Lalin looks to fifth consecutive year of outperforming market

Lalin Property announced today (January 6) its 2020 business plan, aiming to outgrow the industry’s average performance for the 5th consecutive year.
The company plans to launch 9 to 11 projects this year with a total value of Bt5 billion to Bt5.5 billion.
Sales target is set at Bt6.2 billion with Bt5.25 billion in estimated revenue realisation, or a 13-per cent growth year on year.
In 2019, Lalin achieved revenue recognition of approximately Bt4.64 billion, a 13.2 per cent increase from the previous year. 
Chaiyan Chakarakul, the company's executive chairman, shared his views on the overall situation of the residential property market in Thailand last year, saying that the market, especially that of the vertical housing property, had been sluggish due to a slowdown of the global and local economies, high level of household debt, and the loan-to-value (LTV) measure of the Bank of Thailand to rein in speculation.
These factors negatively affected the vertical market of which demand came from investors and speculators, more than the horizontal market.
However, Lalin has always been assessing the market and has long foreseen this risk. The company, therefore, stopped developing condominium projects two years ago and is now focusing on horizontal projects which are a source of real demand.
This timely adaptation allows the company to grow amid the stagnant real estate market.
In 2020, it expected the Thai economy to expand by the same rate as last year or slightly better, or plus or minus 3 per cent.
The supporting factors are stable low interest rate, larger government investment after the delay in 2019, various measures to stimulate the property market, and policies to encourage Thai people to buy their residences through low-interest loans from government banks.
The company is hopeful that these factors will boost the residential property market in the first quarter of 2020 while entrepreneurs will stimulate purchases through intensive marketing activities.
It is estimated that the horizontal real estate market in 2020 will grow by 2-4 per cent.
The company’s business direction in 2020 will focus on ‘real demand’ of the residential horizontal market with plans to launch more projects in new high-potential locations and to replace existing projects that will gradually be closed down.
Churat Chakarakul, Deputy Managing Director, added that Lalin strives to be one of the top 3 brands in consumers’ mind when it comes to low-rise housing in the price range of Bt2–6 million.
The company has set a land acquisition budget of Bt1 billion to Bt1.2 billion, coming from company cash flow and accumulated profits. The working capital, aside from the cash flow, will come from the issuance of debentures and short-term loans from financial institutions.