Sansiri Optimistic About Phuket Property Market Growth

An artist's rendition of The Society, a community hub in Phuket's Bang Tao-Cherng Talay, which Sansiri will utilise as a head office and sales gallery for new projects being launched there.

SET-listed property developer Sansiri remains confident in the future of Phuket’s real estate market, with plans to launch new residential projects valued at over 10 billion baht. The company is also aiming to boost its revenue from sales and transfers in Phuket, from 6% to 16% next year.

Sansiri's president, Uthai Uthaisangsuk, noted that Phuket’s residential market continues to thrive, driven by both local and foreign buyers, largely benefiting from the surge in tourism.

"Our sales in Phuket are second only to Bangkok," Uthai said. "Our buyers are financially strong, including affluent locals and high-net-worth individuals from Russia and China, who are purchasing luxury properties."

The company has been a significant player in Phuket’s real estate sector for 15 years, having launched more than 30 projects across various segments. These include condominiums, single-detached houses, townhouses, and twin houses, mirroring its approach in Bangkok.

Earlier this year, Sansiri introduced The Standard Residences Phuket Bangtao, a branded project worth over 4 billion baht, with 70% of the units already sold, primarily to Thai and Russian buyers.

Looking ahead to next year, Sansiri is set to launch new residential developments in all segments, valued at over 10 billion baht. It expects to generate 5 billion baht in sales and transfers, which would represent one-sixth of the company's total revenue, a substantial increase from the current 2.5-3 billion baht annually, which accounted for 6% of its revenue.

Phuket is now a key strategic focus for Sansiri, second only to Bangkok. As part of this focus, the company plans to establish a head office in Phuket, marking the first time it will set up a secondary office to house key departments, including back office, HR, IT, and legal teams, to support the growing demand in the region.

"Expanding into property markets in tourist destinations is part of our strategy for next year, with tourist arrivals expected to rise from 35 million this year to 39 million next year," Uthai said.

Meanwhile, Sansiri’s chief strategy officer, Poomipak Julmanichoti, highlighted the impact of the strong baht on the foreign buyer segment. "Although demand from foreign buyers in Phuket remains high, the appreciation of the baht since last month has caused some to delay their purchasing decisions," Poomipak explained. He noted that a 5% increase in the value of the baht makes Thai properties 5% more expensive for foreign buyers.

Source: Bangkok Post