Sansiri proudly announces impressive half-year sales of over 25 billion baht, marking a substantial 37% increase compared to the same period last year when sales reached 18.3 billion baht.
The response to the luxury projects has exceeded expectations, with ready-to-move-in condos garnering exceptional demand. As a result, the company’s remaining stock has dwindled to just 8.1 billion baht from 11 billion baht at the beginning of the year. This positive trend indicates a promising recovery in the condominium market. Notably, Sansiri’s ready-to-move-in condominium projects are debt-free, reflecting the company’s financial strength. The continuous cash flow generated from transfers at various projects allows it to reinvest in new endeavours during the second half of the year.
Sansiri is delighted to report that three new luxury projects, namely NARASIRI PHAHOL-WATCHARAPOL, BuGaan Krungthep Kreetha, and Setthasiri Don Mueang, have received enthusiastic responses. Additionally, Sansiri has plans to launch ten new Setthasiri projects worth a total of 21.9 billion baht this year.
“Despite the challenging economic conditions in the first half of 2023, including rising interest rates and household expenditures, Sansiri was well-prepared to handle fluctuations in the real estate market,” revealed Mr. Wichan Wiriyaphusit, Chief Financial Officer of Sansiri Public Company Limited (SIRI). “Our prudent strategies have yielded impressive results, as evidenced by our sales of 25 billion baht, a 37% growth compared to the same period last year.
“Notably, our recently launched projects, especially single-house projects in the luxury segment like NARASIRI PHAHOL-WATCHARAPOL and BuGaan Krungthep Kreetha, have performed exceptionally well. The high demand for houses in the luxury segment demonstrates the purchasing power of our customers. The projects' strategic locations, offering excellent transportation access, have further contributed to their success. Setthasiri Don Mueang, situated near Donmueang International Airport and Harrows International School, has also received excellent feedback. Moreover, dCondo Hype Rangsit, a campus condominium near Bangkok University, has already booked 80% of its units within the first week of its launch. This overwhelming response highlights the strong reception of all our newly launched projects in the first half of the year, including horizontal projects such as Saransiri Ratchaphruek 345 and Anasiri Srinakharin-Praeksa.”
“Furthermore, the improved sales of ready-to-move-in condominium projects indicate a recovery in the condominium market, reminiscent of pre-COVID-19 and immediate post-COVID-19 conditions. This positive trend is particularly noteworthy because ready-to-move-in condominiums accurately reflect genuine market demand from customers seeking units for personal use or rental purposes, rather than speculative purchases that could artificially inflate sales figures. Sansiri has experienced significant sales growth in this segment during the first half of the year, resulting in a reduction of ready-to-transfer units from 11 billion baht to just 8.1 billion baht. This achievement signifies Sansiri's outstanding absorption rate in the ready-to-move-in condominium market, especially under the brands THE BASE, THE LINE, The MUVE, XT, dCondo, and condo me. In the third quarter of 2023, Sansiri is set to conclude sales at 12 condominium projects within this segment.”
Sansiri remains committed to maintaining strong financial discipline as cash flow plays a crucial role in the real estate business. The substantial decrease in ready-to-sell units has allowed Sansiri to fully repay bank loans associated with ready-to-move-in condominium projects. Consequently, Sansiri is now debt-free in the ready-to-move-in condominium category. This commitment to financial discipline has been a cornerstone of Sansiri's operations for nearly 40 years, positioning the company as a trusted and reliable debtor for banks and investors. The expedited debt repayment has resulted in Sansiri possessing a liquidity reserve of over 17 billion baht, solidifying its status as one of the most financially robust real estate developers.
Looking ahead to the second half of the year, Sansiri plans to capitalise on the sales potential of single-detached houses under the Setthasiri brand. Given the strong cash flow and positive response in the luxury and super-luxury home markets, Sansiri intends to launch 10 additional single-detached home projects worth a total of 21.9 billion baht. These projects will be located in various high-value areas, including Ramindra, Sai Mai, Seri Thai, Bangna, Ratchaphruek, Prannok, and Phutthamonthon Sai 1. Furthermore, Sansiri will gradually introduce over 10 new condominium projects in the second half of the year to support the recovery of the condominium market. With these endeavours, Sansiri has an excellent opportunity to surpass its initial sales target of 55 billion baht set at the beginning of the year.
Sansiri remains steadfast in its commitment to continuously develop projects that cater to the needs and demands of customers across all segments, guided by the overarching concept of "YOU Are Made For Life." The company adopts a flexible project launch strategy for each segment, which can be adjusted as necessary based on marketing data insights. In the current year, Sansiri will place emphasis on the development of luxury residential projects that have received positive feedback thus far.
Furthermore, with the condominium market showing clearer signs of recovery, this will undoubtedly have a positive impact on the company's sales and performance, especially as a new government is being formed. Additionally, the anticipated resurgence of the tourism industry, expected to approach pre-COVID-19 levels in the second half of the year, will further contribute to overall economic recovery and serve as a positive factor for the real estate sector as a whole.
In light of these factors, Mr. Wichan concluded with confidence that Sansiri is well-positioned to achieve its goals, while also venturing into new horizons in terms of sales and performance throughout the year.