by Daryl Lum | Jul 23, 2024 | Bangkok Property Market Updates, Developer Watch
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 recognise 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 30 June 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).
by Daryl Lum | Jul 18, 2024 | Bangkok Property Market Updates, Developer Watch, Investment Analysis
SET-listed developer Sansiri is preparing for a challenging market in the second half of the year by securing bank loans totaling 15 billion baht, aiming to boost foreign demand and launch high-end projects.
Uthai Uthaisangsuk, president of Sansiri, noted a slowdown in the residential market as demand in the middle to low-end segments weakened due to various negative factors affecting mortgage approvals.
“Developers should be more cautious about their financial status in the second half as this trend continues,” he said. “While GDP is expected to grow by 2.5% in the next six months, its positive impact on the residential market will be seen 6-12 months later.”
Mr. Uthai announced that the company has secured 15 billion baht in bank loans, including 10 billion from Siam Commercial Bank and 5 billion from Kasikornbank (KBank), for new projects this year without needing to show the project’s presales rate.
KBank is supporting new projects in Pattaya, Charoen Nakhon, and Pathum Thani.
This year, Sansiri plans to launch 46 new projects worth a combined 61 billion baht, the largest in the industry. In the first half, it launched 20 projects worth over 22 billion baht and recorded 25 billion baht in presales.
Of the first-half presales, 4 billion baht came from foreign buyers, primarily Chinese. The company aims to achieve 7 billion baht in presales by year-end, up from 6.1 billion in 2023. The overseas market, especially Chinese buyers, will be the company’s focus for the remainder of the year.
In the second half, 26 new projects worth 38 billion baht are set to launch, targeting 27 billion baht in presales for an annual total of 52 billion, up from 49 billion baht in 2023. Of the new launches, 20 projects worth 34 billion baht will cater to the middle to upper-end segments, while six projects worth 4.5 billion baht will target the lower-priced segments.
Fourteen projects will be single detached houses and mixed products with duplexes and townhouses, while 12 will be condo projects. No single project will consist solely of townhouses, Mr. Uthai said.
“Buyers in the luxury segment have no issues with borrowing or purchasing, but given the current sentiment, they may delay making decisions,” said Sriamphai Rattanamayoon, chief marketing officer. She added that the market was competitive in the first half, but the company met its sales targets.
In challenging market conditions, homebuyers typically prefer reliable brands with excellent after-sales services, Ms. Sriamphai said. Other strategies to attract homebuyers include offering attractive clubhouse and home features, as well as special-focus projects like pet-friendly condos or low-rise houses with larger outdoor spaces and pet parks in common areas.
by Daryl Lum | 21 May 2024 | Bangkok Property Market Updates, Developer Watch, Investment Analysis
Frasers Property Home (Thailand), a leading residential developer, plans to launch three new condominium projects annually, each valued at over 1 billion baht, to diversify its portfolio and cover all market segments.
Apichart Hengwanich, Senior Executive Vice-President of Condominium Project Development and Operations Support, noted that Frasers Property Thailand Plc, the parent company, was previously the only top 10 developer in Thailand without condominiums in its portfolio.
“The Bangkok condo market experienced a slowdown during the pandemic but rebounded swiftly last year due to a lack of new supply in recent years,” Hengwanich explained. “This makes it an opportune time for us to launch our first condo project this year.”
Several factors are driving increased condo demand, including the government’s budget to boost purchasing power, a downward trend in interest rates, and the potential removal of certain individuals from the National Credit Bureau’s blacklist.
“Many individuals blacklisted by the National Credit Bureau have minor issues,” Hengwanich said. “Removing them from the blacklist would significantly increase the number of potential homebuyers, particularly for condominiums.”
On May 25, Frasers Property Home will begin bookings for Klos Ratchada 7, a low-rise condo project valued at 426 million baht. This marks the company’s first condo project for sale, excluding the leasehold Triple Y Residence in the Samyan Mitrtown mixed-use development.
Situated on a 314.5-square-wah plot on Ratchadaphisek Soi 7, Klos Ratchada 7 will feature an eight-story tower with 111 units, ranging from 26 to 36.4 square meters, priced from 2.99 million baht per unit. The project targets current renters in the Ratchadaphisek area, particularly those paying around 7,000 baht per month.
