PUBLISHED: 16 Oct 2024 at 05:40
ECNETNews reports that leading developer Sansiri is optimistic about the future of the Phuket property market, unveiling plans for new residential projects exceeding 10 billion baht. The company aims to boost its revenue from sales and transfers from 6% to 16% in the coming year.
President Uthai Uthaisangsuk highlighted the strength of the residential market in Phuket, driven by both local and foreign buyers benefiting from increasing tourism. “Our sales from Phuket are second only to Bangkok,” he stated, noting a diverse clientele, including affluent locals as well as Russian and Chinese investors purchasing premium properties.
Sansiri has established itself in the Phuket market for 15 years, having rolled out over 30 projects across various segments, mirroring its success in Bangkok. Recent highlights include the launch of The Standard Residences Phuket Bangtao, a high-end project exceeding 4 billion baht, which saw 70% of its units sold primarily to Thai and Russian clientele.
Looking ahead, Sansiri plans to introduce additional residential projects across all segments worth more than 10 billion baht next year. The aim is to achieve 5 billion baht in sales and transfers, thereby significantly increasing its market contribution from the previous 2.5-3 billion baht, which accounted for 6% of total revenue, according to Mr. Uthai.
As part of its strategic growth, Sansiri intends to establish a head office in Phuket, marking a significant step as the company expands its operational footprint beyond Bangkok. This new office will accommodate regular staff, a back office, as well as human resources, IT, and legal teams, in response to the anticipated surge in demand.
“Our strategy for next year includes focusing on property markets in tourist destinations, especially with expectations that arrivals will rise from 35 million this year to 39 million next year,” Mr. Uthai mentioned.
Poomipak Julmanichoti, chief strategy officer, added that the recent strength of the baht has implications not just for tourism and exports, but also impacts foreign buyers in the residential sector. “While demand from foreigners, especially in Phuket, remains strong, the appreciation of the baht has led many to postpone their purchasing decisions,” he explained.
According to Mr. Poomipak, a 5% increase in the baht makes Thai properties 5% more expensive for foreign buyers.
