Leading property firm Sansiri continues to believe its sales will grow 20 per cent this year.

Moreover, despite the global economic crisis and Thailand's political turmoil, Sansiri expects the same growth rate next year, when many analysts are forecasting a difficult year of tumbling confidence and shrinking domestic consumption.

"Although Thailand's economy will suffer a negative impact from the US subprime crisis and the global economic recession, we believe that real domestic demand for residential projects will continue to grow," the company's president, Srettha Thavisin said in an interview with The Nation this week.

"Some small and mediumsized property firms may suspend their business. That will reduce the competition in the market and, as a result, we believe that our business will continue to grow by up to 20 per cent until the end of this year and next year," he said.

Sansiri's policy next year will be to continue expanding its investments by collecting land for developing new residential projects, including detached houses, townhouses and condominiums, at a volume near that of 2008.

"We cannot say how much we will invest next year. It depends on the price of land and the concept of our projects. However, it will be near to, or more than, we spent this year," Srettha said.

More than half of Sansiri's investments next year will come from its cash flow, which will be boosted by the completion of several condominium projects and the transfer of units to customers around the end of this year. The rest will be borrowed from banks, Srettha said.

"We have cash enough to support our investment plan, and we don't need to raise funds from the market. We have continued to delay increasing our capital by raising funds from the capital market," he said.

Sansiri's shareholders approved an increase in the company's register capital, from Bt6.3 billion to Bt12.6 billion, in January 2007. The plan has since been delayed by poor capitalmarket sentiment.

In 2008, Sansiri set aside Bt3 billion to buy land and launched 15 new residential projects with a collective value of Bt15.7 billion. The company now has a backlog of presold residential projects worth Bt22 billion, awaiting transfer to customers.

Srettha said now was a good time to buy land, because demand from other property firms had fallen as many of them faced financial problems. Therefore Sansiri has more bargaining power to negotiate lower prices with landowners.

"We believe the price of land at some locations in Bangkok may be drop 510 per cent. Other locations will remain stable. This is a good time for us to be collecting land for next year's residential projects," he said.

Meanwhile, Srettha said the company expected its sales for 2008 to reach its target of Bt17 billion because it currently had a backlog valued at Bt22 billion.

Sansiri recorded sales of Bt5.9 billion and a net loss of Bt75 million in the first half of this year.

However, Asia Plus Securities estimates that Sansiri's net profit in the third quarter will amount to Bt493 million, a quarteronquarter increase of 176 per cent.

The broker says that although Sansiri recorded presales of only Bt1.7 billion in the third quarter, the company will generate high revenue when Condo One begins to transfer units to customers. As a result the company will book high revenue and net profit in its third quarter.

In midOctober, both Asia Plus Securities and Capital Nomura Securities were recommending "buy" on Sansiri's stock, with target prices of Bt2.52 and Bt2.50, respectively.

At the same time, Siam City Securities was recommending "sell" at a price of Bt1.11 per share.