Thai developer Sansiri taps luxury segment

Construction News

Thai developer Sansiri taps luxury segment

Targets 15% growth in sales, transfers

Set to be launched on May 1, Demi Sathu 49 is a townhouse project with 72 3.5-storey units priced from 18.9-35 million baht per unit.

As low-rise housing demand in the luxury segment is robust, SET-listed developer Sansiri is aiming for growth of 15% in sales and transfers from this group in 2022.

Anat Kittikulmethi, deputy managing director of project development for low-rise at Sansiri, said opportunities in the low-rise luxury housing market are huge because buyers in this segment were not affected by the economic slowdown caused by the pandemic.

“Low-rise houses priced 10 million baht and above have shown a positive sign since last year,” he said. “Demand is on the rise but supply is limited, particularly in locations close to the central business district,” he said.

Mr Anat said many potential buyers were those previously living in a condo unit in the inner city to stay close to their workplace or business but who now wanted to extend their living space because their family had become larger.

To increase sales, locations and functions should meet target buyers’ requirements, he said.

The size of a project should not be too large as buyers need privacy and security, while the environment should be good.

In the first quarter of 2022, Sansiri’s presales from low-rise luxury houses stood at 2 billion baht from a total of 4.6 billion baht recorded from all its low-rise projects.

Last year, the company recorded 11 billion baht in presales and 9 billion baht in transfers.

It aims to have 15% growth by the end of this year as it plans to launch six new low-rise luxury housing projects worth a total of 9.6 billion baht in 2022.

One of them will be Demi Sathu 49, a 3.5-storey townhouse project valued at 1.6 billion baht on a 10-rai plot on Soi Sathu Pradit 49. The 72-unit project will be priced between 18.9-35 million baht. The company expects the houses to be sold out by the end of the year.

Potential locations for this new brand are Bangkok’s eastern zones including the lower Bang Na, Phatthanakan and Krungthep Kritha areas and western zones such as Rama 3 and lower Ratchaphruek areas, said Mr Anat.