In a rapidly intensifying property market, real estate developer Sansiri is deliberately sidestepping a potential price war, choosing instead to emphasize value and long-term asset appreciation for its luxury residential offerings. While competitors are reportedly offering discounts of up to 30% on high-end homes, Sansiri maintains its pricing strategy, focusing on what it terms a “race for value” rather than a “race to the bottom.”
Intensified Competition in the Luxury Segment
The luxury real estate sector is experiencing a significant uptick in competition, with numerous developers expanding their presence and, in some cases, resorting to substantial price reductions. According to Pakpring Karoon, the company’s deputy vice-president, this trend has become particularly pronounced over the past year. Some developers have been observed to be cutting prices on luxury properties by as much as 20-30%. This means that homes previously listed at approximately 50 million baht are now being marketed for around 39 million baht.
This aggressive pricing strategy emerged in late 2025 and intensified throughout the first half of 2026, fueled by an increasing number of developers entering the lucrative luxury market. The influx of new projects and the subsequent pressure to attract buyers have led to a crowded marketplace where price has become a primary competitive tool for many.
Sansiri’s Value-Driven Approach
Sansiri, however, is charting a different course. Ms. Karoon articulated the company’s philosophy: “We are not competing on price. We are competing on value.” She cautioned against the widespread practice of deep discounting, stating, “If everyone continues cutting prices, the market simply enters a race to the bottom.” This perspective suggests a belief that sustained price reductions can erode the perceived value and long-term viability of luxury properties.
The company’s strategy is rooted in the evolving preferences of today’s luxury property buyers. Ms. Karoon noted that discerning buyers are increasingly looking beyond mere price tags. Their focus has shifted towards a more holistic evaluation that includes potential capital appreciation, superior design quality, comprehensive after-sales services, and a developer’s proven ability to maintain and enhance property values over time. “Luxury buyers today are no longer looking only at price. They want value and capital appreciation,” she explained. “A home priced at 80 million baht should be worth 85-90 million in five years.”
Key Factors for Premium Buyers
Sansiri identifies several critical factors that premium buyers now consider paramount:
- Long-Term Asset Value: The potential for the property to increase in value over the years is a significant consideration.
- Quality of Design: Architectural aesthetics, functionality, and innovative design contribute to a property’s desirability.
- After-Sales Services: The level of support and maintenance provided by the developer post-purchase is crucial.
- Developer’s Track Record: A history of successful project delivery and value preservation builds buyer confidence.
- Liveability and Community: The overall living experience, including the quality of established communities, plays a role.
- Long-Term Management Standards: Robust property management ensures the continued appeal and value of the development.
These elements are seen as more reliable indicators of future resale value than short-term promotional pricing or discounts.
Sustained Demand Through Differentiation
This focus on intrinsic value and quality has proven effective in maintaining demand for Sansiri’s premium projects, even amidst a challenging economic climate and increased market competition. Notably, the company’s Narasiri projects, located on Borommaratchachonnani Road and in the Krungthep Kreetha area, have reported strong sales performance without resorting to price reductions.
The Narinsiri Krungthep Kreetha development, featuring homes priced around the 50 million baht mark, is nearing a sell-out. Ms. Karoon expressed that this level of success was somewhat surprising given the prevailing economic conditions. She attributed the strong sales to several factors, including a loyal customer base upgrading from smaller homes and the appeal of Sansiri’s established communities and its long-standing reputation for maintaining high project quality.
“Many buyers were our existing customers upgrading from smaller homes, while others were attracted by the company’s established communities and proven track record of maintaining project quality over time,” Ms. Karoon stated.
Future Strategy: Product Differentiation Over Discounts
Looking ahead, Sansiri plans to continue its strategy of product differentiation and sustainable pricing. While acknowledging the broader housing market faces pressures from economic uncertainty and rising development costs, the company remains committed to its value-centric approach. It will prioritize innovation in design, quality of construction, and superior customer service to attract and retain buyers in the luxury segment.
This approach aims to build long-term customer loyalty and ensure the enduring value of its properties, positioning Sansiri as a developer focused on sustainable growth and customer satisfaction rather than short-term sales gains driven by aggressive discounting.
