Sansiri is confident of a real estate turnaround in areas outside of Bangkok this year and the company will build condos in several provinces, reports local media outlets. The company points to recovering demand from this region as it reason to restart its efforts upcountry. Sansiri froze all provincial developments during the past 3 years as demand tanked.
Sansiri already has plans to develop 2 condo projects upcountry in 2017 with 1 located in Chiang Mai and another project in a province to be determined with both developments requiring an investment of THB 2.6 billion, says Senior Executive Vice-President Uthai Uthaisangsuk to the Bangkok Post. The new projects will be in the low-end segment with prices per unit expected to be between THB 1-3 million.
“Provincial market sentiment is improving, and we see it’s an opportune time to make new condominium supply for the provincial market,” says Uthai.
Sansiri expanded aggressively in the provincial property market during 2012-2013, but faced numerous negative factors such as political turmoil and a sour economic situation that caused the company to freeze all activity in this region. At the moment, Sansiri has a total inventory in the provincial market worth a combined THB 3-4 billion, says the Bangkok Post. An estimated 90 per cent of this inventory is condo units with most already complete.
In Bangkok, Sansiri and BTS have secured 12 undeveloped land plots and the 2 will use these to launch a number of new projects over the coming years.
The pair launched 8 projects during the past 2 years with 4 more set to be started in 2017. The company hopes to launch a total of 19 projects this year.
“We are also now seeking 5 more land plots to develop residential projects near current and future mass transit lines with a total of 25 sites worth a combined THB 100 billion throughout 2019,” says Uthai.
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