Phuket: Bangkok boom attracts new property players
BANGKOK: The property boom has drawn new developers, who have shifted from other businesses, along with long-dormant property groups, to launch projects in and outside Bangkok.
Tuesday 5 March 2013, 12:09PM
Monchai Orawongpaisan, senior manager for project sales and marketing at property consultant Colliers International Thailand, said that more than half of new developers launching projects in recent years were from other sectors such as garments, jewellery and machinery.
Many had collected land for years and were not concerned that a new city plan due to become effective in May would have any impact on the potential of their plots, he said.
Some believe Asean economic integration at the end of 2015 will benefit the Thai property market, so they are launching projects that will be complete by 2015.
In the last quarter last year and the first quarter this year, Colliers signed sales management contracts for 10 projects worth a total of B8.5 billion.
The figures for the six-month period were more than double the contracts for seven projects worth B4 billion signed by Colliers in the whole of 2011.
In the first quarter, Colliers’ new projects included the upmarket Navatanee project of single houses on Seri Thai Rd in Bangkok. The Navatanee Group’s project comprises 30 houses priced at B40-50 million, worth a combined B1.5 billion.
The group, which had been inactive in the property sector for more than a decade, also plans to resume a property project in the Navatanee area, where it has up to 2,000 rai including Navatanee Golf Course.
Colliers also represents Celeste Hua Hin, a condo project in Khao Tao worth B1.4 billion being developed by Khao Tao Bayview Resort.
Another project Colliers signed in the first quarter was for Orion Condo Pattaya, worth B1 billion, which is being built by a company new to property development.
It is also in talks with another new face, Atjosira Property, which plans to develop a luxury project of single houses in Si Racha, where the developer has more than 2,000 rai of land.
Colliers plans to introduce a London property project in Thailand this year. It is also providing consultancy services for 12 projects in Myanmar.
The consultant targets growth of 30 to 40 per cent this year. Last year it recorded revenue of B200 million, up 40 per cent from 2011.
According to its research, property prices and office and retail rents will increase by 5 to 10 per cent this year due to the property market boom.
It predicts that condo units priced lower than B3 million will be in high demand. While there is no sign of a condo oversupply, sales in some locations may be slower due to a supply initially outstripping demand.
Only one office building, The Nine Tower on Ratchadaphisek Road, with a total lettable area of 55,000 square metres, is due for completion this year.
More multinational firms, mostly from the automotive sector, are setting up offices in Bangkok, while new demand is coming because of stable politics.