Sansiri eyes Q1 presale boost from curbs

Mr Wanchak (left) and president and CEO Chatchai Payuhanaveechai discuss the effects of the central bank's lending curbs.

- +

Related Stories

SET-listed developer Sansiri Plc expects the upcoming lending curbs to help drain housing stock and boost presales in the first quarter by 50%, higher than the usual rate, ahead of the new rules taking effect on April 1.

Chief financial officer Wanchak Buranasiri said the Bank of Thailand's tighter mortgage lending regulations tied to loan-to-value ratio will stimulate the residential market in the first quarter, just like many property measures in the past.

"The first quarter is usually a slower period for the property sector," Mr Wanchak said. "Presales are lower than in the fourth quarter. But due to the new lending curbs, the market will see a lot of activities and campaigns from developers to boost sales of ready-to-transfer units."

At the end of 2018, Sansiri had units that were completed and remained unsold worth 9.5 billion baht. About 3.5 billion baht of the supply was developed by joint ventures with a partner, BTS Group Holdings. Six billion baht was wholly owned by Sansiri.

Of the 6-billion-baht amount, 3.2 billion baht was single detached house, 2.3 billion baht was condo and 500 million baht was townhouse.

Sansiri is running a campaign with discounts of up to 12 million baht a unit to boost sales of ready-to-transfer units at 30 projects in Greater Bangkok, Nakhon Pathom, Khon Kaen, Phitsanulok, Ayutthaya, Hua Hin, Phuket, Surat Thani, Chiang Mai and Udon Thani.

The company aims to have 1 billion baht in presales from the campaign, which runs until March 15, making total presales in the first quarter 50% higher than usual.

In last year's first quarter, Sansiri posted 6.78 billion baht in presales from 1,234 units, up 2% from the first quarter of 2017. Some 3.6 billion baht was from single detached house, 2.17 billion baht from condo, 252 million baht from townhouse and 750 million baht from JV condo.

Sansiri recorded 41.1 billion baht in presales in the first nine months and aimed to have 50 billion baht by the end of the year, which was on target.

"We are not worried about condo transfer to Chinese buyers like many are, because we sold units directly to customers," Mr Wanchak said. "This year we will tap second-tier cities in China to introduce our condos."

Sansiri yesterday joined Government Savings Bank to offer homeownership and retirement financing in one combined package for customers.

With the campaign, customers will be allowed not only to pay a lower monthly payment, but also gain the right to have a reverse mortgage loan when they retire.

"At age 60 or older, customers can convert their home into cash for living expense, in a lump sum or monthly payment, while remaining the owner of the house and can stay in it throughout their life," Mr Wanchak said.

Sansiri forecasts sales of 500 million baht from the campaign.

SIRI shares closed yesterday on the Stock Exchange of Thailand at 1.25 baht, up one satang, in trade worth 20.6 million baht.

PROPERTY NEWS

City plan designates new flood zones

City plan designates new flood zones

The great flood that hit 36 districts of Bangkok will likely provide a good opportunity for adjusting or adding new water management regulations to Bangkok's new city plan and enco...

1 people commented about the above

Readers are urged not to submit comments that may cause legal dispute including slanderous, vulgar or violent language, incorrectly spelt names, discuss moderation action, quotes with no source or anything deemed critical of the monarchy. More information in our terms of use.

Please use our forum for more candid, lengthy, conversational and open discussion between one another.