SET-listed housing developer Lalin Property is continuing with a cautious approach, with plans to launch 8-12 new projects worth a combined 7-8 billion baht while aiming for flat growth in terms of sales, considering the ongoing negative factors.
Chaiyan Chakarakul, chairman of the company's executive board, said economic growth in 2024 was expected to be slightly worse than last year, which hit a low point as risks including geopolitical conflict, inflation and high interest rates persisted.
"The Thai economy is projected to grow between 2.5% and 3.5% this year but this level of growth is not robust enough to significantly enhance home purchasing power, especially for early jobbers," he said.
At this growth rate, only graduates from specific sectors would benefit from the economy. Ideally, the growth rate should be in the range of 4-5% to have a more substantial impact, he added.
Despite a high volume of foreign direct investment last year, a significant impact on the economy would take time, likely in 2025. Currently, the tourism and healthcare sectors are the only healthy segments.
This year the number of new projects being launched and their combined sales value would decrease to 8-12 projects worth 7-8 billion baht, down from 12 projects worth 9 billion baht launched in 2023.
The new projects would replace existing ones in locations such as Nonthaburi, Pathum Thani, Samut Prakan, Samut Sakhon and Nakhon Pathom, some of which are expected to close this year.
The sales target for 2024 is 6.55 billion baht, which is flat growth compared to the roughly 6.5 billion baht recorded in 2023.
The revenue is expected to be 5.25 billion baht, a rise of 3%, aligning with the level of economic growth, Mr Chaiyan said.
"The market will be highly competitive this year," he said. "We will exercise caution in investments and new launches, with plans to spend 1.5 billion baht to purchase new plots of land for future development."
At present, the company has a debt to equity ratio of 0.76 times, with an available credit line for project loans of 2 billion baht.
Earlier this month, the company issued debentures of 500 million baht at an interest rate of 3.8%.