The company currently has a staff of 1,000, from four at the beginning.

“We grew continuously through the years in line with market demand, partly due to our emphasis on the middle-income market where homebuyers have high-spending power and are less price-conscious,” said Peerapong Jaroon-Ek, the company’s chief executive officer.

The company’s total assets stood at Bt26.3 billion as of June 30, from lower than Bt100 million in 2010.

It has now evolved into an integrated property company from a mere developer through the establishment of Primo Service Solution Co Ltd, its property management unit. The subsidiary successfully collaborated with startups in the development of the digital butler model – a digital platform offering a selection of services to meet residents’ demands at the company’s projects. The new company, tasked with developing innovative services, plans to apply for listing in the Market for Alternative Investment (MAI) when its annual net profit comes close to Bt100 million.

It showed a net profit of Bt30 million last year.

For additional income, the company is also looking for opportunities to provide innovative services to properties of other developers.

Another subsidiary, One Origin Co Ltd, was set up as an investment vehicle in the hospitality sector. It has so far invested Bt10 billion in six hotels and retail projects that will generate recurring incomes to the parent company, starting with the completion of Staybridge Suites in Thonglor next year.

The first development is expected to contribute Bt300 million yearly.

Other projects under construction include Holiday Inn & Suites at Sriracha Laemchabang in Chon Buri province, a hotel ‘One Origin’ on Sukhumvit 24 and a retail complex ‘One Origin Phayathai’. These projects are scheduled for completion between 2019 and 2023 and expected to contribute up to Bt5.2 billion annually to the group.

Origin Property plans to set up a real estate investment trust to raise funds from the capital market for business expansion.

“We aim to become a sustainable company like Siam Cement Group and PTT. This is the reason behind the diversification of our business activities,” Peerapong added.

A subsidiary, Primo Service Solution Co Ltd, was set up to collaborate with startups in the development of a “digital butler” – a living platform providing a selection of services to the residents of company’s preojects, he said.

The unit also serves as an office for property management, housekeeping, brokerage and rental service.

He said besides building facilities, the company is also focusing on meeting the demands for convenience through innovative services.

The company first applied the “digital butler” concept on the five residential projects it launched this year – Knightsbridge Space Rama 9, Knightsbridge Collage Sukhumvit 107, Park Origin Thonglor, Knightsbridge Space Ratchyothin, and Kinsington 63. Homebuyers can simply download the application for variuous services such as shopping and house maintenance.

In line with “Smart Service Living Solution”, all of the company’s new projects will come with “digital butler” as a sales strategy, he said.

To drive business growth towards the 2023 target, it plans to launch 18 residential projects worth a total of Bt35 billion next year, to be located in Bangkok and the three provinces covered by the Eastern Economic Corridor mega-project, namely Chachoengsao, Chon Buri, and Rayong. Twelve of the 18 planned for next year will be condominiums costing a total investment of Bt27 billion, of which Bt12 billion worth of projects will be co-invested with its Japanese partner Nomura Real Estate Development Group. The other six projects, to be developed by the company itself, are low-rise residences (single-detached houses, twin houses and townhouses) under the “Britania” brand, he said.

All the projects planned for next year are targeted at the middle- to upper-income market with starting prices set at Bt5 million per unit. This segment is not expected to be negatively impacted by the Bank of Thailand (BOT)’s announced policy to rein in mortgage approvals by commercial banks.

The new BOT regime raises the down payment on a property from 10 per cent to 20 per cent and broadens the scope in calculating the overall debt of the applicant, including personal loans and credit card spending among others, before a judgement is made on his/her ability to repay the mortgage in full, Peerapong said.

“We will continue with the launches of new projects next year in view of the economic growth forecast of four to five per cent and the government’s continued investments in infrastructure projects that will boost the demand for residential units in certain areas. These positive factors will lead to a double-digit growth in our presales and total revenue in 2019,” he said.

Despite fierce competition in the market, the company is confident of achieving its growth target, thanks to project designs and the wide range of innovative services on offer to meet homebuyers’ demands.

The company has a total backlog (units sold, waiting to be transferred to buyers) worth Bt34 billion. The amount will be added to the company’s annual revenues from 2019 to 2021.

Recurring incomes

Despite continuous rise in pre-sales since its founding in 2009, the company has established One Origin Co Ltd to manage and expand its recurring incomes to ensure sustainable growth.

The new company, formed this year, has set a Bt12-billion budget for a slew of new projects, including Staybridge Suites in Thonglor; Holiday I1nn & Suites at Sriracha Laemchabang in Chon Buri province; Staybridge Suites in Sriracha, Chon Buri province; ‘One Origin’ hotel on Sukhumvit 24 and the ‘One Origin’ retail complex in Phyathai.

