Earlier this week, Colliers International Thailand reported that townhouses and low-rise housing were going to be popular with buyers in Thailand this year. It appears as if Lalin Property has taken note of this and now plans to launch 8-10 low-rise projects worth a combined THB 4 billion in 2017, according to local media reports.
Lalin Chief Executive Chaiyan Chakarakul explained to the Bangkok Post that all the new projects for the company are going to be single-house and townhouse developments with there being real demand for these as opposed to the condo segment where oversupply in many locations is present.
Lalin predicts that it will make THB 3.6 billion in presales this year, which will be up slightly from last year and continue the firm’s growth over the past few years. It hopes to bring in THB 3.1 billion in revenue which would be an increase from the THB 2.7 billion the company made last year. Should Lalin reach its revenue targets, it would secure 15 per cent growth next year.
To reach its target, the developer will launch only low-rise projects and target locations where demand is strong. This includes eastern provinces like Chon Buri, Chachoengsao and Rayong where there is real demand. Chaiyan adds that 30 per cent of the new launches will be in the provinces. However, despite the increase in estimates, the company is still bracing for a slow year.
“This year will be another sluggish year like 2016, as the recovery of key economies like Europe and Japan will be weak,”Chaiyan tells the newspaper. “The growth engine for the Thai economy will be government spending.”
The Bangkok Post notes that the number of new single houses and townhouses to be launched this year will likely be upwards of 15,000 units. This is a significant increase from the number launched in 2016.
