SET-listed developer L.P.N. Development Plc will launch 15 projects worth a combined 12.5 billion baht this year.

Managing director Opas Sripayak said the projects would comprise 10 condo and five townhouse projects worth 10 billion and 2.5 billion baht, respectively.

They will be located mainly in Greater Bangkok.

Opas: L.P.N. scaling down condo projects

“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 minimise risks,” he said.

The developer launched only seven condo projects worth 10 billion baht last year.

The number of new townhouse projects will increase from three sites worth 1.5 billion baht last year to five projects worth 2.5 billion baht due to strong demand in this segment.

All will have unit prices of about 3 million baht.

“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,” Mr Opas said.

During this four-month period, L.P.N. will complete construction of seven condo projects worth a combined 12 billion baht. It has sales of 10 billion baht for the projects.

As of the end of 2015, L.P.N. had condo units worth 7.6 billion baht remaining for sale.

Units worth 5 billion baht will be ready to transfer by the end of April when the property incentives expire.

It targets 1 billion baht in sales from this inventory.

The company has an inventory of 200-300 townhouses worth 600 million baht ready to transfer during the incentive period.

L.P.N. targets 17.6 billion baht in presales and another 17.6 billion in revenue from condos this year, up from 14.5 billion and 16.7 billion last year, respectively.

Subsidiary Pornsanti Co, which builds townhouses, targets 1 billion baht in revenue and 1.5 billion in presales, up from 500 million and 1 billion in 2015, respectively.

This year it will diversify to retail business with the launch of mini malls that will support its customers, expecting to have rental revenue account for 2% of total revenue by year-end.

Mr Opas said the condo market this year would continue to be led by the middle and lower-end segments despite oversupply. These segments will be driven by new mass-transit lines including the Purple Line, which will start running in August.

The high-end segment is driven by image rather than necessity, but its growth will not be as high as last year, he added.

LPN shares closed yesterday on the SET at 15.40 baht, down 60 satang, in trade worth 108 million baht.