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New Bangkok project quietly debuts

DELUXE PROJECT QUIETLY DEBUTS ON WIRELESS ROAD The Oriental Residence is taking a low-key approach to high-end sales Writer: Nina Suebsukcharoen Thailand's property market may have been in the doldrums for the past year, but that has not stopped the debut of an ultra-luxurious serviced apartment and condominium high-rise across the road from All Seasons Place on Wireless Road in Bangkok. The Oriental Residence is located on a Crown Property Bureau land plot of almost two rai that was previously leased to the Thai Contractors Association. When the lease expired in 2008 it was felt that more value could be added to the prime site adjacent to the US and Netherlands embassies. Some members of the association set up a new company, Thai Contractors Asset Co Ltd (TCA), to do just that. Of course, the association fully benefits from the development because its own offices will be be housed in the new L-shaped building at the site it has occupied for decades. This company is more like old wine in a new bottle with big-name contractors holding stakes. The biggest shareholder is Italian-Thai Development PCL with an 81.4% stake and other shareholders include the contractors Nawarat Patanakarn PCL, Christiani PCL and CH Karnchang PCL. The use of the Oriental brand is directly linked to Bangkok's world-famous Oriental Hotel, which Italian-Thai founder Dr Chaiyudh Karnasutra purchased in 1967, and the family members remain shareholders today. TCA managing director Valathip Charanachitta said that the new 30-year lease should be renewed because the Crown Property Bureau usually allows previous leaseholders to renew their contracts. She added that the Italthai Group held the lion's share in the company because the land owner wanted one party to take a leading role in the development. Worachit L Chalermchaichana, TCA's general manager, said that the 32-storey high-rise had only 44 condominium units for sale, located from the 22nd to 31st floors. There will be 145 serviced residences from the 6th to the 21st floors. The company of experienced contractors has taken all the right steps to ensure privacy and exclusivity, with a separate lobby and three lifts for condominium residents to use. These residents will also enjoy the luxury of a rooftop swimming pool on the 32nd floor and a sky garden on the 22nd. "People on lower floors cannot use these facilities at the upper level but those residing on in upper floors can use the facilities downstairs - on the fifth floor there will be another swimming pool for guests staying at the residence." The biggest worry about centrally-located condominiums is adequate parking, but this project has 230 parking spaces for the total of 189 units. There will be four-and-a-half underground floors to ensure that the building has enough parking spaces. Building, which started last October, is making speedy progress with pilings completed in May and the work on the underground floors scheduled to finish by year-end, when the construction crew will move up to build the first floor. The big question is the price, averaging 160,000 baht a square metre. Condominium configurations include 13 one-bedroom units of 56 to 67 square metres, 27 two-bedroom units at 81 to 128 square metres, one three-bedroom apartment covering 190 square metres and three penthouses that around 201 to 296 square metres each. What is remarkable is how quiet the launch has been, with no advertising whatsoever. Ms Valathip said this was deliberate to make the project appear exclusive. "We invited VIP guests to come in for one-on-one visits and those who did liked it. These people are already interested in this area and that's why they came in to have a look - the response has been good." However, Mr Worachit said advertising has not been done yet because marketing is being taken in stages. "It's more about our strategy because we want to make it look exclusive for our clients." Most of the buyers are, as expected, Thais, and it is one-bedroom units and the smaller two-bedroom ones that are selling best. With its first project proceeding smoothly, the new company is carefully weighing its next steps. While Ms Valathip said talks would have to be held with shareholders first before any steps could be taken to acquire land, for instance, Italthai itself does have land in various provinces and sites that have good potential could be chosen to be developed. There is no escaping the impact of convoluted Thai politics, and as Mr Worachit sees it despite the steady progress the real estate market has made with a clearer picture of this likely to emerge next year everything hinges on politics. Ms Valathip said it was difficult for executives to control the situation right now but everyone should look beyond political partisanship and focus on the country as a whole. Mr Worachit added that two segments of the property market should do well when recovery becomes more apparent with one being the C+ bracket, which covers mass developers such as LPN Development Plc, because any upturn would lift buying power and ease up financing. The second segment that will surge ahead is the luxury end because the buyers already have money and only need to be confident to actually make a purchase. "But the mid-level market would be exhausting because there is just too much supply." Although some pundits have said that prices of property in Thailand could drop further because the plunges in other key cities, such as those in US, Hong Kong and Singapore, have been far steeper, Mr Worachit said these other countries and cities were mired in a real crisis whereas the market fundamentals here are much better. In fact but for the political problems, property prices in Thailand could have even risen rather than having fallen by 15-20% over the past one to two years, he said.

 

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