Thai low-rise projects expected to be key revenue driver

Developer L.P.N. said their low-rise offers will help those unemployed during the pandemic 

Last year, L.P.N. Development leased 200 to 300 units at Lumpini Park Phahol 32, a THB2 billion project on Phahon Yothin Soi 32. anek.soowannaphoom/Shutterstock

As reported by Bangkok Post, SET-listed developer L.P.N. Development Plc aims to manage the huge quantity of condo stock in Thailand by renting out unsold units and focusing on low-rise housing developments that are expected to be the key driver for revenue growth in 2021-2024.  

Opas Sripayak, chief executive and managing director, said the company has THB15 billion (USD496 million) worth of unsold condo inventory, with 9 billion representing completed units.  

“We will rent out these completed units to generate a recurring income during an oversupply in the condo market,” said Opas.

“We will also offer tenants these units for purchase which could be transferred in the future or when tenants are ready to secure them. The monthly rents they pay will become monthly instalments once they decide to buy the rental unit.”  

He further added that this offer will be of assistance to those who were unemployed or unable to access a mortgage loan during the pandemic, such as those in the hospitality or aviation industry.  

Last year, the company leased 200 to 300 units at Lumpini Park Phahol 32, a THB2 billion project on Phahon Yothin Soi 32 with 546 units completed in 2019 and had 80 percent of units unsold.  

According to Opas, the unsold Phahol 32 units were the result of a condo glut. For more than THB3 million per unit, buyers had the same choices in more appealing locations like Sukhumvit road or Asoke.  

With the company’s large condo inventory and 6 to 8 land plots for condo development in the future, L.P.N will spend a total of THB4 billion on low-rise housing projects this year, worth THB8 billion to develop in the future.  

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L.P.N. Development Plc is an award-winning developer, who received 8 accolades at the 15th PropertyGuru Thailand Property Awards, including the Best Sustainable Developer and Best Affordable Condo Development (Bangkok).  

The company believes low-rise housing will be a key driver in revenue from 2021 to 2024, rising from THB2.2 billion this year to THB2.8 billion, THB4.5 billion, and THB7 billion, respectively.  

By 2024, they expect to see half of the revenue from low-rise houses and condo.