SET-listed property firm Singha Estate Plc will collaborate with Hong Kong Land to develop a luxury low-rise condominium worth 2 billion baht on Sukhumvit Soi 43.
The development, scheduled to be launched in the middle of next year, is the second joint venture between the companies.
Singha Estate chief financial officer Methee Vinichbutr said the Hong Kong-based developer is bullish on property investment and development in Thailand. Singha Estate and Hong Kong Land plan to launch at least one joint venture condo project a year.
“Hong Kong Land is eager to invest in the Thai property market and has expressed interested in locations in the central business district and on Sukhumvit Road between the Asok and Thong Lor areas,” Mr Methee said yesterday.
Singha Estate in August this year acquired a two-rai plot on Sukhumvit Soi 43 near Le Dix Palace for an undisclosed price. It plans to develop an eight-story luxury condo with prices of 250,000-260,000 baht per square meter.
Surachet Kongcheep, director of the research department at property consultant Colliers International Thailand, said land prices on Sukhumvit Soi 43 are estimated at more than 1.3 million baht per sq wah.
“Locations from the Asok intersection to the Thong Lor and Ekamai areas will be the hottest over the next few years, as there will be around 10,000 new condo units from at least 10 new projects in the pipeline,” Mr. Surachet said.
The usual amount of condo supply launched in these locations, which span four SkyTrain stations, is 2,000-3,000 units a year, he said.
The unit price for the new condo supply is estimated to be more than 200,000 baht per sqm, while land prices on the main Sukhumvit Road between Asok and Ekamai are higher than 1.7 million baht per square wah, Mr Surachet said.
Mr Methee of Singha Estate said the company will likely shift to developing a low-rise condo project, instead of a high-rise one, because land plots on the main road in potential locations for luxury condo development have become rarer.
“We don’t think the new condo project on Sukhumvit Soi 43 we plan to launch will cannibalize The Esse Sukhumvit 36, a luxury condo project we launched last month, as they are targeted at different groups,” he said.
The Sukhumvit 43 site is near Phrom Phong station, while the Sukhumvit 36 project is near Thong Lor station. The latter is the first joint project with Hong Kong Land and will be a high-rise building with 43 stories.
The Esse Sukhumvit 36 is worth 6.5 billion baht, comprising 338 units priced at 330,000 baht per sq m, of which 30% have been sold. Singha Estate aims to have 50% sold by the end of the year.
In 2018, the developer plans to launch at least two new luxury condo projects worth a combined 7 billion baht. One will be the Sukhumvit 43 project and the other will be a high-rise worth 5 billion baht, for which it is seeking a plot.
Singha Estate aims to have 6 billion baht in revenue in 2018, an increase of 50% from 4 billion baht it expects this year. Up to 70% of total revenue will stem from residential development projects, up from 60% this year.
One-fourth of revenue will be generated by hotels and the rest from commercial properties such as office and retail space.
Mr. Methee said a plan to acquire a concession to develop a large resort project in the Maldives from Boon Rawd Brewery Co will be delayed to early next year.