SET-listed Golden Land Property Development Plc, a subsidiary of Frasers Property Thailand Plc, expects low-rise development to help drive revenue growth.
The company plans to launch 19 new housing projects worth a combined 25 billion baht, aiming for 33 billion baht in presales this year.
Saenphin Sukhee, chief executive of Golden Land Residence Co, a subsidiary of Golden Land Property Development, said economic growth is likely to be flat and loan-to-value limits will still have a strong impact on buyers of second and third units.
"The debt service ratio is making it difficult to obtain a mortgage for many customers, while household debt is still high and the stronger baht has led to foreign buyers delaying making a decision," Mr Saenphin said.
There are positive factors, however, including lower interest rates, steady prices of construction materials and ample labour.
For 2020, the company has set a target for consolidated revenue of 19 billion baht, up from 17.16 billion baht in 2019.
Of total revenue last year, 15.3 billion baht, accounting for 89%, was from residential development business.
For the revenue target this year, low-rise housing development will take the lead with projected growth of 11% to 17 billion baht, comprising 8.8 billion baht (52%) from townhouses, 3 billion baht each from single detached houses and duplex houses, and 2.2 billion baht from projects in provinces.
Golden Land has set a budget of 8 billion baht to buy 17 plots for future development.
Mr Saenphin said townhouses will make up the majority of new launches this year, with nine projects worth 11 billion baht, followed by duplex houses located at six sites worth 8.5 billion baht.
There will be only one single detached house project worth 2 billion baht in greater Bangkok and two townhouse projects in Chiang Mai and Chon Buri worth 3.5 billion baht.
"The key strategies this year are to focus on real demand and construction management, which has to be in line with the status of sales and transfers," Mr Saenphin said. "We will reduce costs by an additional 3%."