by kevinyeo | Oct 29, 2017 | Project Reviews & Site Visits
What makes a property investment great?
Simply put, the property has got to give good rental yield and the potential to generate better than average capital appreciation.
For you to achieve that, you ought to get 3 things right. The right location, the right property, and the right timing.
And in The Line Sathorn by Sansiri, you will be able to find all these 3 conditions.
The Right Location
There are countless articles about the pros of investing in Thailand, Bangkok. If you are just starting to explore, here’s an article that can get you started: A Compelling Case To Invest In Bangkok
Within Bangkok, there are several good locations for investment in Bangkok properties. Each area does have its own merits.
However, if your budget allows, investing in Bangkok’s central business district should always be your priority.
The reasoning is simple. Firstly, good land plots in CBD for redevelopment are limited in supply. This, in turn, leads to the ever-increasing land price in the area. It is never a bad idea to own a freehold real estate in an area where supply is limited and the price is on the uptrend.
Launched in 2013, The Diplomat Sathorn which is situated right beside The Line Sathorn has saw an annualized gain of 7.27% per annum. With an average entry price of 200,000 Bhat / psm, investors are now able to sell at around 250,000 Bhat / psm.
Secondly, investors always like to ask me this million dollar question: “Kevin, who can I rent the property to?”
From my years in the real estate industry, I can share with you it’s never just about the promised yield. What’s the point of being promised high yield when it takes 6 months to find a tenant?
You should also take into account the demand (aka turn over to find a tenant) as well as the quality of your tenant pool.
The CBD is where all your grade A offices are, where most of your middle to C level executives work. We all know how bad the Bangkok traffic is. For them, it is always desirable to be able to stay not too far from their workplace. Same for Bangkok, same for any major cities in the world.
You as a landlord would also want to be dealing with high-quality tenants as they will be the ones who can afford to pay a premium to rent your property.
Thirdly, you will be happy to know that prime CBD properties in Bangkok are still able to fetch you a good rental yield at about 5%!
The Right Property
The Line Sathorn – Simplicity In Everything. This tagline conveys the idea that the superior location + Sansiri’s smart home technology gives you the ultimate convenience and the ease to do everything comfortably.
The Line series is a joint venture between public listed luxury developer Sansiri and BTS group. The ultimate selling point of every development under The Line series is that they are right next to a BTS station. Nowadays in Bangkok, the premium attached to a development is greatly determined by the proximity to the BTS or MRT station.
The Line Sathorn is right next to Surasak BTS on Sathorn Road. 0 meters to BTS means you will always get to your destination on time rain or shine. Sathon Road is lined with skyscrapers and corporate offices, especially banking and finance related. Thai and International banks such as SMBC and Citicorp have their headquarters located along Sathon Road.
No lack of amenities.
Nestled amongst 5-star luxury hotels.
Surrounded by multi-national corporations.
All the swanky restaurants within your reach.
Lifestyle conveniences at your doorstep.
And you are just 4 Skytrain stops away from Siam, Bangkok’s famous shopping belt! Shop, wine. dine and party to your heart’s content.
The Line Sathorn is made up of 46 stories with only 9 residential units on each level. Made up of 1 bedroom and 2 bedrooms units. Every unit faces the east where you get a unblock view of the famous Bangkok city skyline.
Unblocked because next to the development is a school with a field. 1 less headache for the investor who has to be torn between which facing he has to choose. (Sorry to the residents of Diplomat, who will be blocked)
This is what you will be getting when you come home every day. An awesome view that takes your breath away.
The Right Timing
There has been no better time to enter Thailand’s property market. The trend is in your favor.
The affluent Thais, who used to prefer staying in mansions outside the city are now wanting to move back into central Bangkok. They want access to the best restaurants, lifestyle amenities, and hospitals. Thailand is also fast becoming a major property market among international investors.
I can personally attest to that, based on the high number of enquiries I have been receiving from overseas investors, especially from Hongkong and China.