These projects, currently under construction, will be completed between 2019 and 2023.

“We expect total revenue from recurring incomes to reach Bt5 billion in 2022. We will then issue real estate investment trust units through asset sales to generate recurring income for the fund, and later expand investments for more recurring income opportunities,” he said.

He added that recurring incomes support the company’s long-term growth and ensure its stability in the event of a market slowdown.

“Our business model is heavy on the bottom line, rather than the top line. A higher revenue but a lower net profit does not sit well with the company. Our goal is to generate high profit. The investment for recurring income will ensure long-term security for the company,” he said.

Origin Property Plc has announced a total revenue of Bt6.65 billion and a 22 per cent rise in net profit to Bt1.5 billion for the first half of this year, compared with the average growth of 15 per cent among the top 10 listed property companies in the country, according to a survey by The Nation.

The new projects are expected to boost its presales to Bt34 billion and total revenue to Bt19 billion by the end of 2019, up 30 per cent from its total revenue target of Bt14.6 billion this year.

The company will next year open two new branches of SB Design Square on Rama II Road and The Mall Bangkae. The two new branches will be added to the existing 12 SB Design Square branches, of which 10 are in Bangkok and another two in Phuket and Nakhon Ratchasima.

Tanyaruck Chawaldit, executive vice president of SB Furniture Group, said that the key challenge of SB is to continuously cater to individual customers, whose living platforms have been changed, moving from house to condominium unit with smaller living space.

“We are trying to develop furniture products to suit the lifestyles and requirements of individual customers, both in design, size and material. We are also trying to develop and integrate our services and the working system of all related departments to offer a one- stop service to our clients. Our strategy is not look at individual products, but to offer integrated solutions,” said Tanyaruck.

“Presently, there are stronger demand for condominiums. They are bought either for living or for renting out. We understand that when they buy condominiums, they have to spend a lot of time on searching for furniture, curtain, wall paper, etc. Moreover, they have to face the challenges and risks of getting a good contractor as it can not be guaranteed that their skill will be good enough,” she said.

To ease their concerns, SB Design Square offers built-in furniture and other designs as well as providing interior designers experienced in decorating condominiums. The company will be able to offer a wide selection of raw materials, and have strong partners in every category of decorative items, as well as subsidiaries who are contractors to take charge of the interior design work to meet SB’s standard.

The main strategies of Condo Solutions @ SB Design Square is to focus on marketing communication to the target customers, who are residents and investors in various channels. We will also launch promotions and packages for condominium decorations such as when clients purchase a set of condominium furniture, they get additional discount up to 10 per cent for other items including curtains, wallpaper, heat protection film, digital door lock, smart home system, and bed.

He added that the company also plans to open 20 hotels within five year in Asia and the Middle East.

Its plan includes and targets new hotels in London, Paris, Milan, Berlin, Lisbon, Prague, Madrid, Chicago, Las Vegas, New Orleans, Atlanta, Dubai, Singapore, China, Hong Kong, Taiwan, Bangkok, Phuket, Hua Hin, Jakarta and Bali. The Standard has secured or in advanced discussions in all of the markets mentioned, he said.

“Our first hotel in Thailand will be in Phuket where we will also introduce the first Standard Residences product in partnership with Sansiri, a 35 per cent stake holder in Standard International. Thailand is a particularly attractive market for us with its numerous attractions and growth in visitors as well as its fit with The Standard brand, given its thriving culinary, fashion and arts scene. We have chosen to open our regional office in Bangkok to oversee all of our operations in Asia and the Middle East.”

With its existing portfolio of six properties and a total of 1,200 rooms (including the soon-to-open London property), The Standard generates annual property level revenue of approximately US$200 million, with an average occupancy rate of 85 per cent, and 121 per cent revenue per available room relative to its comparable set of hotels. Standard also has a very high percentage of direct bookings and repeat guests which are further indicators of the brand’s strength relative to its competitors.

Meanwhile, its subsidiary One Night has launched its hotel booking app in Asia.

Jimmy Suh, president and co-founder of One Night, said that One Night’s expansion into Asia, especially Bangkok represents an ideal move – a last-minute hotel booking app offering a highly curate collection of the most sought-after independent hotels at the lowest rates.

