SANSIRI BOASTS OF B25 BILLION HALF-YEAR SALES
– A 37% GROWTH Y-o-Y
LUXURY PROJECTS VERY WELL RECEIVED
READY-TO-MOVE-IN CONDOS OVER EXPECTED
- Sansiri shows strong HY/2023 sales topping 25 billion baht, a hefty 37 percent growth over the same period of the previous year when sales reached 18.3 billion baht.
- Satisfied with enthusiastic reception of three new luxury projects – NARASIRI PHAHOL-WATCHARAPOL, BuGaan Krungthep Kreetha and Setthasiri Don Mueang, while 10 new Setthasiri projects worth a total of 21.9 billion baht are poised to be launched within this year.
- Also significant is that ready-to-move-in condominiums have been exceedingly well-received resulting in remaining stock worth only 8.1 billion baht, down from 11 billion bath at the beginning of the year. This is an encouraging sign of the recovery of the condominium market.
- Ready-to-move-in condominium projects are debt-free, reflecting the financial strength while stimulating continuous cash flow from transfers at various projects, to be reinvested in new projects in the second half of the year.
Mr. Wichan Wiriyaphusit, Chief Financial Officer of Sansiri Public Company Limited (SIRI), revealed that the first half of year 2023 has been an incredibly challenging period for Sansiri as the country’s economy still has not sufficiently recovered while the interest rates and the household expenditures were on the rise. This has led to some consumers delaying their plan to purchase homes. However, Sansiri has anticipated this scenario and has made preparations to deal with any fluctuations in the real estate market. Appropriate strategies have been put in place resulting in very satisfying performance, particularly in the first half of the year when Sansiri managed to post sales worth a total of 25 billion baht, or a growth of 37 percent compared to the same period of the previous year.
All recently launched projects posted surprisingly excellent sales, led by single-house projects in the luxury segment, such as NARASIRI PHAHOL-WATCHARAPOL and BuGaan Krungthep Kreetha that performed exceedingly well – a step up since the recent delivery of single houses in Sansiri’s luxury segment, namely, NARASIRI KRUNGTHEP-KREETHA and BuGaan Yothin Pattana that have sold out quickly. Also, it became obvious that the demand for houses in the luxury segment is still high as customers in this category still possess high purchasing power. This has led to the exceptionally good response for the two projects locating in the high potential area with good transportation access. Also, receiving exceptionally good feedback was Setthasiri Don Mueang project located across from Donmueang International Airport and close to Harrows International School. In addition, Sansiri launched dCondo Hype Rangsit, which is a campus condominium near Bangkok University during the previous week and already 80 percent of the project has been booked. This phenomenon showed that all newly launched projects in the first half of the year have been very well received along with many horizontal projects, such as Saransiri Ratchaphruek 345 and Anasiri Srinakharin-Praeksa.
Meanwhile, ready-to-move-in condominium projects have shown improved sales, indicating that the condominium market was recovering to the situation pre-COVID-19 and the period immediately following post-COVID-19. This is a very good signal for the condominium market because ready-to-move-in condominiums are an accurate indication of the real-demand market for customer groups who buy units for their own occupation or for renting out and not for speculation which could equate to artificial demand in the sales totals of this type of condominiums. In the first half of this year, Sansiri has made a sizable gain in the sales of condominiums in this segment with the stock of ready-to-transfer units reduced to only 8.1 billion baht worth down from 11 billion baht worth at the beginning of the year. This indicated that Sansiri had the best absorption rate in the market for ready-to-move-in condominiums, particularly for those under THE BASE, THE LINE, The MUVE, XT, dCondo and condo me brands. In Q3/2023, Sansiri is set to close sales at 12 condominium projects in this segment.
In addition, Sansiri continues to foster greater financial discipline as cash flow is very important for real estate business. The fact that the number of ready-to-sell units has dropped significantly has afforded Sansiri to be able to repay bank loans from ready-to-move-in condominium projects by 100 percent, meaning that Sansiri has no more debt obligation on the ready-to-move-in condominium group. Possessing financial discipline has been an important philosophy for Sansiri in operating its business for almost 40 years, putting Sansiri in the group of good and high quality debtors, and has always been trusted by banks and investors. The hastened debt payment meant that Sansiri now has a liquidity of over 17 billion baht, making it one of the most financially strong real estate developers.
As for the highlights of the business plan for the second half of the year, Sansiri will continue to leverage sales of single-detached houses under the Setthasiri brand. And as a result of the strong cash flow and the good response in the luxury and super-luxury home markets, Sansiri is therefore proceeding to launch 10 more single-detached home projects under the Setthasiri brand, worth a total of 21.9 billion baht, covering locations including, Ramindra, Sai Mai, Seri Thai, Bangna, Ratchaphruek, Prannok and Phutthamonthon Sai 1, etc., All these are considered high-value projects, which when combined with more than 10 new condominium projects that will be gradually launched in the second half of the year to fulfill the recovery of the condominium market, there is an excellent opportunity for Sansiri to achieve sales exceeding the target of 55 billion baht as set at the beginning of the year.
“Sansiri is still determined to continuously develop projects to meet the needs and demand of customers in all segments under the ‘YOU Are Made For Life’ concept, with the project launch strategy for each segment that can be adjusted as appropriate, by using marketing data as a guide. This year, Sansiri will focus on developing luxury residential projects that continue to receive good feedback. In addition, as the condominium market has begun to recover more clearly, this will have a positive effect on the sales and performance of the Company while the establishment of the new government is being formed. Also, the tourism industry is expected to return to near pre-Covid-19 level in the second half of the year, which will further support the overall economic recovery and will help to contribute as a positive factor for the real estate sector. Therefore, Sansiri is confident that we will be on track to perform and that the Company will further create new horizons with its sales and performance this year,” Mr. Wichan concluded.