L.P.N. Development is expected to launch 15 projects in 2016 with a combined worth of THB12.5 billion. Most of the projects will be situated within the Greater Bangkok area and will vary in type.
Managing director Opas Sripayak told the newspaper that there will be ten condominium developments worth THB10 billion and five townhouse projects worth THB2.5 billion launched by the company. Last year saw L.P.N. launch only seven condo projects worth THB10 billion and three townhouse projects worth THB1.5 billion.
“Amid the sluggish global and Thai economies, we must adjust our strategy by scaling down the size of condo projects by half or from 2,000 units per site to not more than 1,000 in order to minimize risks,” Opas said.
One of the reasons for the jump in new townhouse projects in 2016 is due to the strong demand in this segment. Most unit prices for L.P.N.’s townhomes will be around THB3 million. The developer will also spend the first few months of 2016 completing current projects that are under construction. L.P.N. is hoping to complete construction of seven condo projects between now and the end of April. “From now until late April, the most active market will be residential units that are ready to transfer, as the property tax incentives will end that month,” Opas said.
He also believes the condo market this year is going to be led by the middle and lower-end segments which are currently suffering from oversupply. The new mass-transit lines, including the Purple Line which will start running in August, will help drive these segments in 2016. He was less positive on the high-end segment which he expects to grow but not at the same level as last year.
L.P.N. is also hoping to diversify its portfolio and will expand into the retail business with the launch of several mini-malls that are aimed at supporting its customers. The company is expecting to have rental revenue from these that accounts for two percent of total revenue by the end of the year.