SET-listed developer Lalin Property Plc is aiming for growth of at least 10% in 2023 as the normal loan-to-value (LTV) limits will have a minimal impact on target customers in the real demand segment.
Chaiyan Chakarakul, chairman of the executive board, said the company's housing projects were mainly in units priced 2-9 million baht, with first-time homebuyers as target customers.
"The normal lending curbs will affect those buying a home with second and subsequent mortgages and those buying a unit priced 10 million baht and above. These are not our main customers," he said.
He said higher interest rates would not be a negative factor against the purchasing power of homebuyers in general as the increase was minimal and homebuyers would be able to accept rising expenditure.
Mr Chaiyan estimated the property market would expand by 5%, mainly attributed to an economic recovery with a forecast growth of 3%, as the tourism sector was picking up after a good momentum in November and December 2022.
"A strong recovery in the tourism sector will benefit the economy in the second half of 2023, however, for the housing market it should wait until the end of next year to see significantly growing demand."
He said the next general election and the new government would be positive for the property market as they would drive several projects, particularly infrastructure ones. The only risk would be higher household debt.
This year Lalin plans to launch 10-12 new housing projects worth a combined 7-8 billion baht.
All will be single detached houses and townhouses in Greater Bangkok with units priced 2-9 million baht.
Of all new projects, 60% already had land secured. It also allocated a budget of 1.5-1.6 billion baht to buy plots of land for the new projects being launched this year and next.
The firm expects to have 8.6 billion baht in presales and 6.85 billion in revenue by the end of 2023, a growth of at least 10% from 2022.