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Wednesday, July 24, 2024

Sansiri Maintains Condo Strategy Amid Economic Slowdown

Sansiri, a SET-listed developer, will continue its condo business strategies to address slow economic growth, focusing on locations with strong demand across all pricing segments.

Ongart Suwannakul, senior vice-president for high-rise project development at Sansiri, explained that the condo market is expected to remain sluggish in the second half of the year, reflecting the broader economic downturn. “There have been no positive economic signs since late in the first quarter of this year,” Ongart said. “Although property measures were initiated in April, it will take more time for them to have a significant impact. Our condo strategies set earlier this year remain effective as they were designed to cope with slow growth.”

One key strategy is to focus on areas with strong demand, such as major provinces and tourist destinations including Phuket, Chiang Mai, Khon Kaen, Pattaya, and Hua Hin. “Provinces with a strong economy or educational centers are attractive for launching new condo projects,” Ongart noted. “We will also consider sales rates and demand in those locations.”

Sansiri plans to launch 20 new condo projects this year, worth a combined 26 billion baht, the most in the industry. Of these, nine projects valued at 11.8 billion baht, or 45% of the total, are located in areas with high demand.

In the first five months of this year, Sansiri recorded 7.3 billion baht in condo sales and 3.4 billion baht in condo transfers, achieving 35% and 26% of the respective annual targets of 21 billion and 13 billion baht. One of the projects set for transfer this month is The Line Vibe, with 940 units worth 4.4 billion baht. This project is 70% sold and is projected to be sold out by next year.

The Line Vibe is a joint venture between Sansiri and Rabbit Holdings Plc, a financial services subsidiary of BTS Group Holdings. The venture includes five additional land plots for future development, according to Ongart.

Ongart emphasized that Sansiri‚Äôs strategies remain focused on tapping into markets with robust demand, ensuring the company can navigate through the economic challenges while meeting its business objectives. The ongoing collaboration with Rabbit Holdings Plc underscores Sansiri’s commitment to strategic partnerships in expanding its high-rise projects portfolio.

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