SET-listed developer Origin Property Plc has partnered with Hong Kong-based investment group Lofis to develop five residential projects worth 5-10 billion baht, with buyers from Hong Kong expected to resume property purchases in October.
Origin chief executive Peerapong Jaroon-ek said Lofis was the latest foreign partner the company had property development joint ventures with.
“The partner can bring in buyers from Hong Kong to the Thai property market,” he said. “There has been pent-up demand since the pandemic. Property purchases from them are likely to resume in October as Hong Kong still requires seven days quarantine for returnees.”
Origin’s first joint venture project with Lofis (Thailand) will be Grand Britania Khukhot, a single detached house project worth 1.2 billion baht in Lam Luk Ka district, Pathum Thani, which will be launched in the third quarter of this year.
Mr Peerapong said there will be 4-5 additional new projects worth around 1-2 billion baht each, comprising low-rise houses and condos, with which Origin will have joint ventures with Lofis.
According to the Department of Business Development, Lofis (Thailand) was founded in October 2018 with registered capital of 3.5 billion baht. It is 60% Thai-held and 40% Chinese-held.
Mr Peerapong said the company is confident due to Thailand’s good reopening momentum since May 1, as it will benefit overall property demand in the second half.
“The pandemic is improving, and employment is coming back to the hospitality sector after tourism recovered with a higher-than-expected number of arrivals,” he said.
“These positive factors will outshine negative factors like cost-push, rising interest rates and higher inflation. If housing demand is strong from higher employment and increasing income, higher interest rates will not be the most critical factor.”
During the first five months of 2022, Origin recorded 14 billion baht in presales, with a target of 35 billion baht by the end of the year.
Presales in the second half would likely outperform the first half due to a recovery in the economy and property market.
In the first quarter, Origin posted 8.15 billion baht in presales, up 6% from the same period last year.
It expects to have 9-10 billion baht presales in the second quarter, 15% higher than the first quarter due to better sentiment.
The company currently has a condo inventory of 10 billion baht, which will be sold out in eight months, said Mr Peerapong.