Sansiri project targeted to woo high net worth Thais
SET-listed developer Sansiri Plc plans to launch a super-luxury single house project, Baan Sansiri Pattanakarn 30, worth 3 billion baht, to tap high net worth Thais, a segment it believes has been growing.
Chief executive Apichart Chutrakul said Thai high net worth individuals, or those with net assets of US$1 million (31.9 million baht) or more, are looking for condo units priced over 250,000 baht per square metre, or single detached houses priced from 20 million baht.
“Location, design, workmanship and services are four key factors to win homebuyers in the super-luxury segment,” he said. “It is more difficult to sell or develop products for this segment than for the mass market as the former has unlimited expectations.”
According to business consultant Capgemini’s Asia-Pacific Wealth Report 2017, the number of high net worth individuals in Thailand rose 12.7% to 108,000 in 2016 from 96,000 in 2015.
The growth rate was second only to Indonesia (13.7%) in Asia-Pacific, which had an average increase of 7.4%. In 2010, Thai high net worth individuals totalled 58,000.
“About 1% of our customer base or 800900 out of 80,000-90,000 customers are high net worth individuals,” said Mr Apichart. “Our target customers for super-luxury houses are those aged 40-plus.”
As for the project, Baan Sansiri Pattanakarn 30 will be located on a 30-rai plot on Phatthanakan Soi 30, a popular area among the affluent.
“Super-luxury housing projects should be in prime location, not in the middle of a field,” he said.
The spending power of people living in eastern Bangkok is higher than those in other zones, said Mr Apichart.
“The Phatthanakan area in eastern Bangkok has high land prices. This zone has high potential and the government is heavily focusing on Eastern Economic Corridor,” he said.
The project will have 50 units of twostorey, single detached houses priced from 65-240 million baht a unit.
The project is set to be launched on June 21.
The company expects to close sales within a year.
Baan Sansiri is the company’s brand for super-luxury single detached houses.
The brand was first launched in 2006 at a project on Sukhumvit Soi 67 with 96 units priced from 27 million baht.
The project on Phatthanakan Soi 30 will be the second one for the company under this brand.