Real estate plans to combat risk factors flooding the market. "Sansiri" promotes RESILIENT GROWTH strategy to cope with fluctuations, moving forward to open 46 projects worth 61 billion, joining hands with partners to reduce risk and tap into foreign demand. "Frasers" assesses the market still There is positive energy, confidence in a strong portfolio supporting growth, emphasizing financial discipline.

Key Points:

The Thai economy is in a state of not yet recovering. This year's GDP is expected to be 2.9-3.4%, while interest rates Household debt is high. Investor confidence decreased due to the issue of defaulted bonds. including external factors from geopolitical conflicts (Geopolitics) Economic trends in the United States, Europe, and China are all challenges for doing business in 2024.

Mr. Apichart Chutrakul, Chief Executive Officer of Sansiri Public Company Limited, said that 2024 is another challenging year for the real estate sector. This is because the economic situation is highly uncertain due to negative factors within and outside the country. But I believe that with the strength of the 40-year-old Sansiri business, it will drive growth. Under the strategy "RESILIENT GROWTH" that has adapted to the situation. Ready to bring potential Expertise and innovation come to expand the business and drive work as a whole. To deliver products and services to consumers that stand out from competitors.

In the case of a normal situation (Base Case), Thailand's GDP is expected to grow 3%, the company plans to launch 46 new projects worth 61,000 million baht, but in the case of a good situation (Best Case), there is a digital wallet policy to stimulate purchasing power. It is expected that the GDP will grow by 4%. For every 1% growth, Sansiri will invest an additional 10% or launch an additional 50 projects by shifting projects that will open in 2025 to open in 2024.

For the past year 2023, the company launched 44 new projects worth 65,000 million baht, covering condominiums, detached houses, semi-detached houses, townhomes, every segment, every price level, supporting every need in every location, growing 50%, divided into condominiums 28%, 14 projects worth 18,000 million. Baht, 72% houses, 30 projects worth 47,000 million baht, with sales of 49,000 million baht, 45% condominiums worth 22,000 million baht and 55% houses worth 27,000 million baht, and ownership transfers 39,000 million baht, growing 6% from 33% condominiums worth 13,000 million baht. and 67% of houses worth 26,000 million baht

“Net profit for the first 9 months of 2023 is 4,760 million baht, higher than the profit for the entire year 2022 which is 4,200 million baht. Two years ago, the company hastened to launch many projects. The previous supply was small and the company had purchased enough land to open the project for the next two years.”

Revealing sufficient supply on hand

Mr. Uthai Uthaisangsuk, Chief Operating Officer Added that Currently, the supply on hand is sufficient, so there is no need to launch as many projects as last year. The company plans to launch a total of 46 projects worth 61,000 million baht. The number of projects will increase by 2 projects, while the launch value has decreased by 8%.

The target is sales of 52,000 million baht and transfers of 43,000 million baht, divided into product groups at the affordable price level (Affordable), proportion 18%, 14 projects worth 10,900 million baht, middle level group 44%, 16 projects worth 26,800 million baht, middle level group Top 38%, 16 projects worth 23,300 million baht

“This year we focus on the luxury group in the horizontal business group, planning to open 26 projects with a total value of 35,000 million baht. The highlight is the Sansiri Luxury Collection group, 2 projects, Super Luxury detached house, Narasiri Bangna Km. 10, project value. 3,800 million baht, price 45-70 million baht, Setthasiri detached house, 7 projects, total value 14,400 million baht.”

Going horizontal and ready to open more condos.

At the same time, it is penetrating the horizontal market at an easily accessible price level under the Saransiri brand, launching 6 projects with a total value of 9,100 million baht, with the selling point of being the family's first detached house. and the Anasiri brand, 4 projects with a total value of 4,100 million baht. In addition, there are 2 new brands of mixed single house and semi-detached house products, including Narinsiri, the first premium single house brand, Narinsiri Krungthep Kreetha, worth 1,800 million baht. Brand of single-family homes priced at 5-7 million baht with 'Mabel Bangna 26', project value 850 million baht.

