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source: Bkk Post Apr 21 2008
Company expecting robust 2008 growth -
Transport links boost property
The listed developer Sansiri Plc (SIRI) plans to develop 300 units of high-end
single houses worth 5.4 billion baht next year with an investment of around 800
million baht for new land plots in the Srinakarin, Ekamai-Rarm Intra and
Kallapapruek areas, says Samatcha Promsiri, the company's assistant
vice-president for marketing.
Sansiri has very few high-end units for sale after it recently closed sales of
the last 10 units worth 250 million baht at its Narasiri Pattanakarn estate. To
cover all housing segments, the company needs more Narasiri units.
Mr Samatcha said the three plots would be bought in the third quarter of the
year. They include a 35-rai site in the Srinakarin area, a 40-rai site in the
Ekamai-Rarm Intra area and a 25-rai site on Kallapapruek Road. Each would have
around 100 units priced between 10 million and 20 million baht a unit.
''Srinakarin has high potential for the high-end segment as the location is very
close to Suvarnabhumi Airport with new transport routes such as Kanchanaphisek
and the airport link,'' he said.
The location also has potential for single house rentals, proven by 30 rental
units among the 177 units at the company's Narasiri Pattanakarn.
The rental rate is now 180,000 baht a month for homes on lots ranging from 100
to 250 square wah with a usable area of 300 to 500 square metres. The annual
yield is 6-7%.
''At first, we kept 15 units for rent and planned to hold them as recurring
income. But finally we sold all of them as some customers and investors saw the
potential to invest in single rental houses in the high-end segment,'' he said.
According to company research, Bangkok had a total of 4,200 single-housing units
starting at 10 million baht a unit at the end of 2007. About 1,500 units were
located in eastern Bangkok and 1,600 in western Bangkok.
In the Srinakarin area in eastern Bangkok, the cumulative take-up rate of the
high-end single housing segment was 83% due to strong demand.
''The high-end single-housing segment was in its actual situation last year. The
sales rate did not fluctuate. Sales have been stable since after the economic
crisis. If the economy booms, the segment will also boom.''
He added that the sales rate in the high-end housing segment is not as rapid as
the middle-to lower-end segments. The take-up rate is normally four units a
month and customers in this segment have high purchasing power.
To be successful in the high-end single-housing segment, Mr Samatcha said, firms
must focus on location and price. Next customers care about the developer's
history and relationship with the community.
''We will study more and go in deeper detail for each site before launching a
high-end project. We will adjust unit sizes to be more efficient and increase
functions in each square metre of the unit,'' he said.
''There will be no new Narasiri projects this year as we're selecting land plots
and developing new housing designs.''
Currently, Sansiri's high-end single-housing projects include The Emperor and
The Gallery. But after learning that the brands confused consumers, the company
decided to drop them.
''Our firm name and housing brand can be sellable. Housing brands followed by
location name are easier to market,'' he said.
Of the 26 new projects scheduled for launch this year, seven would be
single-housing projects worth 7.6 billion baht, which Sansiri would develop. The
rest would be high-end condominiums by Sansiri; middle- to lower-priced
condominiums and townhouses by its subsidiary Plus Property; and lower-priced
single houses by another subsidiary, Prom Pattana.
The seven single-housing projects would be the expansion of a new phase in
current projects, including The Emperor in Bang Khae; Setthasiri in the Pracha
Chuen and Seri Thai areas; Saransiri in the Rarm Intra, Chaeng Watthana and
Pracha Uthit areas; and Burasri Sanam Bin Nam.
SIRI shares closed on the SET on Friday at 3.96 baht, down 10 satang, in total
trade worth 31.7 million baht.
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