PUBLIC BOOST
Developer readies six second-half launches
Listed developer Lalin Property expects state spending in the second half to lift economic sentiment and housing demand.
SET-listed residential developer Lalin Property Plc expects government spending in the second half to boost economic sentiment and housing demand, underpinning the company’s plan to launch six projects worth a combined 3 billion baht until year-end.
Deputy managing director Churat Chakarakul said the second-half launch plan surpasses the first half’s, as the economy is being propelled by key drivers such as exports and tourism.
“Government spending in the second half will mainly boost economic sentiment in the period,” Mr Churat said. “However, the property sector should monitor the situation because the growth is in specific sectors.”
All the new projects Lalin will launch in the remainder of the year will be singlehouse, townhouse and duplex projects in Greater Bangkok, as low-rise housing demand remains strong in the city.
In provinces, purchasing power will likely bounce back in the second half, Mr Churat said, as the recovery seen in the industrial sector in the last three months was just sales of pent-up supply.
Residential demand in EEC locations has picked up since last year and continued in the first half of this year after a sluggish 2014-16 caused by factory relocations to Vietnam, he said.
In Chon Buri, Rayong and Chachoengsao, Lalin launched a total of 10 residential projects in the last four years. They comprise single-house, townhouse and duplex projects with units priced at 1.5-7 million baht.
The 10 projects had a combined sales value of more than 5 billion baht, of which more than half have been sold so far.
In the first half of the year, the company posted 2.8 billion baht in presales, up 33% from 2.1 billion baht in the same period last year. Lalin aims to have 4.4 billion baht in presales by the end of the year, up from 3.65 billion baht in 2017.
Lalin recorded a net profit of 402 million baht on revenue of 2.08 billion baht in the first six months of 2018, up 41% and 35% year-on-year, respectively. The company expects to realise 4 billion baht in revenue by the end of 2018, up from 3.1 billion baht at the end of 2017.
As of the end of June 2018, Lalin had a sales backlog of 1.1 billion baht, all of which will be realised in the second half, as the slate consists of single houses, townhouses and duplex houses that usually require less than four months to finish construction.
In the second quarter, Lalin had a net profit of 220 million baht on revenue of 1.12
billion baht, up 29% and 27% year-on-year, respectively. Growth of more than 25% in each period continued during the past two years.
LALIN shares closed yesterday on the Stock Exchange of Thailand at 6.60 baht, up 10 satang, in trade worth 1.8 million baht.