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Sansiri’s 2017 business plan sets 36-billion-baht sales target With 60% foreign sales, highlighting up-scale housing projects.

Sansiri Public Company Limited’s 2017 business plan calls for the launches of 19 new projects worth a total of 41,200 million baht while foreign sales are set at 7,500 million baht – an increase of 40 percent. Set to be launched is the flagship condominium “98 Wireless” that will be the most luxurious condominium project both in Thailand and Southeast Asia, located at an exclusive residential address on Wireless Road. The 8,700-million-baht project will be launched officially in March. A plan has been put in place to reintroduce the “Baan Sansiri” single-house brand while revolutionising the real estate business through “digital transformation”. The 2017 sales target is set at approximately 36,000 million baht and the revenue at 34,000 million baht. As for the 2016 performance, the Company realised the total sales of 31,100 million baht, or a 9-percent growth. With foreign sales exceeding the target to almost 5,400 million baht, it is expected that the revenue will hit 34,000 million baht that included the revenue from sales and the revenue being realised from the management of projects under the joint venture with BTS, as well as other revenue.

Sansiri Public Company Limited (SIRI), revealed that in the fiscal year 2016, the Company posted a pre-sale total of about 31,100 million baht – a growth of 9 percent over the previous year’s total of 28,512 million baht. The success stemmed from the very good response, both from local and overseas customers, for Sansiri residential projects both in Bangkok and the provinces, as well as the joint ventures with the BTS Group that mandates a 5-year cooperation plan to jointly develop condominium projects along the BTS mass transit lines under the 50:50 shareholdings between BTS Group and Sansiri Public Company Limited. The partnership will spawn a total of 25 projects worth about 100 billion baht.

The financial strength of BTS that is geared towards the investment in the mass transit line expansion along with the competence of its personnel and its landbank, combined with the expertise and experience of Sansiri in the business of real estate development, the two companies have already jointly launched eight projects worth 30,000 million baht. Currently, 70 percent of the projects worth 21,000 million bath have already been sold out of the total 4,382 units. Almost every project has successfully closed sale with four of eight projects quickly sold out during pre-sale period. At the same time, the four other projects also received good response from customers with the sales now totaling 7,500 million baht. This is a clear reflection of the confidence in the Sansiri and BTS brands along with the constant demand from local and foreign customers for condominiums situated along the BTS routes.

In addition, the Company also met with success in the foreign markets as the foreign sales topped out at 5,400 million baht, substantially higher than the 5,000-million-baht target – equaling a 55-percent growth over the previous year’s foreign sale total of 3,500 million baht. About 84 percent of foreign buyers were Asians from Hong Kong, Singapore, Malaysia, Japan, China and Taiwan. Another 11 percent are from Russia, the United Kingdom, France, Germany, Australia, eh Netherlands and Italy, while those from the United States accounted for 4 percent.

Of keenest interest among foreign buyers was THE LINE Asoke-Ratchada which received very good response during the roadshow to Hong Kong, Singapore, Taiwan and China when a total of 1,300 million baht in sale was achieved – the highest ever sales to foreign customers for Sansiri. Next best was THE LINE Sukhumvit 101 which achieved over 1,000 million baht in total foreign sales with most customers being Asians from Hong Kong, followed by China, Taiwan, Singapore and Malaysia.

The major factor for foreign customers buying units in Sansiri projects is the confidence and trust in the Sansiri brand that has been well respected for over 32 years as the leader among real estate developers that not only offer quality housing but also the unique lifestyle. In addition, the marketing strategy success in the past year was the collaboration with well-known global brands to elevate the Sansiri brand to international level. These collaborations included the link-up with the famous YOO Design Studio and Philippe Starck in the development of “KHUN by YOO inspired by Starck” – Thailand’s first “branded condominium” worth 4,000 million baht situated on the golden central Thonglor location.

In the suburban areas of Bangkok and in the provinces, the Company was well received for its affordable condominium projects, such as dCondo Nim Chiangmai 70 percent of which has been sold, dCondo Onnut-Rama 9 with 86 percent sold and dCondo Rangsit with 100 percent sold. Furthermore, in the past year the Company also met with success with the customer response for the high-end single-house development in the 8.10 – 20.00 million-baht range, such as Setthasiri Pattanakarn, 880 million baht of which has been sold.

“As for the 2017 business plan, the Company has the strategy to develop and launch 19 new real estate projects to fulfill the needs of both Thai and foreign customers this year worth an estimated 41,200 million baht. The developments are divided into 8 condominium projects, nine single-house projects and two townhouse projects. For this year, most of the projects to be launched are in the medium-end and high-end segments. The Company has set the sales target for 2017 at 36,000 million baht and the projection for total revenue at 32,000 million baht,” Sansiri said.

To follow up on last year’s successes, the Company’s project development plan for 2017 will be:

1.      To sustain the success of the Sansiri-BTS joint venture with successive launches of 4 new projects worth more than 12,000 million baht under the brands “The Monument” and “THE BASE”. Furthermore, the Company will proceed with the transfers of the units at the 100-percent completed THE LINE Sukhumvit 71 which is the first project in the joint venture to realise a profit. Another project to be transferred is THE LINE Jatujak-Mochit that is to be completed at the end of 2017.

2.      To launch more high-end projects, with the highlight this year being the exclusive single-house project in Sansiri’s top-tier segment under the brand “Baan Sansiri” that will be reintroduced following the success of the “Baan Sansiri Sukhumvit 67” development project in the year 2003. The plan also calls for the development of premium condominium projects to respond to the demand of high-end customers who look to buy their own housing, to invest or to acquire assets. This year, Sansiri is set to launch “98 Wireless” flagship condominium considered to be the most luxurious in Thailand and Southeast Asia situated on the exclusive location of Wireless Road. This 8,700-million-baht project will be launched officially in March.

3.      To more sustainably penetrate the foreigners market. The Company has set the target for foreign buyers this year at 7,500 million baht, which is as high as 40  percent over the 2016’s target of 5,400million baht. The 7,500 -million-baht set target will result in Sansiri becoming the Thai real estate developer with the highest foreign customers’ market share particularly due to Sansiri being the only Thai real estate company that has carried out global launches and has continuously engaged foreign customers in various activities.

4.      To revolutionise the real estate business towards “digital transformation”. The highlight this year for Sansiri is to keep abreast with the digital age that will elevate the Company to being the integrated real estate technology leader covering all aspects of the real estate business and housing. This mode of business development will help increase the speed of revenue generation for Sansiri in the future. This will also result in the changes in the internal organisation while externally, systems will be adopted to plan the development of projects, the project sale and the after-sale services after the Company succeeded in applying the Sansiri Home Service Application to support the interaction with customers. The Company is set to organise a grand official launch of this project at the end of January.

“The Company expects to realise the total revenue of 34,000 million baht for 2016, divided into the revenue from sales and from the revenue derived from the project management under the BTS-Sansiri joint venture. The success from the total revenue grew from the transfers of projects in Bangkok and the provinces, such as “The XXXiX”, dCondo Rangsit, dCondo Campus Resort Bangsaen, Baan Plai Haad Wong-Amat Pattaya and dCondo Nim Chiangmai. The latest was the preparation to transfer THE EDGE Sukhumvit 23 in December.

“Furthermore, Sansiri and our partner BTS still have the pre-sale backlog that will total 39,000 million baht in revenue over the next four years divided into18,500 million baht in pre-sale backlog for Sansiri and 20,500 million baht in pre-sale backlog for our partner BTS,” Sansiri concluded.

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