SET-listed developer Sansiri is preparing for a challenging market in the second half of the year by securing bank loans totaling 15 billion baht, aiming to boost foreign demand and launch high-end projects.

 

Uthai Uthaisangsuk, president of Sansiri, noted a slowdown in the residential market as demand in the middle to low-end segments weakened due to various negative factors affecting mortgage approvals.

 

“Developers should be more cautious about their financial status in the second half as this trend continues,” he said. “While GDP is expected to grow by 2.5% in the next six months, its positive impact on the residential market will be seen 6-12 months later.”

 

Mr. Uthai announced that the company has secured 15 billion baht in bank loans, including 10 billion from Siam Commercial Bank and 5 billion from Kasikornbank (KBank), for new projects this year without needing to show the project’s presales rate.

 

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

 

This year, Sansiri plans to launch 46 new projects worth a combined 61 billion baht, the largest in the industry. In the first half, it launched 20 projects worth over 22 billion baht and recorded 25 billion baht in presales.

 

Of the first-half presales, 4 billion baht came from foreign buyers, primarily Chinese. The company aims to achieve 7 billion baht in presales by year-end, up from 6.1 billion in 2023. The overseas market, especially Chinese buyers, will be the company’s focus for the remainder of the year.

 

In the second half, 26 new projects worth 38 billion baht are set to launch, targeting 27 billion baht in presales for an annual total of 52 billion, up from 49 billion baht in 2023. Of the new launches, 20 projects worth 34 billion baht will cater to the middle to upper-end segments, while six projects worth 4.5 billion baht will target the lower-priced segments.

 

Fourteen projects will be single detached houses and mixed products with duplexes and townhouses, while 12 will be condo projects. No single project will consist solely of townhouses, Mr. Uthai said.

 

“Buyers in the luxury segment have no issues with borrowing or purchasing, but given the current sentiment, they may delay making decisions,” said Sriamphai Rattanamayoon, chief marketing officer. She added that the market was competitive in the first half, but the company met its sales targets.

 

In challenging market conditions, homebuyers typically prefer reliable brands with excellent after-sales services, Ms. Sriamphai said. Other strategies to attract homebuyers include offering attractive clubhouse and home features, as well as special-focus projects like pet-friendly condos or low-rise houses with larger outdoor spaces and pet parks in common areas.

 

 

Source: Bangkok Post

 

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The editorial team at Invest Bangkok Property