More than 10,000 apartment units in projects worth more than THB10 billion (US$324 million) in Bangkok real estate's prime area between Ploenchit and Sukhumvit soi 55 are driving up competition among property developers.
According to a survey by The Nation last week, both listed and non-listed firms have introduced more than 100 projects since last year and construction will be complete between the end of this year and 2013.
Condominiums along this route are in the price range of THB80,000 to 200,000 (US$2,591 to 6,478) per sqm with the more expensive projects located between the Ploenchit intersection and the top of Sukhumvit Road and prices ranging from THB80,000 to 150,000 (US$ 2,591 to 4,859) can be found between sois 10 and 55.
Noble Development president Thongchai Busrapan said that after bookings for Noble Ploenchit opened from June 19 to 22, the company achieved presales worth THB7.2 billion (US$233.1 million), or half of the total project value of THB14 billion (US$453.3 million).
"Although this location has high competition, our project is freehold, which is difficult to find in this area, where most projects are for long leasehold contracts," he said.
According to a survey by the Real Estate Information Centre, demand in this location is sufficient to absorb the high number of condominium launches as both local and foreign buyers have driven condominium prices 10 to 20% higher than their presale prices, depending on how close they are to the skytrain.
Article courtesy of Asia Property Report
Thailand Property
Showing posts with label bangkok. Show all posts
Showing posts with label bangkok. Show all posts
Monday, June 27, 2011
Thursday, June 16, 2011
Bangkok's Super Prime Market
In every established property market, the super prime properties are a segment on their own. Super prime properties do not follow the mass market, neither do the super rich buyers whose criterion and judgement are far removed from the general market trends. London, for example, clearly reflects this. While the majority of the UK market has not recovered back to its peak, the super prime market has continued with its own momentum and doesn’t track the general overall market.
Transactions and prices are driven by strong demand from international investors from Russia, China, India and the Middle East for a limited and specific super prime stock. London has traditionally been the most sought after global property market and one which has proved to be a good long-term investment. London offers super prime projects such as One Hyde Park which in itself attracts affluent international investors.
While elements of the Bangkok property market are experiencing a glut of supply and their prices are flat, Bangkok lacks variety in the super prime market. My definition of super prime properties is those priced over THB 200,000 per sq.m. with an outstanding location, quality and facilities. In late 2007, The Sukhothai Residences was the first super prime property to sell off plan and attracted both elite Thai and foreign buyers. After the global crisis, the market for luxury properties declined globally, but demand is now rebounding. In Bangkok, we have recently seen a few more super prime projects being launched off-plan including The Ritz Carlton Residences and the St. Regis Residences which is completed.
Many people tend to raise the question why these properties command a price premium over and above the market average of THB 125,000 to 150,000 per sq.m. for other high-end condominium projects, and how strong the demand is for super prime properties in Bangkok. My answer is yes, demand is strong, but only if the projects tick all the right boxes which is expected from a super prime project by international standards.
Location is undoubtedly the most important factor. From an international perspective, Bangkok is a popular tourist destination and a regional hub in Southeast Asia. Location wise, the prestige addresses in the CBD which are well connected with an upmarket surrounding are the most desirable. The areas which can compare to Manhattan in New York and Knightsbridge in London will be the areas commanding the premium. One key criteria for location includes uninterrupted spectacular views such as Lumpini Park or the skyline which can add value and premiums. However, it is important to ensure that if all units do not face the main views or are on low floors, they are offered alternative views such as pool or landscaped gardens.
Iconic designs and celebrity architects often go hand in hand with super prime properties. While it is difficult to attribute the percentage of premium generated by a celebrity architect, they often add intrinsic value to the project in addition to design values. The quality of design and functionality is ensured and in many instances the projects become a landmark itself. For example, Mahanakorn where the Ritz Carlton Residences is located boasts a cutting-edge building design by OIe Scheeren. Interior design, whilst subjective in its appeal, must also be the right style and reflects the project’s character and express the feel of luxury through the design, use of quality materials and workmanship.
Along with the design, quality specifications are mandatory for super prime projects and an aspect which developers cannot compromise on. Buyers of super prime properties will expect a level of quality and the latest technology to be incorporated. The use of premium brands for sanitary ware, kitchen cabinets and fittings, appliances and branded furniture, for example, will convey a sense of quality.
Branding is another aspect which is closely associated with super prime projects, from the use of five-star hotel operators, the architect which sometimes is a brand itself, or a developer such as Aman which is an internationally known developer and hotel chain. In Bangkok, most super prime projects to date are associated with five star hotel chains, The Sukhothai, Ritz Carlton and St.Regis. The use of a brand guarantees a level of service and property management which ensures the property upkeep and value appreciation.
