluggish," Mr Opas said.
He said the company missed the presales target because it postponed four new projects worth a combined 6.14 billion baht. This resulted from a weak market and sluggish economy.
Three postponed projects were in Cha-am and Hua Hin, while the other was the second phase of a residential megaproject in Pathum Thani's Rangsit area that had a problem with an environmental impact assessment. All these projects will be launched this year.
"The provincial market last year was very weak, not as good as we predicted," Mr Opad said. "Sales and unit transfers at our condo projects in Pattaya were lower than our target."
Last year it hoped to transfer units at a newly completed condo project in Udon Thani province, but the market was not as large as expected.
"We wanted to sell units to Laotians and to Westerners who had married local residents, but there were not that many," Mr Opas said. "The Udon Thani condo market may bounce back once Asean integration takes effect."
He said the company may consider delaying a new project in Hua Hin this year due to oversupply in the area. Lumpini Place Hua Hin Soi 7 has 339 units worth 510 million baht.
However, it will launch two condo projects in Cha-am with 1,134 units worth 1.23 billion baht and 413 units worth 800 million baht, respectively.
Mr Opas said the condo market would continue expanding as last year when the number of units launched amounted to 78,000 despite unfavourable market sentiment and the political crisis.
"This year there will be at least 80,000 condo units newly launched with some postponed from 2014," he said.
As of last year, L.P.N. had a sales backlog of 18.6 billion baht from 12,870 sold units. About 14 billion baht will be realised in 2015 and 4.6 billion baht next year.
LPN shares closed yesterday on the SET at 22.30 baht, down 40 satang, in trade worth 50.2 million baht.