Major developer L.P.N. will use the remainder of the year to round out its property portfolio while also capitalizing on a not-yet-met demand for low-rise residences around the outskirts of Bangkok. While condominium construction has been the focus of Bangkok developers for decades, low rise projects are becoming more in demand.
L.P.N and Pornsanti may be ahead of the development curve, which is still mainly centered around vertical development in downtown areas or rapidly developing soon-to-become urban locations. But with easier access to the city from outer-lying areas of Bangkok, more families and investors may start capitalizing on the fact that a suburban lifestyle has suddenly become not only possible but convenient to have, even when the breadwinners must be in the city on a daily basis.
With a plan of launching six new low rise projects, L.P.N. has set aside 3 billion baht for developments that are anticipated to generate a billion baht in revenue, accounting for 10% of the company’s total revenue.
The L.P.N low rise projects will be completed by one of the company’s subsidiaries, Pornsanti Co., which is entering the low-rise development scene after a 15 year hiatus. This type of development ceased in 1997 and did not resume until only two years ago, when the supply for condos in Greater Bangkok officially surpassed the supply of townhouses and single houses.
Not only are there currently less of these low-rise properties available than there are condos, but with new infrastructure plans in place, specifically for the anticipated train lines that will connect outskirt areas to downtown business areas, residences farther from Bangkok will become increasingly more desirable.
Charan Kesorn, managing director of Pornsanti Co has said that there is specifically room in the market for low-rise properties priced higher than 5 million baht, as the properties that are currently available are typically priced between 3 and 5 million.
