Regents Residences

[cyberholz]

What do you guys think about the price development of this project?

On a higher floor the sqm-price is set at around 170k - within market range if you compare to other buildings.

Smaller units on lower floors are at around 150k.

From an investment point of view, can The Hyde make sense?

If yes, would you go for smaller units that you can rent for, say, 30-40k, or a big unit that can be rented for some 90k (when nicely decorated)?

Appreciate your feedback.

The project looks interesting and I think Grande Asset is determined to get it right.

Also the first pre-sale weekend was pretty good, they sold some 40 units giving 7% discount.

Best units still blocked - your take?

[wordchild]

What do you guys think about the price development of this project?

On a higher floor the sqm-price is set at around 170k - within market range if you compare to other buildings.

Smaller units on lower floors are at around 150k.

From an investment point of view, can The Hyde make sense?

If yes, would you go for smaller units that you can rent for, say, 30-40k, or a big unit that can be rented for some 90k (when nicely decorated)?

Appreciate your feedback.

The project looks interesting and I think Grande Asset is determined to get it right.

Also the first pre-sale weekend was pretty good, they sold some 40 units giving 7% discount.

Best units still blocked - your take?

i dont think the investment case for property at this kind of ppsqm really stacks up in bangkok right now. The rental market has not even close to kept pace with the developer led ramp up in prices for new projects. But just looking at the simple maths; lets say you pay 160000 bt psqm, i would say you need a minimum of 10400 bt psqm per year rental income. This would equate to a 6.5% running yield just about ok relative to other assets and allowing for some void , but remember this does not take into account the cost of having a chunk of your funds tied up for the next couple of years with no return plus your own decoration costs . But lets say you are ok with that, and you buy a couple of 45sqm (do you know how tiny that is btw); then you need to rent them for 468k per annum ie 39k per month. look around, you can take your pick of many good quality 60 upto 80 sqm condos in that area for 39k per month or less, they would be your competition.

But , if this was a top quality developer who you were sure would deliver a great condo, it might be worth taking a chance and think you could flip for a profit. Apart from the poor liquidity for second hand property in bangkok and,the consideration that this is not a first grade location, the big problem is that this developer has one of the poorest reputations for quality (and delivery) of any in bangkok, just do some research into the problems the buyers of Trendy have had. (or just take a drive to Hua Hin to see the rather poor,in my opinion, Blue Lagoon).

If you just go a little further down soi 13 you will see the back of the soi 15 condo, a new project and a refurb of one of the old wings of the Ambassador. Due to complete end of this year. It has its faults, but the developer has an ok track record and with prices more like 100k psqm for pretty much the same location my view is this might be a better investment FWTIW.

Edited March 27, 2012 by wordchild

[wordchild]

The other aspect to this is that there are 100 or so units in this development (most of which are foreign freehold) where the owners have paid significantly less more like 90/100 bt psqm. At least some of these will likely be on the market for sale or rent once the project is completed. For these, the owners cost base would be significantly lower than yours woud be as a new buyer therefore they are likely to be happy with a lower rental return or a lower selling price. This has the potential to depress returns for those who buy in now at least in the early years after the completion of the project.

[wordchild]

There is a suggestion on another forum that the hotel brand will be Hyatt. Though i have been pretty cautious on this project i have to say that would be a very positive outcome, if true.

Edited April 22, 2012 by wordchild

[wordchild]

The marketing is getting into gear for this project now. Noticed they feature in the property show at paragon on for the next few days. The big issue though is can enough people trust grande asset to finally deliver on this project after so many broken promises.

[thaihome]

It’s pretty amazing that Grande Asset has managed to hold on to this and now to actually start it up again and, hopefully, finish it. But the question would be is that an indication of their perseverance or that nobody else really wanted the property bad enough?

I will be glad to see it finish. With the Sofitel finished now, this is about the only real eyesore left on that section of Sukhumvit.

TH

[trajan]

it has been announced that a HYATT REGENCY will come into the front building (of Hyde (ex-Regent) condos) in ......2017

good news, but slower than molasses

I would seriously wait for completion before buying at this project...(came close to buying back in 2006, but luckily choose Athenee Residence instead...thank god)

http://investors.hyatt.com/phoenix.zhtml?c=228969&p=irol-newsArticle&id=1758349