COUNTRY GROUP DEVELOPMENT (CGD) STRENGTH DRIVES FIRST QUARTER RESULTS #SootinClaimon.Com

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https://www.nationthailand.com/property/40000973

COUNTRY GROUP DEVELOPMENT (CGD) STRENGTH DRIVES FIRST QUARTER RESULTS


Country Group Development Public Company Limited (CGD) today announced the following results for the quarter ended March 31, 2021, as compared to the corresponding period of last fiscal year despite COVID-19 second wave

COUNTRY GROUP DEVELOPMENT (CGD) STRENGTH DRIVES FIRST QUARTER RESULTS

CGD today announced the following results for the quarter ended March 31, 2021, as compared to the corresponding period of last fiscal year despite COVID-19 second wave:

• Revenue was THB 1,256 million and increased 238%

• Operating Profit turned THB 163 million from negative THB 627 million

• Net Loss was THB 302 million and reduced 68%

Quarterly Highlights

• The company reported an increase in operating revenues and profit from operating activities despite the continued challenges of COVID-19 pandemic and the government imposed controls.

• First quarter revenue more than tripled from a year ago with the following notable highlights:

• Sale of the Four Season Private Residences (FSPR) remained the key contributor to the overall revenue at THB 971 million and increased 176% from the same period last year while maintaining its high gross profit margin of 50%

• Extraordinary revenue from investment project was THB 277 million from completion of surrender with the incumbent tenant and in line with the repositioning plan for the asset

• Operating profit was THB 163 million compared to negative THB 627 million last year.

• Excluding extraordinary items from gain and loss from investment project and foreign exchange rate, the ordinary operating profit was THB 368 million and increased 206%.

• Net Loss was THB 302 million and reduced 68% from THB 940 million last year, the loss mainly attributed to financial costs and loss from foreign exchange rate.

Outlook

• Although the short-term outlook remains uncertain, the longer-term outlook is becoming increasingly promising with positive news on the effectiveness and the rollout of vaccines, as well as the business on the books showing a positive trend.

• The company continues its capital strengthening plan with the divestment of hotel assets. The transaction is expected to significantly reduce financial costs, mitigate future foreign exchange exposure, as well as providing the company with a stable financial platform for business growth and sustainability.

• CGD is well-positioned to leverage on its high-quality brands and assets to generate revenues. The company expects a continued positive performance with THB 15 billion worth of ready to transfer assets to be gradually recognized in the following quarters.

• The company will remain agile and continue to take proactive measures on balance sheet management and cost control as the global economic recovery gains speed.

Published : May 17, 2021

Raimon Land Public Company Limited announces 1Q/2021 profit increase of 199% #SootinClaimon.Com

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https://www.nationthailand.com/property/40000835

Raimon Land Public Company Limited announces 1Q/2021 profit increase of 199%


Raimon Land Public Company Limited announces 1Q/2021 profit increase of 199% as compared to the same period last year, announces profit of THB 138mn despite the COVID-19 economic downtrend.

Raimon Land Public Company Limited announces 1Q/2021 profit increase of 199%

Raimon Land Public Company Limited (“RML” or the “Company”), Thailand’s leading luxury real estate developer, announces profit of THB 138mn despite the COVID-19 economic downtrend. The Company recently rebranded its corporate image to expand its customer base to include a younger affluent generation and is accelerating its new project launches in 2021 to accommodate the Thai government’s new home buying foreign limit. The operating result of 1Q/2021 is a turnaround from the past five-loss quarters and is in line with the Company’s new strategic direction.

Korn Narongdej, Chief Executive Officer of Raimon LandKorn Narongdej, Chief Executive Officer of Raimon LandKorn Narongdej, Chief Executive Officer of RML, stated, “in 1Q/2021 revenue from real estate grew 322% compared to the same period of the previous year after the Company implemented new strategies in existing projects to accelerate sales. Although the third wave of COVID-19 is in the background, we are confident that the market is adapting and together with the speeding up of vaccine distribution in Thailand and globally, we believe that the situation will be greatly improved in the near future. After research, we found considerable demand for luxury residential products from a young and dynamic generation with high-purchasing power. Our company has adjusted its strategy to attract this group of potential customers.”

