‘Sansiri’ designates Y2021 ‘The Year of Hope’ with 3 strong aspirations:
Sustaining growth with MB26,000 in sales and MB27,000 in transfers, and support SME and small real estate developers to spur on Thai economy
- Sansiri (SIRI) designates Y2021 as the year of strength for Sansiri standing solid on three key pillars – Speed to Market; Customer Centric Strategy; Cash Flow Strategy – towards sustained liquidity with as much as 15,000 million baht cash in hand (Cash is King) and gearing ratio reduction from 1.7 to 1.3, reflecting financial strength
- Y2021 is also designated as “The Year of Hope” – another challenging year ahead, but getting set to move forward with three strong desires to return smiles to customers, Sansiri Family and the society.
- The hope for homes amongst the Thai people by introducing strong and affordable brands and a wider variety of products in every price range covering locations both in Bangkok and the perimeter and to penetrate real-demand groups with designs that fulfill every desire to increase the chance of everyone to own a dream home.
- The hope for strength of Sansiri, to move forward with “Speed to Market” and the cash flow strength in Y2021, while supporting SMEs and smaller real estate developers so as to help drive the Thai economy forward – together
- The hope to continue to bring smiles to the Sansiri Family and the society by leveraging “Made for Life…Made for Everyone” towards more approachable brands, and get ready as we join hands with major partners in the food industry to create a new phenomenon within these two business groups. And to bring smiles to customers and Sansiri Family with a vigourous fight against COVID-19 through Sansiri Care, and return assurance to SMEs and the society with our Sansiri Sustainable Mission.
- Setting sustainable pre-sales growth targets of 26,000 million baht and 27,000 million baht of transfers through a solid plan to launch 24 new project worth a total of 26,000 million baht under quick adaptation to every conceivable situation.
“Last year, in 2020, Sansiri was faced with a business challenge of the COVID-19 pandemic that has sent repercussions throughout the world including Thailand. It was another challenge that we have strongly weathered in our 36-year history similar to the Tomyum Goong crisis of 1997. The business strength of Sansiri has been derived from the determination to conduct our business on the basis of trust, and confidence amongst our customers until Sansiri has become the top-of-mind brand amongst those who want to own homes. This, in turn, has resulted in Sansiri achieving an undefinable strong performance through the support of the customer groups both in terms of sales and transfers, with a sales volume hitting a target of 35,000 million baht, and closing sales at as many as 35 residential projects worth a total value of 64,600 million baht – reflecting the good management of residual stock, and sales of completed projects. In addition, the Company also posted excellent transfer results for both horizontal and vertical developments with the total transfers of residences in every segment and already delivered to customers worth as much as 45,000 million baht – a 45-percent growth over the previous year and well above target. This has in fact been the highest transfer figure in Sansiri’s history over the past 36 years” Mr. Srettha Thavisin, President of Sansiri Public Company Limited, said.
“Amidst the readiness to adjust the business plan to cope with the volatile economic situation in the past year under the ‘Speed to Market’ strategy to effectively compete in the market through conducting the business with speed, and quick response to the prevailing situation. This has resulted in Sansiri’s sales total in the last two quarters of the year growing against the trend to reach a historic high as derived from quick moves to outmaneuvre the competitors, coupled with strong marketing campaigns developed from Customer Insight – ‘Sansiri Pays 24-month Instalments’ campaign that understood and helped customers to make purchases more easily. We also announced the readiness to provide peace of mind and confidence in choosing a Sansiri project under the ultimate care and protection of the ‘Sansiri Care’ plan as safety and security of the customers is our highest priority. Also expedited alternative sales opportunities through multi-channels in response to those who wanted to own a homes during tough COVID-19 conditions. On the part of project development, the Company leveraged horizontal project brands to emphasize on more accessible and ‘affordable brands’ under the ‘Made for Life… Made for Everyone’ concept with brands such as ‘Anasiri’ with 2-6-million-baht single houses and townhomes in response to the ‘Feel Just Right’ living concept. This approach has created a phenomenal response from the customers following the property launch.