Thailand has all the same favourable fundamentals as other major real estate markets around the world – the geographic location as the gateway to Asean, the readiness of transportation infrastructure for both living and investment in diversified industries as well as the high number of real estate on offer in the market. More importantly, Thai property law has provisions that allow foreigners to buy and own freehold land. Bangkok is also the capital with highest demand and supply for real estate among major cities in the Asean region
According to www.globalpropertyguide.com, property prices in the world’s top real estate markets like the US, UK, as well as in Asia, e.g., Singapore, Japan, Taiwan and Hong Kong, are far more expensive than in Thailand, from 2 to 6 times. Therefore, real estate investment in Thailand offers a higher return.
The high–end segment possesses even higher prospects, with growing demand and price aligned with the country’s advancing economic competitiveness.
Many Will Be Disappointed
The Line Sathorn will be launching worldwide on 4th November. News from official sources indicates that the interests in this property are already 2x oversubscribed.
There are only 327 units available. Not enough to satisfy the 500+ interests collected.
Sansiri will be allocating only about 40 units (subject to change) to international investors. First come first serve basis. So act fast while stocks last!
Pre-booking has started. To find out more about The Line Sathorn, please visit the developer sales website. Download the brochure and price or book an appointment to find out more.
by kevinyeo | Oct 25, 2017 | Project Reviews & Site Visits
On Bangkok’s most prestigious boulevard Wireless Road stands a monument of timeless grandeur.
Herald 98 Wireless, the ultimate luxury built for the world’s elites.
Cool white interior, Italian marble staircases, and subtle leather furniture. After 30 years in the business, renowned Thai developer Sansiri went for the very top of the market.
Crafting The Masterpiece
To perfect this majestic masterpiece, Sansiri worked for 7 painstaking years with architect and designer Kirk Ellis from award-winning architecture firm DWP.
When it comes to the selection of materials, Sansiri uses nothing but the best for 98 Wireless. Moleanos limestone for the facade, white-oak herringbone floors, and imported rare mahogany crotch door panels.
Her plush interiors are styled exclusively by Ralph Lauren Home.
Just waltzing through the 23 meters lobby is probably the one of the grandest lobby you will ever experience in your lifetime.
The end goal is to achieve that sense of grandeur, something special, without being opulent and over the top.
98 wireless is true to neoclassical Bo’s art design originating from Paris. That style both as far as architecture and interiors would promote and project that sense of solidity permanence, clam stature that there’s that to it.
The Pinnacle Of High-end living
Sansiri wanted to create a sense of space for those who can afford it. 30% of the building is set aside for residents from pools to gyms to entertainment venues.
Private lift with express doors for each of the 77 units.
In line with 98 Wireless’s promise to offer truly superior living, residents are chauffeured in the property’s exclusive limousine — a brand-new Bentley. Sansiri has also engaged global lifestyle concierge service Quintessentially, which has long served members of the British royal family — ensuring royal treatment for all residents.
The Best Now Comes As A Standard
Affluent Thais are abandoning the suburbs and coming back into the city centre. They want access to high-end restaurants, shopping malls, and even health care.
And in Sansiri’s desire to harness this trend, they have successfully brought New York’s Fifth Avenue glamour to Wireless Road.
98 Wireless is Sansiri’s answer to true luxury.
Should you wish to inspect this wonderful masterpiece, please note that it is strictly by appointment. For more information please visit https://98wireless.official-site.sg/
by kevinyeo | Oct 21, 2017 | Bangkok Property Market Updates, Developer Watch
First developer to use artificial intelligence
Sansiri Plc, a property developer, plans to introduce a new Thai voice-enabled smart assistant for their Sansiri Home Service mobile application. The application, built on artificial intelligence (AI), will be used in its condominiums and detached house projects starting next year.
The company adopted technology from Amazon Web Services, the on-demand cloud computing platform under Amazon.com, with a wide range of offerings, including AI for consumer living.
