SET-listed developer Sansiri is preparing for a fragile market in the second half by securing bank loans totalling 15 billion baht, seeking to enhance foreign demand and launching upper-end projects.
Uthai Uthaisangsuk, president of Sansiri, said the residential market slowed as demand in the middle to low-end segments weakened. These groups were unable to secure mortgages based on several negative factors.
"Developers should exercise more caution about their financial status in the second half as this sentiment persists," he said.
"Though GDP is expected to grow by 2.5% in the next six months, the positive impact on the residential market will occur 6-12 months after that."
Mr Uthai said the company has secured bank loans totalling 15 billion baht, including 10 billion from Siam Commercial Bank and 5 billion from Kasikornbank (KBank), for new projects being launched this year, without being required to show the project's presales rate.
KBank is supporting new projects in Pattaya, Charoen Nakhon and Pathum Thani.
This year, Sansiri plans to launch a total of 46 new projects worth a combined 61 billion baht, the largest in the industry.
In the first half, it launched 20 projects worth more than 22 billion baht and recorded 25 billion baht in presales.
Of the first-half presales, 4 billion baht came from foreign buyers, mainly Chinese. The company aims to have 7 billion baht in presales by the end of this year, up from 6.1 billion in 2023.
The overseas market, particularly Chinese buyers, will be the company's focus for the remainder of the year, he said.
In the second half, 26 new projects worth 38 billion baht are slated to be launched, aiming to achieve 27 billion baht in presales for an annual total of 52 billion, up from 49 billion baht in 2023.
Of the new launches, 20 projects worth a combined 34 billion baht are in middle to upper-end segments, while six worth 4.5 billion baht in lower-priced segments.
Fourteen projects are single detached houses and mixed products with duplexes and townhouses, while 12 are condo projects. No single project will consist solely of townhouses, said Mr Uthai.
"Buyers in the luxury segment have no issues with borrowing or purchasing. But given the current sentiment, they may delay making decisions," said Sriamphai Rattanamayoon, chief marketing officer.
She said the market was competitive in the first half, but the company recorded sales as targeted.
Amid unfavourable sentiment, homebuyers usually shopped around and opted for reliable brands with good after-sales services, said Ms Sriamphai.
She said other strategies to attract homebuyers include offering attractive clubhouse and home features, as well as special-focus projects such as pet-friendly condos or low-rise houses with amenities including larger outdoor spaces in units and pet parks in common areas.