SANSIRI LAND BUDGET LIFTED TO BT9 BILLION

       Sansiri has upped its budget for the purchase of land to Bt9 billion this year, from the earlier Bt7 billion, following signs of recovery in the property market in the last four months of the year.
       The company's investment budget comes from its cash flo and the Bt1-billion raised from issue of debentures in the first half of the year.
       President Srettha Thavisin said the company saw strong demand for residential property - both low rise and high rise - in the second quarter through to the end of the year. The number of visitors to its residential projects has increased to an average of 300 to 400 per week. The customers are also quicker in buying residences than last year.
       Due to these factors, the company has decided to increase its budget for acquiring land to develop residences next year.
       Earlier, the company revised its business plan and decided to launch 19 residential projects worth Bt23 billion this year, up from 16 projects earlier. Twelve projects were launched in the first half, while seven will take off later this year.
       There wil be two condominium projects, two townhouse projects, and three detached-house projects. The company aims to boost its presales target from Bt17 billion this year to Bt20 billion.
       The company also expects to achieve revenue of Bt17 billion and net profit of Bt1.4 billion this year, up from Bt15.17 billion and Bt913 million respectively in 2008.
       It also plans to launch residential projects with prices lower than Bt2 million in the current quarter in an attempt to widen its customer group. This is part of its drive to achieve average business growth of 10 per cent this year, he said.
       Srettha added that most of the leading property firms had started to acquire land since the previous quarter, as demand for residences was showing signs of recovery.
       Although demand for residential projects has not recovered significantly, property firms have continued to use marketing campaigns to push sales by offering free furniture, home appliances and other extras, he said.
       Sansiri has set aside a marketing budget of 2 per cent of total sales by focusing on integrating the mass media and alternative media, especially the Internet, he said.
       "We believe the global recession will start to ebb in the last quarter of this year, and as a result we believe the country's economy will also recover if there is political stability. In my view, the political situation is the only risk for our business in the last four months of this year," he said.