All these efforts have seen tremendous positive feedback from customers after the launch with highly successful sales and transfer figures that translated into the strength of Sansiri in being a brand that is approachable in every price segmentation and thus reflecting the confidence as a top-of-mind brand amongst those who want to own homes with high design standard and project quality, as well the industry leader for its Sansiri Aftersales Services that has captured the hearts of its customers. This is reinforced by the absolute peace of mind provided by the LIV-24 security system which is another factor that convinces customers to choose the Sansiri brand. Securing Sansiri’s leadership in residential developments was guaranteed by two prestigious awards – ‘Marketeer: No.1 Brand Thailand’ in 2019 and 2020’ which is the most recognised award in the ‘real estate: condominium’ category; and the ‘Terra BKK: The Most Powerful Real Estate Brand 2020’ for the past three successive years – resulting in Sansiri becoming the real estate brand most people want to own.
“The success was also the result of the cashflow strategy through prudent management of housing stock along the ‘Cash is King’ philosophy that has led to the reduction of debt burden and increase the liquidity with as much as 15,000 million baht cash in hand, reducing the gearing ratio from 1.7 to 1.3. This financial strength is equivalent to an effective immunity that allows Sansiri to carry on its businesses without disruption regardless of how the situation in 2021 will transpire.”
Overall scenario: 2021
On the direction of the real estate industry in 2021: “The real estate market will grow in the same direction as the country’s GDP, with the main driver being the people’s purchasing power. Therefore, as the current situation is still being affected by the COVID-19 pandemic, because without people buying houses many other businesses will also come to a standstill – from construction materials, paint, bricks, stones, cement, sand, furniture, kitchen equipment, lightings, sanitary ware, etc., these will all be impacted. Real estate is an industry that causes the highest multiplier effect, therefore, the government needs to realise its importance by instituting a wider range of stimulus measures, such as reducing the transfer fee rate, deducting tax on interest costs at a higher rate, increasing the long-term lease duration from 30 years to at least 99 years to attract foreign investors to stay and travel in Thailand more. This will bring with it increased spending and wider economic turnover. At the same time, the government should support the increase in purchasing power for those wanting to own homes by mandating state financial institutions to set aside an amount with low interest rates for those who want to own their first homes to access,” Mr. Thavisin added.
As for Sansiri in 2021, the Company has planned to develop 24 new projects worth a total of 26,000 million baht – an drastic increase from the previous year when 12 projects were launched worth 15,000 million baht. This year’s plan calls for the development of 7 single-detached-house projects worth a total of 12,300 million baht and 12 townhomes and mixed-use projects worth a total of 9,600 million baht, as well as 5 condominium projects worth 4,100 million baht in mainly affordable and medium segments to facilitate easier entry to the Sansiri brand. At the same time, we will also expand our customer base in the luxury segment with new products both in townhomes and single 3-storey houses under a new brand. This is expected to the create sales worth 26,000 million baht in 2021, divided into 16,000 million baht at horizontal developments and 10,000 million baht for condominium sales. Also, the transfer target is set at 27,000 million baht, divided into 16,000 million baht in transfers at horizontal projects and 11,000 million baht for transfers of condominiums. Meanwhile, Sansiri has presales backlog awaiting transfers to support long-term 3-year growth of another 27,700 million baht that will help to create confidence and support strength in every economic situation.
“For 2021, Thailand and its economy are still challenged by the COVID-19 pandemic, but this time we are more ready to deal with the situation while Sansiri is also ready to tackle the problems with ‘Hope’. Therefore, we dub this year ‘The Year of Hope’. This is not just the hope of Sansiri, but the hope of customers, the society and all Thai people.”
2021: The Year of Hope
The hope of owning a home for the Thai people
Sansiri stands ready to step ahead with a strong but approachable brands with new project developments at an affordable price point, a variety of products covering locations in Bangkok and the perimeter with designs that attract a variety of customers to increase the opportunity to own their first home, and the plan to launch projects at affordable prices under the brands “Siri Place”, “Anasiri”, “Saransiri” and “Burasiri”.
