Sansiri goes for all market segments
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Developer budgets Bt24 bn for 44 projects worth Bt46 bn this year
Residential developer Sansiri has earmarked Bt24 billion to launch 44 projects worth Bt46 billion this year and buy land for more projects next year.
“This year we will expand our products to cover all market segments including units priced lower than Bt2 million and over Bt10 million. This will stress our No 1 quality brand in the property market,” president Srettha Thavisin told a news conference yesterday.
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 bud-get, Bt6 billion will be spent on acquiring undeveloped land and Bt18 billion on construction of the 44 projects.
Of the new ventures, 19 will be condominiums worth Bt19 billion, 15 will be detached-house projects worth Bt20 billion, and 10 will be other projects worth Bt7 billion. One of the new condominium projects will be a luxury complex on Ploenchit Road in Bangkok.
Four or five projects will be upcountry and in resort destinations such as Chiang Mai, Pattaya, Phuket, and Khao Yai in Nakhon Ratchasima province.
For this year, Sansiri targets presales of Bt32 billion and revenue of Bt28 billion, up 16 per cent from its revenue target of Bt24 billion last year.
At least Bt10 billion 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 centre 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 – houses costing more than Bt10.1 million, townhouses priced higher than Bt7.1 million and condos priced at more than Bt100,000 per square metre.
About 40 per cent of revenue will come from the middle market – houses priced from Bt5.1 million to Bt10 million, townhouses from Bt3.1 million to Bt7 million and condos from Bt60,000-Bt100,000 per square metre.
The remaining 30 per cent will come from the low-end market – houses priced from Bt2.5 million to Bt5 million, townhouses from Bt1.2 million to Bt3 million and condos costing Bt40,000-Bt60,000 per square metre.
Detached houses will make up 30-40 per cent of its revenue, townhouses 20-25 per cent and condos 40-50 per cent.
Sansiri’s Bt600-million prefabrication plant will start operating in the middle of next month with the capacity to churn out 150 detached homes a month. It will help the company speed up construction, cut costs and improve its net profit margin from less than 10 per cent last year.
Although the Bangkok area was struck by a massive flood last year, that did not directly change home-buyers’ behaviour because of the culture of staying close to family and community, Srettha said. The company will continue with a mix of low-rises and high-rises this year.
“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 3.5-5 per cent. This will drive our presales and revenue to achieve the targets this year,” he added.