Frasers expects more than half of the units to be booked within the first two weeks of the launch.
In the first quarter of 2024, Frasers Property Thailand reported a 4.5% increase in revenue from its residential development business, reaching 2.37 billion baht compared to the same period last year.
by Daryl Lum | Jan 25, 2024 | Bangkok Property Market Updates, Developer Watch, Investment Analysis
The real estate landscape in Bangkok is witnessing a notable shift in condominium prices. Lower Sukhumvit has emerged as the focal point of a substantial surge in prices, contributing to the overall upward trajectory in the city. In contrast, neighboring provinces are grappling with a decline in prices, primarily attributed to an excess of unsold units.
Vichai Viratkapan, the acting director-general of the Real Estate Information Centre (REIC), recently highlighted a consistent year-on-year increase in the price index of new condominium units in Bangkok. This trend has persisted over the past four quarters, commencing in the first quarter of 2023. According to Viratkapan, the condo price index in Bangkok is unequivocally on an upward trend, with lower Sukhumvit leading the way in the 7.51-10 million baht per unit price range.
Beyond lower Sukhumvit, other areas such as Thon Buri and the Lat Phrao-Wang Thong Lang-Bang Kapi zone have experienced notable increases, specifically in the 3.01-5 million baht price range.
In the Greater Bangkok region, which encompasses Bangkok, Nonthaburi, and Samut Prakarn, the price index for new condo units saw a 2.7% rise to 154.3 in the fourth quarter of 2023 compared to the same period in 2022. The primary impetus behind this increase was the 3.5% rise in the price index within Bangkok, reaching 157.3. However, it’s worth noting a marginal 0.5% decrease from the third quarter, attributed to a strategic decline in response to developers implementing year-end sales campaigns.
Viratkapan also pointed out a consistent year-on-year decline in the price index of condo units in Bangkok’s neighboring provinces, Samut Prakan and Nonthaburi. This decline, observed over five consecutive quarters since the fourth quarter of 2022, is largely attributed to a surplus of unsold units from projects initiated before 2021. The maintenance of construction costs based on earlier material and labor rates prompted developers to respond with discounts and campaigns, constituting 71.5% of the sales strategy in the fourth quarter of 2023.
According to REIS, the condo price index in Samut Prakan and Nonthaburi for the fourth quarter of 2023 was 141.2, reflecting a 0.9% year-on-year decrease and a 0.2% decrease from the third quarter of 2023.
In conclusion, Viratkapan highlighted, “The condo price index in these two provinces continues to decline due to consecutive year-on-year decreases over five quarters, from the fourth quarter of 2021 to the fourth quarter of 2022.” Notably, Muang Samut Prakan-Phra Pradaeng-Phra Samut Chedi, Muang Nonthaburi-Pak Kret, and the Bang Phli-Bang Bo-Bang Sao Thing zone have witnessed the most significant decreases, characterized by high competition and a notable inventory of unsold units in the 1.01-1.5 million baht, 2.01-3 million baht, and 2.01-3 million baht price ranges, respectively.
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by Willie Tan | Nov 10, 2023 | Bangkok Property Market Updates, Developer Watch, Expat Living & Relocation
CapitaLand Investment (CLI) and Pruksa Holding (PSH), Thailand’s prominent real estate entity, have disclosed the inception and successful initial closure of the CapitaLand Wellness Fund (C-WELL), a pioneering real estate fund centered around wellness and healthcare. In a collaborative effort, CLI and PSH have committed an initial equity investment of USD 350 million, aiming for a target equity size of USD 500 million. An option to expand this equity to USD 1 billion exists, with a projected asset value of USD 2.9 billion upon full deployment.
C-WELL represents the second collaborative venture between CLI and PSH, following the introduction of the CapitaLand SEA Logistics Fund the previous year. Positioned as a Southeast Asia-focused value-add fund, the newly established fund will concentrate initially on Singapore, Thailand, and Malaysia. Its investment focus encompasses single- or mixed-use assets within the wellness spectrum, encompassing residential, lodging, senior living, clinics, medical suites, and hospital facilities, along with wellness and lifestyle-oriented living solutions.
Additionally, the fund will allocate resources for strategic development opportunities in the broader Asia Pacific region. C-WELL adopts an operator-agnostic approach to investment, ensuring broad accessibility and diversity among its user base.
