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Foreign Interest Drives Condo Projects

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Noble Development, a company listed on the SET, is shifting its focus to foreign buyers for new condominium projects in Bangkok due to weak domestic demand.


Sira Udol, the Chief Operating Officer for residential real estate at Noble, noted that the Bangkok condo market was unfavorable in the first quarter of this year, impacting the company’s presales.


“The sluggish Thai economy has weakened local demand,” he stated. “To mitigate the impact on our sales, we are strategically targeting the overseas market during economic fluctuations.”


Adopting a one-price policy, which offers the same prices to both Thai and foreign buyers, has resulted in increased sales to foreign buyers each year since the company began targeting them in 2019, according to Mr. Sira.


In 2020, foreign buyers purchased 265 units worth 1.75 billion baht, followed by 432 units worth 2.3 billion in 2021, 607 units worth 2.82 billion in 2022, and 686 units worth 5.24 billion in 2023.


Despite a 16% year-on-year drop in total presales in the first quarter of this year to 3.36 billion baht, sales to foreign buyers reached 2.2 billion baht, accounting for 66% of total sales for the quarter. This figure is nearly half of the total sales to foreign buyers for all of 2023, Mr. Sira reported.


Approximately 80% of this total came from a new project, The Embassy Wireless, which launched internationally in the first quarter before being introduced to the Thai market. Most foreign buyers were from Singapore, Taiwan, Hong Kong, China, and Myanmar, said Mr. Sira.


“While the number of Chinese buyers has decreased since 2022 due to economic struggles, the emerging market in Myanmar has compensated for this decline, outperforming both China and Taiwan in the first quarter of this year,” he explained.


This project is a joint venture between Noble and the Hong Kong-based investment group Hongkong Land. It is located on a 3.33-rai plot on Wireless Road and comprises 757 units valued at 10.9 billion baht, with unit prices starting at 18 million baht.


Noble aims to achieve 6 billion baht in presales from foreign buyers by the end of this year, with the launch of a new high-value condo project in the third quarter, Mr. Sira announced.


The Nue Prime Asok-Rama 9 project, valued at 13.8 billion baht, is situated at the Rama IX-Din Daeng junction.


“We expect this project to attract international buyers due to its favorable location,” he said. “We continue to conduct a series of online and offline activities in key markets, particularly Taiwan and Myanmar, to expand beyond traditional sales channels and capture new customers.”


Source: Bangkok Post


Yours sincerely,

The editorial team at Invest Bangkok Property


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