Seacon Home, one of the largest homebuilders, has cut its sales target for 2019 to 1.6 billion baht from 1.7 billion seen earlier, citing unfavourable economic sentiment.
Managing director Manu Trakulwattanakit said the new target still represents more than 20% growth from last year's 1.3 billion baht, which was a record high in the company's 58-year history.
"The homebuilding market in the second half should improve despite the economic slowdown," he said. "Positive factors include an improving outlook and two major fairs in which we will participate."
In the first half, the company posted 650 million baht in sales, to which large and medium-sized units each contributed 40%. The remaining 20% was from small units.
Depending on design, large units are priced at 18,000-22,000 baht per square metre. The medium size is priced at 15,000-18,000 baht per sq m, and small units are priced at 12,000-15,000 baht per sq m.
Earlier in the year Seacon Home discontinued two brands, Compact Home for medium-sized units and Budget Home for small units, after eight years and five years of operations, respectively.
"We will focus only on the Seacon Home brand for marketing instead of the other two brands," said Mr Manu, who joined Seacon a year ago. "We will have no sub-brands to save promotional costs and time. The Seacon Home brand will also be stronger."
He said the company plans to expand with three new branches by next year, one each in the Ngamwongwan area, on Ratchapruek Road and in Chon Buri, areas where demand for self-built homes is strong.
In provinces, Seacon Home will expand to locations within 250 kilometres of Bangkok, as logistics is a key factor to manage.
The company has five existing branches, all of which are in Bangkok: Srinakarin, Si Phraya, Bang Kae, Chaeng Wattana and Ram Intra.
Mr Manu said overall competition in the homebuilding market will remain at the standard level, not lower or higher than in previous years.
Prices will be also steady because the Home Builder Association has an agreement on no price wars among members.
"If the new government raises minimum wages, demand for homebuilding will see a strong impact," Mr Manu said.
He suggested the government allow foreign labour to relocate to other areas to support the construction business.
The government should also promote energy-conservation through a decrease in import taxes on energy-saving materials to 0% from 17-20%, he said.