As global uncertainties persist, SET-listed developer Sansiri will launch 46 new residential projects worth a combined 61 billion baht and aims for a transfer growth of 10% to 43 billion baht by year-end.
Chief executive Apichart Chutrakul said the persistent uncertainty posed numerous challenges this year, casting uncertainty on how they would affect both the global and Thai economies.
"Nonetheless, should the Thai economy outperform expectations, the company stands prepared to expand and launch more projects than initially planned," he said. "Our key strategy remains speed to market."
Chief operating officer Uthai Uthaisangsuk said Sansiri's business plan for 2024 was based on a GDP growth of 3%. If the actual growth exceeded this projection, the company would increase its launches by 10% for each additional 1% of economic growth.
Based on a base-case scenario, Sansiri announced plans on Tuesday to launch 46 new projects worth a combined 61 billion baht, compared with 44 projects worth 65 billion baht launched last year.
The large number of new projects in 2023-24 resulted from the company accumulating a large land bank during the pandemic when land was available at good prices, he said.
The new projects will comprise 20 condo sites valued at a combined 26 billion baht, accounting for 43%, a significant increase from 14 condo projects worth 18 billion baht in 2022.
Bangkok will have 33 projects worth 16 billion baht, while key provinces will have 13 projects worth 45 billion baht, accounting for 74% and 26% of the total, respectively. The new destinations include Ayutthaya and Chachoengsao, which have been added this year.
One of the new condo projects will be a branded residence -- The Standard Residences Hua Hin -- valued at 4.5 billion baht. It will be the first of its kind in Asia and the third worldwide.
Sansiri expects to achieve 52 billion baht in presales, up from 49 billion baht last year, which increased from 38.4 billion baht in 2022.
Of this amount, 40% will come from condos and the remainder from low-rise houses as the condo market is expected to continue recovering.
Presales from foreign buyers are projected to rise by 15% to 7 billion baht from 6.1 billion baht as new potential markets are targeted, including Saudi Arabia and India, though China remains the main market.
The target for transfers is 43 billion baht, up 10% from 39 billion baht last year, which increased from 35 billion baht in 2022.
"The rise in interest rates and the end of the easing of loan-to-value limits have had a strong impact on housing demand," said Mr Uthai. "For every 1% increase in interest rates, purchasing power will drop by 7-8%."
Due to the higher interest rates and the high level of household debt, Sansiri had a bank mortgage loan rejection rate of 7% on average last year and as high as 20% in the lower-end segment.
"Five years ago we trained our staff on the subject of financial literacy so they can help customers get mortgage loan approval more easily," he said.
"Now we are talking with banking partners to help minimise stricter rules, telling them that fewer of our customers' loans become non-performing than other developers."