Real estate developer Sansiri Plc reported sales of 25 billion baht for the first half of 2023, up 37% year-on-year from 18.3 billion.
Wichan Wiriyaphusit, the firm's chief financial officer, said the first half of this year had been challenging, but appropriate strategies were implemented that resulted in a very satisfying performance.
Mr Wichan said Sansiri's recently launched projects posted excellent sales.
These include single-house projects in the luxury segment, such as Narasiri Phahol-Watcharapol and BuGaan Krungthep Kreetha.
"The demand for houses in the luxury segment is still high as customers in this category still possess high purchasing power," he said.
The Setthasiri Don Mueang project, located across from Don Mueang airport and close to Harrow International School Bangkok, also received good feedback.
In addition, the firm's ready-to-move-in condo projects have shown improved sales, indicating that the condominium market is recovering.
Mr Wichan said this is a good signal for the condo market, because ready-to-move-in condos are an accurate indication of real demand for customer groups who buy units for their own occupation or rental, not for speculation, which could artificially inflate demand.
In the first half of this year, Sansiri made a sizeable sales gain in this segment, with the stock of ready-to-transfer units cut to 8.1 billion baht, down from 11 billion at the beginning of the year.
He said this indicates Sansiri had the best absorption rate in the market for ready-to-move-in condos, particularly for those under The Base, The Line, The Muve, XT, dCondo and Condo Me brands.
Mr Wichan said for the third quarter this year, Sansiri is set to close sales at 12 condo projects in this segment.
Sansiri continues to foster financial discipline, as cash flow is very important for the real estate business.
The decrease in the number of ready-to-sell units has dropped significantly, meaning the firm has been able to fully repay bank loans for such projects and has no more debt obligations for this segment.
As for the highlights of the business plan for the second half of the year, Mr Wichan said Sansiri would continue to leverage sales of single-detached houses under the Setthasiri brand.
"As a result of the strong cash flow and the good response in the luxury and super-luxury home markets, we are proceeding to launch 10 more single-detached home projects under the Setthasiri brand, worth a total of 21.9 billion baht, covering locations including Ram Intra, Sai Mai, Seri Thai, Bang Na, Ratchaphruek, Prannok and Phutthamonthon Sai 1," he said.
Given the 10 new condo projects slated for gradual launch in the second half of the year, there is an opportunity for Sansiri to record sales exceeding its target of 55 billion baht for 2023.