by kevinyeo | Nov 19, 2018 | News
Mixed-use development is booming in one of the city’s prized neighborhoods.
The vibrant Ari-Phahon Yothin neighborhood in Bangkok is being transformed into the newest center for mixed-use developments that include office space and residences for people who are seeking a quality urban living experience.
Along the two-kilometer section from the Ari to the Saphan Khwai BTS stations, in particular, government premises, office buildings, and mixed-use developments have been going up, surrounded by abundant facilities for all lifestyle needs — community malls and department stores, hospitals, eateries, coffee shops and more. Easy to access by foot or skytrain with short time traveling in- or outbound, it’s become the desired location for everyone to move in, and it’s rare that the original residents decide to move out.
Nalinrat Chareonsuphong, managing director of Nexus Property Marketing, the real estate consultant, said the Ari-Phahon Yothin area has high potential to become one of the capital’s next major locations for office space.
It’s already home to some prominent public and private office buildings such as Exim Bank, the headquarters of Government Savings Bank, the NBTC, Kasikornbank’s head office and AIS Tower, but also three brand-new Grade A office buildings: the 25-storey Pearl Bangkok; Ari Hill, the 34-storey mixed-use centre consisting of office space, retail and residential accommodation; and the 24-storey SC Tower. The three buildings are expected to be workplaces for a combined 6,050 people in total.
Moreover, Mrs. Nalinrat said, there are under-construction projects scheduled to be completed in the next few years: The Rice, a 2-billion-baht 24-storey mixed-use development, and Pruksa’s Vimutti Hospital, a 5-billion-baht healthcare project, both expected to open in 2020; and Vanich Place by Laemthong Corporation, a 31-storey office building and community mall set for completion in 2021.
“The continual rise of high-end skyscrapers underlines the fact that this area remains one of Bangkok’s CBDs,” she said, referring to central business districts. “Blending with the charming contemporary lifestyle, it beckons the new generations to move in.”
With its outstanding strength in ongoing developments of office buildings and high-end skyscrapers, plus an easy-to-commute location, Ari-Phahon Yothin has an opportunity to become a city residential center with growth in demand, supply, and prices.
Since 2013, more and more condominium projects have opened, both high-rise and low-rise. Out of 16 projects, 3,318 units were sold, or about 81%, Mrs. Nalinrat said.
Projects newly launched in the two years mainly had a sales rate exceeding 70%. High-end condos (110,000 to 190,000 baht per square meter) hold the biggest market share at 74% or 2,544 units of both high- and low-rise condos. The best-sellers of this cluster are projects with a selling price of 110,000 to 120,000 baht per sqm, mostly in the Inthamara neighborhood, while there is nothing with this selling price developed in Ari-Phahon Yothin. Thus the area is a potential marketing opportunity for the property industry.
“The market demand for low-rise condos in this zone is continually seen, as the price for a residence located in the heart of Bangkok, near the sky train stations, sounds reasonable and affordable,” Mrs. Nalinrat said. “Meanwhile, the selling price of high-rise condos is more expensive, due to the price of the land plot and its availability. Additionally, the advantage of a low-rise one is fewer units in each project, which could bring a vibe of privacy that exactly meets the demands of the modern urban life.”
She said that in the current fast-paced world, one of the most important matters is to have a home in town in a bid to reduce traveling hours and gain more leisure time in style.
Living in Ari-Phahon Yothin could bring homebuyers closer to that goal.
source: https://property.bangkokpost.com/news/1568314/ari-phahon-yothin-an-area-on-the-rise
by kevinyeo | Oct 16, 2018 | News
Property developer Siamese Asset Co is unconcerned about the central bank’s loan-to-value (LTV) limit on mortgage lending, as it already collects a down payment of 20% of the unit price.
It plans to launch two new condo projects worth a combined 10 billion baht in the next two months.
Managing director Kajonsit Singasansern said the new requirement for LTV ratio of 80% the Bank of Thailand asked financial institutions to comply with from Jan 1, 2019, will have no effect on the company’s existing or new customers.
“We have collected a down payment of 20% at our condo projects for many years, so we don’t need to be worried about this new rule,” he said. “It only hurts our competitors.”
There was one project, Blossom Condo @Fashion, where the company collected a down payment of 15% of unit price because the project was in the lower-priced segment, in which most buyers were first-time purchasers.
Last Thursday the central bank announced it would require home buyers to make a down payment of at least 20% of the home value for new mortgages worth at least 10 million baht, as well as for second homes.
“We will continue with our policy of 20% down payment at our new projects as most of them are high-priced, where buyers have strong purchasing power and can pay a high down payment,” Mr. Kajonsit said.
Next month Siamese Asset plans to launch a new luxury condo project, The Collection, worth 4.8 billion baht. It will be located on a 2.1-rai plot on Ratchadaphisek Road, opposite Benchakiti Park.
