Bangkok Apartments | Bangkok Condos | Bangkok Serviced Apartments

Sansiri lifting prices on Oct 1

The listed developer Sansiri Plc (SIRI) plans to raise condominium prices by a range of 8% to 30% on Oct 1 as it has seen resale prices of the units it has already sold rise significantly, according to president Srettha Thavisin. ''It's our chance to make higher margins. Demand is so strong and we don't want to miss the market opportunity,'' he said yesterday. He added that the company would raise prices despite having locked in construction costs with contractors. Sansiri plans price rises for 343 units at seven projects priced at an average of 86,000 baht per square metre in the first half of the year, while market prices have been quoted at 90,000 baht. ''Higher inflation rates and fuel prices have pushed resale prices of condominium units to almost double in some locations,'' he said. ''New condominiums cannot sell at our prices due to higher construction costs _ so if we sell at the same prices, we will lose the benefits.'' Mr Srettha added that resale prices at some Sansiri projects had risen to between 140,000 and 150,000 baht per sq m from a 90,000-baht launch price, as the units could be rented at 60,000 baht per month or 1,000 baht per sq m a month _ a yield of 8% to owners. The seven projects included five in Bangkok: Prive{aac} on Wireless Road with 14 units remaining, Preen on Sukhumvit Road with 17 units, Siri on Eight on Sukhumvit Soi 8 with 3 units, Hive Taksin with 139 units and Hive Sukhumvit 65 with 32 units. The other two projects are in Hua Hin: Baan Nub Kluen with 67 units available and Baan San Suk with 71 units. Price increases will depend on unit sizes, with penthouse units seeing the highest rise. By the end of the year, Sansiri also plans to launch two condominium projects with a combined value of eight billion baht in the central business district, as well as seven low-rise projects with almost 1,000 units worth a total of six billion baht in locations including include Bang Na Km 8, Rarm Intra, Prachachuen and Ratchapruek-Chaeng Watthana in the Pak Kret area. Although in the first half of the year Sansiri lost expected revenue of around four billion baht from its subsidiary Plus Property due to its condominium construction exceeding the legal height limit, the company has not altered its revenue target for the year of 17 billion baht, as it expects this sum be recorded in the second half. Sansiri last week reported a first-half net profit of 364 million baht, an increase of 208% from 118 million baht in the same period last year, on sales up 6% to 5.87 billion baht. Second-quarter net profit rose 290% year-on-year to 179 million baht, on sales up 15.4% to 3.32 billion baht. SIRI shares closed yesterday on the Stock Exchange of Thailand at 2.58 baht, down four satang, in thin trade worth 615,000 baht.

 

< Prev		Next >