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Habitat Group launches three projects valued at 3 billion baht

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Habitat Group is poised to launch three new projects with a total value of 3 billion baht in the second half of 2018.

Recognising the growing trend of buying properties for investment, the company reveals this sector is growing 10-20% per year and foreigners looking to invest in property assets are making up a increasing part of that growth each year.

The Group has had a record first quarter this year with sales of 1.9 billion baht, a 63% increase on 2017, and is well on target for 12-month sales of 3 billion baht in 2018.

Mr. Chanin Vanijwongse, Chief Executive Officer of Habitat Group, the country’s leading property-for-investment developer, commented, “We will be launching three new luxury development projects worth a combined 3 billion baht during the second half of 2018. These residential and for-investment condominium developments will be located in the heart of Bangkok and Pattaya.”

Two of these new condominium developments will be launched in Q3 2018 under the Group’s ‘Walden’ brand, and are luxury low-rise condominiums for residence and investment. Located in Sukhumvit 39 will be the 950 million baht eight-storey 116-unit condominium ‘Walden Sukhumvit 39’ with sales starting from 5.6 million baht per unit.

Another 800 million baht project called ‘Walden Sukhumvit 31’ will be a luxury eight-storey 104-unit condominium located on Sukhumvit 31, also with sales starting from 5.6 million baht.

“Sukhumvit area is an important business hub and an area we believe will continue to grow. In addition to residential offerings, Sukhumvit is considered a “complete location” with offices, five-star hotels, shopping malls, tourism, hospitals, and educational institutions.

Habitat Group launches three projects valued at 3 billion baht | News by The Thaiger

Walden Sukhumvit 39 and Walden Sukhumvit 31 offer convenient commuting for residents who can use the mass transit system to get around Bangkok easily, as well as being conveniently located nearby to shopping malls such as EmQuartier and Emporium, as well as many well-known schools.

The Walden Sukhumvit 39 and Walden Sukhumvit 31 developments have a different business model to the Group’s branded-resort developments in Pattaya, as they will be available both for residence and investment. Habitat Group’s hospitality arm, Habitat Hospitality, will be managing the properties and facilitating rent for owners. The company will work to support rental ROI for investors, and also ensure that developments see a capital appreciation of 3-5% annually.

The third development to be launched in 2018 is located in North Pattaya with a project value of 1.25 billion baht, and is planned for a Q4 launch. The project will use an investment model with guaranteed returns, and it will be managed by a well-known US hotel chain.

Habitat Group’s sales in H1 2018 totaled 1.9 billion baht, up 63% year-on-year and already surpassing total sales in 2017, which were 1.298 billion baht. The Group forecasts total sales for 2018 to reach 3 billion baht, a 131% year-on-year increase.

This record performance is on the back of successful sales at X2 Pattaya Oceanphere, which is 70% sold; the resort-style condominium on Na Jomtien Beach, Best Western Premier Bayphere Pattaya, which is sold out; BluPhere Pattaya managed by BW Premier Collection, which is also sold out; Wyndham Atlas Wongamat Pattaya which is 90% sold; the ultra luxury residence LEROY Ruamrudee, which is 100% sold; and Walden Asoke which was only launched in March 2018 and is already 80% sold.

“The Thai economy offers a positive trend for property investment. With interest rates lower than 1%, and since stock investment comes with risk and a chance for loss, investors want to diversify their portfolios with less risky assets that offer steady returns, and the property market is an attractive option. Statistics have shown an annual growth of 10-20% in number of real estate investors, while long-term investors in this market continue to invest,” added Mr. Chanin.

Thai investors remain Habitat Group’s largest market at 60%. The remainder come primarily from Singapore, Hong Kong and China, with the latter being the largest nationality of international investors reaching almost 40% of the total. Other international markets on the up include Europe, the Middle East and Myanmar which together are showing an annual growth rate of 20-30% for Habitat Group.

In the case of Habitat Group, guaranteed rental yields of 6% for five years are offered. All Habitat Group developments are in prime locations with award-winning architecture and design, as well as quality built-ins and electric appliances, ensuring yields are high and with land prices continuing to trend upwards investors will profit from this with 3-5% capital gain yearly.

