Thai list developer LPN Development has revised its pre-sales target from Bt20 billion to Bt24 billion-Bt25 billion in 2013 thanks to demand for condominiums priced not more than Bt3 million, which is still showing strong growth.
Managing director Opas Sripayak said that the company enjoyed high pre-sales in the first seven months of 2013 worth Bt16 billion after launching six condominium projects worth nearly Bt10 billion in the first half.
They are located on Lat Praklow 2, Suksawas-Rama II, Udon Thani province, On Nut-Lat Krabang, Rama IX and Srinakarin Road.
LPN Development also plans to launch six projects this second half year worth Bt15 billion. They are located in Rangsit, Sukhumvit Soi 24, Cha-Am, Hua Hin, Jomtien Second Road and On Nut Soi 46. They will boost its pre-sales over the estimate of Bt20 billion that was made early this year, he said.
However, the company has maintained its Bt15 billion revenue target for 2013.
The company earned Bt360.05 million on revenue of Bt2.48 billion in the first quarter of 2013.
"Although the country's economy shows signs of growing slightly in the second half of 2013 compared with the first half, we still maintain our growth target after seeing strong demand for condos offering prices lower than Bt3 million per unit," he said.
The main risk for property firms in the rest of 2013 is the labour shortage. Some residential projects cannot deliver units to customers on time.
"We manage our construction process by signing long-term contracts with our suppliers and contractors. That, combined with our construction process, [operates] like an industrial plant. This helps us deliver our residential projects to our customers on time," he said.
The rejection rate for its customers seeking mortgages is lower than 10%, which is normal for its customer base. This is still lower than the overall market's 20%.
"Most of our customers' financial health is still strong enough to buy a property and get a home loan from a bank, so we believe that our total revenue will achieve the early target of Bt15 billion this year," he added.