Sansiri eyes record launches

Sansiri eyes record launches

Sansiri eyes record launches
SET-listed developer Sansiri Plc plans to launch 31 new residential projects this year worth a combined 63.2 billion baht, the highest since its establishment.

It aims to have 45 billion baht in presales this year, year-on-year growth of 24%.

Wanchak Buranasiri, the chief financial officer, said the total value of the new launches this year will set a record after the number and value of existing projects with unsold units shrank greatly last year.

“Our 2017 presales [38.6 billion baht] were higher than the value of our launches [37.2 billion baht] last year as we sold a large amount of inventory,” he said. “With many positive trends heading into this year, presales for next year may reach 50 billion baht.”
The trends include the overall economy, which is predicted to grow by 4%, the political situation, with the upcoming general election, and the company’s presales growth in overseas markets.

Of the total presales target in 2018, Sansiri aims for 13 billion baht from foreign buyers, mainly in China and Hong Kong because of strong demand for Bangkok condo units among the two.

The amount is projected to rise by 40% from the 9.3 billion baht it posted last year, which was higher than its target of 7.5 billion baht. It gained 72% from 2016.

Sansiri plans to this year open a new overseas office in Hong Kong, which will be its sixth after making a footprint in four major Chinese cities — Beijing, Shanghai, Guangzhou and Shenzhen — and one in Singapore.

It hopes to tap three new markets — Japan, South Korea and Taiwan — after selling condo units and some single houses to buyers in China, Hong Kong, Singapore and Malaysia during the past few years.

Uthai Uthaisangsuk, the chief operating officer, said the company this year will launch 12 new condo projects worth a combined 33.5 billion baht, which will comprise seven in Bangkok and one each in Chiang Mai, Hua Hin, Pattaya, Phuket and Hat Yai.

Last year it recorded 8.9 billion baht in presales from provincial condo projects, all of which were completed and ready to transfer. As of December, it had five condo projects remaining in provinces, with unsold units worth 2 billion baht.

In Bangkok, 4-6 condo projects will be joint ventures with either BTS Group Holdings or Japanese developer Tokyu Corporation. At least two will be developed by Sansiri under two new brands — Standard Residence and Monocle Residence, which it co-invested in last year.

The company also plans to launch 11 townhouse sites worth a total of 9.6 billion baht in the lower-priced segment, with units priced from 1.9 million baht and eight single detached house projects worth 20.1 billion baht.

Sansiri aims to have 30 billion baht in revenue in 2018 — 23 billion from residential projects and 7 billion from others, mainly income from sales and construction management for the joint venture projects.

The company will spend 15 billion baht for land acquisition in 2018, down from 16 billion last year.

SIRI shares closed yesterday on the SET at 2.24 baht, up four satang, in trade worth 182 million baht.


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