“Incoming foreign investors to Thailand are one of the main disruptors to the real estate market, however, Thai investors remain a big part of the market.

Interest in Bangkok’s Central Business District will continue to grow due to limited supply, therefore I see the trend for buying a second residence in the heart of the city or owning an asset for rent will continue to attract expats working in Bangkok, such as European and Japanese residents, as well as Thai people.

Habitat Group’s development projects for investment purpose thus answers this need very well. We will help investors take care of all management aspects including yields and returns, rental contracts, and maintenance. As for our projects in Pattaya, investors can use their room for upto 14 nights per year and booking will be managed by the respective five-star world-class hotel chains we work with to ensure the best return for our investors,” concluded Mr. Chanin.

Habitat Group launches three projects valued at 3 billion baht | News by The ThaigerHabitat Group launches three projects valued at 3 billion baht | News by The Thaiger

For more information please visit HERE or call 02 168 8266 or 081 451 0002.

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Bangkok

Silom Road tops as the most expensive area to buy land in Bangkok

Caitlin Ashworth

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Silom Road tops as the most expensive area to buy land in Bangkok | The Thaiger
PHOTO: Unsplash: Paul Szewczyk

Silom Road, Bangkok’s nightlife district, is the most expensive area to buy land in Bangkok, followed by Phloen Chit Road, according to data the Treasury Department gathered from 2016-2019. The pandemic may have fluctuated the prices, but no data on land value for 2020 has been reported by the department. They also say only asking prices were recorded, so it’s unclear how much the price decreased by during negotiations.

On Silom Road, land prices per square wa are up to 1 million baht while land on Phloen Chit Road have been reported to cost up to 900,000 per square wa. A square wa is about 4 square metres. Land on Rajadamri Road ranges from 750,000 baht to 900,000 baht per square wa. The cheapest areas to buy land in Bangkok are farmlands in the Bangkhuntian district. Land prices range from 500 baht to 10,000 baht per square wa.

Properties on Silom Road are also the most expensive in Bangkok. The price for a 170 square wa 4 storey office on the road costs around 155 million baht, according to the data. The highest asking price was 7 billion baht for a 37 storey office building on Sathorn Road.

Here are the top 10 most expensive areas to buy land in Bangkok:

1. Silom Road at 700,000 baht to 1 million per square wa

2. Phloen Chit Road at 900,000 baht per square wa

3. Rajadamri Road at 750,000 baht to 900,000 baht per square wa

4. Rama I Road at 400,000 baht to 900,000 baht per square wa

5. Wireless Road at 500,000 baht to 750,000 baht per square wa

6. Sathorn Road at 450,000 baht to 750,000 baht per square wa

7. Yaowarat Road at 700,000 baht per square wa

8. Thaniya Road, Pattanapong Road, Pattanapong II Road at 600,000 per square wa

9. Narathiwas Rajanakarin Road at 280,000 baht to 600,000 baht per square wa

10. Ratchawong Road, Sampeng Road at 550,000 baht per square wa

SOURCE: Nation Thailand

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Property

Thailand’s property market and Covid-19

The Thaiger

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Thailand’s property market and Covid-19 | The Thaiger

The Coronavirus outbreak poses challenges for Thailand’s property market as potential Chinese condominium buyers remain stranded in China. Meanwhile, some believe that the outbreak may bring opportunities for non-Chinese buyers and in the long-run, the Chinese may be looking for an overseas refuge in the event of these types of emergencies popping up again

Of course, it’s not just the Chinese not being able to come and inspect potential buys, the rest of the world is also currently shut out of Thailand.

Market remains weak

The pandemic is hurting the condominium market as Chinese nationals were accounting for half of the international buyers in Thailand, or 57.6% of the total foreign condo owners in 2018.

Vichai Viratkapan, acting director-general of the Real Estate Information Centre says that 50% of Chinese condo transfers are expected to disappear in the first 2 quarters of this year and the total transfer value by the Chinese will miss the mark of the usual 29 billion baht by about 25% (around 7 billion).

However, since Chinese property buyers only make up 6% of the total international and domestic housing transfers in Thailand, the proportion of total housing transfers in the country is likely to be similar to last year.

