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Aquarius plans new condo

Saturday, 09 August 2008

The property developer Aquarius Estate Co plans to launch a condominium in Sukhumvit Soi 49 worth 1.2 billion baht in mid-September. Chief executive Yongyutt Chaipromprasith said the initial investment of 200 million baht would be from the company's shareholders. It is negotiating with some financial institutions for at least 480 million baht in project financing. The project, which is now being designed, is located on a 1.5-rai site the company acquired from MFC Asset Management. The number of units is still being determined but prices would be above 100,000 baht per square metre. "We may develop larger units or two-bedroom types as supply in the location is limited," Mr Yongyutt said. The Sukhumvit 49 project would be the company's second development since its establishment in 2006. Its first project was the 600-million-baht Casavela Koh Samui condominium and hotel completed last month on the southern resort island. Of the 32 rooms, 11 rooms worth 300 million baht are held by the company and the rest have been acquired by Thai and foreign buyers but will be managed by the company with a guaranteed return of 6% per year for three years. The company is applying for a hotel licence to operate under its Shasa Hotel brand, with room rates ranging between 26,000 and 70,000 baht a night. Occupancy for July was 80%. "Condominium development has changed from a location focus to good product and property management," said Mr Yongyutt. "Buying real estate means a good return, not only a dream house." Mr Yongyutt added that investment from new developers had slowed as market sentiment was unfavourable. This allowed developers to bargain for land prices and acquire good plots. During the first half of the year, 41 new condominiums were launched in inner Bangkok with a total of 14,000 units, of which 160 were in the grade A category and priced from 140,000 baht per sq m. A total of 1,180 units were grade B+ (80,000 to 120,000 bat per sq m), 5,000 units grade B (70,000 to 100,000 baht) and 7,700 units grade C (50,000 to 80,000 baht). Of the total units launched, 6,500 or 41% were taken up. The largest take-up rate was in grade A with 70%, followed by B+ with 48%, B with 45% and C with 37%, he said. Currently, Aquarius is managing sales of eight projects worth a combined 12 billion baht. It plans to manage three new condominiums in Bangkok and Hua Hin worth 1.5 billion baht in the second half of the year. During the first half, it posted total revenue of 137 million baht and expects to achieve 300 million baht by the end of the year, up 18% from 2007.

 

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