The high-rise business group plans to launch 20 condominium projects with a total value of 26,000 million baht, highlighted by the luxury condominium group. With the opening sale of The Standard Residence Hua Hin, worth 4,100 million baht, the first Branded Residence in Asia and the third in the world under The Standard, a world-leading boutique hotel and lifestyle brand.

and the launch of Via 2 new projects with a total value of 2,500 million baht in the locations of Sukhumvit 34 and 61, along with venturing into the condominium market with easily accessible prices, the "Campus Condo" brand, with the launch of D Condo, a total of 3 projects, with a total value of 2,800 million baht. and the development of condominium projects under The Move brand, along with refreshing The Base brand to support the launch of 3 projects this year, worth 4,500 million baht.

Maintain liquidity Investment discipline

Mr. Uthai further said that Sansiri views that the Thai economy has not fully recovered and there are also negative factors within and abroad. The challenge of the Thai market is that interest is an important variable. Every 1% increase in interest rates will reduce people's purchasing power by 7-8%.

The factor that promotes business comes from the recovery of the tourism market. causing more purchasing power from foreigners Especially condominium products from Chinese and Russian customers. This year expanded to 9 provincial projects such as Hua Hin, Phuket, Pattaya.

Sansiri's main strategy for 2024 lays out 3 important directions.

1.Maintaining consistent growth in operating results Increase the proportion of project launches, especially horizontal projects. and efficient use of investment funds Maintain liquidity at a high level

2. Manage product portfolios ready for sale to be distributed in various locations To create more opportunities and competitive advantages. Through controlling product levels for sale at each price level to be at an appropriate level.

and 3. Raise the quality of products, services and sustainability. This is an important strategy of Sansiri to maintain quality standards in housing management from Plus. Property

“We emphasize investment discipline rather than seizing every opportunity that comes our way. When including new projects opened this year Sansiri will have units ready for sale all over the country worth 146,000 million baht, resulting in Sansiri's revenue growing continuously over the next three years. We are not rushing to open many projects. until oversupply occurred This year we added a total of 6,720 new project units to the supply of 12,380 new units.”

Adapt to deal with various negative factors.

Mr. Thanaphon Sirithanachai, Chief Executive Officer of Frasers Property (Thailand) Public Company Limited, gave his perspective on the direction of the real estate business this year that It has been driven by the continued recovery of the tourism sector, which has resulted in increased private sector consumption. Plus the government has issued policies to stimulate the economy and the real estate market. Such as measures to reduce transfer and mortgage fees. Including foreign investors pouring in to set up production bases in Thailand.

However, we still need to keep an eye on economic pressure factors such as inflation and interest rates. Household debt and geopolitical problems, including the Russian-Ukrainian war and the Israeli-Hamas conflict

“After COVID, I think we will see light at the end of the tunnel. But it has turned into a storm that is set to happen again in 2024, both globally and domestically, from geopolitical uncertainties in the United States, Europe, Korea, China, Taiwan, as well as interest rates. Household debt is over 90%, political uncertainty from the Cabinet reshuffle.”

Create a balance of sales-rental portfolios to reduce risk.

However, despite the challenges faced, Frasers continues to deliver strong growth. With a flexible strategic plan Have a strong financial base and has a variety of businesses Able to create a balanced income from selling and renting real estate. Makes for a continuous income stream

The goal is to generate over 30,000 million baht in revenue in 2027, with assets generating 40% sales revenue and 60% regular income, reflecting readiness for long-term growth under being a world-leading real estate brand with A team with a lot of experience and expertise in many areas. Ready to continue developing quality products and services to meet every need of customers and all groups of users.

“This year, Frasers Property Thailand aims for the residential business to generate revenue of over 13,000 million baht by launching 7 new projects with a total value of over 11,600 million baht, focusing on the single-family home and luxury home markets. oval Ready to balance the portfolio between assets for sale and rental in the proportion of 40:60 to maintain profit levels and stable finances. along with creating financial discipline”

Ready to create a strong rental income stream through the factory and warehouse business that will invest approximately 4,000 million baht to expand the area under management by another 150,000 sq m, increasing from the current 3.5 million sq m. in Thailand, Indonesia and Vietnam with a target occupancy rate of 87%, ready to continue investing to reach 4 million sq m of area under management in the next 2 years.

In addition, we aim to raise the level of service for Grade A office buildings in the city center. and retail areas such as Samyan Mitrtown and Silom Edge, which are believed to maintain a high occupancy rate of 93%.

Source:https://www.bangkokbiznews.com/property/1109835

at 24/1/2024

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