SET-listed developer Sansiri Plc (SIRI) will launch 19 projects worth a combined 41.2 billion baht this year, aiming to secure 16% growth in presales to 36 billion.

As the property market is set to remain sluggish this year, with forecast growth of less than 5%, one of the key drivers for Sansiri’s growth will be investment in venture capital, said president Srettha Thavisin.

“We will invest in property technology and look for innovations that can link to our core business,” he said. “The property technology will not only help reinforce and improve our existing operations but also become our new income stream in the future.”

In a move to progress into the digital age and utilise enterprise data, the company will set up a data analytics and business intelligence centre as a new business unit, applying advanced data analytics and digital tools across its value chain.

He said the high household debt that caused a rise in mortgage lending rejection rates across the industry last year remains a key challenge for developers this year.

Of the 19 new projects being launched this year, eight will be condominiums worth 21.9 billion baht, accounting for 53% of total sale value. Nine more accounting for 45% will be single house projects worth 18.5 billion baht. Two townhouse sites worth 800 million baht will only account for 2%.

Among the new condo projects, four worth a combined 12 billion baht will be developed via a joint venture with BTS Group Holdings Plc. During 2015-16, they launched a total of eight projects worth a combined 30 billion baht, of which 70% was sold.

All of the new sites being launched this year will be located in Greater Bangkok as the property market in the provinces will remain sluggish and the government’s infrastructure plans there remain unclear, said Mr Srettha.

“Sansiri currently has total inventory worth a combined 3-4 billion baht in the provinces,” said chief operating officer Wanchak Buranasiri. “About 90% are condo units, which have been complete since 2015.

“We were very aggressive in the provincial property market in 2012-13. But after a drastic change in the political situation, the market has been sluggish,” he said.

Instead, Sansiri will give more weight to overseas buyers after successful presales last year from key Asian markets such as Hong Kong, Shanghai, Beijing, Singapore and Taipei.

It recorded 5.4 billion baht in presales, rising 55% from 2015 and above its target of 5 billion baht. In 2017, it aims to have 7.5 billion baht, up 40% as it will visit more cities like Tokyo by the end of January, and new Chinese cities later.

“We collect a deposit of 20-30% of the unit price from foreign buyers, most of whom used cash to secure unit transfers,” said Mr Srettha. “But foreign buyers had no risk of mortgage rejection and we will work with UOB and Bangkok Bank to facilitate them.”

Sansiri last year recorded 31.1 billion baht in presales, rising 9% from 2015. It expects to have 34 billion baht in revenue by the end of 2017.

Source: Bangkok Post