Thai property developer Sansiri eyes Baht150bn projects
Residential launches will start this year
SET-listed developer Sansiri Plc will spend 20 billion baht to launch new residential projects worth a combined 150 billion baht, with a presales target of 120 billion baht during 2022-24.
President and chief executive Srettha Thavisin said one-third, or about 50 billion baht, will be launched in 2022 from 46 new projects, mainly in Greater Bangkok.
The company aims to achieve 35 billion baht in both presales and transfers by year-end.
Only a quarter, or 11 billion baht, will come from condos as the high-rise market has not yet returned, Mr Srettha said.
Roughly 25.7 billion baht will be from single detached houses, all of which will come equipped with solar rooftops and EV chargers.
As it aimed to be Thailand’s first real estate company to set a target for net-zero, Sansiri planned to install EV chargers, solar roof tops and solar-powered lights in common areas at all new projects launched from 2022 onwards.
Half of the new low-rise houses being launched in 2025 will use the energy conservation concept, before increasing to 70% by 2030.
Waste from its precast factory will also be capped at lower than 2% by the end of this year, said Mr Srettha.
“Environmental concern will be one of the three key drivers for our 2022 business growth which will comprise profit, people and planet,” he said. “Profit is important, but focusing only on profit will not be sustainable.”
Last year, Sansiri recorded 33.5 billion baht in presales and 32.5 billion baht in transfers, 29% higher than the presales target of 26 billion baht and 21% higher than the transfers projection of 27 billion baht.
About 65% of the presales were from low-rise houses, with 35% from condos, while 55% of transfers were from low-rise houses and 45% from condos. In 2021, Sansiri also sold out 16 projects worth a combined 30.7 billion baht.
“Our liquidity totalled 15 billion baht, a good preparation for any circumstances,” said Mr Srettha. “There remain risks like Omicron and high household debts, but there should not be a lockdown again in order to drive the economy.”
Chief operating officer Uthai Uthaisangsuk said the company will this year spend 8 billion baht on purchasing new plots of land for launching new projects from 2023 onwards.
“If Covid-19 eases, the tourism sector and the economy will recover. We will resume activities with foreign buyers and agents,” he said.
As property growth was in line with the economy, the sector would grow by 4-5% if GDP growth was 3%. However, the impact of two years of the pandemic is still hitting purchasing power.
“Half of the new projects we plan to launch will be in an affordable segment from which we expect sales from two years of pent-up demand,” Mr Uthai said.
He said the company would not wage a price war like last year, as its stock was very low with less than 10 billion baht worth of condos and under 2 billion baht of low-rise houses.