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THURSDAY, September 21, 2023

Sansiri stakes THB31 billion on property boom in 2nd half of 2022

Sansiri stakes THB31 billion on property boom in 2nd half of 2022
TUESDAY, July 26, 2022

Real estate giant Sansiri is staking 31.2 billion baht on an expectation the Thai property market will grow strongly in the second half of 2022.

The money will be spent on developing nine detached house projects, two mixed projects, five townhome projects, and 15 condominiums, the firm announced on Tuesday.

Sansiri’s chief operating officer Uthai Uthaisangsuk said prospects were bright as Thailand’s twin economic engines of exports and tourism powered up and the government introduced policies to stimulate the real estate market.

He expects upper and middle levels of the property market to grow, saying that people were buying real estate to escape inflation woes.

The condominium market would also be buoyed by the return of foreigners to Thailand, he added.

This year, Sansiri plans to launch 46 projects worth a total 50 billion baht.

Of these, 78 per cent will be housing projects and the other 22 per cent condominiums.

The firm has already launched 15 projects worth a total of 18.8 billion baht in the first half.

Uthai said Sansiri earned 18.3 billion baht from presales in the first six months, 52 per cent of the targeted 35 billion baht in 2022. Housing projects earned 12.7 billion baht in the first half, with six projects fully booked.

Meanwhile, the company earned 14 billion baht from transfers in the first half, 40 per cent of the 35-billion target.

Uthai expressed confidence the target would be reached, explaining Sansiri also had 10.5 billion baht of backlog to be transferred and 10.5 billion baht of to-go sales and transfers in the second half of 2022.

He added that it also had a presale backlog of 20.3 billion baht from the second half of 2022 to 2024.

Meanwhile the company had liquidity of 15 billion baht to tackle any situation.

Second-half plans feature housing projects to meet demand in several areas and price ranges under the concept “Home for Everyone”. The company also plans to construct condominiums near electric trains, riversides, workplaces, and communities, including in provinces outside Bangkok.

Uthai said that Sansiri three-year target through 2024 was to launch 150 billion baht worth of projects with a presale target of 120 billion baht.