With Krabi enjoying improved infrastructure and lower competition than in Phuket, the Bangkok based property developer Perry Group International is investing 1.9 billion baht in a hotel, villa and condominium complex on 40 rai of this southern province after holding onto the plot for a decade.
The Pelican Krabi will feature 96 condos, 50 villas and 140 hotel rooms. Improved infrastructure and a low-key competitive atmosphere are putting this southern province in the spotlight.
Executive director Andrew Ngamsappasilp said now was the time to launch a project in Krabi. Road quality has surpassed Phuket's, and a new airport terminal and runway expansion will be completed this year, lifting the number of daily flights to 16 from 10 and supporting Boeing 747 jumbo jets.
A new modern hospital, Srinakarin International, with 200 beds, will be completed next year, accommodating Krabi tourists who must now travel to Phuket for Western standard medical care.
As well, the retail giants Big C and Tesco Lotus have entered the province in the past two years, highlighting the potential for growth.
Andrew: Better roads, more daily flights
"Krabi's property market remains less competitive with limited supply, while Phuket's is marked by high competition and price dumping," said the 28 year old, second generation family member. The Ngamsappasilp family has been active in the property business for more than two decades.
The Pelican Krabi, now being built on a seaview plot on Klong Muang Tab Kak beach at a total cost of 2.2 billion baht, will comprise 96 condominium units, 50 villas and a 140-room hotel.
Launched in March, the condos are 30% sold with a Thai-foreigner ratio of 3:2.
Units will range from 81 to 189 square metres priced from 70,000 baht per sq m. These will be completed by next year's second quarter.
A rental programme will be offered to condominium buyers.
Mr Andrew said that at estimated average occupancy of 50%, condo room rates of 4,800 to 6,200 baht a night would yield 8.9% a year.
With 25% of buyers expected to be Singaporean and 50% Scandinavian, an office has been opened in the city-state and a representative appointed in Malmo, Sweden.
The project is expected to be sold out by January.
Mr Andrew said the group will next year launch sales of the villas, priced from 13.5 million to 22 million baht for units on lots ranging in size from 60-120 square wah.
A rental programme will also be offered for these.
The hotel will be operational in three years, targeting the four star market, as there are already 10 five and six star hotels with more than 1,500 rooms at this location, said Mr Andrew.
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