The new technology was introduced in cooperation with Dailitech, a local IT company.
Chief technology officer Tawicha Trakulyingyong said the company is being transformed through its investment in innovation.
“With 35 years of experience in the Thai property market, we have observed rapid changes in customer lifestyles during the digital era,” said Mr Tawicha.
“Technology is the answer to upgrading their living experiences.”
Chawapol Jariyawiroj, the Thailand manager for Amazon Web Services, said Sansiri is the first property business to embrace Amazon Web Service’s AI, as well as the first firm in the country to use the Thai language.
Through the collaborative effort, the team developed “Sansiri-AI-Box” by applying Amazon Lex service, allowing users to manage all home-related activities with greater convenience and security.
Amazon Lex is a service for building conversational interfaces using voice and text. It provides high-quality speech recognition and language recognition capabilities.
“This enables more sophisticated, natural language chatbots for the existing applications,” he said.
Vit Niennattrakul, managing director of Dailitech, a developer of Thai-language capabilities for AI systems, said Amazon Web Services’ technologies have many different functions, allowing developers to further create value-added services.
The functions to be fully available in 2018 are basic commands such as utility bill checking, and parcel and facility status (such as the availability of yoga classes).
Smart home automation features include electricity control, temperature regulation, automated curtains and television channel switching.
Functions with more interactive services, including basic information, are facilitated through voice control. These include weather forecasts, traffic updates, daily news summaries and changing radio stations.
Mr Tawicha said new features, covering health, food, travel and shopping, will be added.
Intelligent Amazon technology will also be used to enhance Sansiri’s sales, business and service capabilities, he said.
Projects By Sansiri
Taka Haus
The Line Sukhumvit 101
The Line Sathorn (Launching)
Oka Haus (Launching)
by kevinyeo | Oct 21, 2017 | Bangkok Property Market Updates
“I decided to buy a condominium at Rama IX because the location has more facilities to support my lifestyle, including being close to the MRT, a shopping centre, my office, a hospital, school and university,” said Saowanee Jeeradechatham, 34, who purcha
“At that time, we wanted to buy a condominium costing no more than THB 2 million in the existing central business districts, such as at the head of Sukhumvit Road, Silom, Sathorn or Ploenchit, but the properties there were too expensive. But the Rama IX-Ratchada area had similar facilities to the existing CBDs, and condo prices there were more than 50 per cent cheaper, which persuaded me to buy,” she explained.
Tullaya Leangwattanahiran, 44, who has worked in an office on Rama IX for 12 years, said the facilities available on Rama IX-Ratchadaphisek roads had changed dramatically, and especially over the last five years.
From an urban area of Bangkok noted primarily for its night-life 12 years ago, Rama IX-Ratchada has effectively been transformed into a new CBD due to the number of new office buildings that have opened for business and the many condominium projects that have been launched in the last five years – with most of them now already completed.
“Before the area began to change, when we wanted to go shopping we had to go to Central Lat Phrao, but now we can shop at Central Rama IX. In the area, there is also a community mall, as well as other facilities to serve our lifestyle needs,” she said.
“We decide to build our first head office, SET@93 Ratchada, on Ratchadapisek Road because of the location close to the MRT mass-transit system, which makes transportation easy, besides which this new central business district of Bangkok matches our policy of leading in sustainable building under the concept of energy saving and innovative building on the road,” said Pannavadee Ladavalya Na Ayudhya, the Stock Exchange of Thailand’s (SET) senior vice president and group head for communication and administration.
Besides SET@93 Ratchada, other new office buildings have also opened along Ratchadaphisek Road.
One of the biggest is the THB 6-billion AIA Building, an office complex opened in the area in 2014.
Grand Canal Land is also developing Grand Rama 9, including the G Land Tower and a skyscraper tentatively called the “Super Tower”, which will be a mixed-used project combining offices, retail and a six-star hotel.
