Sansiri and Japan-based Tokyu Corporation began their joint venture arrangement in 2017 with a focus on condominiums. After the development of three projects and a major shift in the Bangkok real estate market, the pair are switching to low-rise housing where demand in their view is stronger.
The duo recently launched their first low-rise project, Burasiri Krungthep Kritha, in suburban Bangkok. The project will eventually contain 276 single detached homes and is being introduced in phases. Phase one contains 87 homes and is 80 percent sold. Prices start at a tick under THB15 million.
For Tokyu and Sansiri, the move to low-rise housing allows them to further their partnership in the short term while waiting for the Bangkok condo market to rebound.
“We have not given up on condo projects but will wait for their recovery which will be likely soon. We are studying the next projects to invest in, be it luxury, middle-end or affordable segment. Locations will remain in Greater Bangkok,” Tokyu Senior Manager in Thailand, Takayuki Matsumoto, told the Bangkok Post. “Other Japanese property investment groups like Hankyu Hanshin, Nomura Real Estate and Sumitomo Forestry that co-invest with Thai developers see the same trend of robust low-rise housing market.”
The joint venture between Tokyu and Sansiri has completed three Bangkok condominiums: Taka Haus Ekamai 12, The Base Sukhumvit 50 and XT Ekkamai. According to the partners, the first two are sold out while the third is closing in on that mark.
Sansiri sees noticeable growth in luxury housing
Sansiri is expecting to see significant growth from its luxury housing business this year and plans on launching more developments in this segment. The homebuilder revealed low-rise housing sales and transfers could increase by 15 percent in 2022 with the sector being unaffected by ongoing economic issues.
“Low-rise houses priced THB10 million and above have shown a positive sign since last year,” Khun Anat Kittikulmethi, Sansiri Deputy Managing Director of Project Development for Low-Rise, stated. “Demand is on the rise but supply is limited, particularly in locations close to the central business district.”
The developer recorded THB2 billion in low-rise luxury home presales during the first quarter which accounted for more than 40 percent of all presales in the low-rise housing segment. Sansiri has readjusted its plans to ensure it is better positioned to capture demand.