Bangkok, Thailand: Leading Thai property developer Sansiri Group PLC has announced that over the next few years the company will focus on overseas property development. The group said they would be concentrating on London and New York where supply is low and demand for property is high.
The company’s first London project is due to be officially launched in May.
Just six units will be available at the US$19.8 million property in South Kensington, which features Thai style interiors.
“We are focusing on Thais who need an investment or want to buy a residence in London or New York, generating an average yield of four or five percent a year,” commented Srettha Thavisin, Sansiri Group president.
“The property markets in London and New York have shown good signs of recovery since the second half of last year, with banks in both markets starting to provide mortgages to home-buyers, and where the rental sector is also recovering. New York has a vacancy rate of only 2 per cent, which demonstrates strong demand for residences in the city. This is the first overseas project for the company,” he added.
The project is expected to achieve a net profit of at least fifteen percent and account for three percent of the company’s overall revenue target of 22 billion baht (US$735 million) for this financial year.
The company also announced it is considering expanding into other locations such as Phuket, Koh Samui and Pattaya in Thailand.
“We are optimistic about the demand for residential projects this year, in the current absence of business risks that will impact the market. We are concerned only about the domino effect from the crisis in the Middle East and North Africa, which will affect oil prices. However, it is not possible to estimate the business effect from this risk.” Thavisin concluded.
Sansiri are due to start construction of a luxury condominium called Centre Point on Bangkok’s Wireless Road later this year. The property is due for completion in three years and when units go on sale prices are expected to be around US$13,400 per square metre; making it the most expensive condominium in Thailand.
Founded in 1984 Sansiri Group is one of the largest property developers in Thailand and the third Thai developer to invest in overseas projects recently. The other two are; Land & Houses with projects in the Philippines and Indonesia; and Pruksa Real Estate which has invested in the Maldives, India and Vietnam.
The group are also the only property developer in South East Asia to win a Commendation for Excellence at the Asia Pacific Real Estate Awards.