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Property firms hasten to launch new projects in
Bangkok as they glimpse an end to the industry's slowdown
Presenters show a new condominium project launched in the hope that home-buyer
confidence will return in the fourth quarter.
Property developers are stampeding to launch residential projects in what is
left of the year, following strong indications last month that home-buyers'
reluctance to spend is coming to an end.
For most of the year, the property market was depressed by negative consumer
sentiment fostered by the country's economic slowdown and political uncertainty.
But with the general election imminent, property firms are hoping the "wait and
see" period has come to an end and that the floodgates are now opening on
long-suppressed desires by many to own a new home.
A Nation survey show many property developers that had delayed launching new
residential projects in the gloomy environment of earlier this year are now
hurrying to launch both condominium and single-detached-housing projects.
Most of them say they are convinced home-buyers' confidence has returned after
sales last month rose 20 per cent.
Asian Property Development senior executive vice president Visanu Suchatlumpong
says home-buyers are now showing strong confidence in buying houses after
delaying their decisions in the third quarter.
"Our presales grew up to 20 per cent in October from the month before, and we
expect growth of nearly 50 per cent in the final two months of the year," he
says.
Preuksa Real Estate CEO Thongma Vijitpongpun says home-buyers began to make
decisions to buy as soon as the country's political picture became clearer, with
an election scheduled for December 23. Most of them opted for city condominiums,
and Preuksa has decided to launch a new condominium project, The Ivy at Sathorn,
before the end of next month.
"We believe that our presales in the final quarter of the year will increase up
to 20 per cent to Bt4 billion, compared with only Bt3.4 billion in the third
quarter," Thongma says.
Nexus Property Consultants managing director Apisit Limlomwongse says many
home-buyers delayed their decisions to buy in the third quarter because they
were concerned about political uncertainty and their cost of living, following
oil-price rises.
However, knowing that an election will be held on December 23 and having
accepted increases in their cost of living, they can now decide which kind of
residence matches their lifestyle.
Apisit says prime locations for "city lifestyle" condominiums - designed to cash
in on this trend - continue to be close to Skytrain or subway routes, especially
in the "new" central business district on Phaholyothin, Ratchadaphisek and
Sukhumvit roads.
A survey by Nexus Property Consultants shows Phaholyothin Road alone has 10
condominium projects launched by nine property firms, with a combined 2,500
units worth up to Bt5 billion. They include two projects under The Life brand,
by Asian Property Development; Noble Reflex, by Noble Development; Silk
Phaholyothin 3; Haven; Ananda Development's Ideo Mix Saphan Khwai; Baan
Aungsana's Prom Phaholyothin 2; Intro by Rasa; MBK's MB Grand Phaholyothin; and
The Seed by Preuksa Real Estate.
Believing strong demand for city condominiums will continue, property firms have
rushed to launch new projects to lift their presales in the final quarter of the
year. They include Asian Property Development, Prinsiri, Noble Development, the
Sansiri Group, LPN and Preuksa Real Estate.
The Nation's survey shows new residential projects launched in the fourth
quarter will offer up to 10,000 units worth a total of nearly Bt30 billion.
Prinsiri deputy managing director Chaiwat Kovitchindachai echoed the experience
of other developers by saying home-buyers returned to the market last month, so
Prinsiri proceeded to launch a condominium project worth Bt1.8 billion on Rama
II Road called Smart Condo. It will target lower- to middle-income earners.
Prinsiri will also launch two new residential projects next week worth Bt1
billion. The first will be a single-detached-housing project on Prachacheun Road
called Prinyada, worth Bt600 million. It offers houses priced at Bt5 million per
unit.
The second will also be on Prachacheun Road. It will be a Bt400-million
townhouse project called Prinlux that will offer units for up to Bt2.5 million.
The company is planning to launch six to 10 residential projects worth up to
Bt10 billion next year, focusing on the lower- to middle-income market. It also
plans to spend up to Bt2 billion to buy land for further such projects.
Although demand for residential units is showing signs of recovery, demand
continues to be limited to projects offering housing for less than Bt5 million.
Prompt Pattana Property general manager Wirote Kappiyajanya says growth has been
particularly marked for residential units costing less than Bt2 million,
including both condominium units and detached houses.
Nexus Property Consultants' Apisit says the market for condominium units close
to mass transit will continue to dominate residential projects in the final
months of this year and into next year.
These projects will focus on the middle-income market rather than the high end,
because most home-buyers have been continually reducing their budgets and want
location and functionality to be matched with a reasonable price.
Noting market trends, Nexus believes 50,000
condominium units will be sold this year, despite only 33,000 units having been
sold in the first nine months.
It expects total volume in the overall residential market to reach 66,000 units
this year.
The Nation
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