The buildings have a combined floor space of 1.12 million square metres and entail an overall investment of more than THB 98 billion.
CP Land, which is owned by CP Group, also has a mixed-used project – Fortune Town – in the area, comprising a hotel, offices and shopping centre.
TCC Land, which is owned by beverage tycoon Charoen Sirivadhanabhakdi, also has an office building on Ratchadaphisek Road.
Risinee Sarikaputra, director and head of research and consultancy at Knight Frank (Chartered), described Ratchada-Rama IX as the new emerging area for office buildings in the capital.
Its Grade-A office buildings featured a higher rental price of up to THB 800 per square metre last year, which is expected to rise to THB 900 per square metre this year. The average rental rate was THB 750 per square metre towards the end of 2015.
This year, it is anticipated that there will be 195,245 square metres of new office space added to the supply, up to 147,150 square metres of which will be located outside the CBD, while just 48,095 square metres will be located within, the director said.
The latter will likely command average rents of THB 1,000 per square metre, she added.
With several office buildings opening for operations in the location, the challenge for property companies is to develop residential projects to support demand.
“My friend decided to move from her home on Wongsawang Road to Rama IX when the new condominiums launched in this location were priced below those in the existing CBDs by offering prices below THB 2 million per unit. The location is also near to her office,” Tullaya added.
Residential boom
According to a survey by The Nation, a number of leading property developers – Pruksa Real Estate, Sansiri, Noble Development, AP (Thailand), Land & Houses, Ananda Development, Areeya Property and Supalai – have launched projects to support the new demand for housing close to people’s workplaces in the Ratchada-Rama IX-Asoke area since 2012.
These condominium projects are together worth more than THB 200 billion.
For example, Noble Development has launched the THB 2.8-billion Noble Revolve Ratchada 2, while Pruksa Real Estate has introduced the Condolette Midst Rama 9 condominium, worth up to THB 2 billion and comprising 433 units.
Pruksa’s project follows the successful launch two years ago of its THB 1.35-billion Ivy Ampio condominium, which has been sold out. Ivy Ampio units are being transferred to customers late this year and early next.
Supalai has introduced 10 condominiums together worth more than THB 10 billion on Ratchadaphisek Road since the beginning of last year. They will be completed this year.
Meanwhile, AP (Thailand) is launching four condominium projects on Ratchadaphisek – the Life @ Ratchada-Huatkhwang, Rhythm Ratchada, Rhythm Ratchada-Huatkhwang and Life Ratchadapisek –comprising 2,740 units.
Ananda Development is developing the THB 2-billion Ideo Mobi Rama IX, which will have 703 units.
LPN Development has also developed two condominium projects in the area – the Lumpini Park Rama IX and Lumpini Place Rama IX-Ratchada – worth about THB 4 billion combined and with a total of 2,705 units. The projects are now complete.
Underground a major draw
One of the main reasons the area from Ratchadaphisek to Rama IX junction is such a popular location for office property, as well as for residential projects, is its proximity to the MRT underground rail system.
The area also continues to have more freehold land available for the development of residential projects than areas such as Sukhumvit and Rama I, close to Siam Square, where space is limited and land prices are higher than those suitable for homes costing no more than THB 200,000 per square metre.
Jones Lang LaSalle (Thailand) managing director Suphin Meechuchep said this location had been attracting property firms since the MRT began operating in 1999.
And, when the SET decided to build its headquarters there three year ago, financial firms were challenged to expand into the area.
The area will likely be a thriving new CBD now that Sukhumvit, Sathorn and Silom have high density and limited land available for commercial and residential development, he said.
The area has been changed from a night-life location to one with the modern Central Rama IX shopping centre, Esplanade community mall, and modern office buildings under the ‘green’ concept, such as the AIA, SET@93 Ratchada and Super Tower, he added.
