Sansiri Rules Out Expanding In Chiang Mai

[robert10]

Below is extract of article about Sansiri overtaking Land & Houses as Thailand's biggest developer. The company president mentioned expanding out of BKK into Pattaya, Phuket, Samui etc... but ruled out CM. Does he know something about CM that I don't?

Quote

Sansiri is poised to become Thailand’s largest real estate developer this year, overtaking Land & Houses (L&H) for the first time. In 2008, Sansiri recorded sales of Bt15.1 billion, just short of L&H´s Bt15.4 billion. L&H expects 2009 revenue to be flat from 2008 at Bt14.4 billion, but Sansiri is currently targeting Bt17 billion, said the company´s president Srettha Taveesin.

While all the projects launched by Sansiri this year have been located in Bangkok, going beyond the capital will be an important factor in the company’s future growth, Srettha explained. “We definitely plan to do more outside of Bangkok; we are already the biggest player in Hua Hin. We have done six or seven projects there in the past, and although we haven’t had any new launches there this year, we are certainly still looking. We will look at Phuket, Pattaya, Samui, probably the only place we won’t look at is Chiang Mai.”

Unquote

[tigerbeer]

this thread got something to do with the going on rally of the property sector in the Thai Stock Market (SET)? Where did you get this article from anyways?? Was 100% sure that the only market leader that overtakes or has overtaken L&H would be PS - PREUKSA REAL ESTATE. But its all estimated figures anyways! As for "Not looking at Chiang Mai" - they are if i am not mistaken more into condominiums and townhouses perhaps? and Chiang Mai is not a big market for that. or just that the real estate market in Chiang Mai a bit dull when compared to Bangkok, Samui, Phuket, Pattaya? No population support.

currently SIRI trading at THB2.62. Seems like a BUY from the local analysts

[WinnieTheKhwai]

It's possible that they're not looking at Chiang Mai because it's already saturated both in terms of the total market, and also because there are so many local developers? Land & Houses isn't exactly huge in Chiang Mai either.

[IanForbes]

Chiang Mai is not part of the popular beach scene where the bulk of the tourists prefer to visit. Chiang Mai is better for not having the rapid expansion. Slow but steady wins the race in the long run. Germany has a slow growth policy that is far better thought out. They don't grow beyond their ability to provide the proper services. Lack of proper servicing seems to be a problem all over Thailand after the developments go in.

[WinnieTheKhwai]

Chiang Mai is not part of the popular beach scene where the bulk of the tourists prefer to visit.

Sure, but this is a big Thai real estate company; foreign customers don't make an impact on their bottom line either way, it's just too insignificant by comparison.

growth policy

There is no growth policy in Thailand. It's all very Darwinian. It's like rats. If the environment somewhere is favorable for a short time then you get thousands of them. Then when conditions change, there's mass extinction. ( And there's nothing wrong with that.

The best examples are actually the smallest of islands that are being developed. Say Ko Lipe for example. Incredible booming development, but no way to get supplies in, or get the waste out, provide medical or police or other services.. The place basically implodes under its own weight.

Fortunatley Chiang Mai is big enough to deal with both growth spurts as well as periods that aren't as hot economically. But this is not by policy.

Edited May 28, 2009 by WinnieTheKhwai