Raimon Land Public Company Limited announces 1Q/2021 profit increase of 199%Raimon Land Public Company Limited announces 1Q/2021 profit increase of 199%RML has announced that it sold out The Lofts Silom project and also cleared all remaining units of The River, Unixx South Pattaya and The Lofts Asoke in this first quarter. This will allow the Company to focus on its upcoming projects such as The Estelle Phrom Phong and Tait Sathorn 12 that are under development, as well as on new projects that will be announced shortly.

Published : May 13, 2021

Future of Bangkok’s property sector relies on how soon third Covid wave can be controlled #SootinClaimon.Com

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https://www.nationthailand.com/property/40000363

Future of Bangkok’s property sector relies on how soon third Covid wave can be controlled


The property sector in Bangkok and its vicinity will either grow or contract by 5 to 6 per cent depending on how successfully the government tackles the third wave of Covid-19 infections, property consultancy firm Lumpini Wisdom and Solution (LPN Wisdom) said.

Future of Bangkok’s property sector relies on how soon third Covid wave can be controlled

Prapansak Rakchaiwan, managing director for LPN Wisdom, said the third wave has had a direct impact on the economy, including the property sector.

He explained that there are three scenarios in line with the central bank’s economic growth forecast:

Best-case scenario: If the government can contain the spread of Covid-19 within a month, reopen the country to foreign tourists by July and distribute Covid-19 vaccines as scheduled, then the property sector will grow by 5 to 6 per cent compared to the previous year.

In this scenario, 75,000 to 76,000 new units worth a total of THB292 billion to THB298 billion should be launched in Bangkok and its vicinity this year, while economic growth is expected to hit 3 per cent year on year.

Not-so-good scenario: The government contains the spread of Covid-19 by the second quarter this year, resulting in a slowdown in tourism recovery, then growth in the property sector will be similar to the previous year.

Some 70,000 to 71,000 new units worth a total of THB270 billion to THB280 billion should be launched and economic growth is expected to contract 0.5 per cent year on year.

Worst-case scenario: If the Covid-19 situation cannot be controlled and the foreign tourists are still not able to land in Thailand, then the property will contract by 5 to 6 per cent compared to the previous year.

Only some 65,000 to 66,000 new units worth THB260 billion to THB265 billion would be launched in Bangkok and its vicinity this year, while economic growth is expected to contract 1.7 to 2 per cent year on year.

“We don’t expect the worst-case scenario to happen, but if the Covid-19 situation does get out of hand and the vaccines cannot contain the spread of the virus, it will have a direct impact on the overall economy and people’s purchasing power,” Prapansak said.

He added that if the government launches measures to stimulate the property sector, such as allowing foreigners to own more than 49 per cent of condominiums, or buy houses under specific conditions, then it will help stimulate demand.

He said 8,285 units worth THB37.71 billion were transferred to foreigners last year, down 35.3 per cent and 25.5 per cent compared to 2019, according to the Government Housing Bank’s statistics.

“This shows that despite travel restrictions, foreigners still want to buy homes in Thailand,” he said.

He added that only 9,688 units were launched in Bangkok and its vicinity in the first quarter of this year, down 45.72 per cent year on year.

“However, the total value was THB70.15 billion, up 0.81 per cent year on year,” he said.

Meanwhile, the average sales of new units in the first quarter this year was 20 per cent, higher than 16 per cent last year, he added.

Published : April 29, 2021

By : The Nation

Condo price index sees slight decrease #SootinClaimon.Com

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https://www.nationthailand.com/property/40000088

Condo price index sees slight decrease


The price index of condominiums for sale in Bangkok and its surroundings in the first quarter of 2021 decreased 0.8 per cent compared to the previous year, the Government Housing Bank’s Real Estate Information Centre (REIC) reported.

Condo price index sees slight decrease

“Although condominium prices are contracting slightly compared to 2020, condos in Bangkok have seen their prices increase by 0.2 per cent when compared to the previous quarter,” said REIC acting director-general Wichai Viratakaphan.

“This trend has driven developers to continue launching promotional campaigns until the end of the year to help sell condos in stock,” he said.

Wichai said ownership transfer statistics of condominiums priced at Bt3 million or lower nationwide has decreased by 1.5 per cent year on year, while the transfer statistics of differently priced condos went down by 8.5 per cent year on year.