The boom in new condominiums and office buildings opening on this part of Ratchadaphisek Road has boosted the price of land in the area to an average of THB 800,000 per square wah (THB 200,000 per square metre), up 33 per cent from the 2011 level.
by kevinyeo | Oct 17, 2017 | Bangkok Property Market Updates
Developers focus on Asok-Thong Lor belt
The price of land in the area stretching from Asok to Thong Lor has risen at the rate of 19% per year in the past seven years, driving up prices of new condominiums in the belt by 9% per year, says consulting firm Nexus Property Marketing Co.
Nalinrat Chareonsuphong, the managing director of Nexus, said land prices in this sought-after area rose from about 350,000 baht per square wah seven years ago to 1.01 million baht per sq w this year.
“The key reason is limited land supply in the area,” she said. “It is one of the top residential locations in Bangkok that mixes the lifestyle demands of a great number of prospective buyers.”
According to research conducted by Nexus, the biggest increase in land prices in the Asok to Thong Lor area was recorded in upper Soi Thong Lor with a rise of 22% per year during 2011-2017.
It was followed by other key sois off Thong Lor and Sukhumvit Road in the area, which increased 20% each per year during the period.
Lower Sukhumvit Soi 39 to Soi 49 saw a rise of 18% in land prices per year in the period, followed by lower Soi Thong Lor, which recorded growth of 17%.
“Most of the plots acquired were developed as residential projects including condominium and rental residences like serviced apartments or hotels as this area is one of the most stylish locations in Bangkok,” said Mrs Nalinrat.
She estimated land prices in this location will continue to rise with an increase of at least 10% per year expected over the next two years.
From 2012 to the third quarter of this year, property developers have remained confident of demand growth for condominiums in the Asok to Ekamai area, with the number of new units on offer at present totalling 14,332 units in 48 projects.
The growth rate for supply of new condominiums in the past six years in the area was 67% per year.
From the first nine months of 2017, new condominiums accounted for 29% of the total supply or 4,281 units in 17 projects, signalling property developers’ confidence in the location.
Segment-wise, the largest number of condominiums in the Asok to Ekamai area were high-end projects with 7,919 units accounting for 55% of the total 14,332 units sold.
The next most popular segment was luxury, with sales of 4,089 units, while super-luxury had 2,324 units.
The number of condominium units developed by large developers totalled 9,332, which accounted for 65% of the total. Those built by small developers amounted to 5,000 units, accounting for 35%.
This suggests large developers remain confident in demand for luxury condominiums at this location.
In the near future, eight new projects will be launched in the Asok to Ekamai area. Most of these will be located in the Ekamai and Thong Lor area, being developed by large developers including Noble Development, Sansiri, Singha Estate, MQDC and Ananda Development.
From 2012 to the third quarter of this year, condominium sales in the area have totalled 11,218 units, accounting for 75% of the total supply.
The sales rate in the high-end segment was 77%, while the luxury segment was 74% and the super-luxury segment 74%, partially based on the supply in each segment, said Mrs Nalinrat.
Luxury condominium prices have risen consistently from 2012 to the third quarter of 2017, from 158,800 baht per square metre to 222,944 baht per sq m.
The overall increase in the average price has been seen as a positive trend, except for the period from 2013 to 2014 when the developers were more interested in the high-end segment. As a result, prices rose only slightly during that period.
“The Asok to Ekamai area is the key location for luxury property development by large developers. However, limited land and funding have become factors driving developers to build projects with niche features,” Mrs Nalinrat said.
Developers opt for either high-rise high-end projects, low-rise luxury projects or joint ventures with foreign partners for financial and technology purposes.
Meanwhile, condominium selling prices per sq m have been rising in proportion to the cost of land.
However, in 2016-17, launch prices were kept stable as developers shifted focus to low-rise high-end projects.
As competition in the luxury market remains very high with an increasing number of new projects being launched simultaneously, the product quality is better, offering different features depending on each project, which benefits the buyers, Mrs Nalinrat said.
