Sansiri targets lower-end segment: Half of 10 new condos under B80,000/sq m

The listed developer Sansiri Plc plans to launch 10 new condominiums worth a combined 17.6 billion baht in the next six months, with half of the units priced below 80,000 baht a square metre to tap increasing demand in the segment.

Uthai Uthaisangsuk, the company’s senior executive vice president, said demand for mid- to low-priced condominiums, lower than 80,000 baht per sq m, was strong with a take-up rate of 100% in the first half of the year.

“All projects in this segment were sold out within the first six months of being launched,” he said yesterday.

“Our five new condominium projects being launched in the rest of the year will tap this segment.”

Sansiri’s research found there was demand for 23,000 condominium units in the first half, for both newly launched and existing ones, up from the same period last year as demand shifted from low-rise to high-rise units.

The developer, which has delivered a total of about 12,000 condominium units to buyers to date, expects condominium demand in the second half will be more than 20,000 units with 50,000 units for the whole year.

Meanwhile, the launches of about 20,000 units have already been scheduled for the second half with another 10,000 additional units expected.

The take-up rate for condominiums last year was more than 30,000 units, about 49% of the total market, followed by townhouses at 30% and single houses at 20%.

Sansiri will market its D Condo brand for the low-end segment priced at about one million baht for a 25-square-metre unit. The projects will be located close to the skytrain extensions in the Taksin and Sukhumvit Road areas.

The developer’s new properties will comprise four projects with units priced from 80,000 to 100,000 baht per sq m and one luxury project with units priced above 100,000 baht.

During the first half, Sansiri launched two new condominium projects priced more than 80,000 baht per sq m with units starting at 4 million baht for 30 sq m. The average price was 6.5 million baht a unit. About 650 units have already been sold at the two projects worth combined 4.5 billion baht.

For the whole year, Sansiri’s average unit price is expected to be about 4 million baht as a larger number of cheaper units will be launched in the second half.

Mr Uthai said there should be a strong recovery in sentiment in the property market in the second half of the year, given the more stable political situation and an improving economy with higher exports and farm prices, bolstered by estimated economic growth of 4.5%.

The company has targeted 7 billion baht in presales of condominiums in the second half, up from 5 billion in the previous six months.

During the first half the developer transferred units totalling 9 billion baht. Of the total transfer value, 5 billion represented single houses and townhouses with condominiums accounting for 4 billion.

The company expects revenue of 16-17 billion baht for the full year.

Sansiri next month plans to launch Wyne Sukhumvit, a new condominium project worth 1.85 billion baht. Located in the Phra Khanong area, it will comprise 460 fully furnished units sized from 30 to 65 square metres with prices starting at 2.9 million baht a unit.

 
Copyright © 2020 Asia Property News.