Ananda Development, a publicly traded company on the SET, sold shares in five serviced apartments, totaling 2.54 billion baht, to generate revenue in the second quarter. This decision came after several months of being unable to transfer condo sales to buyers from Myanmar.

 

Prasert Taedullayasatit, the CEO of Ananda’s property division, explained that many developers, including Ananda, have been unable to recognize revenue from condo purchases made by Myanmar buyers since April.

 

“These units, valued at billions of baht collectively, have been stuck at the Lands Department offices following the Myanmar government’s crackdown on Thai condo purchases by Myanmar nationals in April,” he stated.

 

Mr. Prasert highlighted that this situation would affect condo transfers and developers’ revenue in the second and third quarters of this year, as Myanmar buyers had emerged as a significant market for Thai condos.

 

The number and value of condo transfers to Myanmar buyers have been increasing and tend to be substantial, unlike purchases by local buyers. Meanwhile, the recovery of the major foreign buyer market in China has been slower than anticipated, Mr. Prasert noted.

 

In the first quarter of 2024, residential transfers in Greater Bangkok to Myanmar buyers surged by 333% to 2.1 billion baht, second only to Chinese buyers, who recorded 5.36 billion baht, an 8% decrease.

 

Ananda transferred residential units worth 3.34 billion baht in the first quarter, a 3% year-on-year decline. Of this, condo transfers amounted to 2.9 billion baht, a 10% drop, while low-rise house transfers doubled to 432 million baht.

 

The company’s transfer value to foreign buyers almost tripled to 1.2 billion baht from 485 million baht year-on-year. The proportion of foreign transfers surged to 36% from 14%, while transfers to Thai buyers dropped to 64% from 86%.

 

Ananda announced on Monday the sale of ordinary shares in five subsidiaries, each 51% owned by Ananda, for a total of 2.54 billion baht. The shares were sold and transferred on June 30, 2024, to Mitsui Fudosan Asia Development (Thailand) Co, which owned the remaining 49% of each subsidiary.

 

The buyer, a subsidiary of Japanese developer Mitsui Fudosan, has partnered with Ananda on more than 30 joint venture condo projects since 2013.

 

The five apartments sold include Ascott Thonglor Bangkok (451 rooms valued at 3.47 billion baht), Ascott Embassy Sathorn (393 rooms valued at 3.34 billion baht), Somerset Rama 9 (445 rooms valued at 2.5 billion baht), Lyf Sukhumvit 8 (196 rooms valued at 644 million baht), and Somerset Pattaya (324 rooms valued at 1.9 billion baht).

 

 

Source: Bangkok Post

 

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The editorial team at Invest Bangkok Property