C-WELL’s primary objective is to meet the increasing needs of aging populations by developing purpose-built environments that foster wellness, comfort, and an elevated quality of life. This is particularly pertinent as both Thailand and Singapore are anticipated to transition into “super-aged” societies, with the senior population aged 65 and above projected to exceed 21% and 24%, respectively, by 2030.
In alignment with its asset-light strategy, CLI will maintain a sponsor stake in C-WELL, contributing to its funds under management and fee-related earnings, according to Patricia Goh, CLI CEO of Southeast Asia Investment. Meanwhile, Uten Lohachitpitaks, CEO of PSH Group, highlights the company’s commitment to elevating the lives of the elderly through multi-sectoral and community-level care initiatives in purpose-driven spaces. He emphasizes that the partnership with CLI is more than a mere investment, underscoring their dedication to redefining standards for wellness-focused real estate where individuals can thrive.
by Daryl Lum | Oct 27, 2023 | Bangkok Property Market Updates, Developer Watch
In the third quarter, housing developers’ sentiment for the next six months saw a decline, primarily driven by growing concerns about employment following the government’s announcement of a minimum daily wage of 400 baht for the next year. Vichai Viratkapan, the Acting Director-General of the Real Estate Information Centre (REIC), reported that the sentiment index for the upcoming six months dropped to 60.1 in the third quarter of this year, down from 62.1 in the previous quarter. Nevertheless, it’s worth noting that the index remained above the median of 50.0, indicating that developers still maintain a positive outlook on the overall property market for the next six months.
Among the six issues addressed by the REIC in its survey of both listed and non-listed developers, employment recorded the most significant decrease, falling from 62.1 in the second quarter to 56.8 in the third quarter. Songkran Issara, CEO of SET-listed developer Charn Issara Development, expressed his concerns about the policy to increase the minimum daily wage, emphasizing its potential impact on the overall economy.
According to Mr. Songkran, the wage hike’s impact will be substantial, given that the economy has not yet displayed robust growth or the necessary momentum to absorb additional costs, which would result in increased labor expenses for business owners. He also highlighted that the country’s economy has shown signs of recovery from the impact of the Covid-19 pandemic, largely driven by the resurgence of the tourism sector. However, global sentiment remains unfavorable, and concerns persist, both domestically and internationally, including conflicts and disputes such as the situation between Israel and Palestine.
The REIC’s report further reveals the second-largest drop in the expectations index, particularly in performance, which decreased from 69.4 to 65.0.
Mr. Vichai pointed out that the expectations index on costs was the only one to rise, with a 2.1-point increase. This suggests that developers may be able to achieve greater cost reductions compared to the second quarter.
The REIC also documented housing developers’ sentiment index regarding the current situation, which slightly improved to 49.7 in the third quarter from 47.5 in the second quarter but declined from 51.8 in the third quarter of the previous year.
Mr. Vichai attributed this decline to the fact that interest rates had been raised five times from 1.25% to 2.5% in the third quarter. Among these indices, only the current situation index for employment and the launch of new projects or phases exceeded 50.0, while those concerning performance, employment, cost, and the launch of new projects or phases showed improvement compared to the second quarter.
Yours sincerely,
The editorial team at IBP Real Estate Co., Ltd.
by Eddie Yii | Oct 13, 2023 | Bangkok Property Market Updates, Developer Watch, Infrastructure & Urban Development
Central Pattana Plc (CPN), a prominent player in the retail and real estate sector, best known for managing Central shopping centres, has revealed its ambitious strategy to embark on the development of five extensive mixed-use projects in different parts of Bangkok. These areas encompass the downtown, central business district (CBD) and northern Bangkok. The company intends to carry out these projects between 2023 and 2027, with an estimated total cost exceeding 100 billion baht.
These five projects are strategically distributed across various locations, with one of them, Central Park, planned to be situated within Dusit Central Park and slated for unveiling in the third quarter of 2025. In addition, there is a project neighboring the existing Central Embassy at the Wireless Road intersection, another discreetly positioned behind the Central Shopping Complex on Rama 9, and two expansive developments covering 700 rai of land in the Rangsit area and across from Magic Land in the Phahon Yothin locale. Construction work for the latter two projects has already commenced. Each of these mixed-use endeavors necessitates a minimum investment of 20 billion baht and offers an extensive space of 350,000 square meters. Central Park, a pivotal element of this five-year business plan, is poised to redefine the urban landscape of Bangkok, much like Central Park in New York or Hyde Park in London.