The project comprises 443 units sized between 33.8 and 135.35 square meters and priced at 6.2-45 million baht a unit, or 240,000 baht per sq m on average. It plans to offer a guaranteed yield of 5% for two years.
The project targets both real demand and investors, estimated to account for 60% and 40% of buyers, respectively, and aims for 70% presales on the launch date.
By year-end, Siamese Asset plans to launch a mid-priced condo worth 5 billion baht located on 2.5 rai near Ratchadaphisek subway station. It comprises three towers with 600 units.
source: https://property.bangkokpost.com/news/1555010/siamese-asset-shrugs-off-ltv-regulation
by kevinyeo | Oct 13, 2018 | News
MAI-listed developer Chewathai Plc (CHEWA) will launch nine new residential projects worth a combined 8.3 billion baht from next month to mid-2019 after freezing new launches for over a year.
Managing director Boon Choon Kiat said most of the new projects being launched next year were postponed from this year, including some condominiums awaiting environmental impact approval.
“For low-rise projects like single houses and townhouses, construction at the sites was delayed,” he said. “We want construction of clubhouses and sample units to be completed before launching sales.”
The new projects include four townhouse projects in Rangsit Khlong 4, with 275 units worth 720 million baht; Pracha Uthit 90, with 391 units worth 890 million baht; Sukhumvit Soi 62/1, worth 160 million baht; and Sukhumvit Soi 36, worth 270 million baht.
Mr Boon said townhouse demand in the Rangsit area is strong, with an absorption rate of five to 10 units a month. In the Pracha Uthit area, the townhouse absorption rate exceeds 10 units a month.
The condominium projects include four sites in Thong Lor Soi 20, with 130 units worth 950 million baht; the Kaset-Nawamin area, with 480 units worth 1.7 billion baht; Charansanitwong Soi 13, with 159 units worth 430 million baht; and Chokchai 4, with 806 units worth 2 billion baht.
The rest will be high-priced single detached house projects with 51 units worth 1.2 billion baht on Phutthamonthon Sai 1 Road, where the company will complete construction of some units before launching for sale.
“We will shift to focus on single houses and townhouses from next year onward and increase the low-rise portion from only 5% to 50%,” Mr Boon said. “Asian people prefer a low-rise unit to a condo, which is just a temporary residence.”
He said condos have seen oversupply in some locations, such as along the Purple Line. But supply is gradually diminishing as developers avoid adding new supply at prior locations.
“It is an auto-balancing of the market,” Mr Boon said.
Chewathai aims to have 2.4 billion baht in revenue for all of 2018, up 20% from 2 billion baht last year.
In the first half, the company recorded 1.45 billion baht in revenue and had a sales backlog of 800 million baht.
CHEWA shares closed yesterday on the Market for Alternative Investment at 1.43 baht, unchanged, in trade worth 8.5 million baht.
source: https://property.bangkokpost.com/news/1550902/chewathai-to-thaw-out-nine-projects
by kevinyeo | Sep 18, 2018 | News
July and August were busy months for condominium developers in Bangkok, with 11,600 new units launched, bringing the total to 33,395 for the first eight months of 2018.
The two-month total was 37% higher than for the entire second quarter of this year, and many more developments are in the pipeline for this month. Consequently, the industry is on track to match or exceed the 2017 total of 56,000 units.
Further success will depend on economic conditions, but purchasing power and consumer confidence have been recovering steadily in line with economic growth rates.
Seventy-six percent of all the new condo units launched in the first eight months of this year have been along existing BTS and MRT lines and around 20% along new routes under construction. The relatively low interest in new lines reflects skepticism among developers and consumers about mass-transit construction, which tends to run three years or more behind official schedules.
As well, new condo projects along existing mass-transit lines continue to enjoy high take-up rates among Thai as well as foreign purchasers. For listed developers, sales rates in these locations have averaged around 65% this year.
Sales to foreigners at some condo developments have reached the limit of 49% of the available space, with units fully booked within hours in some cases. Thai buyers’ purchasing power has also been improving, but some buyers remain concerned about political developments and how the economy will fare under a new government if elections take place next year.
Listed developers continue to be the main players in the condo market, responsible for 58% of all new units so far this year. Another 20% have come from well-known non-listed firms, with small and new developers accounting for the rest.
Some 70% of new units launched this year are selling at below 150,000 baht a square meter, as developers believe unit costs of 5 million baht or less are about right.
The housing market is also showing a positive trend, with a pickup in new projects, especially townhouse developments near under-construction transit systems. Listed developers, in particular, have seen brisk sales for their townhouses.
Single detached housing projects with selling prices below 7 million baht per unit have also done well, especially if they are near future mass-transit lines.
