Listed developer Sansiri Plc (SIRI) is shifting into the lower-priced segment with Habitia, a new brand that will keep down costs through the use of pre-cast construction technology.

Habitia will be developed by Sansiri's subsidiary Piwattana Co Ltd, previously known as Prompt Pattana Co. The new brand will have a sales target of 900 million baht and is set to launch four housing projects worth four billion baht this year.

"We will try to be independent from the parent company's brand, as many customers have high expectation from the SIRI brand," said Suriya Wannabuit, Piwattana's managing director.

The Habitia brand will also be more modern than Baan Promptpatt, a lower-end brand developed earlier by Prompt Pattana, he added.

"Products under Baan Promptpatt, which are duplex houses, fall between single houses and townhouses. It's more difficult for this segment to compete in a highly competitive market," he said.

The company currently has unsold Baan Promptpatt units at two projects - 158 units at its Ram Intra site, worth 347 million baht, and 80 units at its Rama IX site, worth 256 million baht. After these are sold, no more units will be developed under the brand.

Mr Suriya added that single houses under the new brand would be priced below Sansiri's lowest-priced brand Saransiri - at about 3-5 million baht compared with 4-7 million baht for Saransiri.

To develop this segment, the company will apply pre-cast technology with a capacity of 20 units a month, said Mr Suriya, a former Sansiri executive who returned to head Piwattana after spending a year with Preuksa Real Estate Plc, a leader in using pre-cast technology for cheap units.

In 2009, Sansiri plans to launch four Habitia housing projects, each worth around one billion baht. The first is Habitia Ratchapruek worth 1.2 billion baht, on a 77-rai site on 345 Road.

The project will have 364 single houses sized 50-130 square wah with useable areas of 136-172 sq metres and priced at 3-5 million baht. Around eight units have been sold and the company is aiming for 400 million baht in sales this year. The target buyers are new-generation residents with a household income of 80,000 baht a month.

The other three projects are two single-house projects and a townhouse project in Bang Yai and Rangsit. Townhouses will be priced at 1.8-2.5 million baht, which will be the first time the Sansiri Group develops townhouse under two million baht.

Sansiri once developed townhouses for over two million baht with Plus Property Co, another subsidiary.

Mr Suriya said Sansiri has assigned Piwattana to develop low-priced single houses and townhouses on the outskirts of Bangkok while Plus would develop projects in central Bangkok.

SIRI shares closed yesterday on the Stock Exchange of Thailand at 1.75 baht, down three satang, in total trade of 1.9 million baht.

source : www.bangkokpost.com