Property developer Sansiri Plc has recorded significant growth in its first-half presales of low-rise houses, driven primarily by the luxury segment, which accounted for 60% of total presales compared to less than half of total presales prior to the pandemic.
Anat Kittikulmethi, deputy managing director of the project development department (low-rise), said the company posted 25 billion baht in presales in the first six months of 2023, growing 37% from the corresponding period last year.
Of this amount, 14 billion baht was from low-rise houses, with the luxury segment contributing 60%, up from 40% last year.
"Homebuyers in the luxury segment have been less affected by the economic slowdown," Mr Anat said.
In terms of units priced between 12-30 million baht, homebuyers before 2019 were typically aged between 35 and 45 years old. Most were business owners, doctors, specialists, investors or individuals working in management roles.
"Since the pandemic, buyers in this segment are younger, with many as young as 25 years old. Their occupations have expanded to include online business owners, SME owners, bloggers, influencers and gamers," he said.
In this pricing segment, the company will launch 10 new projects worth a combined 21.9 billion baht under the Setthasiri brand, with locations mainly in Bangkok's outer city areas such as Don Mueang and Phutthamonthon Sai 1 as well as Chiang Mai.
The brand was launched 20 years ago with units covering 100 square wah with a starting price of 7 million baht, with the first project located in Sanam Bin Nam, Nonthaburi.
"Land costs have nearly doubled year-on-year in some locations like Phutthamonthon Sai 1 due to land scarcity and city planning, while construction costs have increased by less than 10%," said Mr Anat.
He added that homebuyers in the luxury segment would prioritise location and home functionality as their primary factors before comparing other projects nearby in terms of products and prices. Following that, the brand and developer would also be taken into account.
Sansiri is set to launch Setthasiri Wongwaen-Chatuchot next month, a single detached house project valued at 1.9 billion baht.
It is located on a 50-rai plot in Klong Sam Wa district, comprising 149 units on plots sized from 100 sq w and priced between 15-30 million baht.
By year-end, Sansiri expects to have 33 billion baht in presales from low-rise houses and to transfer 30.5 billion baht from low-rise houses.