Thursday, October 2, 2008

L.P.N. tries bulk sales for budget condos


L.P.N. Development Plc plans to use a mass-sales strategy with its lower-priced condominiums after reaching a deal to sell 100 units at its Bodindecha site, says managing director Opas Sripayak.

The developer last month finalised the deal with a company located in the Bodindecha area, under which the firm's employees agreed to buy 100 units at CondoTown Bodindecha-Ramkhamhaeng worth 100 million baht at a discount of 5% after two months of talks.

"It's case-by-case and needs customisation as requirements are different," Mr Opas said.

Visitors examine displays fornew projects at the 19th House and Condo Fair, which is being held until Sunday at the Queen Sirikit convention center. Campaignsat the fair are conventionalones including discounts, free furniture, free stays and other premiums. Most financial institutions offer zero interest for three to six months and will showcase non-performing assets. THITI WANNAMONTHA

Apart from the discount, the company asked L.P.N. to negotiate for lower monthly installments for loans, from 4,000 baht to 3,500 baht.

The Government Housing Bank, which provided the loan, agreed to adjust the package to match buyers' purchasing power and the repayment period was extended as a result.

Mr Opas said the big-lot sales strategy would be used for the CondoTown brand at the Tha Phra and Rattanathibet sites, where it has lower-priced condominium units under one million baht each.

"We previously talked with the operator of an industrial estate to develop lower-priced condominium units at its site but he needed thousands of units, which was beyond our capacity," he said.

During the first nine months of the year, L.P.N. had presales of eight billion baht and posted 5.6 billion baht in revenue. It expects to generate revenue of 7.2 billion baht by the end of the year, up by 10%.

Between this quarter and early next year, L.P.N. will launch three projects: Rama IX Phase two with 1,165 units worth 2.6 billion baht; a 270-unit project in Bang Khae and 520 units in Rarm Intra-Lak Si worth 600-700 million baht.

At the House and Condo fair that runs until Sunday at the Queen Sirikit National Convention Center, L.P.N. is offering 11 condominium projects, four of which are ready to move in, with campaigns including price discounts, free furniture or free stays. It targets sales of 150 million baht from the fair.

Campaigns at the fair are conventional ones such as discounts, free furniture, free stay and other premiums. Most financial institutions are offering zero interest for three to six months and showcasing non-performing property assets. The Government Housing Bank offers 0% for a year but only for NPA buyers.

Many developers are also trying to attract buyers with pre-built units that will give buyers a last-minute chance to take advantage of the government's tax incentives that are due to expire on March 28 next year, and prices at old costs in the face of rising construction costs.

LPN shares closed yesterday on the Stock Exchange of Thailand at 3.60 baht, down four satang, in total trade of 64.1 million baht.

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