SET-listed developer Sansiri Plc has announced that it is slowing the pace of its business activities in terms of sales and new project launches. In an article in The Nation, the firm cites economic slowdown, diminished consumer purchasing power and confidence, and political uncertainty as the reasons behind its revised 2014 strategic business plans.
Despite such lowered market expectations, Sansiri expects its revenue to grow by at least 10 percent this year, due to a high backlog, which is estimated to be worth over THB 65 billion.
According to the revised plan, Sansiri will launch fewer than 40 residential projects, including detached single houses, townhouses and condominiums, worth about THB 40 billion this year, compared with 49 projects worth more than THB 61 billion in 2013.
Sansiri’s projects are situated in Bangkok and major cities or provinces such as Phuket, Pattaya, Khon Kaen, Udon Thani and Chiang Mai. Plans for residential developments in secondary provinces, such as Phitsanulok, Maha Sarakham and Surat Thani, will be delayed until the economic and political landscape is more stable, with the confirmed go-ahead for the government’s THB 2 trillion-infrastructure mega-project, a major factor that complements Sansiri’s real estate development business.