LPN unveils growth plan for 2010

To achieve its revenue target, the company plans to launch six to eight new condominium projects this year, worth Bt13 billion, managing director Opas Sripayak said.

The company recorded pre-sales of Bt10 billion and revenue of more than Bt8 billion at the end of 2009, up 20 per cent and 11 per cent respectively from 2008, thanks to a surge in demand in the second half of the year, he said.

The company plans to launch three new condominium projects worth Bt6.1 billion in the first quarter of this year, he said. They are: Lumpini Condotown Bangkae, Lumpini Place Rama 9 phase 2, and Lumpini Place Phahon-Ratchada worth totally Bt6.1 billion.

Meanwhile, the company on Thursday purchased land on Ratchayothin from Metro Star for Bt680 million. The investment came out of last year's budget. Condominium projects worth Bt3 billion will be developed on that land, which will be open to pre-sales in the second quarter of this year.

The company also set aside an investment budget to purchase land worth Bt1.5 billion to Bt2 billion this year.

Opas said the property market had shown strong recovery since the second half of 2009 after most developers delayed launching their condominium projects since the year 2008 until the first half of 2009. As a result, the number of new condominium projects launched last year was lower than in 2007.

According to a survey by LPN Development, the number of new condominium projects launched recorded only 25,000 units, a 24-per-cent drop from 2008. More than 80 per cent of new projects launched last year were located close to the mass-transit system, both Skytrain and the underground train. The best locations are Sukhumvit, Lat Phrao and Ratchada-Rama 9.

Condominiums priced in the range of Bt1 million to Bt3 million are the most sought after in the market, accounting for about 64 per cent of new condominiums launched last year.

LPN Development launched 30 per cent of the new condominium projects launched last year, or about 7,800 units.

Considering market trends, the company believes its pre-sales and total revenues will meet its targets of Bt13 billion and Bt9.6 billion, respectively, at the end of this year, he said.

New Project Launch

Leading listed property firms plan to launch a number of new residential projects in this year worth over than Bt100 billion in this year.

Company/Number of Project Launch/Worth (Bt:Billion)

Land & Houses Plc/15/26

Preuksa Real Estate Plc/48/33.6

Sansiri Plc/18/between 20-25

Quality Houses Plc/13/15.61

Asian Property Development Plc/20/20

LPN Development Plc/8/10

Supalai Plc/10/10

SC Asset Corporation Plc/6/4

Property Perfect Plc/8/ between 8-10