LPN Development, which during 2017 was Thailand third-ranked listed property developer by number of new units (6,336 units from 13 new developments), has revealed a 34.17 percent decline in gross profits compared with that during 2016.
In a statement to the Stock Exchange of Thailand this week, it confirmed that 2017 was a “year of shift” in its business strategy.
LPN is now focusing on developing urban residential condominium with affordable prices to target middle- to lower-middle income earners.
It said its target customers encountered problems of household debts during the past few years, and that loan approvals from financial institutions had become very strict.
It added that loan rejection rates had been rising.
LPN’s projects are large-scale, and these factors have resulted in increasing inventory.
With this in mind, LPN said it had established a short-term goal and strategy to liquidate the outstanding inventory.
The ‘year of shift” seen during 2017 at LPN also saw a shift to to upper-middle to high-income earners.
As at the end 2017, LPN’s backlog was valued at around THB 7.400 billion which it expects to realise over the coming two years.