Sansiri, one of Thailand’s largest developers, may be forced to reduce its pre-sales and total revenue targets for this year as residential demand in the present quarter hasn’t matched 2015’s figures, local media reported. The developer hasn’t yet made a decision, but is looking at its options.
“We will consider at the end of this month whether to revise our pre-sales and revenue targets downward, after seeing a drop-off in demand in October and the first two weeks of November. We may lower our earlier estimates by up to five percent,” president Srettha Thavisin told The Nation.
At the moment, Sansiri’s current targets are THB42 billion for pre-sales and THB33 billion for overall revenue. One issue the company is having according to Srettha is that the market situation in the fourth quarter can’t be predicted and that is making it difficult to estimate what pre-sales and revenue will be at.
While there has been a noticeable decline in domestic demand, Sansiri continues to target foreign buyers interested in staying in Thailand or buying units as an investment. The developer has zeroed in on Asian markets such as China, Hong Kong, Singapore and Taiwan.
“We are confident our sales to foreign buyers will reach THB5 billion by the end of this year, more than ten percent higher than last year due to foreign investors continuing to expand their investment in Thailand’s property market, especially in luxury condominiums in Bangkok’s central business districts,” Srettha explained to the newspaper.
Next year won’t be any easier for the company in terms of expanding its investment in new locations because the government will only be in the early stages of its mega-infrastructure projects. Once the projects are completed, it is expected that developers will be able to invest in residential projects to serve new demand in new locations.
“When the infrastructure expands from Bangkok’s central business districts into the suburbs it will create new land locations for developers to expand their investment to develop residential projects to meet the new demand,” Srettha said.
