He said that 16 property listed companies in the Stock Exchange of Thailand (SET) had revise down their business plans to launch residential projects. The previous 290 projects worth Bt440 billion in this year have been down-sized to 237 projects worth Bt370 billion, a drop of 53 projects worth Bt70 billion. The market has continued to drop after the Bank of Thailand restricted approvals for loan to value or LTV effective on April 1, 2019.

He added that total revenues for the 16 listed property companies in the SET have signed to drop in the second quarter of this year, and are also continuing to drop in the third quarter of this year as demand in the market drops.

In the last quarter of the year 2018, 16 listed property companies recorded total revenue of Bt81.55 billion, while the first quarter of 2019 reported Bt65.46 billion, a 19.7 per cent drop.

Furthermore, the total revenue has been reported at Bt49.83 billion for the second quarter of 2019, a 23.87 per cent plunge from the first quarter of this year.

“They show their total revenue has dropped since the first quarter of this year till the second quarter of this year [after also dropping] from the last quarter of last year. They also have continued to have signed to drop in the third and the fourth quarters of this year. This is the reason that most of them have revised down the launching of their new residential projects in the rest of this year and tried to sell their inventory in the market,” Terdsak said.

Meanwhile, in the first half of this year 16 listed property firms recorded a total backlog of Bt330 billion for units that are already sold but are awaiting transfer when the projects are completed. Of them, up to Bt40 billion are low-rise residences, including single detached houses and townhouses, while the next Bt158 billion are condominium projects that the firms developed by themselves, with the next Bt132 billion comprised condos developed through joint venture firms with their foreign partners. Some of them will be completed and transferred over the course of this year, with the rest transferred in 2020 to 2022.

“When combined with the new projects launched in this year, we forecast all of them will take time to sell over the next two years [even if there are] no new products launched in the market. If they have more new projects launched, it will take a term longer than two years [to sell],” Terdsak said.

The Real Estate Information Centre’s acting director-general, Wichai Virataphan, said the centre forecasts that new transfers of residential projects in this year will drop by up to 7.7 per cent in term of units and drop 2.7 per cent in terms of value in the condominium market. He attributes the impact to the LTV measure that reduced the purchasing power of buyers in the middle and lower income markets.

A survey by the Government Housing Bank’s Real Estate Information Centre found that, as of June 30,954 residential projects were for sale in the three provinces, representing 185,179 units and a combined worth of Bt561.21 billion.

Chonburi had the most – 664 projects with 136,273 units worth Bt435.92 billion, following by Rayong and Chachoengsao respectively (see graphic).

Several property firms have unveiled more residential project in the EEC area in the third quarter of this year.

Origin Property Plc and Dusit Thani Plc announced a condominium project for Chonburi’s Sri Racha district named Hampton Sriracha, worth Bt1.4 billion.

Pruksa Real Estate launched two new projects worth Bt2 billion in Chonburi in July and Golden Land Property Development has Golden Town Chachoengsao, worth about Bt1 billion.

SC Asset Corp has single-detached homes at Pave Ban Pho-Chachoengsao worth Bt750 million, where the starting price is Bt4 million. Supalai has plans for residential projects worth up to Bt3 billion.

“We expanded our investment in the EEC when we saw the strong demand coming from new businesses registering to move to the area,” Pruksa chief executive Piya Prayong said.

The Commerce Ministry reports that 61,284 firms are listed to operate in the EEC with combined registered capital of Bt1.7 trillion, a dramatic jump from the 6,800 listed in 2017.

More than 10,800 of those firms – claiming registered capital of Bt72.6 billion – are engaged in real estate, nearly half of them joint ventures with partners in Mainland China, Japan, Taiwan and Hong Kong.

The government anticipates creating 500,000 jobs in the EEC, mainly in “S-curve industries” like industrial robotics, aviation, logistics, biofuel and bio-chemicals, and digital and medical technology.

Based on aggressive investment since 2017, infrastructure including a high-speed railway and an aviation hub will be built this year and next, further boosting demand for homes.

Real Estate Information Centre acting director-general Wichai Viratakaphan said 57,314 units together worth Bt102.6 billion were transferred to purchasers throughout 2018, an increase of more than 20 per cent from 2017.

“We saw strong demand for homes in the EEC in 2017 and 2018, but growth was slight in the first half of this year after the Bank of Thailand introduced the loan-to-value policy, which directly affected demand in the property market across the country,” Wichai said.

Demand for homes is still rising in the EEC, however, and faster than last year, with prices still not exceeding Bt5 million per unit, he said.

