CEO Chaiyan Charkarakul said yesterday that the property market was showing signs of recovery in the second half of the year. As a result, the company will continue to expand its investments to serve demand in the final quarter and next year.

He added that the company would raise funds by issuing bonds worth Bt1 billion.

Lalin's hypothesis that the property market will recover in the second half of this year is based on a number of factors: interest rates will be reduced by between 75 basis points and a full percentage point this year; a general election will take place at the end of the year; oil prices will stay below US$55 (Bt1,952) per barrel; and the government will continue with its plan to open bidding for five new mass-transit systems this year.

"If our hypothesis is true, we believe that our business will show strong growth of 15 per cent this year," Chaiyan said.

Meanwhile, Lalin also plans to launch four new projects worth Bt3 billion this year. Two will open in the first half: Baan Burirum, located on the link-road near Suvarnabhumi Airport, and another on Ram-Indra Road. The other two projects will be launched in the second half.

Chaiyan said the company had continued to focus on detached-housing projects because demand in that segment will continue to grow, especially if construction of the mass-transit mega-projects starts according to plan.

"The home-buyer's lifestyle will be changed from buying condominiums to buying detached housing when the mega-projects are completed. They will link traffic from suburban areas to the central business district. This will be a good time to buy detached houses outside the central business district because people will save time on transportation," he said.

Lalin announced revenue of Bt1.9 billion and net profit of Bt396.39 million last year, representing annual falls of 29 per cent and 42.7 per cent respectively

from Bt2.7 billion and Bt692.63 million.

Chaiyan said revenue had slumped because home-buyers had concerns over political uncertainty and slow economic growth, which had a negative impact on their confidence and purchasing power.

However, the company believes the property market will improve this year and expects sales to increase to Bt2 billion.

To achieve the target, the company has a marketing budget of Bt80 million, up from Bt60 million last year, Chaiyan said. It will focus on event marketing. 

Somluck Srimalee

The Nation