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Sansiri Targets Foreign Market With New Luxury Developments

SET-listed developer Sansiri is gearing up for a fragile market in the latter half of the year by securing bank loans worth 15 billion baht, aiming to boost international demand and introduce high-end projects.

Uthai Uthaisangsuk, the president of Sansiri, noted a slowdown in the residential market, particularly as demand weakened in the middle to low-end segments. He attributed this trend to several challenges that hindered these groups from securing mortgages.

“Developers should exercise more caution about their financial status in the second half as this sentiment persists,” Mr. Uthai said.

“Although the GDP is projected to increase by 2.5% in the next six months, it will take another 6 to 12 months for this growth to positively affect the residential market,” he added.

Mr. Uthai revealed that Sansiri has obtained bank loans totaling 15 billion baht, including 10 billion from Siam Commercial Bank and 5 billion from Kasikornbank (KBank), to fund new projects set to launch this year without the need to disclose presale figures.

KBank is also supporting new developments in Pattaya, Charoen Nakhon, and Pathum Thani.

Sansiri is set to introduce 46 new projects this year, valued at 61 billion baht, marking the highest in the sector.

In the first half, the company launched 20 projects valued at over 22 billion baht and achieved 25 billion baht in presales.

From these presales, 4 billion baht was contributed by foreign purchasers, predominantly Chinese. Sansiri targets 7 billion baht in presales by year’s end, an increase from 6.1 billion in 2023.

The international market, especially Chinese buyers, will be a key focus for the company throughout the remainder of the year.

For the second half, Sansiri plans to unveil 26 new projects valued at 38 billion baht, aiming for 27 billion baht in presales to reach a yearly total of 52 billion, an increase from last year’s 49 billion baht.

Among these new launches, 20 projects worth 34 billion baht target the middle to upper-end market segments, while six projects worth 4.5 billion cater to the more affordable segments.

The new offerings include 14 projects of single detached houses and mixed-use units with duplexes and townhouses, and 12 condo developments. No project will consist solely of townhouses, Uthai confirmed.

“Buyers in the luxury segment have no issues with borrowing or purchasing. However, given the current sentiment, they may delay making decisions,” commented Sriamphai Rattanamayoon, chief marketing officer.

She noted that despite competitive conditions in the first half, the company met its sales targets.

In light of the challenging sentiment, homebuyers tended to compare options and favored established brands known for reliable after-sales service, Sriamphai explained.

She added that other strategies to attract buyers include providing appealing clubhouse and home features, as well as special-focus projects like pet-friendly condominiums or low-rise houses with amenities such as expansive outdoor spaces and pet parks in common areas.