One of Thailand’s leading real estate developers Sansiri has made public their ambitions to tap heavily into the ever-strengthening China buying market.
According to the group Thailand properties provide premium yields of 5%, versus domestic Chinese returns and are five times less expensive on an acquisition basis.
The head of international business for the developer Cobby Leathers has said the group is forecasted THB5 billon in overseas sales in 2016. On a proportional basis the Chinese markets of Singapore, Hong Kong and the Mainland are the key contributors to sales revenue.
In terms of location, the China interest is focused mainly on the major locations of Bangkok. Phuket, Chiang Mai, Hua Hin and Pattaya. As for products, mid-scale condominiums are clearly the top selling units given that freehold foreign ownership is widely available for investors.
Sansiri’s retail unit Plus Property has commented that affordable pricing points in Pattaya are seeing strong demand, especially in the Jomtien, followed by Wongamat. New flights from the Mainland into nearby U-Tapao Airport are expected to accelerate the segment as it provides door-to-door access to real estate buyers.
One key success story of Sansiri across it’s entire business stream, is the ability to tap into the emerging middle class and last year total turnover for the company was in excess of USD1 billion.
In an ambitious move the group has invested heavily into the new T77 project which is an ambitious inner-city lifestyle community. Within the mixed-use elements Sansiri is brining six different products to the market aimed at different price points and segments. One of the key demand drivers of the area is the inclusion of international educational facilities along with innovative commercial and retail offerings. In effect the concept is a horizontal township which makes sense given Bangkok’s sprawling urban landscape.
For Sansiri the China focus simply is rooted in the concept of fishing where the fish are.
