SET-listed developer Sansiri is continuing to launch new condo projects as planned prior to the Middle East conflict, while introducing additional support measures for contractors.
Wisut Chanwattharangkun, deputy executive vice-president for project development (high rise), said the company's launch plan for new condo projects remained unchanged, as all construction contracts had already been awarded.
"Although construction contracts for all new condo projects to be launched this year have already been awarded, we have introduced support measures for contractors that may face rising construction costs driven by soaring fuel prices," he said.
Sansiri is issuing bank guarantees for contractors facing liquidity constraints as well as advance payments for construction materials to enable contractors to lock in prices amid concerns over further increases driven by higher oil prices resulting from the conflict.
These support measures were discussed internally in early April to assist 13 partner contractors responsible for condo projects worth more than 10 billion baht, with a support budget set at around 1-2% of total construction costs, said Mr Wisut.
This year, the company plans to launch a total of 33 new residential projects worth a combined 51 billion baht, with presales projected at 48 billion baht and transfers at 39 billion baht by year-end.
The new projects will comprise 16 condo projects worth 26 billion baht and 17 low-rise housing projects worth 25 billion baht.
Presales and transfers for condos are targeted at 23 billion baht and 17.5 billion baht, respectively.
One of the new condominium projects is XT 10 Ekkamai, valued at 7 billion baht, which will be launched in mid-May. It will be located on a five-rai plot between Ekkamai Soi 10 and 12.
This will be the company's third joint venture project this year with Japanese developer Mitsui Fudosan and its sixth since their first collaboration last year.
The project will have a total of 933 units, ranging in size from 25 to 107 square metres, with double-height ceilings for loft units. Prices will start from 3.89 million baht, or an average of 130,000 baht per sq m.
"Target buyers are foreigners and Thais purchasing for rental investment, as the Ekkamai area is popular among expatriates, particularly Europeans, Chinese, Hong Kong, Taiwanese and Americans," said Mr Wisut.
XT is a condo brand first launched eight years ago across three locations: Ekkamai, Huai Khwang and Phaya Thai.
The projects have recorded a foreign buyer quota averaging 47%, with rental yields of around 8% per year.
Meanwhile, 70% of residents at XT Ekkamai, the first XT project in the Ekkamai area, are tenants, with rental rates ranging between 16,000 and 17,000 baht per month.
Although existing condo supply in the Ekkamai area is limited, with many projects reporting 80-90% sold, the company targets sales of 25-30% of units, or around 300 units, by the end of the year.
