Land & Houses has revised its property portfolio by dropping the the proportion of houses priced in the range of THB3-5 million from 38 per cent to 30 per cent this year. Thailand’s largest developer Land & Houses (L&H) is planning increase revenue with the launch of 18 new projects in 2011
Thailand’s largest developer Land & Houses (L&H) is planning increase revenue with the launch of 18 new projects in 2011.
As reported in The Nation newspaper, the company expects its income to rise by 25 per cent to THB25 billion (US$806 million). Last year, it generated revenues of THB20 billion (US$644.5 million), up 19.5 per cent from 2009.
According to senior executive vice president Adisorn Thananannarapool, the company set a THB7.8 billion (US$251.4 million) investment budget for this year, THB6 billion (US$193.4 million) of which will be used for purchasing undeveloped land. The rest of the budget will be used for buying capital-increase shares of LH Bank, in which the company holds a 40 per cent stake.
Of the 18 new developments, 16 projects will be located in Greater Bangkok and two in upcountry areas. In terms of project types, there will be 14 single detached housing projects, two townhouses, and two condominiums. Three to four projects will be launched within the first half of the year.
Adisorn also added that the company had added up its residential prices by 3-5 per cent, while the costs of building materials and land are expected to rise by 5-10 per cent this year.
Meanwhile, Naporn Soonthorn-chitcharoen, senior executive vice president of L&H, said the company has revised its property portfolio by increasing the proportion of houses priced below THB3 million (US$96,650) from 10 per cent last year to 15 per cent this year, and the ratio of houses costing over THB10 billion (US$322 million) from 9 per cent to 15 per cent.
Houses in the range of THB3-5 million (US$96,580-160,970) will drop from 38 per cent to 30 per cent, while the ratio of those in the THB5-7 million (US$160,970-225,770) price range will remain unchanged. And houses priced in the range of THB7-10 million (US$ 225,770-322,655) will account for 15 per cent, instead of 18 per cent.
Currently, the company’s inventory stands at THB2.5 billion (US$80.5 million), with THB500 million (US$16.1 million) already for sale and THB2 billion (US$64.4 million) under construction.
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There are so many positives to publicise and be proud of, from the continued strong fundamentals of the Thai economy (which are the envy of most Western countries) to the spirit shown by Bangkok’s residents in coming together to clean up Ratchaprasong in the days after the protests.
Although the Thai real estate industry has continued growing significantly since 2008, we have not seen a real estate bubble environment manifesting. The industry seems to have learned its lessons during the 1997 financial crisis and has successfully implemented the following safeguards: The banking industry has become much more cautious providing project financing and mortgage loans.
Thailand is member of the ASEAN (Association of Southeast Asian Nations) trade bloc and has free trade agreements with India and China, two fast-developing economic powerhouses. Consequently, many multinational companies are using the country as a regional base for its operations or a place to station employees who travel around Asia. Foreign investment in Thailand is constantly expanding, supporting the strong economic growth of the country.