The project scale also directly impacts exclusivity. Most successful super prime projects globally feature under a 100 units. Low density and exclusivity are mandatory for the super rich market. However, the number of units will also depend on factors such as pricing, market conditions, planning regulations and financial feasibility.
Lastly, the services and amenities offered by the development must also exceed the basic amenities offered in other projects. Facilities such as a sizable pool and gym, steam and sauna rooms are expected, but to achieve the premium, super prime projects must offer the additional extras such as a spa, private lounge and concierge services.
All the above factors are achievable, but Thailand needs to work on construction standards and workmanship as many luxury projects today still suffer from defects and delivering flawless quality is essential for super prime properties. Buyers for super prime properties are driven by preference in choice rather than price and if all the key criteria have been met, I believe there is room for more super prime properties in Bangkok. The challenge in selling super prime off plan is in conveying the level of luxury and quality as attributes such project facilities, services and the overall atmosphere are not tangible until project completion.
Transactions and prices are driven by strong demand from international investors from Russia, China, India and the Middle East for a limited and specific super prime stock. London has traditionally been the most sought after global property market and one which has proved to be a good long-term investment. London offers super prime projects such as One Hyde Park which in itself attracts affluent international investors.
While elements of the Bangkok property market are experiencing a glut of supply and their prices are flat, Bangkok lacks variety in the super prime market. My definition of super prime properties is those priced over THB 200,000 per sq.m. with an outstanding location, quality and facilities. In late 2007, The Sukhothai Residences was the first super prime property to sell off plan and attracted both elite Thai and foreign buyers. After the global crisis, the market for luxury properties declined globally, but demand is now rebounding. In Bangkok, we have recently seen a few more super prime projects being launched off-plan including The Ritz Carlton Residences and the St. Regis Residences which is completed.
Many people tend to raise the question why these properties command a price premium over and above the market average of THB 125,000 to 150,000 per sq.m. for other high-end condominium projects, and how strong the demand is for super prime properties in Bangkok. My answer is yes, demand is strong, but only if the projects tick all the right boxes which is expected from a super prime project by international standards.
Location is undoubtedly the most important factor. From an international perspective, Bangkok is a popular tourist destination and a regional hub in Southeast Asia. Location wise, the prestige addresses in the CBD which are well connected with an upmarket surrounding are the most desirable. The areas which can compare to Manhattan in New York and Knightsbridge in London will be the areas commanding the premium. One key criteria for location includes uninterrupted spectacular views such as Lumpini Park or the skyline which can add value and premiums. However, it is important to ensure that if all units do not face the main views or are on low floors, they are offered alternative views such as pool or landscaped gardens.
Iconic designs and celebrity architects often go hand in hand with super prime properties. While it is difficult to attribute the percentage of premium generated by a celebrity architect, they often add intrinsic value to the project in addition to design values. The quality of design and functionality is ensured and in many instances the projects become a landmark itself. For example, Mahanakorn where the Ritz Carlton Residences is located boasts a cutting-edge building design by OIe Scheeren. Interior design, whilst subjective in its appeal, must also be the right style and reflects the project’s character and express the feel of luxury through the design, use of quality materials and workmanship.
Along with the design, quality specifications are mandatory for super prime projects and an aspect which developers cannot compromise on. Buyers of super prime properties will expect a level of quality and the latest technology to be incorporated. The use of premium brands for sanitary ware, kitchen cabinets and fittings, appliances and branded furniture, for example, will convey a sense of quality.
Branding is another aspect which is closely associated with super prime projects, from the use of five-star hotel operators, the architect which sometimes is a brand itself, or a developer such as Aman which is an internationally known developer and hotel chain. In Bangkok, most super prime projects to date are associated with five star hotel chains, The Sukhothai, Ritz Carlton and St.Regis. The use of a brand guarantees a level of service and property management which ensures the property upkeep and value appreciation.
The project scale also directly impacts exclusivity. Most successful super prime projects globally feature under a 100 units. Low density and exclusivity are mandatory for the super rich market. However, the number of units will also depend on factors such as pricing, market conditions, planning regulations and financial feasibility.
Lastly, the services and amenities offered by the development must also exceed the basic amenities offered in other projects. Facilities such as a sizable pool and gym, steam and sauna rooms are expected, but to achieve the premium, super prime projects must offer the additional extras such as a spa, private lounge and concierge services.
All the above factors are achievable, but Thailand needs to work on construction standards and workmanship as many luxury projects today still suffer from defects and delivering flawless quality is essential for super prime properties. Buyers for super prime properties are driven by preference in choice rather than price and if all the key criteria have been met, I believe there is room for more super prime properties in Bangkok. The challenge in selling super prime off plan is in conveying the level of luxury and quality as attributes such project facilities, services and the overall atmosphere are not tangible until project completion.
