Property Sales

[eric1000]

Thai Home Sales to Rise 60% This Year, Land & Houses Says

May 30 (Bloomberg) -- The chairman of Thailand's biggest home builder by market value, Land & Houses Pcl, said he expects sales of new homes and condominiums to overcome a first-quarter slump and grow by three-fifths this year.

An unemployment rate that the government projects to stay at 2 percent and a growing working-age population in the southeast Asian nation of 64 million people will raise demand for new homes to 80,000 units this year, Anant Asavabhokhin told reporters in Bangkok on Saturday. He predicted sales of 80,000 to 100,000 units in the next few years.

``Our research shows that in view of the demographics this is a sustainable level,'' Anant said. ``There are more working age people now than ever before and the jobless rate is very low.''

New home sales slowed in the first quarter after a government tax incentive for first-time buyers expired. Analysts including Monchai Jaturanpinyo say that sectarian violence in the south of Thailand and rising oil prices may shake consumer confidence and restrain demand for new homes.

``We still estimate growth of 10 percent per year for 2004 to 2006,'' Monchai of Finansa Securities Ltd. said in a report last week that cited ``unfavorable economic and political developments,'' including clashes between Muslim rebels in the south of Thailand and soldiers and police that left more than 200 people dead since the beginning of the year.

The Finance Ministry last week cut its growth forecast for southeast Asia's second-largest economy to 7.1 percent this year from a previous forecast of 7.9 percent because of rising oil prices and attempts by China, one of Thailand's biggest export markets, to cool its economy. Thailand's economy expanded 6.7 percent last year.

Sales Drop

Rising demand will help Land & Houses sell more homes from the second quarter, offsetting a first-quarter sales decline of 18 percent, Anant said. He repeated the company's 2004 target of about 20 percent sales growth. Land & Houses had record annual sales of 18.67 billion baht ($460 million) in 2003.

Land & Houses shares rose 1.6 percent to 9.55 baht at the close of trading Friday in Bangkok. Its shares have dropped 22 percent this year, exceeding the 20 percent fall in the benchmark index, on concerns that rising crude oil prices will slow economic growth.

``While recent developments justify a degree of caution over the local residential market, investor sentiment appears to be over-reacting and we believe that the sector is overshooting on the downside,'' Monchai said in the research report.

Land & Houses expects to sell about 3 billion baht worth of condominium units this year, mainly from the 2.1 billion-baht River Heaven project it started to sell Saturday.

River Heaven is the largest condominium project so far for the company, which specializes in detached houses, town houses and serviced apartments for rent, Anant said. Another two condominium projects will start selling in the second half.

To contact the reporter for this story:

Laurent Malespine in Bangkok at [email protected]

To contact the editor responsible for this story:

Sue Hill in Hong Kong at [email protected]

[chingy_]

i just bought 2 unit with great river view at River Heaven for 7-8mil, the whole building is sold-out within month, i don't think there is any left, great condo, beutiful interior, and finishing, you have to see it to believe it, all the finishing is top quality, good thing is that its all fix up for you floor, wall, kitchen, even include ac for every room, im planning to make some profit out of the 2 unit, just a quick investment.

[eric1000]

i just bought 2 unit with great river view at River Heaven for 7-8mil, the whole building is sold-out within month, i don't think there is any left, great condo, beutiful interior, and finishing, you have to see it to believe it, all the finishing is top quality, good thing is that its all fix up for you floor, wall, kitchen, even include ac for every room, im planning to make some profit out of the 2 unit, just a quick investment.

where is it located ? is there a website ? like to take a look ....

[dr_Pat_Pong]

They do sound good Eric. And they are actually finished. I'll take a peek too.

[ProThaiExpat]

You savy investors know about the difference between a "good" condo building and a poor one as it relates to investment.

What about the effect of investors contributing to the denegration of a "good" condo building by having too many of investors vs. owner occupied?

I have stayed away from buying a condo as most of the buildings I have looked at, are so poorley maintained as to be depressing. It is always explained to me that the Thai condo laws are so weak, that if an investor (usually the culprit) or owner chooses to not pay maintenance fees, nothing can be done.

In the west, strong condo laws ameliorate this problem. In Thailand, new condo buildings are beautiful because the developers pay all the fees of unsold units and make sure maintenance is high.

I can see a quick "turn around" investor is not concerned with maintenace for the first couple of years, but what about a condo for personal use after that, regarding maintenance?

[dr_Pat_Pong]

I agree for the cheap condo's but is it really true for the better quality stuff ( I don't really know ... I'm not having a shot )

[chingy_]

where is it located ? is there a website ? like to take a look

i don't see any website on the brochure, or contract that i have, i don't think they have one since it is sold out very quick, the location is at CHAREONKRUNG (200meter from the rama 1 bridge), im returning there to take some photo of the unit and will post if you guy interested.

as for quality, if you live in thailand long enouf you should know that LAND AND HOUSE is the best developer out there in the market, they don't build cheap stuff, i also understand about cheap condo and stay away from it, LAND AND HOUSE developer can be trusted, if you go and see the condo yourself you can see the quality of it, very beautiful, and yes DR. the condo is finished, its a new trend now aday, people don't buy papper anymore they want to see it actually finished, this is the first time that any developer actually finished before selling, i recomment that anybody wanted to see one go and take a look, you won't walk out without wanted to buy one, the last i check(saturday) there were only 3 unit still available.

