Despite myriad challenges, SET-listed Sansiri Plc vows to open 28 new projects worth 46.6 billion baht this year, focusing on low-rise housing projects to reduce risk from the central bank's financial policies.
According to Wanchak Buranasiri, the company's chief financial officer, of the total 28 new projects, 12 projects will be condominiums with a total value of 22.4 billion baht, nine single-house projects will be valued at 18.7 billion baht, and seven townhouse projects will be worth 5.5 billion baht.
Key market focuses will be medium and affordable segments, which account for 96% of the total value of new projects this year, worth 44.8 billion baht, he said.
The ratio of single houses and townhouses will be increased to capture real demand, led by the Setthasiri brand, the single-house project for upscale consumers who need a sizeable house to accommodate new family members in the future, and Siri Place, a townhouse for consumers who wish to have a first home at an accessible price.
Some 20% of the new projects will be in provincial areas, including Chiang Rai, Phuket, Hua Hin and Sri Racha, and the remaining 80% will be in Bangkok.
The company will spend 12 billion baht on the new project's construction and a further 13 billion baht for land this year.
"We set a conservative target this year because of several pressures in the market," Mr Wanchak said. "With the political uncertainty, we don't know how the country's economic policy will be and how many financial policies will be issued which impact the property market this year."
Sansiri expects presales to stay at 36 billion baht this year, down from the 48.5 billion baht achieved in 2018.
According to Mr Wanchak, the company aims at building sustainable growth with projected presales of 55 billion baht and 65 billion baht in 2020 and 2021 respectively.
Uthai Uthaisangsuk, the company's chief operating officer, said the Thai property market in 2019 will continue to grow, but investment purchasing among Thai consumers is likely to be sluggish.
"However, we believe that the real demand sector will grow on a par with last year," Mr Uthai said. "We are confident that 2019 will bring us another excellent year, as consumers in the real demand sector prefer to choose a well-established brand."
According to Mr Uthai, the company is set to apply various business strategies this year. Among those strategies, the company will launch various price point products from 1 million to 500 million baht.
It will also sign a deal with Tokyu Corporation, a major private Japanese railway company, to launch a wellness residence in the second quarter of this year and a five-storey commercial building in Bangkok's Yaowarat district.
With people now concerned about health and the environment, the company will introduce Setthasiri Taweewattana, the first single-house project under a well-being development concept, this month. Presales of the first wellness condominium located in the Krungthep Kreetha area are set to begin in the second quarter of the year.
More projects under the Burasiri brand will be developed to cater to increasing demand from Bangkok residents who prefer resort-style living.
The company also plans to launch a dust-free house for the first time in Thailand this year.
With the continuous growth of foreign customers, the company will also build Sansiri into a global brand this year.
"2018 was Sansiri's best year ever, with record presales in its 34-year history of 48.5 billion baht, representing 25% year-on-year growth, and the highest sales in international markets, amounting to 14 billion baht, up 51% year-on-year," Mr Uthai said.