LPN is moving forward with the launch of 5 new projects worth 6.9 billion baht in the second half of 2021, along with the introduction of a new brand, Villa 168 @ Westgate, targeting the Gen Y and Young Affluent markets to meet the needs of successful young individuals seeking private residences. The company is confident that it will achieve its total revenue target of 7 billion baht this year.

Mr. Opas Sripakdi, CEO and Managing Director of L.P.N. Development Public Company Limited (LPN), revealed the company's operational plans for the second half of 2021, stating that due to the ongoing COVID-19 pandemic in the second quarter and continuing into the third quarter of this year, along with the 30-day construction worker camp closure in July 2021 and the latest government measures to control the spread of COVID-19, the company has adjusted its project launch plans for 2021.


Mr. Opas Sripakdi, CEO and Managing Director of L.P.N. Development Public Company Limited

This has led to the company adjusting its plan to launch 6 new projects worth approximately 9.6 billion baht instead of the originally planned 8-9 projects worth around 10 billion baht in 2021. The company has already launched one project, Ban 365 Chaeng Watthana-Muang Thong, in June, valued at 2.7 billion baht, and will launch another 5 projects worth 6.9 billion baht in the second half of 2021, consisting of 3 residential projects valued at 1.4 billion baht and 2 condominium projects valued at a total of 5.5 billion baht, while still aiming for total revenue of 7 billion baht as originally planned.


Ban 365 Chaeng Watthana-Muang Thong


Ban 365 Chaeng Watthana-Muang Thong


Ban 365 Chaeng Watthana-Muang Thong


Ban 365 Chaeng Watthana-Muang Thong


Ban 365 Chaeng Watthana-Muang Thong


Ban 365 Chaeng Watthana-Muang Thong

“To ensure that the transfer targets are met, even during the COVID-19 pandemic, the company has enhanced its sales strategy by introducing 3-D Virtual Interactive technology, allowing customers to conveniently view the company's projects through a 3-D Digital Platform without needing to travel to the site, which also helps reduce the spread of COVID-19. This is a significant step in utilizing technology for sales,” said Mr. Opas.

The reduction in new project launches from 8-9 to 6 in 2021, Mr. Opas stated, does not impact the overall sales target set at 10 billion baht for 2021. The sales in the first half of 2021 reached 4.17 billion baht, accounting for 41.70% of the sales target, while the company has an inventory of both condominiums and residential houses valued at 9.5 billion baht and a backlog of 2.7 billion baht.

Mr. Opas stated that LPN is currently revising its Business Model to align with the changing situation, aiming for total revenue to reach 20 billion baht by 2024. This year marks the first year of restructuring and organizational strategy, which will gradually become clearer, enabling the company to move forward with growth despite current pressures on the overall business. He believes that once these pressures ease, the company will be ready to aggressively pursue business opportunities to achieve its growth targets.

Launching 5 Projects in the Second Half of 2021 Along with the New Brand Villa 168 @ Westgate
Regarding the new project launches in the second half of 2021, Mr. Opas mentioned that the company plans to introduce a new brand for residential homes under the name “Villa 168 @ Westgate,” designed for privacy with only 20 units in a prime location in Bang Yai, near the Purple Line subway, with a project value of 226 million baht.


Villa 168 @ Westgate

Additionally, two more residential projects will be launched under the brand Lumpini Town Place Ladprao 101-Phokaeo, valued at 600 million baht, and Lumpini Town Ville Sai Mai 18-Saphan Mai, valued at 562 million baht.

Furthermore, two condominium projects will be launched: Lumpini Ville Charan-Fai Chai, valued at 3 billion baht, and Lumpini Mix Narathiwat-Ratchada, valued at 2.5 billion baht, with plans to gradually launch these projects as the lockdown situation eases.


Lumpini Ville Charan-Fai Chai


Lumpini Ville Charan-Fai Chai

 

“However, if the COVID-19 situation improves quickly, the company may launch additional new projects, currently under consideration for a condominium project based on a new concept that caters to Gen Y and Young Affluent individuals seeking private, comfortable residences equipped with technology in the form of ‘Smart Residence,’ which we may launch by the end of this year or early 2022,” Mr. Opas added.

Mr. Opas further stated that the real estate market in the first half of 2021 saw a 30% decrease in new project launches compared to the same period in 2020 due to the impact of the COVID-19 pandemic. However, the company expects the real estate market to recover in the second half of 2021, estimating that new project launches will grow by about 5-10% as developers rush to launch new projects to compensate for reduced inventory, ensuring continuous revenue generation in 2022-2024.

“With low interest rates and the recovery of the manufacturing and export sectors, these are positive factors stimulating the economy and real estate sales in the second half of 2021. However, the business risks in the second half of 2021 remain high household debt levels reaching 90%, causing financial institutions to be cautious in granting mortgage loans, with rejection rates at 40-50%. Additionally, uncertainty in future income for some customer segments is delaying purchasing decisions. Under these conditions, the company has strategies to assist customers in obtaining loan approvals from financial institutions by collaborating with financial institutions to provide advice and financial consulting to customers to align their financial status with the criteria of financial institutions, increasing the chances of loan approval. The company also has a ‘Staff Get Member’ campaign to boost sales in the second half of the year and is preparing to continuously implement marketing strategies to help customers easily become homeowners,” Mr. Opas concluded.

For more information, please contact LPN Call Center at 02-689-6888
or Facebook: LPN Connect
or LINE OA application at @LPNConnect http://bit.ly/PR-LPN-2020