From the Bangkok Post today.
L.P.N. Development, the country's largest condominium developer, said its 2007 profits should rise by at least 27%, in line with analyst's forecasts.
Managing director Opas Sripayak attributed much of the increase to healthy demand for middle- and low-income condominiums, a niche in which the company says it faces little competition.
''We have been doing quite well selling low-priced condos this year,'' Mr Opas said. ''Sales for the second quarter were much better than expected.''
Eleven analysts polled by Reuters Estimates forecast profits of 972 million baht, up 27% from 2006, on revenues of 6.38 billion baht, a 34% increase on the previous year.
''Demand for low-priced condominiums in many locations in Bangkok is still strong and L.P.N. should at least meet the forecasts,'' Mr Opas said.
L.P.N., whose cheapest units cost 600,000 baht, has around 30% of the condominium market, itself around one-third of the entire property market.
About 17,000 new units, a substantial number of them close to Bangkok's subway and Skytrain stations, came on to the market last year, up 50% on the previous year, Mr Opas said.
Other operators in the market include Supalai and Asian Property Development. Last month, detached housing developers such as Land & Houses and Preuksa said they planned condominiums to tap into the rising demand. But Mr Opas said the condo market would slow this year amid political uncertainty and concerns about economic growth, projected at 4% to 4.5% this year.
About 20,000 new condominium units would be come on to the market this year, up only 18%, Mr Opas said. L.P.N. would launch three low-priced condominium projects in the second half of this year, the same number as the first half, he said.
''The market for low-priced condominiums for people in their first jobs and for renting is a big. Demand is still far outstripping supply,'' he said. ''But for condominiums over two million baht there is an oversupply.''
L.P.N. would spend up to two billion baht, funded from working capital, on land acquisitions this year, he said.
No comments:
Post a Comment