Sansiri announced that it will reduce the number of brands under its watch in an attempt to reduce marketing costs. It also bumped up its revenue expectations for 2015 due in part to the planned reduction of housing transfer and mortgage fees.
The company currently has 24 different brands for its condo, seven single house brands and five townhouse brands. It will cut those numbers to four, five and four respectively. The goal is to lower marketing costs from three percent to two percent by the end of 2016 as marketing efforts become more streamlined.
That will help the developer improve its bottom line. Sansiri originally forecasted revenue of THB 35 billion this year, but has now increased that figure to THB37 billion baht.
A planned reduction in housing transfer fees from two percent to 0.02 percent and mortgage fees from one percent to 0.01 percent is going to help revitalise the weak consumer confidence seen in Thailand.
“The overall property market will depend largely on the government’s economic policy and spending on infrastructure, tourism industry promotion and export recovery,” Sansiri senior executive vice-president Uthai Uthaisangsuk noted. “We are now bottoming out.”
Uthai wants the government to announce the proposed tax incentives right away as some customers started delaying their transfers last month and more are likely to follow suit. “The incentives should have no limit on housing prices as people who have high purchasing power are in the middle-to-high-income segment. If the government wants to boost the property sector, it should push all market segments,” he stated.
Sansiri will launch ten projects worth THB21.5 billion by the end of the year. There will be five condos and five single-house and townhouse projects. The company added that it expects to have THB12.5 billion baht in presales in the fourth quarter and has targeted THB33 billion by the end of 2015.