Wallaya Chirathivat, the president and chief executive of CPN, expressed her confidence in the company’s capacity to adapt to changing circumstances and capitalize on government policies and promotional strategies. She anticipates a significant surge in foreign tourist arrivals, with projections of 25-30 million visitors for the current year, 40 million in 2024, and an expected surpassing of 40 million by 2025. These forecasts align with a steady annual GDP growth rate of 3-4%.
Chanavat Uahwatanasakul, CPN’s chief development and commercial officer, highlighted that the Dusit Central Park project distinguishes itself in four key aspects. Firstly, it leverages the collective strengths of Central Group, Central Pattana, and Dusit Thani Group. Secondly, its prime location in the bustling CBD of Bangkok and the affluent neighborhood offers significant potential. Thirdly, the project aims to deliver unique, tailor-made experiences. Lastly, with a substantial seven-rai green space, it strives to enhance people’s quality of life. Chanavat expressed the aspiration to transform Rama 4 into a vibrant hub for a new luxury lifestyle.
Isareit Chirathivat, CPN’s head of fashion and luxury partner management, introduced Central Park as a new brand under the Central Pattana umbrella. This brand plays a pivotal role in the 46-billion-baht Dusit Central Park project, situated on a 23-rai land plot at the Silom-Rama 4 road intersection. Other components of this project include the 39-floor Dusit Thani Bangkok Hotel, expected to open in mid-2024, Central Park Offices covering 130,000 square meters, scheduled to open in the second quarter of 2025, and residential areas encompassing 50,500 square meters. Additionally, the Central Park shopping centre, with a gross building area of 130,000 square meters, is set to open in the third quarter of 2025.
Nattakit Tangpoonsinthana, CPN’s chief marketing officer, acknowledged that the Israel-Hamas conflict might have a short-term impact on the retail business, but the company will closely monitor its influence on different regions. He emphasized that Middle Eastern customers typically visit Thailand during specific seasons, with the majority of the company’s customer base being weekend travelers from neighboring countries.
Lastly, according to Ms. Wallaya, the company is ready to engage in negotiations with the State Railway of Thailand for the renewal of the Central Latphrao agreement and holds an optimistic outlook regarding this renewal.
by Daryl Lum | Nov 19, 2019 | Developer Watch
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Raimon Land Public Company Limited
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Raimon Land is the leading high-end real estate developer of Thailand. We are the first developer in the country to provide such levels of exclusivity for customers within the luxury and super-luxury segment, with numerous outstanding projects to its name. The company’s philosophy is encapsulated by its vision statement – Building Better Lives.
Since 2004, the company has completed 14 residential properties in Thailand with a total project value of approximately THB 48.6 billion; including Mews Yen Akat by Raimon Land, The Lofts Ekkamai, 185 Rajadamri, The River, The Lofts Yennakart, The Legend Saladaeng, The Lakes and The Lofts Sathorn in Bangkok; Unixx South Pattaya, Zire Wongamat, Northpoint, and Northshore in Pattaya; and The Heights Phuket and Kata Gardens in Phuket. Additional residential project currently under development, The Lofts Asoke.
“The River”, is the first luxurious residential project to be built on Krung Thonburi riverside. This project has become the landmark for the ultimate riverside community with its soaring heights and its clean and modern architecture. Followed by “185 Rajadamri”, an elegant and sophisticated property and is Bangkok’s last freehold luxury residence in the highly prestigious Rajadamri neighbourhood.
Recently, Raimon Land has launched its first limited edition series, “Mews Yen Akat by Raimon Land”, a super luxury project consisting of only eight semi-detached homes. Launching in October 2017, “The Lofts Silom”, the latest in its successful The Lofts series. The company is one of the primary developers to bring in such a concept to Thailand’s real estate market, featuring a unique loft design with an industrial chic feel located within the heart of Bangkok’s CBD district.
Raimon Land actively seeks out for prime locations in Bangkok to expand its portfolio. Raimon Land has been awarded ‘Property Development Company of the Year’ by Frost & Sullivan Awards, 2017. A reflecting the company’s outstanding success.
