Sansiri, a leading property developer in Thailand, is expressing strong optimism regarding the future of the Phuket property market. With plans to launch new residential projects exceeding 10 billion baht, the company aims to significantly increase its revenue from this vibrant market, driven by both local and foreign buyers.
Key Takeaways
- Sansiri plans to launch new residential projects worth over 10 billion baht in Phuket.
- The company aims to increase revenue from sales and transfers from 6% to 16% next year.
- The Phuket market is buoyed by affluent local and foreign buyers, particularly from Russia and China.
- Sansiri has been active in Phuket for 15 years, launching over 30 projects.
- A new head office will be established in Phuket to support growing demand.
Strong Market Demand
Sansiri’s President, Uthai Uthaisangsuk, highlighted the robust nature of the residential market in Phuket, which is currently experiencing a surge in demand. This growth is largely attributed to the increase in tourism, which has positively impacted the income levels of both local and foreign buyers.
"Our sales from Phuket are second only to Bangkok," Uthai stated, emphasizing the affluent nature of the buyers in this region. The clientele includes wealthy locals as well as international buyers, particularly from Russia and China, who are interested in high-end properties.
Recent Successes
Earlier this year, Sansiri launched The Standard Residences Phuket Bangtao, a branded project valued at over 4 billion baht. The project has seen impressive sales, with 70% of the units sold, primarily to Thai and Russian buyers. This success has encouraged Sansiri to further invest in the Phuket market.
Future Plans
Looking ahead, Sansiri is set to launch new residential projects across various segments, with a total value exceeding 10 billion baht. The company aims to secure 5 billion baht in sales and transfers, which would represent a significant increase from the 2.5-3 billion baht recorded annually, accounting for just 6% of its total revenue.
Uthai noted that this ambitious plan is part of a broader strategy to position Phuket as the company’s second most important market after Bangkok. To facilitate this growth, Sansiri plans to establish a head office in Phuket, marking a significant milestone as it will be the first time the company has set up a second office to accommodate regular staff, including human resources and legal teams.
Strategic Focus on Tourist Destinations
Sansiri’s strategy for next year includes a focus on property markets in tourist destinations. With the number of tourist arrivals expected to rise from 35 million this year to 39 million next year, the company is keen to capitalize on this growing demand.
Poomipak Julmanichoti, the chief strategy officer, pointed out that the appreciation of the Thai baht has implications for foreign buyers. A stronger baht makes Thai properties more expensive for international investors, which could lead to delays in purchasing decisions.
Despite this, demand from foreign buyers in Phuket remains strong, indicating a resilient market poised for growth.
In summary, Sansiri’s optimistic outlook for the Phuket property market reflects a combination of strategic planning, market demand, and a commitment to enhancing its presence in this key location.
Sources
- Bangkok Post – Sansiri upbeat on outlook for Phuket, Bangkok Post.
