In a press release issued on Friday, the company said that it will launch four new housing projects under this business model in 2019, the company’s CEO Sornsak Somwattana said.

The four new projects next year are in Pattanakarn and Srinakarin areas in Bangkok and in Sriracha District, Chonburi, and the last one is being negotiated in Phuket and Bangkok, he said.

Nirvana expects to launch one housing project under the Turnkey-Solution model every quarter and generate revenue of Bt3 billion by 2020, Sornsak said.

Under the collaboration, they also would later provide property projects that cater to the needs of the elderly.

Tsuneo Wakabayashi, president of Hankyu Hanshin Properties Corporation, said that Thailand has the potential for high growth for property projects, prompting the firm to join with Sena Development two years ago.

This year, the partners set out to develop seven real estate projects with a value of around Bt23 billion. For the 11 projects planned next year, some Bt2 billion will be spent; some of the projects will be for offices.

 “Apart from the businesses in Japan, Hankyu Hanshin Holding Group has been seeking opportunities to invest abroad, particularly in Southeast Asian countries such as Thailand due to their sustained GDP growth rates and high growth potential,” said Wakabayashi.

“Accordingly, the group began implementing its foreign investment scheme in 2015, starting with a warehouse business in Singapore, followed by real estate and transportation businesses in Indonesia and real estate businesses in Vietnam, Thailand, Malaysia, and Philippines. These investments are collectively worth Bt6 billion per year, 25 per cent of which are in Thailand due to the relatively high return and revenue.”

Wakabayashi said that the company’s expertise in these areas is reflected by the results from Niche Mono Sukhumvit-Bearing, the first real estate project under partnership between the two companies (Sena Hankyu Co Ltd). The project is worth Bt3.4 billion, with 80 per cent per cent of the units already having been reserved after the grand opening at the end of last year. The second real estate project under this partnership is Niche Pride Taopoon-Interchange, which is worth Bt3.4 billion, with 70 per cent of the units sold.

The most recent project under the partnership between Sena and Hankyu is its first luxury condominium project, worth Bt5 billion.

This is on Ekkamai Road, which is popular among foreigners.

“This collaboration further accentuates Hankyu’s confidence in the professionalism of Sena Development and the Thai economy, whereby the company is preparing to make an additional investment of no less than Bt3 billion per year,” Wakabayashi said. “With reference to public sector information, the Thai population will reach its peak in 2031 or in the next 13 years. For that reason, it is anticipated that the demand for property will continue to increase substantially, thus making the Thai real estate market promising for this collaboration.”

He said that the firm at a later stage plans to work with Sena Development to develop projects designed for the elderly.

The firm has invested in five countries in South East Asia: Vietnam, Indonesia, Thailand, Philippine and Malaysia. It plans to expand its business base to Taiwan in the near future.

Kedsara Tanyalakpak, vice president of Sena Development, said that Hankyu Hanshin Holding Group’s confidence in Sena not only brings pride to the company, but conveys the company’s leadership in the real estate market.

“This partnership between Hankyu and Sena primarily stems from Hankyu’s perception of the potential of the Thai real estate market and the capacity of Sena, which exhibits expertise in real estate development that can perfectly correspond to the needs of customers,” said Kedsara.

The platform is debuting in Thailand ahead of Hostmaker’s existing European markets, in order to serve the growing demand for vetted accommodation in Bangkok. ‘Stayy’ allows visitors and expats to search for medium and long-term accommodation, on a flexible contract, with the assurance that all properties are legal and have been vetted by Hostmaker’s experts.

Established in 2014 in London, Hostmaker has hosted more than 250,000 guests and generated more than £50 million (Bt2.1 billion) for homeowners to date. Hostmaker was the winner in the “Best Short Term Rental Platform” category at the Serviced Apartment Award last year, based on its record of bringing higher yields for its homeowners and memorable experiences for their guests. Since launching in Bangkok in September, Hostmaker has grown quickly – with over 50 properties now in its Thai portfolio.

Fully compliant with Thai regulations, Hostmaker vets all properties and only leases them for a minimum of 30 days. It is currently difficult for visitors to Bangkok to find a legal property to rent for a month upwards, so Hostmaker has created Stayy: a platform that enables users to book home rentals with assurances of personal service, flexibility and security with just one click.