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The latest projects by Raimon Land
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by kevinyeo | Nov 20, 2018 | Bangkok Property Market Updates, Developer Watch, Investment Analysis, Rental Market & Landlord Guides
American hotel chain The Standard plans to expand to Phuket, Hua Hin and Bangkok’s Thong Lor, with 150 rooms each, developing residences for sale at the two beach destinations after SET-listed developer Sansiri Plc invested USD 58 million (1.9 billion baht) in the company last year.
Amar Lalvani, chief executive of parent firm Standard International, said the hotel in Phuket will be a renovation of an existing hotel with 50 rooms near Banana Beach, opening by 2020.
“Apart from the renovation, we plan to build 100 new rooms at the Phuket hotel and develop 50 units, including villas and condos for sale under The Standard Residence brand on remaining plots nearby owned by the existing hotel’s owner,” Mr. Lalvani said.
The second destination will be Hua Hin. Plans call for building 150 condo units for sale, to be operated as hotel rooms under The Standard Residence, opening in 2021.
Thong Lor will be the third location in Thailand with 150 rooms, all of which will be new and strictly for hotel operations, opening in 2021.
“Sansiri will seek investors to invest in each site,” Mr. Lalvani said. “The investment of USD 58 million with us last year can help us expand from the current five locations to 20 in the next five years.”
The Standard started with its first hotel in Hollywood in 1999 and expanded to downtown Los Angeles, Miami and two sites in New York with more than 900 rooms combined. Occupancy runs about 85%, 82%, 79%, 91% and 90%, respectively.
The first quarter of next year will see the opening of The Standard in King’s Cross, London with 262 rooms. This will be a renovation and the first location outside the US. The average daily rate is expected to be £305 (13,130 baht), with revenue per available room of £260.
Apichart Chutrakul, Sansiri’s chief executive, said The Standard was one of six companies in which it invested last year with total spending of USD 80 million. The investment of USD 58 million in the hotel company made Sansiri one of the major shareholders with a 35% stake.
Among the six firms, Sansiri invested in Singaporean co-working space operator JustCo, which got an investment of USD 177 million in May from Singapore-based Frasers Property, owned by the Sirivadhanabhakdi family, and Singaporean sovereign wealth fund GIC.
Both became major shareholders of JustCo with a 50% combined stake, while Sansiri, which injected USD 12 million last year, holds a 6.09% stake.
SIRI shares closed yesterday on the Stock Exchange of Thailand at 1.52 baht, down one satang, in trade worth 84 million baht.
by kevinyeo | Aug 26, 2018 | Bangkok Property Market Updates, Developer Watch
THE AREAS of Silom-Sathon, Phahol-Pradipat, Thong Lor-Ekamai, Huai Khwang and Phya Thai are the top locations for condominium projects in the central business district of Bangkok, according to property agencies.
Silom-Sathorn is a popular spot for office premises and residential units. There is also a surge in demand for co-working spaces in the area. The average return from resales and rentals of condominium units in the location stands at 4-5 percent annually, they said.
Thong Lor-Ekamai, Huai Khwang, and Phya Thai are suitable locations for condominium projects offering less than 30 square meters of space per unit and priced between THB 130,000 and THB 300,000 per square meter, said Anukul Ratpitaksanti, managing director of Plus Property Co Ltd.
According to a survey by Collier International Thailand Co Ltd, about 3,000 new condominium units with a combined value of THB 45.5 billion will become available in Thong Lor-Ekamai in the next six months.
Meanwhile, 3,139 units in 14 existing condominiums are currently on sale, of which 2,436 or 78 percent have been taken, the research said.
Condominium unit prices in the area average THB 130,000 and THB 250,000 per square meter while resale prices have increased by up to 30 percent from the previous year, Collier said.
Nalinrat Chareonsuphong, managing director of Nexus Property Marketing Co Ltd, said recently that Phaholyothin-Pradipat is the latest spot for residential developments. Property prices in the area are lower than those on Phaholyotin Road, while there is not much difference in traveling time and the environment, she added.
Other potentials of the area include its nostalgic features of old community, hotels, shops and restaurants operating in the three- to four-story commercial buildings along Pradipat Road, as well as population growth over the years.
