Homebuilder Landy Home Thailand applies dual strategy to homebuilding plan
Homebuilder Landy Home Thailand Co is embracing a two-pronged approach: lower-end units priced at less than 4 million baht and luxury houses priced at more than 15 million baht.
Pornrat Maneerattanaporn, deputy managing director and director of the sales department, said both segments have strong demand and saw an uptrend in sales last year. Sales could grow by more than 10% to 2 billion baht in 2020, she said.
“Most buyers of units priced at 4 million baht and lower are in the provinces and the outskirts of Bangkok,” Ms Pornrat said. “In the provinces, houses costing 2 million baht meet the needs of those with a limited budget.”
The company last week launched a new design for single detached houses in Nakhon Ratchasima and got good feedback from local buyers.
The new design has a smaller size with a usable area of 120 square metres, priced at 2.6 million baht. The company’s earlier smallest design was 150 sq m for 2.9 million baht.
Landy plans to launch more home designs for single houses with a usable area of 100 sq m and priced below 2 million baht this year. It aims for 500 million baht in sales from this pricing segment.
The company expects 2 billion baht in overall sales this year, up from 1.8 billion baht in 2019. Of 2019 sales, 80% were from Bangkok and 20% from the provinces.
Half of the 2020 sales target will be from units priced at 4 million baht or less, up from 40%. Units priced at 5-15 million baht will decline to 30% from 40%, while those priced at 15 million baht or more will account for 20%.
Phattra Maneerattanaporn, director of marketing and product design, said the company will be more aggressive in the luxury segment with units priced at 15 million baht and above.
“Three years ago, we introduced a large home design and got orders from SME operators and entrepreneurs residing in neighbouring provinces around Bangkok,” Ms Phattra said. “Last year we got 200 million baht in sales from this segment, in which the highest home price was 60-70 million baht.”
Source: https://www.bangkokpost.com/business/1851429/landy-applies-dual-strategy-to-homebuilding-plan
