Eight Thonglor by Pacific Star International (Thailand)
Investors still eager for rental units at high prices
Thonglor is beginning to stand out as the area of highest competition in Bangkok for luxury condominiums.
Surrounding the two-kilometre stretch of Soi Thonglor (Sukhumvit 55), between Sukhumvit and Phetchaburi roads, no fewer than seven luxury condominiums with a combined market value of about Bt20 billion are climbing toward their place in the city’s skyline. And despite concern about falling demand for condominium units in the capital’s wider property market, the least-expensive patches of vertical living in Thonglor are currently selling for Bt90,000 to Bt150,000 per square metre.
Following the initial impact of the global economic crisis on Thailand’s property market in the fourth quarter of last year, some developers changed their product range, opting for low-rise developments that are quick to build and deliver returns in a few short months. Others, however, remained confident of continuing demand for high-rise luxury living, insisting that location – rather than price – would make the difference in 2009 between success and dismal sales.
A survey by The Nation at the weekend found that Thonglor is clearly the most popular of these “golden” locations. The seven residential projects in Thonglor include Eight Thonglor by Pacific Star International (Thailand); Quattro by Sansiri; a new condominium project by Tan Estate; Ivy Thonglor by Preuksa Real Estate; The Alcove at Thonglor by Samirano Property; Villa Sikhara by Sikhara Kotobuki Property; and Aequa by Aquarius Estate. Many of the developers report vigorous sales since launching their projects.
no fewer than seven luxury condominiums with a combined market value of about Bt20 billion
Sansiri’s president Srettha Thavisin said there was continuing strong demand in Thonglor despite expectations of only slight economic growth this year. In only three weeks since the beginning of this month, Sansiri has succeed in preselling units at Quattro worth nearly Bt3 billion. The project’s total value is about Bt5 billion.
Seita Hagiwara, managing director of Sikhara Kotobuki Property, a joint venture between Japanese-owned Siam Kotobuki and Thai investors, said his company had decided to build its condominium project, Villa Sikhara, at Soi Thonglor 25 because the company could see strong demand in the location, particularly from Japanese investors.
The project has already sold 60 per cent of its 64 units, which are priced between Bt98,000 and Bt104,000 per square metre. Almost all of its customers are investors who are buying for rental purposes. The company has set a rental price of Bt600 per square metre for units at Villa Sikhara, making a monthly rental income of Bt45,000 to Bt60,000.
Hagiwara said the company was very confident it could attract rental investors, especially Japanese people, who preferred to stay in the Sukhumvit Road area, between Asoke junction and Thonglor. Demand for residential properties from Japanese living in Bangkok has seen strong growth, he said.
Pacific Star International (Thailand)’s asset manager Urasate Navanugraha said that Eight Thonglor was a mixed-use development involving serviced apartments, office space and a condominium. This project is focused on both domestic and foreign investors and about 70 per cent of its units have been presold after last year’s launch, he said.
[relatedposts]Preuksa Real Estate’s chief operating officer Prasert Taedulsatit said that despite the style of other property projects launched in the soi Thonglor area, his company believed its residential project, Ivy Thonglor, matched current customer demand. The company has succeeded in preselling nearly half of the project, which has a market value of Bt2 billion.
The main home-buyers in Thonglor are “lifestyle” customers and upper-income local and foreign investors. The location is close to the central business district and is also close to both the Skytrain and the subway. These things make it successful for residential projects, he said.
Agency For Real Estate Affairs president Sopon Pornchokchai said that although the price of residential units in some Bangkok locations would be maintained or even cut this year as demand fell, prices in Thonglor would continue to rise at a rate of 10 to 15 per cent per year.
The price of condominium units in Thonglor is now between Bt90,000 and more than Bt150,000 per square metre, depending on the character of the project, he said.
Somluck
Srimalee