Thursday, June 2, 2011
New Bangkok Condominium Project - Noble Ploenchit
Thai listed developer Noble Development has launched its latest residential Bangkok condominium development, worth almost THB14 billion (US$462.35 million), in the bustling area of Ploenchit in downtown Bangkok. The project is expected to appeal to Thai buyers looking for a home in the city or to investors.
The Noble Ploenchit project will be located close to Ploenchit BTS on a 9-rai land plot, of which six rai was acquired from Raimon Land last year for the record price of THB1.2 million (US$39,630) per square wah, and another three rai was purchased from the Juengrungruangkij family.
"The plot is one of the most prime locations in Bangkok as there are no condominiums in this area, and it neighbors areas such as Siam Square and Chidlom," said Thongchai Busarapan, Noble Development's managing director.
According to Thongchai, the project will consist of four buildings comprising three residential buildings of 50, 45, and 14 storeys, totalling 1,442 units, as well as one three storey office building.
"A condominium project with over 1,400 units may sound a lot but when compared to our plot size, the ratio is not high at all," said Thongchai.
The residential units will be available in four different configurations including one, two, three bedroom units and penthouses with private swimming pools. The sizes range from 40 sqm to over 200 sqm. Prices start from THB5.9 million (US$194,850) or THB148,000 (US$4,890) per sqm.
"Each unit at Noble Ploenchit will have a private lift access. This will be the first time in Thailand that a condominium will have this kind of facility as in the past only penthouses would have such privacy," he added.
The project will introduce the new environmentally friendly and energy saving cooling system 'Central water cooled system', which eliminates the use of an air conditioning compressor. It will also dedicate 4 of its 9 rais land plot for gardens and green space within the development.
The construction, valued at almost THB9 billion (US$297.2) in total, will start in June next year and will be slated for completion in 2016.
Noble Development chairman and chief executive officer Kitti Thanakitamnuay said the Ploenchit area will become a 'Vertical Garden City', the new city centre where important commercial and hotel facilities will be located.
"Once the Park Venture building is completed this year, and the Central Embassy shopping centre and 6 star hotels such as the Park Hyatt Hotel Bangkok and The Okura Prestige Hotel Bangkok in the coming years, we can say that Ploenchit neighbourhood will become a world renowned new commercial district like La Defense in Paris, Canary Wharf in London, and Roppongi Hills in Tokyo," he said.
For more information on the Bangkok real estate market
For more information on the Thailand real estate market
The Noble Ploenchit project will be located close to Ploenchit BTS on a 9-rai land plot, of which six rai was acquired from Raimon Land last year for the record price of THB1.2 million (US$39,630) per square wah, and another three rai was purchased from the Juengrungruangkij family.
"The plot is one of the most prime locations in Bangkok as there are no condominiums in this area, and it neighbors areas such as Siam Square and Chidlom," said Thongchai Busarapan, Noble Development's managing director.
According to Thongchai, the project will consist of four buildings comprising three residential buildings of 50, 45, and 14 storeys, totalling 1,442 units, as well as one three storey office building.
"A condominium project with over 1,400 units may sound a lot but when compared to our plot size, the ratio is not high at all," said Thongchai.
The residential units will be available in four different configurations including one, two, three bedroom units and penthouses with private swimming pools. The sizes range from 40 sqm to over 200 sqm. Prices start from THB5.9 million (US$194,850) or THB148,000 (US$4,890) per sqm.
"Each unit at Noble Ploenchit will have a private lift access. This will be the first time in Thailand that a condominium will have this kind of facility as in the past only penthouses would have such privacy," he added.
The project will introduce the new environmentally friendly and energy saving cooling system 'Central water cooled system', which eliminates the use of an air conditioning compressor. It will also dedicate 4 of its 9 rais land plot for gardens and green space within the development.
The construction, valued at almost THB9 billion (US$297.2) in total, will start in June next year and will be slated for completion in 2016.
Noble Development chairman and chief executive officer Kitti Thanakitamnuay said the Ploenchit area will become a 'Vertical Garden City', the new city centre where important commercial and hotel facilities will be located.
"Once the Park Venture building is completed this year, and the Central Embassy shopping centre and 6 star hotels such as the Park Hyatt Hotel Bangkok and The Okura Prestige Hotel Bangkok in the coming years, we can say that Ploenchit neighbourhood will become a world renowned new commercial district like La Defense in Paris, Canary Wharf in London, and Roppongi Hills in Tokyo," he said.
