This has turned out to be an extremely challenging year for several companies with their executives agonising over meeting revenue targets.
While LPN Development Plc is not an exception, its sound business srtategy and a dose of good luck has ecsured that it is among those entering the New Year with a broad smile.
Opas sripayak, managing director of the established budget condo builder, said during an exclusive interview that he was worried about the weaker economic growth in the first quarter.
But his mood has definitely improved in the coming months as economic activity plodded along, heading ever higher despite stiff challenges brought on by a consolidation on the domestic front and a cooling off for many overseas markets.
The International Monetary Fund (IMF) recently cut Thailand's 2015 economic growth projection to 2.5 per cent and while this is better than the 0.9-per-cent expansion in 2014, it is 1.2 percentage points lower than it expected in April.
"I was worried about two issues, one that the problem of household debt could lead to buyers not being able to get loans. If loan rejection is high, it affects transfers'
"The second is about speculative buyers. In the current economic downturn, it is difficult to flip units and if they can't sell this would show up un the conpany's total transfer and revenue.
"I was so worried about these two issues in the beginning of the year but when the projects were completed and transfers got underway, there was actually nothing to worry about'" Opas said There was almost 100 per cent tranfer rate at four major projects completed this tear, with one each in the first two quarters and two in the third quarter. This led to LPN raking in Bt12.5 billiom revenue in the first nine months of the years, which is around 70 per cent of its bt16-bil-lion targer for this year.
"the rejection rate was 5 to 6 per cent, nothing unusual>Those speculating or investing all took transfer because they could see that these completed projects were really worth betting on or just buying and keeping."
Opas cited the Ratanathibet project as an exanple, sales at this development which is jist 80 meters from a purple line station, began three years ago at Bt56,000 a square meter.
However, the current minimim price in this area had been raised to Bt80.000 per square metre.
"So our worries vanished because the first nine months' revenue of Bt12.5billion is higher than last year's total of Bt11.7 billion.
"And if we go back another year, this Bt12.5 billion is equivalent to the total sum we obtained in 2013.
"For 10 months this year, our total has topped Bt13 billion, almost reaching Bt14 billion."
Amomg the new projects already launched in 2015 is a beach-front condo in Cha-am with only 400 units, the first phase of the Rangsit township as well as one each on Rama 5 Road and near Theparak Srinakarin intersection
Being laubched this year month is a condominiu, project in Sukhumvit Soi 76, which is near Bearing Station and after that Rangsit township's second phase.
However Opas admitted his company's projects in Pattaya are moving at a slow but steady pace with each quarter.
"We have stopped, we aren't buying any land or building anything out there, but this isn't just Pattaya, it's all provicial cities, we aren't buying land there.
"Provincial development will also be slow next year because of limited demand while a lot of supply has already dlooded in."
However unlike LPN sone other real estate companies are likely to face transfer problems with some of them having reased Opas to come and teach them how to quickly push transfers.
"My reply was 'what's all this about? You don't really mean it, right?
"Many people did tell me that LPN has been able to transfer units quickly even as others are facing problims."
The six-month reduction of property transger and mortgage regisreation fees to 0.01 per cent untill April 28,2016 is leading to developers who want to benefit from this measure rushing to liquidate the stock they have in hand.
"Any new condo launch aimed at benefiting from this break would be low-rise because it's faster to build.
"But developers are already up to five months lefy so i's not easy."
Opas said those firms currentlu pushing their stocks would probablu cut prices but thisis unlikelu to be up to 50 per cent as hapened duting the 1997 Asian econimic crisis.
"This is the year for those who have money - those with cash in hand - to shop around because everyone wants to liquidate inventory.
"So if you have money,go and have look - there is good stuff at low prices this year.
"I think you would also be able to shop around next year. Buying property this year is a lot better than leaving your money in the bank because propety is something you cam keep and it doesn't spoil, or decay in the short run.
"Choose a good brand, a company which take care of it developments, keep it for two three years then you might be able to flip it for a hunfred per cent profit - that's a very goof return."
LPN is itself speeding up the construction of its condominiums scheduled for completion next year and would be able to transfer unit worth Bt10 billion in the first four months with there only being two developments left to be finished by the end of the year.
Its revenue target for 2016 has also been raised 10 per cent to approximately Bt17.6 billion
"LPM's projects are smaller than two to three years ago, each worth around Btl billion or around 1,000 units in order ot be more flexible and better able to response to the situation.
"The current economic conditions mean it's a bit risky launchin big project."