Land & Houses, a SET-listed developer in Thailand, has announced plans to invest 9 billion baht ($289 million USD) in its property business this year. A significant portion of the investment is slated to go towards the development of three hotels while the company will also launch 17 new residential projects in 2023. This move reflects the optimism surrounding the recovery of the tourism industry in Thailand and larger real estate market in Thailand.
Both the Thai tourism and real estate markets have seen a significant rebound in recent months with strong sales in the final quarters of 2022.
Naporn Sunthornchitcharoen, Chairman of the Land & Houses Board of Directors and its Executive Committee, noted that the tourism sector is experiencing good momentum as the number of tourist arrivals last year exceeded predictions, reaching 10 million visitors. He also expects that this number will continue to rise in the coming months, with an estimated 20 million visitors expected in 2023.
This rebound in the tourism industry has been driven by pent-up demand from China. It has, in turn, led to an increase in consumer sentiment and purchasing power in the property market. However, Sunthornchitcharoen also highlighted the need for caution, as factors such as high household debt and the global economy could impact the export sector and subsequently, the real estate market.
In light of this positive outlook, Land & Houses plans to invest nearly $100 million USD (3 billion baht) in the development of three hotels. The hotels are Grande Centre Point Surawong, Grande Centre Point Lumpini, and Grande Centre Point Ratchadamri 2. These properties, with a total of 1,420 rooms, are slated to open in 2023, 2024, and 2027 respectively.
In addition to the hotel investments, Land & Houses also plans to launch 17 new residential projects worth a combined 35 billion baht this year, with a target of 35 billion baht in presales and 33 billion baht in revenue by the end of 2023. This includes The Key Srinakarin, a high-priced condo project comprising 805 units valued at 6.5 billion baht, located on Srinakarin Road, which is set to be served by the mass transit Yellow Line when it opens this year.
“The project will be the first condo we have launched in three years since the pandemic began,” he said. “This year condos should gradually pick up after bottoming out with little supply launched last year” Naporn Sunthornchitcharoen, Chairman of Land & Houses
The company also plans to spend nearly $200 million USD (6 billion baht) in 2023 to buy new plots of land for future residential development, a significant increase from the 4.4 billion baht it invested last year. All of the investment in Thailand comes in addition to Land & Houses’ investments in the United States where it owns four rental properties worth a total of $412 million.
Land & Houses plans reflect the growing optimism surrounding the recovery of the Thai real estate market, driven by the rebound of the tourism industry, growing interest from Crypto investors, and easing of mortgage requirements. While there are still challenges to be faced, such as high household debt and the global economy, the opportunities presented by the market in 2023 are looking promising for both domestic and foreign investors.
Bottom line
Land & Houses, a SET-listed developer in Thailand, plans to invest 9 billion baht ($289 million USD) in its property business in 2023, with a significant portion going towards the development of three hotels. The move reflects the optimism surrounding the recovery of the tourism industry in Thailand and larger real estate market. Both the Thai tourism and real estate markets have seen a rebound in recent months with strong sales in the final quarters of 2022.
QHouse Lumphini, the Bangkok HQ of Land and Houses Public Company Limited
Source: Bangkok Post
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