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Condo Developer in Thailand, Sansiri Cuts Revenue Target

By on Dec 18, 2013 in Property News, Residential

Sansiri, a large condo developer in Thailand, has lowered this year’s revenue target from Bt35 billion to Bt30 billion because of the slower economy and the political turmoil in the final quarter. Chief operating officer Wanchak Buranasiri said the company had recorded presales of Bt42 billion in the first 11 months of the year. It noted that the demand for new homes had dropped both in Bangkok and upcountry as the economy slowed.

“We saw the signs of purchasing power for homes dropping since the third quarter, while the political problems in the last quarter of the year also had a negative impact on people’s confidence to buy a home. The average number of potential customers visiting our residential projects dropped by about 5 per cent. As a result, we decided to lower our presale and revenue targets to match the demand in the market,” he said.

Sansiri’s business strategy for the new year also calls for fewer launches of residential projects than this year’s 49. However, the company has a backlog of homes already sold and awaiting transfer worth Bt62.16 billion. They will be transferred over the next three years. Up to 70 per cent of the backlog is condominiums. This will be enough to support business growth next year despite fewer new launches, Wanchak said.

The company still targets presales of at least Bt45 billion and revenue not lower than Bt30 billion for 2014.

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