SET-listed L.P.N. Development Plc continues to tap the middle- to upper-end segment, planning to launch 16 projects worth a combined 20 billion baht and aiming to have presales growth of 10% to 16.5 billion baht by year-end.
The majority of the new projects will be single detached houses and townhouses with 10 sites worth 8 billion baht. They will comprise eight projects in the middle-priced segment with units priced at 2-10 million baht.
Two projects will be high-priced under the Baan 365 brand, with units priced at 15-20 million baht, as a project under this brand was successful last year with a sales rate of 50% at launch, said chief executive Opas Sripayak.
There will be six new condo projects worth a total of 12 billion baht launched this year. One of them will be an office condo with units priced 100,000 baht per square metre after demand was seen from entrepreneurs and expanding businesses.
"Our first office condo project completed last year near Vibhavadi Soi 3 saw demand from aviation-related businesses, shipping and front office of factories located in Ayutthaya," Mr Opas said. "A potential location for a new office condo project is Bang Na."
Three developments will be middle-end projects with units priced at 2-3 million baht. One each will be in the upper-end segment with unit priced from 4 million baht and lower-priced with units starting at 1.2 million baht.
L.P.N. aims to have 16.5 billion baht in presales, up from 15.5 billion baht last year. The total will include 11 billion baht from condos and 5.5 billion baht from single houses and townhouses.
Revenue from housing development will grow by 20% to 12 billion baht, which will include 9 billion baht from condos and 3 billion baht from single houses and townhouses.
L.P.N. will also realise 1.2-1.3 billion baht in revenue from services, which will rise by 15% from last year.
"The property market will continue to be unfavourable, due to more new developers entering the market, condo oversupply in some locations, speculation demand, rising land prices, high household debt, the new lending curbs and higher costs of funds," Mr Opas said.
He said developers with projects relying on foreign demand, particularly Chinese buyers, should be more cautious because there might be condo units returned from these buyers this year.
"Some tens of thousands of condo units were sold to Chinese buyers," Mr Opas said. "With the amount and value, which was quite high, it may be risky if they return to the market."
L.P.N. has 5,500 condo units worth a combined 7 billion baht already completed but remaining unsold. It aims to sell 3 billion baht by March 31 through campaigns before the new lending curbs take effect on April 1.
LPN shares closed yesterday on the Stock Exchange of Thailand at 6.40 baht, up 5 satang, in trade worth 28.9 million baht.