Property developer Sansiri Plc has revised its investment plan to 20 new projects worth Bt18 billion, instead of a previous projection of 16 projects worth Bt16.4 billion this year, thanks to successful sales in the first quarter.

The company will also turn its focus to the middle of the market - customers with strong purchasing power.

Sansiri recorded pre-sales worth Bt5.5 billion in the first quarter, bringing the company's revenue to Bt2.4 billion and net profit to Bt134.67 million in the period.

President Srettha Thavisin said the four additional projects would include residential projects to capture the middle-income market. Prices will be quoted between Bt1.5 million and Bt3 million per unit.

One project is designed to include luxury condominiums that will meet the strong demand for such properties in the central business district of Bangkok.

"Demand from the middle of the market has shown strong growth in the first quarter this year and that is likely to continue in the next nine months," he said.

He added that the limited economic growth as a result of the oil price and interest rate increases had had a negative impact on the property market. Many buyers have delayed their decision to buy houses and some have decided to look for less expensive properties following an increase in their cost of living.

In this environment the company has to review its business strategy and launch housing priced lower than Bt3 million, to expand its target from the upper-to-middle market to the middle-to-economy income market, he said.

This is the first time Sansiri has launched housing priced lower than Bt3 million.

The first project offering such units is Baan Prompat-Ramindra, a double-house project launched in March with homes between Bt1.75 million and Bt2 million.

Srettha said Baan Prompat-Ramindra had received positive feedback from customers who have found quality houses at reasonable prices.

With the initial success of Baan Prompat-Ramindra, Srettha plans to launch a similar project this year at Ratchapruk-Chanwatana, and others far from the central business district but near link roads.

For new luxury condominium projects the company is finding land near mass-transit systems in the Sukhumvit, Ploenchit and Chidlom areas.

"We believe that demand for luxury condominium projects will show continued growth if we can offer different concepts that meet our customers' needs," Srettha said.

The company expects pre-sales of Bt5 billion in the second quarter, with 70 per cent coming from single-house projects, 28 per cent from condominium projects, and 2 per cent from double-house projects priced between Bt1.75 million and Bt2 million.

Somluck Srimalee

The Nation