“This is thanks to the government’s economic stimulus measures to boost the real estate business by lowering property transfer fees and mortgage fees for cheaper condos,” he said.

The measure, which will expire at year-end, cuts property transfer fees from 2 per cent to 0.01 per cent and mortgage fees from 1.0 per cent to 0.01 per cent for buying condominium units priced at Bt3 million or lower.

Regarding promotional benefits offered by condominium developers to prospective buyers in the first quarter of 2021, 46.1 per cent were free gifts (furniture, electrical appliances), 35.1 per cent featured cash discounts and 18.9 per cent were fee waivers upon ownership transfer, the REIC said.

Published : April 22, 2021

By : THE NATION

It’s truly a buyer’s market, new study on Bangkok condos shows #SootinClaimon.Com

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https://www.nationthailand.com/property/30404361

It’s truly a buyer’s market, new study on Bangkok condos shows

Apr 01. 2021Nattha KahapanaNattha Kahapana

By The Nation (sponsored news)

Though Thailand’s property market showed some signs of recovery in the third quarter of 2020, homebuyers’ purchasing power was weakened with the arrival of a new wave of Covid-19 infections in mid-December, Nattha Kahapana, deputy managing director and head of Knight Frank’s Phuket operations said.

The real-estate consultancy says buyers postponed home-buying decisions as they were worried about the state of the economy. Also, foreign buyers have not returned due to travel restrictions and the rising number of new infections in Europe.

Hence, property developers are having to rely on local buyers, whose spending power has been restricted by layoffs or salary cuts, and subsequently banks denying them loans.

With no foreign buyers and limited local buyers, some developers have either postponed or cancelled new projects.

Nattha reckons it will take at least two years to sell off the units in stock and bring equilibrium to the market.

Supply

A recent Knight Frank Thailand study found that the supply of new condo units in Q4 2020 dropped by 77.8 per cent, with only 4,196 new condo units being put up for sale compared to 18,926 units in the same period in 2019.

Up to 65 per cent of the total new condo projects launched in the fourth quarter of 2020 were Grade C properties with a selling price of Bt40,000 to Bt75,000 per square metre, followed by Grade B projects going for Bt85,000-Bt120,000 per sqm. No Grade A condos were launched during that period.

In terms of location, 95 per cent of the new condominiums were situated in the suburbs of Bangkok followed by 5 per cent in the fringe of the central business district. No projects in the actual CBD area were launched in the last quarter of 2020.

Demand

The overall market in Q4 2020 slowed down from the previous quarter due to the new Covid flare-up. In the last quarter, only 1,391 or 33 per cent of the 4,196 units up for sale were sold, marking a 17 per cent drop compared to the same period in 2019 and a 6 per cent drop compared to the previous quarter.

Selling price

The selling price of condominium units dropped in Q4 2020 compared to the previous quarter. Condos in the CBD area dropped by 5 per cent to Bt251,435 from Bt265,000 per square metre in the previous quarter. Those in the fringe of the CBD dropped 15.4 per cent from Bt146,000 to Bt123,560 per square metre, while the asking price for those in the suburbs dropped 13.2 per cent from Bt79,400 to Bt68,945 per square metre.

This price drop was put down to operators pushing to sell off units to boost their liquidity.

New projects launched in the fourth quarter of last year are also relatively cheaper, proving that it is truly a buyer’s market.

Outlook

Last year was challenging for the real-estate business in Thailand and 2021 is not expected to improve very much because developers have to rely primarily on local buyers, Nattha said.

Developers are also delaying new launches because they need to sell off their sizeable stock of unsold units. Some 20,000 to 30,000 new units are expected to be put on the market this year at prices that reflect real demand.

Many large developers are also shifting their focus on low-rise projects due to reduced risk as they can be built in phases.

A rebound in the condominium market is expected in mid-2022, once the Covid-19 epidemic comes under control.

Also, Chinese investors have been trying to buy condos via the embassy or brokers in China as they are unable to enter Thailand. They view the country as a safe haven in the event of an epidemic.

However, the market still needs to wait for the outbreak to ease and international travel to resume before it can fully recover. Things may go in the opposite direction if there is political turmoil, so developers need to come up with a plan for an uncertain future.

