Mid-sized developer Lalin Property Plc remains cautious in terms of its investments, focusing on maintaining liquidity and managing stock, as the economy continues to slow this year, while government measures have yet to generate a multiplier effect.

Company chairman Chaiyan Charakarul said this year remains another challenging year for the real estate sector, as there are still no positive factors to support growth.

"Although the tourism sector is expected to continue expanding, with many forecasting a 15% growth, it is not sufficient to drive overall economic growth, as tourism typically contributes only 12% to the country's GDP," he said.

He said the economic slowdown which began in the middle of last year is expected to persist for another 12 months due to the lack of government spending last year to stimulate the economy, leading the company to halt new project launches.

In 2024, the company launched only eight new projects worth 5 billion baht, down from its initial plan of 12 projects worth 8 billion baht. The four postponed projects have been rescheduled for this year.

It plans to launch 6-8 new projects worth a combined 4-5 billion baht in 2025 and aims to achieve 5 billion baht in presales and 4.05 billion baht in revenue by year-end. Last year, presales fell short of the 6.5-billion-baht target.

To minimise risks, all projects will be developed on its existing land bank. Half will be introduced in the first half, while the company will reassess market conditions before proceeding with the remainder in the second half.

"Liquidity is crucial at the moment," said Mr Chaiyan. "Our goal this year is to have more cash inflow than outflow, as the economy is unlikely to improve next year."

At present, the company's debt-to-equity ratio stood at 0.79 times, with a credit line of 2 billion baht from bank loans. It also has finished goods and housing units under construction worth roughly 1 billion baht.

To boost housing demand, the government should extend property measures, including the reduction of transfer and mortgage fees, which expired at the end of last year, as the 10,000-baht cash handouts have not generated the expected multiplier effect on the economy.

"We are concerned about the government's stability in remaining in office until the end of the year. If not, we may consider revising our launch plan."