LPN Development sticks to 2014 targets despite slow sales so far

Real Estate January 30, 2014 00:00


LPN DEVELOPMENT is maintaining its presale target of at least 10 per cent growth this year despite signs that the property market will drop this quarter, managing director Opas Sripayak said.

To achieve its targets, the company plans to launch 12 new condominium projects, worth Bt20.73 billion, two more than last year. It targets total presales worth Bt26.4 billion, up 10 per cent from last year’s Bt24 billion, and revenue of Bt15.6 billion, up 8.25 per cent from the Bt14.41 billion estimated for 2013.

LPN Development reported to the Stock Exchange of Thailand revenue of Bt10.27 billion and net profit of Bt1.7 billion in the first nine months of last year.

“We have maintained our growth targets for this year even though the first two launches |this month have sold only 15 per cent of total project value, be-|cause we believe that the property market will recover in the second half of the year,” he said.

Last Saturday, the company launched two new condominium projects, Lumpini Ville On-Nut 46, worth Bt1.4 billion, and Lumpini Ville On-Nut-Pattanakarn, worth Bt2 billion.

They recorded sales totally Bt500 million, or about 15 per cent of the two projects’ value, only half of the company’s estimate of about 30 per cent.

Opas believes the current political turmoil has directly affected people’s decisions to purchase a home at this time even though its condominium projects are far from the anti-government protests. However, the chaos has not affected transfer of completed condos to home-buyers.

“Our customers have continued to take delivery of their condominiums on time, and as a result our revenue will meet the target this year,” he said.

LPN has a backlog worth Bt21 billion of condos awaiting transfer to customers when construction is complete, and about 30 per cent of that total will be delivered to buyers this year.