This year’s highlight for Sansiri will be new product launches under new brands, starting with the launch of a new brand under a new affordable condominium segment that will attract Young Generation home owners in urban community locations, such as Rachada, Kaset, Ramkhamhaeng and Bangna at approachable prices starting at only 1.xx million baht. At the same time, there will be launches of another new-segment for high-end townhome customers, “SIRI Residence”,which can be found on two superb locations in the heart of the city in the fourth quarter and the launch of the new 3-storey single-detached-house brand, “BuGaan” priced at 30-80 million baht targeting the “Young Successors” with a “modern luxury living” selling point in the Yothin Pattana area. There are only 14 units of these exclusive residences, with sales starting in the second quarter of this year. In addition, Sansiri is set to transfer units at three ready-to-move-in condominiums this year with projects worth 12,200 million baht, namely, XT Huaykhwang, dcondo hideaway Rangsit, and Edge Central Pattaya where it has received tremendous response from customers.
The hope for fortified strength of Sansiri
“Speed to Market” has been the strategy that helped to propel Sansiri through 2020 with adequate liquidity to weather any situation. In 2021, we will continue with this strategy to compete in the market with the capability to adapt quickly, and this has led Sansiri to have continuously sufficient cash flow, as well as the prudent planning of new developments, such as the plan for projects that are not too big but spread out to many locations to allow for proper inventory and quick returns, taking into account good liquidity and controllable debt gearing ratio, as well as the company reorganization to plan the workload of the employees for optimum efficiency and equal growth opportunity. Furthermore, the strength of Sansiri was also derived from the confidence amongst foreign customers as the Company could create good sales and transfers as seen from the foreign sales in the past three years that topped 15,000 million baht. This year, the Company has set the transfer target for foreign sales at 3,000 million baht beginning with the transfers at new projects, namely, XT Huaykhwang and Edge Central Pattaya.
“However, under the current situation, small- and medium-size developers may decide to sell off their projects or pieces of land. As we have the financial strength, this is an opportunity to choose to acquire these assets. This is not only good for Sansiri, but also good for the society and the economy; in the big picture as there will be less bad debt in the system and also to help fellow real estate developers who are small- and medium-size to remain in operation and not having to shut down their businesses,” Mr. Srettha said.
The hope to continue to bring smiles to the Sansiri Family and the society
By conducting business with strong Customer Insight and having received the confidence from customers throughout the past 36 years, this year, Sansiri will move forward to reinforce its strength with the strategy “Made for Life … Made for Everyone” to create the brand that is more affordable and approachable by everyone. At the same time, the Company is determined to provide an extraordinary living lifestyle that is in essence a “house that is more than a house”. This year, Sansiri will aim to become the most approachable brand in the mass market by joining up with a major partners in the food industry to create a campaign that is fun, colourful and accessible for customers. This project will be launched in the first quarter of this year to continue to bring smiles to the Sansiri Family. And while, choosing for the right housing choice with Sansiri, we will bring additional comfort and welfare by offering the best protection and security under “Sansiri Care” – because the customers’ safety is our ultimate concern – along with the “Sansiri Living Solution” aftersales services, because a home must be more than just a house.
“Sansiri has also planned to help bring smiles to SMEs by buying merchandise and services from SMEs and opening them to other business opportunities and widening their sales channels, because SMEs are Sansiri’s customer base – if SMEs can sell their wares and services, Sansiri can also sell their houses. Sansiri also helps to bring smiles and develop the society and communities surrounding if projects through donations and social activities, and bringing smiles to children through our cooperation with UNICEF throughout the past 10 years in order to push for change in the societal development and the quality of life of children and youths at the national and international level – also under 17 cooperative projects at the national level through agreements between Sansiri and business partners, such as the moratorium on the use of child labour, the push for a law on iodine on the national agenda as well as cash donations to support more than 18 million children worldwide who were faced with emergency situations who would then receive measle vaccinations and clean potable water. In 2021, we will continue our quest towards sustainable business operation as an organisation that considers the environment as our top priority – towards the “Sansiri Sustainability Mission” to create concrete key changes in society and Thailand in regards to waste management and green spaces – to create smiles for this world of ours,” Mr Srettha concluded.