Nakul Sharma, the founder of Hostmaker, said: “Bangkok is the most visited city in the world, with good reason. Millions of tourists, students, expats and business travellers flock here every year, looking for legal and vetted properties to hire for at least a month and up to a year, making it the perfect market for us to launch Stayy with Hostmaker. The market regulations around short-term lets provides us with the perfect environment for our brand-new medium to long-term lettings platform, and we’re excited to be debuting Stayy in Bangkok”

Sharma added: “Stayy with Hostmaker takes us a step further in our mission to unlock the potential of every home in Bangkok, bringing our hotel-quality homes to a new breed of travellers. Through Stayy, we will deliver unique homes and unique experiences to Bangkok.”

Property companies are expected to invest more than Bt100 billion in the development of commercial and residential projects, ahead of the Gold Line’s completion in 2020, according to a survey by The Nation.

In 2014, Siam Piwat Co Ltd, the operator of Siam Centre and Siam Discovery Centre, entered into a partnership with Magnolia Quality Development Corporation and Charoen Pokphand Group, for the development of Iconsiam, a Bt54-billion riverside mega-mall and residential properties located close to the new rail line.

So far, six condominium projects worth a total of Bt37.9 billion have been launched along the route, offering 2,967 units at sale prices between Bt71,000 to Bt380,000 per square metre. (see graphics)

These projects have drawn warm responses from homebuyers, with Banyan Tree Residences posting a pre-sales rate of 40 per cent, The River 92 per cent, and The Residence Mandarin Oriental Bangkok 85 per cent, according to Collier International (Thailand).

The realty agency also reported robust sales of condominium units on Charoen Nakhon Road from Sathorn bridge to Klong San, an area close to Phra Pok Klao bridge at the end of the Gold Line.

Up to 85 per cent of the 1,116 units in the location have been sold, it added.

Land prices on Charoen Nakhon Road, especially for plots close to Chao Phraya River, have surged 125 per cent from an average of Bt200,000 per square wah in 2011 to Bt450,000 this year or a double-digit annual increase for seven years in a row, said Phattarachai Taweewong, senior manager/research department of Collier International (Thailand).

Despite the soaring prices, there are hardly any vacant plots in the area, he added.

A JLL (Thailand)’s research shows a total of 2,600 luxury condominium units on the banks of the Chao Phraya River currently on sale, catering to both local and foreign and business people, said the company’s managing director Suphin Mechuchep.

The prices of riverside condominium units in the luxury and ultra-luxury segments have risen to Bt250,000-Bt300,000 per square metre from Bt140,000 per square metre five years ago, amid a shortage of suitable plots and new supply, she said.

A large space is a requisite for the development of a riverside condominium as a setback area from the river is required. Currently, there are few large riverfront plots available on Charoen Krung road, she added.

According to the Bangkok Metropolitan Authority (BMA)’s regulation on building control, a new building within 45 metres of a river bank must not be higher than 16 metres.

The BMA rule and land woes were the main factors driving the double-digit growth annually in the prices of condominium units along the river.

Condominiums in this location are mostly luxury and ultra-luxury projects, Suphin said.

Meanwhile, the November 9 opening of Iconsiam alongside the Gold Line, will turn the vicinty into a tourist attraction. The mega-mall occupies a total space of 500,000 square metres, hosting a wide range of premium retail outlets and entertainment venues. A number of global brands are poised to open their flagship stores in the complex.

The management of Iconsiam expects to receive more than 150,000 visitors a day.

The BMA is in the process of building a observation tower in Bangkok. Named Unity Tower, the Bt4.62-billion structure rising to 459 metres, will the sixth tallest observation tower in the world.

A study by CBRE (Thailand) shows that Charoen Nakhon and Charoen Krung are the most popular riverside locations, thanks to their proximity to the central business district in Bangkok while the strip from Taksin Bridge to the end of Charoen Nakhon Road was rated higher than others in the sample groups.

Located on the east side are a number of world-renowned luxury hotels such as Shangri-La Hotel Bangkok and the Mandarin Oriental Bangkok with River City Bangkok a short distance away.

On the west side, Iconsiam is close to completion and is well received in the market.

“This location will become a new landmark and a tourist magnet, leading to strong demand for residential and commercial properties. However, the cost of development will rise given the higher land prices amid a shortage of available plots, said CBRE (Thailand)’s managing director Aliwassa Pathnadabutr.

    The first is Na Veera Phahol Ari. The Bt240 million property was launched to the market yesterday, to be followed by a second project, costing Bt1.3 billion on Charoen Nakhon next year , he said.