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Locations as close as possible to the city centre are always a winning bet, says Pacific Star

The rapid change that Bangkok is undergoing with train lines spreading in many directions might confuse property buyers, but to play it safe it is still best to be located in or close to the heart of the city because this does not change for generations, according to Pritpal Singh Gill, the country manager of Pacific Star International (Thailand) Ltd. The heart of Bangkok is defined by a handful of streets _ Ratchadamri, Wireless, Chitlom, Sathon and parts of Sukhumvit _ and these have remained the prime area for several decades. ''You see, the heart remains the heart and your heart is as big as it can possibly be _ you can't extend your heart,'' says Mr Gill. With prices of well-located condominiums being so high, not everyone can afford to buy them and if that is so, Mr Gill's advice is to stay as close to the centre as possible, because as skytrain and subway routes multiply and expand it will lead to prices of outlying developments equalising. The difference of a few train stops will become less relevant. ''Eventually it will balance out unless the neighbourhood becomes shoddy.'' Given its attractive location between the Australian and Malaysian embassies, Sathorn Gardens is quoting quite competitive prices starting around 87,000 baht per square metre for the extensively upgraded condominium units in the 20-year-old building. So far Bangkok has been lucky in that crime-ridden neighbourhoods have not developed in the way they have in many large cities. In such areas, land values tend to plummet and property owners find it very difficult to sell. Areas identified by Mr Gill as having the potential of benefiting from the spinoff of real estate values in the city centre include stretches further down Sukhumvit toward Soi 105 although he warned that this will take some time because there is still absorption left in the main Sukhumvit strip. He is also bullish on Narathiwat Ratchanakarin Road, a broad avenue and close to the business district. Also showing promise is a kilometre-long stretch across the bridge in Thon Buri which is now commonly referred to as ''the New Sathon''. Aside from the Skytrain reaching there soon, it has an attractive profile. But it is only the area close to the first train station that will likely rise in value and Mr Gill is uncertain whether the escalation will spread to next station. ''Remember, on that side [of the river] there are some fine hotels, it will be quite good.'' However even in prime areas some parts are better than others. Mr Gill notes that prices of condos are steeper in Thong Lo than they are in Sukhumvit Soi 39 and similarly, Sukhumvit 24 is better developed than Soi 11, due to a feeling of exclusivity. The emphasis on the safety of investing in the city centre is not just empty talk. Pacific Star International is putting its money down in the very centre of Bangkok by launching the Sathorn Gardens condominium. This is ensconced in the posh part of Sathon between the Australian and Malaysian embassies and while it is a 20-year-old building, the company is investing heavily in upgrading the 350 out of the 560 units it acquired as well as the common areas to bring them up to grade A standard. Prices start at 87,000 baht a square metre which is cheaper than new developments close by such as The Met which is selling at 140,000, and the Sukhothai Hotel's condominium that is expected to reach as high as 200,000 baht. There are 40-square-metre studios and two-bedroom units averaging 90 sq m, increasing to 200 sq m for three- to four-bedroom apartments. Pacific Star also has eight penthouses in Sathorn Garden but is not releasing this scarce commodity just yet. ''There was an opportunity because we were able to acquire these units at a reasonable price so we are able to offer them again at a reasonable price,'' Mr Gill said. Pacific Star has also acquired the incomplete RS Tower in Thong Lo and will announce its plans for this shortly. ''We are looking at other deals in town that are in discussion, we are also looking at resorts, always with partners, but it has not been our focus, our focus has been downtown Bangkok because we think that Bangkok is truly a global city.'' While agreeing that Thais generally prefer buying brand-new property, Mr Gill pointed out that there is a secondary market here and that people must understand that investment and resale value will only hold for developments in good locations with other key factors being amenities, the management and the unit itself. ''So you could have a new development but the value proposition could be poor,'' he said. Although some property experts have said that foreign investment in this sector has dropped off, Mr Gill noted that this is mainly at the big investment level with the average consumer demand remaining very high. Even his fellow Singaporeans continue to be keen on buying property in Thailand, having been reassured by Council for National Security chairman Gen Sonthi Boonyaratkalin in an interview that the highly controversial Shin-Temasek deal was a purely business one. Gen Sonthi was in Singapore again two weeks ago to do more damage control for earlier more inflammatory statements and his message appeared to have gone over well in the Singaporean press. source: Bkk Post

 

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