SANSIRI EYES MASS-TRANSIT AREAS

       Property firm Sansiri plans to construct condominium projects in the corridors between Bangkok's inner-city and suburban areas to cater changes in the market brought about by the planned expansion of the city's mass-transit system over the coming year.
       Executive vice president for business and project development (high rise) Uthai Uthaisangsuk said the company plans to launch 10 new condominium project worth nearly Bt11 billion next year.
       Those located close to the planned new and extension routes for the Skytrain will be sold for between Bt50,000 and Bt80,000 per square metre.
       "This is the customer group we are targeting no - thanks to the new mass-transit routes," he said.
       According to Uthai, the government's policy to expand the Skytrain system has brought about a change in Bangkok's property market, with demand increasing in areas located between the inner city and the suburbs.
       The company's plan to launch new projects in these areas is a direct result of this shift, he said.
       Sansiri is in negotiations to buy undeveloped land along the extension routes from Sathron Station to Wongwian Yai Station and from On Nut Station to Baring Station. Residences along the routes will fetch between Bt700,000 and Bt80,000 per square metre, targeting the middle-income market. Sansiri plans to launch a new brand to market these projects, Uthai said.
       The company has several brands of city condominiums, each targeting a different customer group.
       The brands include Prive, about 76 percent of whose units have been sold; Preen (92 per cent); Hive Taksin (80 per cent); Hive Sukhumvit Soi 65 (80 per cent); Quattro by Sansiri (70 per cent); and Blocs 77 (61 per cent).
       Uthai said demand for condominiums with convenient access to the mass-transit system has continued to grow, but is largely limited to locations between 100 metres and 200 metres from the transport network.
       Sanrisi is limiting projects located more than one kilometre from the extended rail network to low-rise residential structures such as townhouses and detached houses.
       Between 60 and 70 per cent of Sansiri's customers buy condominium units as a primay residence, with the remainder buying in order to rent the residence out, or for other investment purposes, Uthai said.
       According to a survey conducted by the company, customers who buy units to live in see and average return on investment of 6 per cent. Those who rent out their units see an average return of 10 per cent.
       Some customers who sell their units after two or three years have seen returns exceeding 100 per cent, Uthai said.
       Sansiri is interested in launching new condominium projects in Pattaya, Phuket and Hua Hin next year, forecasting strong demand in these locations, he said.
       The company already has two condominium projects in Hua Hin: Baan Bub Kluen (82 per cent of its 180 units have been sold) and Baan Sansuk (81 percent of 229 units sold).
       Most customers buying residences in Hua Hin are Thai, Uthai said, so the projects are unlikely to be adversely affected by any sudden loss of interest in the Thai market on the part of foreigners.