Construction costs for housing and condo projects already launched remain largely unaffected by global uncertainties, although a prolonged rise in oil prices could push up building costs for new developments, says SET-listed developer Sansiri.
Uthai Uthaisangsuk, the company's president, said Sansiri is monitoring cost pressures but expects to keep expenses under control in the short term.
"We are monitoring the situation," he said. "We have around 12 billion baht worth of ready-to-move units that were built at earlier cost levels."
The company also has ongoing projects that use earlier input prices. For single detached houses, Sansiri typically purchases construction materials up to a year in advance and locks in prices for key items.
For condo projects, construction costs are locked in through contracts with contractors, meaning projects already launched face minimal cost impact.
"For new projects, we have started discussions with contractors. If the war drags on, construction costs could rise due to higher oil prices, as oil is a key input in both production and transport," said Mr Uthai.
"However, over the next six months we should still be able to keep costs under control."
Ongart Suwannakul, senior vice-president for high-rise project development, said the company typically sets aside a buffer of 1-2% of total construction costs for condominium development to cushion potential increases affecting contractors.
"For condo projects already under construction, higher oil prices may affect building costs, but the impact is expected to be limited to around 1-2% at most. We will discuss the issue with contractors and help mitigate the impact," he said.
However, Sansiri believes the war is unlikely to drag on long enough to push construction costs beyond manageable levels, Mr Ongart said.
The company is confident it can cope with the situation, having weathered multiple crises, including the 1997 Asian financial crisis, the 2011 floods, the pandemic and the earthquake in March of last year.
"In every crisis, cash flow is the most important factor. During the Covid lockdowns, we accelerated inventory sales. Although margins were thinner, it enabled us to secure funds to acquire land and launch new condo projects from 2023," he said.
This year Sansiri plans to launch 16 new condo projects worth a combined 26 billion baht, with 70% in Greater Bangkok and 30% in provincial markets, particularly Phuket.
In Phuket, where the company has operated for over 15 years, it recorded 70% of units sold at its new low-rise condo project, Rhea by Sansiri near Surin Beach, after launching presales early last month.
In total, Sansiri plans to launch 33 projects worth a combined 51 billion baht in 2026, including 17 low-rise housing projects worth 25 billion baht, Mr Ongart noted.
The company targets total presales of 41 billion baht by the end of the year, a slight decline of 2% from 41.7 billion baht in 2025. Of the total, condo presales are expected to reach 23 billion baht.
Total transfers are projected at 39 billion baht, up 6% from 36.7 billion baht in 2025, with condominium transfers accounting for 17.5 billion baht.
Year-to-date Sansiri has recorded total presales of 5.9 billion baht and transfers worth 3 billion baht.