Land prices on this road average THB 600,000-THB 800,000 per square wah, comparatively lower than those in nearby areas such as the small alleys in Ari, Phaholyothin Road from Chatuchak to BTS Saphan Khwai, and BTS Saphan Khwai to Victory Monument, which cost around THB 600,000-THB 800,000, THB 900,000-THB 1 million, and THB 1.2 million-THB 1.5 million per square wah respectively.
The average condominium unit price in Phaholyothin-Pradipat area stands at THB 170,000 per square meter, against THB 218,000 per square meter on Phaholyothin Road from BTS Saphan Khwai to the Victory Monument. However, both locations are similar in terms of roads, transportation, and infrastructure.
by kevinyeo | 17 May 2018 | Bangkok Property Market Updates, Developer Watch
Condominium prices on Sukhumvit, from the low-numbered sois to Ekamai, will likely remain high, says property consultant Knight Frank Thailand.
It conducted research and found the average selling price per square meter for condos from Sukhumvit sois 1 to 63 stood at 181,800 baht, as of the end of 2017.
This is an increase of 15% on the previous year. Prices have risen steadily in line with the cost of limited land plots, particularly along the main road.
As a result, many real estate operators have turned their attention to the outer Sukhumvit area, such as from On Nut to Samrong, given its prime location, cost of land, and supporting infrastructure and public utilities. In terms of location, On Nut-Bearing-Samrong boasts connectivity via the Skytrain, luring developers for a range of mixed-use projects.
Bangkok Mall, a joint project of The Mall Group and City Realty Co, will sit on 100 rai on Bang Na-Trat Road, across from Bitec Bang Na. It will contain a shopping complex, condominiums, serviced apartments and office buildings for rent, comprising 650,000 sqm. It is expected to open in 2022.
There are also recently opened developments such as M Tower, a 21-story office and retail structure with a total area of over 14,500 sqm on Sukhumvit Soi 62 near Bang Chak BTS station, as well as Bhiraj Convention Centre, located at Bitec Bang Na.
The ongoing development of the mass transit rail system from On Nut to Samrong continues to be an important factor, such as the Dark Green Line or the extension from Bearing to Samut Prakan that is connected to the Huamark-Samrong Yellow Line at Samrong station. Both lines are expected to be completed in 2018 and 2021, respectively, according to the Mass Rapid Transit Authority of Thailand.
The On Nut-Bearing-Samrong condominium markets, which cover an area from Sukhumvit Soi 77 to Theparak Road and Sukhumvit Soi 50 to Phuchao Saming Prai Road, had a cumulative supply of 62,361 units as of the fourth quarter 2017. In terms of demand, condominiums for sale in these areas have been very well received by buyers for projects launched from 2010 to 2018, with an average sales rate of 96%, while projects launched in 2009 are sold out.
Focusing on newly launched projects in 2017, the average sales rate is 65%, a slight decrease from the previous year. This corresponds to the supply entering the market, which is reduced as well.
Analysis by Knight Frank Thailand Research found high-rise condominiums remain popular among buyers in these areas — sales of all such projects launched in 2017 exceed 60%, with some enjoying a 90% sale rate.
When analyzing sales prices in depth by area, it was discovered that, when compared to Ekamai, the average selling prices per sqm in On Nut, Bang Na, and Bearing-Samrong, are significantly lower.
Ekamai commands an average sales price of 154,500 baht per sqm, while On Nut, Bang Na and Bearing-Samrong have an average sales price per sqm of 105,600 baht, 86,600 baht, and 63,500 baht, respectively. Clearly, prices in On Nut, Bang Na and Bearing-Samrong are lower than in Ekamai, especially when looking at the figures in percentage terms: 32%, 44%, and 59%, respectively.
These areas warrant attention in terms of the significant increase in condominium supply and demand in the near future, reinforced by many positive factors, especially the ease and convenience of the transit system as well as mixed-use developments in these areas. Sale prices of condos here have the potential to rise steadily, but will remain moderate, compared with nearby areas Thong Lor and Ekamai.
by kevinyeo | Mar 25, 2018 | Bangkok Property Market Updates, Developer Watch
By 2025, nearly THB 700 bn would be invested in projects close to the CBD
The changing lifestyle of city folk is making them buy residential property close to their place of work, which has inspired property developers to invest more in mixed-use projects in Bangkok’s central business district (CBD).
