Sansiri will double the number of new projects it launches this year to 21 in total despite Thailand’s sluggish economy and other developers reducing the number of projects they launch in 2016. The value of the projects expected to be launch by the company is estimated at THB50.5 billion.
President Srettha Thavisin admitted that 2016 would be a challenging year due to several negative factors including the political and economic situations currently troubling the country’s property market.
“The government’s initiatives, particularly investment in infrastructure nationwide, can help boost market sentiment,” he explained. “Other positive factors include low interest rates, which raise housing affordability, declining oil prices, which reduce development costs, and property tax incentives, which can boost housing demand in the first half.”
One-third of Sansiri’s 21 new projects will be single house developments. These projects will be located in Greater Bangkok, Udon Thani and Phuket where demand remains strong. Of these projects, three will be townhouses where most unit prices will be in excess of THB3.1 million.
Sansiri will also continue its fruitful partnership with the BTS. Together they will develop six condo projects under their joint venture. Last year saw the duo unveil The Line brand to great success which they hope will carry over into 2016.
The developer will oversee five other condominium projects on its own. Most of these developments will focus on the middle- to upper-end segment. In this segment, 86 percent of the total market have units priced higher than THB100,000 per sqm. The total value of the 11-condo projects is THB23 billion.
“There were no bank rejections in the high-end segment last year because the segment rarely got an impact from the economic slowdown,” Srettha pointed out. “The low-end segment was hit by lower purchasing power, high household debt and decreasing prices of agricultural products.”