[eric1000]

You savy investors know about the difference between a "good" condo building and a poor one as it relates to investment.

What about the effect of investors contributing to the denegration of a "good" condo building by having too many of investors vs. owner occupied?

ce?

you raise some good points , they seem to fall into 2 camps, undesirable due to bad location , poor management,mostly empty and the highly desirable that have the entire building sold out to investors for renting out.

for example that Lumpini towers place is mostly empty and badly sited and just nearby is Pantip court which is a nice place and all sold out for renting the units .

No degenaration there ..

IKK

[ProThaiExpat]

Bangkok Post Tuesday, June 1 has an article in the business section about this building.

My math says 51,000Baht a sq.meter, not expensive for BKK, especially if it is quality.

The average reported cost for condos is 66,000Baht per sq. meter in Bangkok. I priced the smallest unit, 45 sq. meter and the minimum asking price for the computation for this building.

[eric1000]

Bangkok Post Tuesday, June 1 has an article in the business section about this building.

My math says 51,000Baht a sq.meter, not expensive for BKK, especially if it is quality.

The average reported cost for condos is 66,000Baht per sq. meter in Bangkok. I priced the smallest unit, 45 sq. meter and the minimum asking price for the computation for this building.

if you could somehow repost the article here ..

the online edition of the Bangkok Post has a problem with the signup procedure and is no longer available for reading online . The webmaster must be a cowboy !

[ProThaiExpat]

Sorry to admit I have no scanner.

The only information in the article that is new to this thread is the size of the units and the starting price.

It did recount that the project was taken over by this developer from an abandoned project and this developer "finished off" the shell. No information as to how far along they were before abandonment, so don't know if the seller/developer installed the plumbing and electric or not. Suspect they did.

It also reported that this developer had three more projects planned in which they would follow their "new approach" of building the units and finishing them out before selling them.

[chingy_]

did i mention that they also have some town house next to the condo same developer LAND AND HOUSE, its not open to public yet, but they look good too, there are 4-5 town house unit that are right next to the river only a few step away, i guest these unit are for hi-so only, they are 80mil a unit, that's right 80mil, thats is the asking price at the momment, it might change if the demand is high.

[paulsenp]

Bangkok Post Tuesday, June 1 has an article in the business section about this building.

if you could somehow repost the article here ..

the online edition of the Bangkok Post has a problem with the signup procedure and is no longer available for reading online . The webmaster must be a cowboy !

Here is then the complete article from Bangkok Post:

L&H brings pre-built approach to condos

Mr Anant (right), speaking at the launch of River Heaven on Charoen Krung Road, said the pre-built approach allows developers to adjust prices to reflect actual costs, while giving buyers a truer picture of what they're purchasing.

River Heaven first of five projects

Kanana Katharangsiporn

Land & Houses Plc has adapted its pre-built development strategy to the high-rise condominium market with the launch of the 2.1-billion-baht River Heaven on Charoen Krung Road.

The country's largest developer plans another four condo projects for the second half of the year, marking a key expansion for a company that has largely focused on detached housing.

President Anant Asavabhokhin said the pre-built approach to condos was as a turning point in a market where developers have traditionally sold units ``off plan'' before starting construction.

The crash of 1997 left buyers of thousands of condos and single houses out of pocket for units that were never completed. In the wake of the crisis, Land & Houses pioneered the concept of selling houses only after they were built.

``Many developers show mockup units that have bigger sizes than the units they want to sell, while a 100% completed condo project can show real units with different viewpoints and price ranges,'' Mr Anant said.

Pre-built residential projects, however, should be carried out with a good plan, an effective management system and a well-prepared marketing information to meet customer demand, he added.

As well, developers using the pre-built approach will be able to adjust selling prices based on real costs that are likely to increase each year.

``River Heaven was originally planned to build for grade B to C customers. But we found its potential buyers were in grade-B up, so we changed some materials and facilities to serve them though the changes resulted in an increase in prices,'' Mr Anant said.

Land & Houses Property Fund 2 acquired the 90% completed River Heaven, formerly Chateau Chao Phraya, from bankrupt developer Green Union in late 2002. It spent 18 months to complete renovations and interior decoration was finished in May.

The fund is held equally by L&H and Government of Singapore Investment Corporation with registered capital of five billion baht.

Situated on six rai on the bank of Chao Phraya River off Charoen Krung Road, River Heaven has four wings with 521 units and total usable space of 41,000 square metres. Prices for units ranging from 45 to 335 sq m and one to three bedrooms start from 2.3 million baht.

Two wings _ Carnation and Daisy with 447 units _ have been booked by about 300 customers. The remaining units in the other two wings _ Allamanda and Bird of Paradise on the Charoen Krung side _ would be sold out by the end of the year, said Mr Anant.

Besides River Heaven, the fund owns Lang Suan View condominium, Wave Place, a building in Soi Sawasdee, Centre Point Wireless, Thong Lor 8 (formerly Royal Mansion) and Centre Point Phrompong, formerly the U&I Building.

The fund has current capital of about one billion baht to invest until mid-2005, Mr Anant said.

L&H itself plans four new pre-built and fully furnished condos in the second half: in Sukhumvit Soi 61, Sukhumvit 43, on Sap Road and Chan Road.

L&H shares closed yesterday at 9.40 baht, down 15 satang.