Phuket Property: Sansiri set to invest heavily this year

PHUKET: Residential developer Sansiri has earmarked 24 billion baht to launch 44 projects worth 46bn baht this year and to buy land for more projects next year.

“This year we will expand our products to cover all market segments, including units priced lower than 2 million baht and over 10 million baht. This will stress our number one quality brand in the property market,” President Srettha Thavisin said recently.

The investment will be financed 60 per cent from bank loans and debentures and 40 per cent from internal cash flow, he said.

Of the total capital-expenditure budget, 6 billion baht will be spent on acquiring undeveloped land and 18bn baht on construction of the 44 projects.

Of the new ventures, 19 will be condominiums worth 19 billion baht; 15 will be detached-house projects worth 20 billion baht; and 10 will be other projects worth 7 billion baht. One of the new condominium projects will be a luxury complex on Ploenchit Road in Bangkok.

Four or five projects will be in resort destinations such as Chiang Mai, Pattaya, Khao Yai in Nakhon Ratchasima, and Phuket.

For this year, Sansiri targets presales of 32 billion baht and revenue of 28 billion, up 16 per cent from its revenue target of 24 billion last year.

At least 10 billion baht of its presales is expected to come this quarter when it launches many projects during the “Sansiri Life Come Home” fair from February 17-19 at Siam Paragon shopping center in Bangkok.

It will also open the Sansiri Lounge on the third floor of Siam Paragon to build a long-lasting relationship with its customers.

The company expects 30 per cent of its revenue to come from the high-end market, i.e., houses costing more than 10.1 million baht, townhouses priced higher than 7.1 million baht, and condos priced at more than 100,000 baht per square meter.

About 40 per cent of revenue will come from the middle market – houses priced from 5.1 million to 10 million baht; townhouses from 3.1 million to 7 million baht; and condos from 60,000-100,000 baht per square meter.

The remaining 30 per cent will come from the low-end market.

“We believe that the property market this year will grow 7-10 per cent, in line with the estimate of gross domestic product growth of 3.5 to 5 per cent. This will drive our presales and revenue to achieve the targets this year,” he added.

— The Nation