SET-listed developer Land & Houses Plc (LH) plans to launch 16 new projects worth a combined 30 billion baht in the low-rise segment as the economy is expected to be unfavourable and slow the condo market.

Naporn: Foreign buyers absorbed

Chairman and chief executive Naporn Sunthornchitcharoen said the economy this year will be gloomy as tourism slows and private investment deflates. Since late in the third quarter last year, there has not been any good economic news, said Mr Naporn.

"Last year a large amount of condos were launched, driven by a lot of joint ventures with foreign partners," he said. "This year new condo supply will drop because of shrinking demand from investors and speculators. Foreign buyers have already been absorbed."

Mr Naporn said the new lending curbs that will take effect on April 1 will have a minimal impact on the company's customers as LH collects a down payment rate at 20-25% of condo unit prices.

The 16 projects LH will launch will be priced 2.7-47.9 million baht per unit. They comprise a single detached house project, a semi-detached house project, a townhouse project in Bangkok and single detached houses in Chiang Mai and Ayutthaya.

The value of launches should rise by 30% from 12 projects worth a combined 23.1 billion baht in 2018, he said. The amount last year was lower than initially planned at 16 projects worth a combined 33 billion baht.

Despite no plans to launch a condo this year, LH is preparing two sites for new condo projects on Rama III Road and in the Sukhumvit area.

As of the end of last year, LH had 70 residential projects on hand, with units remaining for sales worth a combined 56 billion baht. From this amount, condos were worth 10 billion baht, of which completed units ready to transfer make up 4 billion baht.

Managing director Adisorn Thananan-narapool said the company will spend 10 billion baht this year, the same as last year. This comprises 7 billion baht for new land acquisition, up from 6 billion, and 3 billion for rental property, down from 4 billion.

The majority of the investment in rental property is for the construction of Terminal 21 on Rama III Road, which will begin operations by 2021.

Adisorn: B10bn allotted for 2019

LH aims to have 33 billion baht in presales and 32 billion in revenue from the housing development business this year.

The company also hopes to record 5 billion baht from rentals, up from 3.7 billion last year.

The company's rental properties comprise two Terminal 21 shopping malls, one in Pattaya and one in Nakhon Ratchasima.

LH also has four apartment buildings in the US, one of which will be sold per year. Three are in California and one is in Oregon. LH spent a total of US$450 million (14.3 billion baht) to buy and renovate the three buildings.

Last year LH sold the Domain Residence apartment in California at a price of $140 million, gaining $41.2 million in profits before tax, from a cost of $100 million.

This year it will sell Grande Centre Point on Thong Lor to LH Hotel Leasehold Real Estate Investment Trust and issue debentures worth 12 billion baht, with 7 billion in the first half and the rest in the second half for refinance.

LH shares closed unchanged yesterday on the SET at 9.75 baht in trade worth 274 million baht.