Developers are investing more than THB 581.5 billion from this year until 2025.
Mixed-use projects combine residential, hospitality, office and retail space in the same area.
According to a survey by The Nation, the TCC Group owned by tycoon Charoen Sirivadhanabhakdi is investing THB 153.5 billion over the next seven years in developing three mixed-use projects in Bangkok’s CBD area.
The first project is One Bangkok, located on Rama IV, Wireless Road over 104 rai of land. The project will have an office block with combined office space of 500,000 square meters, 1,000 rooms in a luxury hotel, retail space, and three ultraluxury condominium buildings. Planners expect 60,000 people to use the entire complex.
The next project is PARQ, worth THB 20 billion and located on 24 rai, close to the Queen Sirikit National Convention Centre on Rama IV Ratchadaphisek Road, opposite the FYI Centre, which is also owned by TCC Group. This project will have offices, retail and hotel buildings in a total development of 320,000 square meters.
The third TCC project is the Samyan Mitrtown complex, worth THB 8.5 billion, which is being developed by its subsidiary Golden Land Property Development Plc.
This project is located on 13 rai on Phya Thai Rama IV Road. The project will have offices, serviced apartments, and condominiums in a total area of 220,000 square meters.
Magnolia Quality Development Corporation (MQDC), in which the Chearavanot family that owns CP Group, are major stakeholders, is another property firm going for mixed-use projects in Bangkok – on its own and as a joint venture. Its three projects are worth a combined THB 170 million.
The first project is Forestias, over 300 rai at Bang NaTrad Road KM7.
The THB 90billion project will have residential, retail, office, health centre, innovative building centre and a green area.
Another project is IconSiam over 50 rai on Charoen Nakhon Road. This project, being develฌoped as a joint venture with Siam Piwat and CP Group, has retail, office, residential, and hotel buildings.
MQDC is also coming up with Whizdom 101, worth THB 30 billion, located on Sukhumvit Soi 101. The project over 43 rai combines a condominium, community mall, offices and a sports club.
Other property developers have also announced plans to develop mixed-use projects on land near the CBD in keeping with changing customer preferences.
For instance, Supalai Plc plans to develop on land where the Australian Embassy was previousฌly situated on Sathon Road, a mixed-use project. The Supalai Icon, worth THB 20 billion, will combine condominium, office, and retail complex.
Origin Property Plc also plans to develop three mixed-use projects worth a combined THB 70 billion at three locations –Phya Thai, Thonglor, and Phrom Phong.
“When you drive a car on Rama IV towards Sathon Road, you will see more construction of mixed-use projects, with more than half of them being owned by beverage tycoon Charoen Sirivadhanabhakdi.
This change in business model over the next decade in Bangkok’s CBD for mixed-use projects is due to change in customer behaviour change and the rising price of land, which makes it difficult for develฌopers to only build condominium projects,” said Thai Condominium Association president Prasert Taedullayasatit. Prasert is also the chief executive officer of Pruksa Real Estate Plc.
He added that a number of mixed-use projects would be developed in Bangkok until 2025, worth more than THB 700 billion. Their location close to the CBD area will result in people moving from outer areas to live close to their place of work. Property developers are developing small size residential units close to the mass transit system.
Origin Property Plc’s chief executive officer Peerapong Jaroon-Ek said the company had decided to develop three mixed-use projects from this year until 2025 to cater to the needs of customers, who are seeking one space for all their activities. The mixed-use concept will answer all their lifestyle needs, he said.
However, he said the location most suited for mixed-use projects are located in the CBD, challenging the customers to buy them, he said.
BTS Group Holdings Plc is also interested in developing a mixed-use project over 7 rai on Phya Thai Road, located close to BTS Phya Thai station.
The office and hotel project worth THB 10 billion will be announced this year. The project will be developed by its subsidiary U City Plc, the company’s chairman Keeree Kanjanapas said recently.
U City also plans to develop the Roi chak Sam building over 5 rai on Charoen Krung Road, a mixed use project which includes a hotel, food court, and retail. Details will be finalized in 2019, he said.
“When all mixed-use projects in Bangkok are completed in 2025, it will change Bangkok’s CBD landscape into a work and lifestyle destination,” Prasert said.
