SET-listed developer Sansiri is optimistic regarding the Phuket property market, with plans to launch new residential projects worth in excess of 10 billion baht, while it aims to increase the proportion of revenue generated by sales and transfers from 6% to 16% next year.
President Uthai Uthaisangsuk said the residential market in Phuket remains robust, driven by both foreign and local buyers, whose income has been propelled by tourism growth.
"Our sales from Phuket are second only to Bangkok," he said. "Buyers are affluent, including locals with strong purchasing power, as well as Russian and Chinese nationals who purchase high-priced properties."
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.
Sansiri has been active in the Phuket property market for 15 years, launching more than 30 projects across all segments -- just as the company has done in Bangkok -- ranging from condos and single detached houses to townhouses and twin houses.
Next year, Sansiri plans to launch new residential projects across all segments worth more than 10 billion baht. It aims to secure 5 billion baht in sales and transfers, accounting for one-sixth of the company's total revenue.
This would mark a significant increase from the 2.5-3 billion baht recorded per year, which accounted for 6% of its total revenue, said Mr Uthai.
With Sansiri focused on making Phuket its No.2 location after Bangkok, it plans to establish a head office there. He said this move will mark the first time the company set up a second office to house regular staff, a back office, a human resources department, and IT and legal teams, aiming to capitalise on growing demand.
"Property markets in tourist destinations is one of our new strategies for next year, as the number of arrivals will likely rise from 35 million this year to 39 million next year," said Mr Uthai.
Poomipak Julmanichoti, chief strategy officer, said the impact of a strong baht extends beyond tourism and exports, also affecting the foreign buyer segment in the residential market.
"Demand from foreigners, particularly in Phuket, remains robust, but with appreciation of the baht since last month, many have delayed making a decision," said Mr Poomipak.
He said a 5% uptick in the baht value makes Thai properties 5% more expensive for foreign buyers.