One Night will launch in Bangkok 16 of the best independent hotels: Akyra TAS Sukhumvit, Akyra Thonglor, Ba Hao, The Cabochon Hotel, The Okura Prestige, Riva Arun, Riva Surya, Shanghai Mansion, The Siam Hotel, Siam@Siam Design Hotel, The Sukhothai, The Sukosol, 137 Pillars Suites & Residences, Amdaeng Hotel, Josh Hotel, and Oneday Hostel.

To celebrate the launch of One Night in Bangkok, members of the Sansiri Family and Siri Priority will enjoy Bt1,000 and Bt1,500 discount off hotel booking at One Night in Bangkok respectively, valid until November 30, 2018.

In addition to Bangkok, One Night is operating in 15 major cities in the United States and London with over 170 independent hotels.

One Night is projected to be in 30 cities by year-end 2019, including more cities in Asia and Europe.

This forms part of the developer’s recent expansion into the global hospitality, technology and lifestyle industries through an investment worth US$80 million (Bt2.63 billion) in six global brands.

The brands’ move to Asia followed rapid growth fuelled by significant investments from Sansiri last year.

Standard International has doubled its secured footprint globally from five to 10 hotels within one year and plans to double again to 20 within five years, while One Night will now expand its reach to the thriving Asian market, starting with Bangkok.

Apichart Chutrakul, Sansiri’s chief executive officer, said on Tuesday: “In November 2017, we announced our investments in several global brands that are leaders in the hospitality, technology and lifestyle businesses as part of Sansiri’s move to expand our collaborative, multi-disciplinary portfolio beyond real-estate development.

“I’m delighted to share that only one year on, the investment has helped to fuel impressive growth that will see two of the brands – The Standard and One Night – expand into the lucrative Asian markets, with Thailand as their first port of call.”

The Standard, considered the most powerful brand in the boutique hotel business, doubled its secured global footprint following Sansiri’s acquisition of a 35-per-cent stake in the parent company for $58 million.

Ten properties are slated to open across the world, including two in Thailand over the next few years, as part of its five-year plan to develop 20 hotels globally in thriving urban and intriguing resort locations.

The plan includes and targets new hotels in London (opening in the first quarter of 2019), Paris, Milan, Berlin, Lisbon, Prague, Madrid, Chicago, Las Vegas, New Orleans, Atlanta, Dubai, Singapore, China, Hong Kong, Taiwan, Bangkok, Phuket, Hua Hin, Jakarta and Bali. The Standard has secured deals or is now in advanced discussions in all of these markets.

Amar Lalvani, CEO of Standard International, said: “The arrival of The Standard brand in new locations across the world, including Thailand, will bring our unique approach to hospitality to many more people to enjoy. We create spaces that are culturally relevant to each market brought to life through our thoughtfully designed spaces and experiences for guests and locals alike.”

“Our first hotel in Thailand will be in Phuket, where we will also introduce the first Standard Residences product in partnership with Sansiri. Thailand is a particularly attractive market for us with the country’s many attractions and growth in visitors, as well as the fit with The Standard brand given its thriving culinary, fashion and arts scene.

“We have chosen to open our regional office in Bangkok to oversee all of our operations in Asia and the Middle East,” he added.

Hotel Nikko Bangkok will open its doors in early 2019 and is now taking bookings. Special rates start from Bt5,200 for a superior room, inclusive of breakfast for two, for stays from February and valid until June 30, 2019.

Grand Tower Inn Group, founded in 1985 initially as an operator of serviced apartments, owns Hotel Nikko Bangkok. The group has traditionally served mostly Japanese clientele, with around 90 per cent of the guest profile from the corporate sector, and 10 per cent from the leisure market.

Located at 27 Sukhumvit Soi 55, within easy walking distance of the BTS Skytrain Thonglor station, Hotel Nikko Bangkok is a five-star establishment with 301 guestrooms and suites, including 10 extended stay rooms featuring a kitchenette.

Japanese bathrooms are a feature of the guest rooms, including a TOTO Washlet toilet in a uniquely separated room and luxurious Panpuri bathroom amenities.

Retaining a strong Japanese identity, the hotel service style will blend respectful Japanese hospitality with the traditional warm and friendly Thai welcome.

“We are very excited to be making this step forward and starting to accept reservations for our much-awaited guests to experience our courteous Japanese ‘omotenashi’ hospitality in Bangkok’s trendy Thonglor neighbourhood,” said Jo Sato, the hotel’s general manager.

The hotel will have four restaurants and lounges, namely Hishou Japanese restaurant, The Oasis for all-day dining, Curve 55 for lobby lounge and The Pool Bar.

Breakfast choices include an international breakfast at The Oasis, and full Japanese breakfast at Hishou.

