Property developer Pace Development Co Ltd sees no threat from political conflict for its luxury MahaNakhon project, targeted at high-end customers with secure purchasing power.
The company expects no political violence to break out in the coming days. But in a worst case Pace believes its target customers – mainly high-net-worth individuals – will simply delay their decisions and buy units later. Their purchasing power will be unaffected by local political turbulence, said chief executive Sorapoj Techakraisri.
“If there were no political problems, our unit starting prices could be at least 250,000 baht per square metre,” he said. “But due to the political uncertainties, the prices have been cut to 220,000 baht.”
The company expects to increase the MahaNakhon project’s unit prices by 10% after achieving sales of 35%.
Since opening for sales in the last three months, the project has recorded presales of 28 units worth 1.7 billion baht, accounting for 14% of total value, below a target of 15%. Recently sold units include a 350-sq-m penthouse priced at 220 million baht.
By May or June 2010, the developer will hold roadshows in Hong Kong, Singapore, Japan and the UK.
It expects to achieve 40% in sales through such activities, after which it then will freeze sales until the project is completed.
The 77-storey MahaNakhon will be a luxury mixed-use project worth 18 billion baht, comprising 194 residential units sized from 120 to 850 sq m and priced at an average of 220,000 to 330,000 baht per sq m.
It will be branded The Ritz-Carlton Residences Bangkok.
The project’s environmental impact assessment was approved last month, said Mr Sorapoj.
Construction is due to start in the third quarter of the year and is scheduled to complete by 2013, he said.
“After the Architect Council of Thailand informed the police that we commissioned foreign architects to design the project, we explained to the council that we would have Thai architects to supervise the designing. Foreign architects will be just partners,” he said.
The company is currently picking the project’s architect from a number of firms and expects the well-known Architect 49 – or A49 – firm to be selected.
“Thai architects will continue the design that the foreign architect firm OMA has done,” said Mr Sorapoj.
Kanana
Katharangsiporn