Some 7,000 new detached housing units were launched in the first eight months of 2018, with about 70% of the total price at 5 million baht or less. The average take-up rate of 50% is not low for housing projects and is evidence of a positive trend.
source: https://property.bangkokpost.com/news/1538394/condo-launches-picking-up
by kevinyeo | Sep 17, 2018 | News
The Bangkok condominium market remained healthy during the second quarter of 2018 in terms of demand and prices, says Knight Frank Thailand Research.
While new supply declined by almost half from the previous quarter, this reflected the fact that most developers are planning to launch new projects during the second half of the year. A total of 8,894 new units entered the market, a decrease of 47% from the first quarter.
It is clear that industry participants are increasingly turning their attention to the development of areas around the central business district (CBD) and in the suburbs. This was reflected in the number of new units launched in these two areas, which increased by 6.5% and 2.2%, respectively, compared with the first quarter.
The most popular locations were along the electric train extension lines, especially the Light Green, Blue, and Yellow lines. New project launches took place around the same time in the Lat Phrao, Phahon Yothin, Phetkasem and Charan Sanitwong areas.
Meanwhile, the CBD in the Sukhumvit area remained the most popular location for developers during the second quarter, with two new luxury projects in Asok and Ekamai, totaling 363 units. There were no official launches of new projects in other CBD areas in the quarter.
Data compiled by Knight Frank found that the average sales rate of newly launched units was about 60%. Condos that enjoyed brisk sales were located in the CBD and the suburbs, with the take-up of 70% and 50% of total units, respectively. Areas that were popular with buyers included Sathon-Tha Phra, Rama IX-Ratchada, and Phahon Yothin-Vibhavadi.
Overall, the asking price per square meter for new units during the second quarter of 2018 was 147,800 baht, up 5% from the previous quarter. The increase was driven by new developments in the CBD where average prices were 248,000 baht per sqm, reflecting a 16% increase from the previous quarter.
Market conditions warrant close watching in the second half of the year, with many developers scheduled to launch projects. There is a high probability that the new supply in the second half will be at least 22,000 units. If that is the case, the total supply in 2018 will reach nearly 50,000 units.
Prices in the second half could break a record after six quarters, as more than 40% of the new supply will be in the CBD.
source: https://property.bangkokpost.com/news/1538390/bangkoks-condo-market-steady-in-q2
by kevinyeo | Sep 16, 2018 | News
SET-listed property firm Singha Estate Plc (S) has shifted to partner with Japanese contractor, Daiwa House Industry Co, for residential developments after joining Hong Kong-based investment firm Hongkong Land Ltd last year in a condominium project.
Chief executive Naris Cheyklin said the partnership with Daiwa House will help Singha Estate scale up investment in the future to develop larger projects like mixed-use facilities.
“Our financial status is strong but having an overseas investor can support large-scale investments in the future,” he said.
Next year Singha Estate plans to spend 8 billion baht to acquire at least four plots of land for development of new property projects, up from 6 billion baht allotted for this year. Of the amount, it already spent 3 billion baht.
“This will be a long-term partnership,” said Mr Naris.
“Daiwa House has experience with building low-rise house and high-end condos with prefabricated construction techniques that we can learn from.”
As labour wages in the near future will likely rise to 500 baht a day, which will increase construction costs, prefabricated construction will help ease that risk, he said.
The move will also shorten construction time, which also reduces financial cost.
Singha Estate yesterday announced a partnership with Daiwa House Industry in Eyse Sukhumvit 43, a low-rise condo project worth 2 billion baht, after six months of discussion in the joint venture.
In the partnership with Daiwa, the construction time for the project will be 10% shorter or a few months less than two years.
Last year Singha Estate had a joint venture with Hongkong Land in a luxury condo project, The Esse Sukhumvit 36, worth 6.5 billion baht near Sukhumvit Soi 36, which was launched late last year.
However, Singha Estate will likely join with the Hong Kong property investment group in only one project as the latter’s business style does not mesh with Singh Estate’s.
“Hongkong Land is a very large firm with an aggressive style that may not match ours,” he said.
“The Japanese partner is quite cautious, with slower decision-making.”
After partnering with Singha Estate last year, Hongkong Land partnered with SET-listed residential developer Property Perfect Plc in May 2018 to develop two luxury single detached housing projects together worth 10 billion baht, due to be launched this year.
Robert Wong, chief executive of Hongkong Land, a member of the Jardine Matheson Group, said in May during a visit to Bangkok the company is eyeing a high-end office tower development through a joint venture with Central Pattana Plc (CPN), with holdings at 49% and 51%, respectively.
Both are designing a high-end commercial property project on a 25-rai plot on Wireless Road that was previously owned by the UK embassy, which they purchased for £420 million (17.8 billion baht) from the British government early this year.
S shares closed yesterday on the SET at 3.48 baht, up six satang, in trade worth 145 million baht.