Meetings and events are a major component of Hotel Nikko Bangkok, with the Fuji Grand Ballroom being one of the largest in the Thonglor neighbourhood and able to host 1,250 persons for cocktails.

A further eight small and medium sized function rooms together with an outdoor terrace and balcony takes the total meetings space to over 1,800 square metres.

Vasin Mahaphon, 36, received an offer of Bt12.5 million for a 26-square-wah townhouse he had bought in Ekamai Soi 28 for Bt5 million in 2012 – a surge of over 100 per cent in six years. The property was renovated at a cost of Bt1 million.

“I moved to Ekamai Soi 12 from Nonthaburi province six years ago after purchasing a 35-square-wah townhouse for Bt5.2 million plus a renovation cost of Bt400,000, said Vasin in an interview with The Nation.

The strong demand for homes in the area later led to the idea of buying and renovating existing properties for sale, he said, adding that he had worked in Thonglor for 15 years before moving to the location.

Vasin began with the purchase of a 35-square-wah twinhouse for Bt8.2 million, followed by a Bt400,000 renovation. A year after, the house was sold for Bt12.5 million – a 45-per-cent price increase in 12 months.

As the rise in residential prices continued, Vasin turned to renting out his properties. Two units have now been taken up by tenants for monthly rentals of Bt60,000 and Bt70,000.

“Rents rise in line with market prices. Besides, the sale price of my units will also be much higher,” he added.

“The Thonglor-Ekamai area offers a range of facilities that sit well with my lifestyle. It offers many commercial premises, a vibrant night scene and easy access to the central business district. The area is usually quiet on weekends when I jog with my dog in the mornings,” Vasin said.

In view of growing demand, developers are launching a slew of projects in the area, including condominiums and low-rise residences (single detached house, twinhouse and townhouse) offering a total of 4,431 units at a combined investment cost of Bt46.09 billion in the second-half of the year. (See graphic)

A study by Collier International (Thailand) shows the launches of 7,440 condominium units in the location from 2009 to the end of 2017. The number would rise to 11,871 when the new projects are completed in 2022.

“We also found that sales of condominium units launched in 2017 have now exceeded 70 per cent of their total project value, including the sell-out of The Reserve Thonglor by Pruksa Real Estate Plc and W-Shinwa Co Ltd’s Runesu Thonglor, followed by 95 per cent of Sansiri Plc’s Taka Hause Ekamai 12.

“Those posting 70 per cent sales in project value are Maru Ekamai 2 by Major Development Plc; Ideo Q Sukhumvit 53 by Ananda Development Plc; Chalermnit Art De Maison Sukhumvit53 by Areeya Property Plc; and The Esse Sukhumvit 36 by Singha Estate Plc,” said Phattarachai Taweewong, senior manager/research department, Collier International (Thailand)

There will be a total of 3,286 condominium units worth over Bt50 billion launched in the area by the end of the year, the highest in a decade. As for the 14 existing projects offering 3,139 units, up to 78 per cent, or 2,436 units, have already been sold, according to the Collier survey.

Sale prices for condominium units at Thonglor-Ekamai average Bt220,000 per square metre, between Bt300,000 and Bt180,000 per square metre in the two sois respectively.

Chewathai Plc launched its latest condominium project, the Bt950-million Chewathai Residence Thonglor, last month in response to market demand.

“The location is popular with homebuyers, it is in the proximity of Major Ekamai, Gateway Ekamai, J Avenue Thonglor and K Village shopping malls as well as just 500 metres to Camillian Hospital and two kilometres away from Bangkok Hospital,” said managing director Boon Choon Kiat.

Land prices in Thonglor-Ekamai have been rising since 2013 with plots suitable for condominium projects, close to the main road, now costing over Bt2 million per square wah in Thonglor and more than Bt800,000 per square wah in Ekamai.

Driven by high investments in land purchases, the prices of new condominium units have surged to between Bt250,000 and Bt300,000 per square metre in Thonglor and Bt140,000 to Bt180,000 per square metre in Ekamai, according to the Collier survey.

Knight Frank (Thailand) recorded an inventory of 6,112 units, averaging Bt248,000 per square metre in Thonglor as of June 30.

“Thonglor-Ekamai offers high-end living in the city with a wide range of modern facilities such as community malls, spa, fitness, co-working space, art gallery, food restaurants, school, and education centres. Parks can also be found, away from the main sois. It is an ideal location for both Thais and foreign residents,” said Phanom Kanjanathiemthao, managing director of Knight Frank (Thailand).