Landy Home eyes 15% growth in 2021 as No 1 in home building market #SootinClaimon.Com

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https://www.nationthailand.com/property/30404111

Landy Home eyes 15% growth in 2021 as No 1 in home building market

Mar 26. 2021

By THE NATION

Landy Home (Thailand) marked the grand opening of its flagship sales gallery on Ratchapruek Road on Wednesday by targeting Bt2.4 billion sales in the home building market in 2021 – or repeat yearly growth of 15 per cent.

“Our business performance in 2020 showed 15 per cent growth from the previous year with total sales of Bt2.1 billion, 80 per cent of which came in Bangkok and 20 per cent in other provinces,” said Pornrat Maneerattanaporn, assistant managing director & sales director. “This performance went against the trend in 2020 when the value of the home building market dropped roughly 5 per cent from Bt12.5 billion in 2019 to Bt12 billion in 2020 under the impact of Covid-19.”

Pornrat said statistics from the Home Builder Association indicated that sales of custom-built houses in 2020 were dominated by smaller homes in the Bt2-5 million price range and mid-size homes priced Bt5-15 million.

“However, demand for luxury houses priced over Bt15 million is on the rise and could grow as high as 16 per cent year on year in 2021,” she added.

“Amid economic uncertainty brought by the outbreak, customers in this sector are considering building their houses with larger companies rather than smaller ones due to superior credibility and reliability. This is a great opportunity for Landy Home as we have long experience in home building plus the largest registered capital in the market at Bt200 million.”

The company is therefore targeting sales growth of 15 per cent to total Bt2.4 billion in 2021.

Phattra Maneerattanaporn, Landy Home’s director of marketing and product design, said demand for Bt15 million-plus luxury houses drove the decision to open the Landy Grand Sale Gallery on Ratchapruek Road as the company’s flagship.

“This flagship store will help us penetrate the high-end market in Thonburi areas,” she said. “According to our database, the demands for luxury houses in Thonburi is as high as in Bangkok. Thonburi also has high potential in terms of complete infrastructure, convenient transport connections to downtown Bangkok and main highways, population density, and potential for future development.”

Phattra added that the company has divided its products into three segments.

Trendy Homes are small-size residences priced at Bt2-5 million and accounting for 45 per cent of the company’s sales. Landy Homes are medium-size residences priced at Bt5-15 million, accounting for up to 30 per cent of sales. The Landy Grand are large, luxurious residences at Bt15 million and over, responsible for 25 per cent of the company’s sales.

“At our flagship store, you will find over 300 models of houses under the Trendy Home and Landy Home categories on the first floor, while the second floor is dedicated to Landy Grand products that include 3D models, consultation station with our experienced architects, and an exclusive lounge for customers,” she said. “Landy Home Ratchapruek is designed as a one-stop service centre for the luxury home building market. Currently we are offering discounts of up to 30 per cent as well as gift vouchers up to Bt450,000 to new customers.”

As for home-building trends in 2021, Phanid Maneerattanaporn, Landy Home’s director of construction and administration, said: “With the modern lifestyle focusing on health and spending more time at home, the company is focusing on developing home technology under the concept “Landy Life” with an aim to improve our customers’ quality of life at an affordable price.”

Among the company’s signature technologies is the CAP+, or Clean Air Positive Pressure Plus – an air purifying system that is installed in all Landy Home houses to protect against PM2.5 dust particles and germs, maintain oxygen levels and reduce carbon dioxide within the air-conditioned rooms.

“Moreover, we have taken it to another level with CAP+ V.2, adding a Zeolite Filter that helps reduce allergens and filters out chemical substances, controlled via a mobile application which is compatible with Google Assistant and Alexa,” he added.

Landy Grand Sale Gallery is opposite The Circle Shopping Complex on Ratchapruek Road in Bangkok’s Taling Chan district. For more information, contact (02) 938 3456.

Housing market in six provinces to start flourishing from next year, study shows #SootinClaimon.Com

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https://www.nationthailand.com/property/30403943

Housing market in six provinces to start flourishing from next year, study shows

Mar 21. 2021

By The Nation

A study conducted by Krungsri Research indicates that the housing sector in six key provinces will pick up in 2022-2023 thanks to developers’ strategy of cutting prices to release stock.