For more information on the Bangkok real estate market
For more information on the Thailand real estate market
Sunday, February 20, 2011
Le Monaco Luxury Condominiums Bangkok
Le Monaco Residences Bangkok
* Close to Ari BTS station
* Total Land Area: 1,680sqm
* No. Of Floors: 30
* No. Of Units: 67
* Beds: 1-3
* Unit Size: 79.77 to 209.7 sqm
* Price: 10m to 29m THB
Services
* Free Form Swimming Pool
* Childrens Pool
* Jacuzzi
* Golf Practice Net
* Golf Putting Green
* Fitness Room
* Sauna Room
* High Speed WIFI
* High Speed Lift
* CCTV & Proximity Card
* Limousine Service to Ari BTS Station
Pictures
For more Bangkok Property Listings
For More Thailand Property Listings
* Close to Ari BTS station
* Total Land Area: 1,680sqm
* No. Of Floors: 30
* No. Of Units: 67
* Beds: 1-3
* Unit Size: 79.77 to 209.7 sqm
* Price: 10m to 29m THB
Services
* Free Form Swimming Pool
* Childrens Pool
* Jacuzzi
* Golf Practice Net
* Golf Putting Green
* Fitness Room
* Sauna Room
* High Speed WIFI
* High Speed Lift
* CCTV & Proximity Card
* Limousine Service to Ari BTS Station
Pictures
For more Bangkok Property Listings
For More Thailand Property Listings
Monday, January 10, 2011
Noble Remix Penthouse Condominium
Brand new Penthouse for sale in Bangkok next to Thong Lor BTS station
* on Sukhumvit 36, Thong lo, Bangkok (BTS Thong Lor 50 m, connected via sky walk way)
* well lit corner unit with total 153.15 square meters
* cool (nice breeze, north and west facing)
* NEW - finished late 2010/2011
* 3 bedrooms with 3 bathrooms
* large living/dining area (47 square meters)
* open kitchen (all latest Siemens appliances, fridge with ice machine, oven, ceramic cooking plates with booster function, combined washing/drying machine built in, high-gloss finishing)
* superb views towards down town Bangkok and Thong lor, sunset views
* 33rd floor (top floor)
VKEX7HDX6W3Y
Bangkok properties
* on Sukhumvit 36, Thong lo, Bangkok (BTS Thong Lor 50 m, connected via sky walk way)
* well lit corner unit with total 153.15 square meters
* cool (nice breeze, north and west facing)
* NEW - finished late 2010/2011
* 3 bedrooms with 3 bathrooms
* large living/dining area (47 square meters)
* open kitchen (all latest Siemens appliances, fridge with ice machine, oven, ceramic cooking plates with booster function, combined washing/drying machine built in, high-gloss finishing)
* superb views towards down town Bangkok and Thong lor, sunset views
* 33rd floor (top floor)
VKEX7HDX6W3Y
Bangkok properties
Saturday, January 8, 2011
Large Condo Sukhumvit Soi 11 Bangok
Large Lower Sukhumvit Condo For Sale
* Location: Sukhumvit Soi 11
* Size: 535sqm (630sqm with balcony)
* Bedrooms: 5/6
* Floor: Covers 50% of the 23rd floor
* BTS: Walking distance to Nana BTS
* MRT: One stop to Sukhumvit MRT
* Price: 78,000 THB per sqm
* WEB URL: Kallista Mansion
Communal Facilities
* Beautiful spacious modern lobby fully staffed to greet residents and guests
* 24-hour security guard service
* Beautiful landscaped garden area with Barbeque facilities -- great area for outdoor lunch, dinners or parties
* Separate children's area with playground equipment on rubberized flooring for safety
* Swimming pool
* Squash court
* Snooker room
* Table tennis
* Gymnasium
* Sauna
* Meeting Room -- can be used for special events
* Complimeary Shuttle service to BTS Skytrain (Nana Station)
More Bangkok Real Estate
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* Location: Sukhumvit Soi 11
* Size: 535sqm (630sqm with balcony)
* Bedrooms: 5/6
* Floor: Covers 50% of the 23rd floor
* BTS: Walking distance to Nana BTS
* MRT: One stop to Sukhumvit MRT
* Price: 78,000 THB per sqm
* WEB URL: Kallista Mansion
Communal Facilities
* Beautiful spacious modern lobby fully staffed to greet residents and guests
* 24-hour security guard service
* Beautiful landscaped garden area with Barbeque facilities -- great area for outdoor lunch, dinners or parties
* Separate children's area with playground equipment on rubberized flooring for safety
* Swimming pool
* Squash court
* Snooker room
* Table tennis
* Gymnasium
* Sauna
* Meeting Room -- can be used for special events
* Complimeary Shuttle service to BTS Skytrain (Nana Station)
More Bangkok Real Estate
More Thailand Real Estate
Sunday, August 29, 2010
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