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source: Bkk Post
Siam Zokei Co, a property development joint-venture between the country's
largest consumer products conglomerate, the Saha Group and a Japanese developer,
plans to build condominiums near mass transit to tap more Thai buyers, according
to president Yasuo Miyazaki.
''The number of foreign customers has shrunk as the Thai baht has been
stronger,'' he said.
''During the past five years, the baht has strengthened by 20%. However,
foreigners' purchasing power remains strong and residential prices in Thailand
are lower than those in other neighbouring countries.''
The change has prompted the company to shift its strategy to focus more on Thai
buyers, who currently make up only 20% of its customers.
Mr Miyazaki said the company was in talks with Saha Group to develop some of its
land, as well as new sites, for condominiums in two locations in Bangkok and
three in Chiang Mai this year.
Last Saturday, the company launched the Peaks Garden condominium in Chiang Mai.
The 300-million-baht, eight-storey building has 79 furnished units sized from 40
to 143 square metres and priced at 55,000 to 63,000 baht per sq m.
Eighty percent of the units have been sold, with 70% of the buyers westerners,
10% Thais and 20% Japanese. Most of the foreign customers are retirees, said Mr
Miyazaki.
During the past three years, the number of Japanese retirees staying in Thailand
rose by 20%. In 2005, when the company's first project was completed, there were
about 8,000 to 9,000 retired Japanese staying in its projects. These customers
had been on tour groups seeking overseas destinations to live.
Apart from Peaks Garden, the company plans three new projects on the eight-rai
site. The Peaks Avenue luxury condominium will have 52 units worth 325 million
baht. There will also be a Peaks Mall shopping centre worth 31 million baht with
a sellable area of 887 square metres. The rental rate would be 600 baht per sq m
per month and construction will finish next month.
Also planned is Peaks Market, with a supermarket, Italian restaurant and a plaza
with a sellable area of 1,895 sq m. All are located near Chang Klan Road and the
Night Bazaar.
Mr Miyazaki said the property market in Chiang Mai had high potential for
investment thanks to the high number of foreigners visiting and living there.
Siam Zokei expects sales this year to more than double to 2.4 billion baht,
helped by sales from another development, Grand Peaks Si Racha.
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