Home Real Estate LH reduces launches to 12 projects

LH reduces launches to 12 projects

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SET-listed developer Land & Houses Plc (LH) scaled down its residential launches this year to 12 projects, down 25% from last year, worth a combined 20.7 billion baht.

Managing director Adisorn Thananan-narapool said the company expects to have 28 billion baht in presales and 30 billion in revenue from residential sales by the end of 2021.

The investment budget this year exceeds last year’s, totalling 11 billion baht with 6 billion allocated for land purchases for residential development, and 5 billion for rental properties.

Last year LH launched 16 new residential projects worth a combined 28.6 billion baht, and invested 6.8 billion baht, lower than the 11 billion originally planned in January 2020.

Of the 2020 investments, 4.6 billion baht was allocated for new land plots for housing development, lower than a previous plan of 7 billion, and 2.2 billion baht for rental properties, below its earlier plan of 4 billion.

In 2020, it sold The Mode Residence, an apartment for rent in California, for US$80 million or 2.41 billion baht, gaining $13.8 million or 416 million baht in profit before tax.

Of the total 12 new projects it planned to launch this year, two will be condos which will be located on Rama II Road worth 820 million baht and in Chiang Mai worth 160 million baht.

According to the company’s market survey, the number of condos sold in Greater Bangkok last year totalled 23,445 units worth a combined 92.3 billion baht, a fall of 31% from 2019.

The amount from new projects sharply declined by 71.6% to 18.2 billion baht, while that generated from existing projects rose by 6.2% to 74.1 billion baht.

Unsold condo inventory in Greater Bangkok as of the end of 2020 stood at 71,022 units worth a total of 326.74 billion baht.

The largest category was units priced lower than 2.5 million baht with 30,157 units, which accounted for 42.5% of the total.