SET-listed developer Sansiri has upgraded its condo transfer target by 15% to 12 billion baht by year-end as its performance over the past eight months exceeded expectations, primarily driven by sales of ready-to-move-in units.
Ongart Suwannakul, assistant executive vice-president for project development (high rise), said the company recorded nearly 10 billion baht in condo transfers during the first eight months.
"The key driver was units in completed projects, which were recognised as revenue once they were sold," he said. "Our condo inventory decreased by 43% from 11 billion baht at the end of 2022 to 6.3 billion baht last month."
This year, it planned to launch 22 condo projects worth a total of 24.3 billion baht, marking a 151% increase from 2022. The presales target for condos was set at 22 billion baht, 40% growth from 16 billion baht achieved last year.
During the first eight months, it recorded 13 billion baht in condo presales, which accounted for 60% of the target and rose by 45% from 9 billion baht in the same period of 2022.
"Our strategies for new launches this year and next are projects with affordable prices, located near campus, in major provinces, in the luxury segment and through joint ventures," said Mr Ongart.
After the first four joint venture projects with Tokyu Corporation, a major private Japanese railway firm, were sold out, Sansiri and the Japanese partner continue with a new project, Dcondo Air Ladkrabang, which targets the affordable price market.
Sansiri initiated joint ventures with Tokyu Corp in 2017. The first project was Taka Haus in the Ekamai area, followed by XT Ekkamai, The Base Sukhumvit 50, and Dcondo Hype Rangsit opposite Bangkok University.
For the remainder of 2023, the company plans to launch 9-10 new condo projects worth a total of 15.6 billion baht, aiming for 9 billion baht in presales.
Every project will undergo an environmental impact assessment approval before being made available for sale to ensure customer confidence.
"All of the new projects will focus on local demand, as foreign buyers, especially those from China, haven't returned to levels prior to the pandemic," he said. "However, whenever they do return, we are prepared to launch projects to attract them."
One of the new projects that it will launch is a prebuilt condo, Nia by Sansiri, valued at 1.4 billion baht, located on Sukhumvit Soi 71.
It will be available for transfer as it will cater to demand in the area, where most residents are tenants and ready to move in.