The provinces, in this case, are Chiang Mai, Chonburi, Rayong, Nakhon Ratchasima, Khon Kaen and Phuket.

The research house also took a look at developers’ plans to expand investment in tourist and industrial centres to compete with developers in Bangkok and its adjoining areas. This is reflected by the average 8-per-cent rise in land price in the six provinces last year compared to 2019.

Krungsri Research estimates that Thailand’s housing sector will either stabilise or shrink slightly in 2021 compared to 2020 because the Covid-19 outbreak is still pressuring economic recovery.

Developers are currently focusing on releasing some 100,000 units, while homebuyers are holding off on purchases.

As a result, the number of new projects launched this year will be the same as last year, though in 2022-2023, the sector is likely to improve in line with economic recovery and return of tourists.

The Thai economy in 2021 is expected to grow at an average of 3 to 4 per cent from a 6.1 per cent contraction in 2020. Investment in infrastructure is also progressing, especially in the EEC area, which is helping the housing market in Chonburi and Rayong to recover faster than other provinces.

The tourism industry is also expected to gradually recover, as certain tourists, such as business travellers, health travellers or people from countries with low infection rates, start arriving.

If the country starts reopening soon, then the number of tourists will return to approximately 40 million by 2024, about the same as in 2019.

The government has also launched the Thailand Elite Card scheme, which grants foreigners a residence permit of up to 20 years, thus encouraging them to purchase a second home here.

Apart from reducing prices to release stock, developers are also focusing more on low-rise projects to target those who work from home as well as keep homes affordable for the locals.

Low-rise housing

New projects will shrink by 7.5 per cent this year, judging by the 16.7-per-cent drop in applications for low-rise housing construction permits in the first 10 months of 2020. Demand is expected to improve in 2022-2023 from the middle-income market looking for affordable houses.

High-rise housing

The recovery of condominiums is lower than low-rise projects. The launch of new projects is expected to drop by 35.7 per cent in 2021, judging by the 54.7-per-cent drop year-on-year in the number of applications for construction permits in the first 10 months of 2020.

The supply of new condominiums is rising in Rayong and Phuket to accommodate the expansion of industrial and tourism sectors.

Developers are now creating projects that serve changing consumer lifestyles, such as working at home, more attention to health and wellbeing, as well as safety features required by an ageing society.

However, the housing sector’s 2021-2023 growth can be hit by some factors, such as rising household debt cutting purchasing power, tougher loan-approval regulations and an oversupply of housing units.

Property developers eye Orange, Yellow, Pink Skytrain lines #SootinClaimon.Com

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https://www.nationthailand.com/property/30403796

Property developers eye Orange, Yellow, Pink Skytrain lines

Mar 17. 2021

By THE NATION

Property developers are directing their focus to outer Bangkok areas, especially along the Orange, Yellow and Pink Skytrain lines in 2021, a Colliers International Thailand executive said.

Research and communications director Phattarachai Taweewong said there are 678,262 completed condominium units in Bangkok. Of these, 58 per cent or 391,793 are located in outer Bangkok and 42 per cent or 286,469 in inner city areas.

“In 2021 developers will continue to expand their projects in outer Bangkok areas, especially along Skytrain routes that are currently under construction,” he said.

“They are the Orange Line from Ramkhamhaeng to Lamsalee, the Yellow Line from Lat Phrao to Srinakarin roads, and the Pink Line from Raminthra to Chaeng Watthana roads. We expect to see new condo projects announced in these areas in the coming months.”

The company also reported that in inner Bangkok, zones that have the most accumulated supply of finished condominiums are Ratchadapisek-Phaholyothin roads – 96,105 units or 14 per cent – followed by those on Silom-Sathorn roads – 60,368 units or 9 per cent – and those on Sukhumvit Road – 37,476 units or 6 per cent.

Price of luxury homes in and around Bangkok remains sky-high despite Covid crisis #SootinClaimon.Com

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https://www.nationthailand.com/property/30403090

Price of luxury homes in and around Bangkok remains sky-high despite Covid crisis

Feb 26. 2021

By The NationThe Agency for Real Estate Affairs (AREA) on Thursday released a list of 15 most-expensive housing estates in Thailand, most of which are in Bangkok and its vicinity.

The costliest unit has a price tag of Bt260 million, while the cheapest is Bt44 million.

