RESIDENTIAL developer Sansiri has earmarked 24 billion baht
to lunch 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 2mn baht and over 10 million baht.
This will stress our number one quality brand in the phuket 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, 6bn 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 bn
baht, 15 will be detached-house projects worth 20 bn baht, and 10 will be other
projects worth 7bn baht. One of the new phuket condominium projects will be a luxury
complex on Ploenchit Road in Bangkok.
Four on five projects will be upcountry in resort
destinations such as Chiang Mai, Pattaya, Khao Yai in Nakhon Rathasima province
and here in Phuket.
For this year, Sansiri targets presales of 32bn baht and
revenue of 28bn, up 16 per cent from its revenue target of 24 bn last year.
At least 10 bn baht of its presales is expected to come this
quarter when it lunches many projects suring the “Sansiri Life Come Home” fair
from Febuary 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 10.1 mn baht, townhouses priced
higher than 7.1mn baht and condos priced at more than 100,000 baht per square
metre.
About 40 per cent of revenue will come from the middle
market-houses priced from 5.1mn baht to 10mn baht, townhouses from 3.1 baht to
7 mn baht and condos from 60,000-100,000 baht per square metre.
The remaining 30 per cent will come from the low-end market –
houses priced from 2.5 mn baht to 5 mn baht, townhouses from 1.2mn baht t0 3mn
baht and condos costing 40,000 – 60,000 per square metre.
Detached houses will make up 30 to 40 percent of its
revenue, townhouse 20 to 25 per cent and condos 40 to 50 per cent.
Sansiri’s 600 mn baht 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 contruction, 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-buyer’s behaviour because of the
culture of staying close to family and community, Srettha said. The company
will continue with a mix of lowrises 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
to 5 per cent. This will drive our presales and revenue to archieve the targets
this year,” he said.