Developers looking to sell current stock whilst shelving new projects

CBRE reports that most Thai developers are postponing the launch of new condo projects to focus on clearing existing stock.

“Discounting completed projects to generate quick revenue as a financial lifeboat is the best solution for many of the country’s larger developers whilst the market is in limbo.”

Rathawat Kuvijitrsuwan, head of CBRE Research and Consulting in Thailand believes that, now business is gradually recovering, a few developers have started to launch new condominium projects.

“In the first half of 2020, the Bangkok condominium landscape was gloomy with fewer than 10,000 condominium units launched, which was much lower than the total number of new launches in the past three years of more than 60,000 condominium units per year.”

The Chinese are reluctant to complete transfers

The virus has continued to affect hospitality operators, including hotels and condominiums that service tourists, nationwide. Since China has suspended tours, put restrictions on movement, and locked down cities, home to over millions of people, it also poses a threat to real estate developers as their clients are unable or unwilling to fly.

“Currently multiple off-plan condominium developments are approaching completion, and Chinese clients are unable or unwilling to transfer. Chinese clients who made a reservation in Q4 2019 are requesting a refund and withholding their investment,” said Marciano Bijmohun, Business Development Director at FazWaz Property Group.

He believes every condominium that is in transfer status will see the percentage of non-transfer units rise in the coming months.

“These non-transfer units will cause a big financial hit to developers.”

If a client refuses to transfer, does not comply with the terms and conditions stipulated in the sales and purchase agreement, and decides to release the property, their deposits will be forfeited.

“However, there is some good news, these non-transferred units can be offered with a discount to new clients.”

Also, as China has been susceptible to a few disease outbreaks – from bird flu to the current coronavirus – it may prompt Chinese buyers to look for second homes outside of China.

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Thailand

Thai condo developers clearing inventory rather than starting new projects

The Thaiger

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Thai condo developers clearing inventory rather than starting new projects | The Thaiger

“With waves of uncertainty and financial stress crashing into the market from the COVID-19 pandemic, most residential property developers have decided to postpone their plans.”

CBRE, the international property consultants, reports that most Thai developers are postponing the launch of new condo projects to focus on clearing existing stock. Discounting completed projects to generate quick revenue as a financial lifeboat is the best solution for many of the country’s larger developers whilst the market is in limbo.

Rathawat Kuvijitrsuwan, head of CBRE Research and Consulting in Thailand believes that, now business is gradually recovering, a few developers have started to launch new condominium projects.

“In the first half of 2020, the Bangkok condominium landscape was gloomy with fewer than 10,000 condominium units launched, which was much lower than the total number of new launches in the past three years of more than 60,000 condominium units per year.”

Since June, CBRE Research says new condominium projects, along new extensions and future routes of mass transit lines, with starting prices under 2 million baht, and those along existing mass transit lines are usually priced lower than 3 million baht.

“On the other hand, there has been no newly launched condominium in the high-end and above segments this year due to the high level of unsold supply and high land cost in prime locations. Investors have become more cautious in spending a large amount of cash during these uncertain times.”

“Some of the newly launched condominiums have had a good sales rate during their first launch. Most of these projects have been launched with a product and pricing that are mainly targeting large demand from buyers with lower-purchasing power and are located in an attractive location with limited available condominium supply in the area.”

But despite the slowdown of general activity and the current sales and promotions to dispose of excess stock, over 60,000 condos are expected to be completed this year and around 80,000 units each year over the next 2 years.

“With over 140,000 condo waiting to be transferred over the next 2 years, there is a possibility that a large number of booked units could return to such a volatile market as some cash-strapped buyers could decide not to transfer their units.”

“The future of the condominium market depends on the direction that residential developers will take collectively. With the 10 year record low number of newly launched condominium projects, this is the moment for the market to correct its long-standing oversupply and overpricing issues.”

CBRE Research believes that there are still opportunities for developers, including the 4 under-construction mass transit lines that are expected to be completed in 2022, the new Bangkok City Planning that will unlock many new locations for condo development and foreign demand that will come back… eventually.

To find the best range of condos, houses and villas, around Thailand, click HERE.

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