“Clearly the Covid-19 crisis has not affected the price of luxury residences,” AREA president Sopon Pornchokchai said.

The 15 most expensive housing estates are as follows:

• Santiburi The Residences: Bt260 million per unit. Located on Praditmanutham Road in Bangkok’s Bueng Kum district, the Bt6.5-billion project has 25 units. Each two-storey house has a useable area of 1,366 square metres. The land is priced at Bt265,000 per square wah, and the project was developed by Singha Estate.

• Atelier Residence: Bt138 million per unit. Located in Soi Sahakarn Pramool, Pracha Uthit Road in Bangkok’s Wang Thong Lang district, the Bt1.1-billion project only has eight units. Each three-storey house has a useable area of 1,150sqm. The land is valued at Bt120,000 per square wah and the estate was built by Aland Development.

• Mavista Prestige Village: Bt100 million per unit. Located on Krungthep Kreetha Road in Bangkok’s Saphan Sung district. The Bt1.39-billion project has 14 units, with each three-storey house having a useable area of 914sqm. The land is valued at Bt150,000 per square wah, and the project was developed by MJP Property.

• Issara Residence Rama 9: Bt96 million per unit. Located on Soi Rama IX 13 in Bangkok’s Bang Kapi area. The Bt1.92-billion project has 20 units, with each three-storey unit having a useable area of 726sqm. The land is valued at Bt350,000 per square wah and the project was built by Charn Issara Development.

• Crystal Solana: Bt75 million per unit. Located on Praditmanutham Road in Bangkok’s Bueng Kum district, the Bt3.08-billion project has 41 units. Each three-storey house has a useable area of 685sqm. The land is priced at Bt300,000 per square wah and the project was developed by KE Land.

• The Riverdale Residence: Bt69 million per unit. Located on Thailand Route 345 in Pathum Thani’s Muang district, the Bt3.86-billion project has 56 units. Each two-storey house has a useable area of 476sqm. The land is valued at Bt45,000 per square wah and the project was developed by Riverdale Golf and Country Club.

• The Royal Kaset-Nawamin: Bt66 million per unit. Located in Soi Prasertmanukit 27 in Bangkok’s Lat Phrao area, the Bt5.21-billion project has 79 units. Each two-storey house has a useable area of 420sqm. Land has been valued at Bt80,000 per square wah and the project developed by TCC Capital Land.

• Issara Residence Bangna: Bt64 million per unit. Located on the Eastern Bangkok Outer Ring Road in Samut Prakan’s Bang Phli district, the Bt2.49-billion project has 39 units. Each three-storey house has a useable area of 697sqm. The land is valued at Bt220,000 per square wah and the project was developed by CIN Estate.

• Veva Priva Ekkamai-Ramindra: Bt62 million per unit. Located in Soi Ramkhamhaeng 21, Praditmanutham Road in Bangkok’s Wang Thong Lang district, the Bt434-million project has seven units. Each three-storey house has a useable area of 644sqm. The land has been valued at Bt150,000 per square wah and the project was developed by Narai Property.

• Ladawan Ratchapruek-Pinklao: Bt55 million per unit. Located on Ratchapruek Road in Bangkok’s Taling Chan, the Bt12.87-billion project has 234 units. Each two-storey house has a useable area of 416sqm. The land has been valued at Bt100,000 per square wah and the project was developed by Land and Houses.

• Baan 365 Rama 3: Bt53 million per unit. Located on the Industrial Ring Road in Bangkok’s Yannawa district, the Bt2.19-billion project has 41 units. Each three-storey house comes with a useable area of 340sqm. The land is priced at Bt250,000 per square wah and the project was built by LPN Development.

• Anina Villa: Bt52 million per unit. Located in Soi Yenakart 2, Yenakart Road in Bangkok’s Yannawa district, the Bt1.14-billion project comprises 22 units. Each 4.5-storey house has a useable area of 530sqm. The land is valued at Bt700,000 per square wah and the project was developed by Yenakart Asset.

• Ladawan Rama 2: Bt50 million per unit. Located on Rama II Road in Bangkok’s Bang Khunthien district, the Bt6.1-billion project has 122 units. Each three-storey unit has a useable area of 434sqm. The land is valued at Bt100,000 per square wah and the estate was developed by Land and Houses.

• Granada Pinklao-Phetkasem: Bt47 million per unit. Located on Kanchanaphisek Road in Bangkok’s Bang Khae district, the Bt1.82-billion project has 39 units. Each two-storey unit has a useable area of 786sqm. The land is valued at Bt120,000 per square wah and the project was developed by SC Asset Corporation.

 Grand Bangkok Boulevard Ratchaphruek-Charan: Bt44 million per unit. Located on New Prannok-Phutthamonthon Sai 4 Road in Bangkok’s Taling Chan district, the Bt1.30-billion project has 30 units. Each two-storey house has a useable area of 588sqm. The land has been valued at Bt160,000 per square wah and the project was developed by SC Asset Corporation.

Potential remains high for Phuket’s real estate market despite Covid-19 impact #SootinClaimon.Com

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Potential remains high for Phuket’s real estate market despite Covid-19 impact

Feb 09. 2021

By THE NATION

As one of Asia’s best tourism destinations, and Phuket’s increasing tourist numbers each year, property business was among the sectors that grew continuously, says

Nattha Kahapana, deputy managing director of Knight Frank Thailand and head of the Phuket operation.

The large number of foreign tourists visiting each year includes a large group that has started to look at condominiums to buy, so they can have a place to stay when they visit Phuket.

Some also sought additional rental income when they were not in residence. For these reasons, the real estate business in Phuket drew great interest of investors as they saw foreign tourists being a main source of purchasing power.

Also, Thai investors turned their attention to the market. Condominium projects that launched in Phuket were the types that focused on rental returns, and such projects invited hotel brands to manage the properties, which boosted the reputations of the projects.

From the rental yields received, Phuket became an attractive place to buy condominiums for investment. However, the Covid-19 pandemic drastically reduced the volume of tourists, as they could not travel. Heavily reliant on tourism, the economy of Phuket came to a halt and became sluggish, Nattha said.

The real estate sector of Phuket was directly affected. Even though Thai tourists continued to come, they were not enough to revive the economy of the island, he said.

At the same time, however, there were new condominiums launched for sale; such operators believe that many tourists and investors would continue to fuel demand for condominiums when the situation returns to normal.

According to research results of Knight Frank Thailand, it was found that at the end of 2020, the total supply of condominiums in Phuket stood at 26,096 units.

There were just 1,862 new units launched for sale in 2020, from seven condominium projects. This figure is close to that of the years before 2016, when there was an average of around 1,700 to 2,000 units launched for sale per year. It can be seen that the number of condominiums launched this past year decreased from 2019 by some 65.97 percent.

From a supply of 5,471 newly launched condominium units in 2019, this dropped to just 1,862 units in 2020. This significant drop in new supply is attributed to the Covid-19 outbreak, which has severely affected demand. Developers therefore delayed the launch of projects. Moreover, commercial banks became concerned about the uncertainty of the situation, and implemented tight controls in lending for project development. Therefore, developers suspended the launches of projects.

In 2020, new condominium launches were mostly in Layan, at 59 per cent, followed by the Patong and Naithon Beach areas, accounting for 22 per cent and 13 per cent, respectively.

The Mai Khao Beach area contained the smallest number of new condominium launches, at only 6 per cent of the total supply. Mai Khao, an area in the north of Phuket, is not yet very popular as it is far from amenities, compared to other beaches. As a result, Mai Khao has quite a lot of land available.

In 2020, there was a total of 19,761 units sold, from a total supply of 26,096 units, which represents a sales rate of 75.7 per cent. It increased from 2019, when it was 73.4 percent.

There are around 6,335 units left for sale. The number of new condominiums sold in 2020 was only 1,966 units, which has decreased from 2019’s 4,036 units. This decrease is due to the lack of foreign tourists, a major source of purchasing power, who were unable to enter the country because of the Covid-19 pandemic. Phuket was severely affected, whether it was tourism, employment, or even real estate.

There were some condominium projects that had to stop sales or had low sales. Moreover, they have been unable to apply for loans from financial institutions who are now quite strict in lending for condominium developments.

In addition, there are some projects that have stopped selling, opting to wait and see. Due to Covid-19, foreign tourists are unable to come to Phuket and they comprise the group of condominium buyers in Phuket.