Land prices are also on the rise there. The Finance Ministry’s Treasury Department revises prices nationwide every four years and will announce new baht-appreciated prices in 2020 that is expected to increase the average by 10-20 per cent over the amounts of four years ago.

“Land prices in the EEC have increased by as much as 100 per cent due to demand from both industry and property developers,” a department source said.

“Industrial and corporate expansion also requires homes for the workers,” a property expert said on condition of anonymity. “The challenge for property firms is how much to expand their investments now that major infrastructure is coming, including the high-speed railway linking Don Mueang, Suvarnabhumi and U-tapao airports, Map Ta Phut Phase 3 and the aviation hub. All of these will boost investment for related industry and the necessary supply chain.”

The full-service professional property and facility management agency, has revealed findings from its survey of the market for detached houses in the first half of 2019, during which major developers were found to be shifting toward the low-rise market.

Property in the Bt3-5 million and Bt5-7 million price ranges remain the dominant segments in the market, but the Bt10 million and above price segment has experienced a growth surge in both supply and demand. The latter segment serves clients with middle-upper incomes who seek real residency and are negligibly affected by economic volatilities.

Supply and demand are expected to retain a steady growth pace in the latter half of 2019. Owing to the cost of land, new projects priced at or above Bt5 million are expected to become more prominent, with a corresponding tendency for diminishing launches of projects with price tags around Bt3 million.

Developments in the economy, changes in mortgage measures, and the policy interest rate should be carefully monitored, according to the findings of the firm’s research and development division.

Findings by the division point to a marked shift by property developers toward detached houses, said Suwannee Mahanarongchai, the deputy managing director for business strategies and asset management at Plus Property. This has resulted in improved growth of the market for detached houses in the first half of 2019.

Compared to the same period of previous years, there was growth in both demand and supply. But growth decelerated in comparison to the second half of 2018, due to developers last year having rushed to release their stocks before the mortgage control measure came into effect in early 2019.

In this survey cycle, the supply on offer – 16,369 units in total – expanded by 2 per cent from the same period of the previous year, attributable to an increase in units on sale at existing and newly launched projects. Total demand, amounting to 6,198 units, a 15 per cent increase from the same period of the previous year; the sales ratio was 38 per cent.

Data also revealed a growth increase in the detached house segment of Bt10 million and above. The bump reflects a change in tactics by property developers to increase their focus on developing projects that cater to upper-income clients as they are only negligibly impacted by the mortgage control measure and other economic headwinds. However, these clients make up only a small portion of the entire detached houses market, with other price segments more dominant.

A look at the overall scene of the market for detached houses within Greater Bangkok, finds a total of 16,369 units of supply available during the first half of 2019. The Bt3-5 million price range had the largest market share at 35 per cent (5,671 units). The Bt5-7 million price range came in a close second, with a 31 per cent share of the market (5,065 units). The Bt7-10 million range had a 15 per cent share (2,515 units), while the Bt10-20 million price range had a 10 per cent share (1,709 units). The Bt20-40 million segment had a market share of 4 per cent (711 units), while the Bt30-40 million price range constituted 2 per cent of the market (305 units). The price range of Bt40 million and above had a market share of 2 per cent (300 units). At the other end of the spectrum, the segment with units priced lower than Bt3 million had just a 1 per cent share of the market (93 units).

At the same time a total of 6,198 units of demand were generated in the first half of the year – equivalent to a 38 per cent sales ratio. This demand figure grew by 15 per cent from the same period of the previous year but declined by 16 per cent from the second half of 2018. This can be explained by the rush to release existing stock before the new mortgage control measure was to take effect in early 2019. As a result, property purchase decisions by consumers surged during 2018’s second half. Nonetheless, demand figures increased within every price range in this survey cycle when compared to the same period of the prior year. The price range that saw the highest increase in demand comprised detached houses selling for Bt10 million and above; demand in this segment surged by about 40 per cent to 1,158 units.

As for the dominant price segments of Bt3-5 million and Bt5-7 million, demand increased by 4 per cent and 22 per cent, to 2,418 units and 1,733 units, respectively. The Bt7-10 million segment saw demand increase by 2 per cent to 848 units. Within this survey cycle, demand for detached houses priced at Bt5-7 million – currently one of the two main price ranges in the market for detached houses and one which has continuously experienced demand growth – increased noticeably within the northeastern and western zones of Greater Bangkok. More specifically, the demand surge was observed in the Khlong Sam Wa and Lat Krabang areas within the northeastern zone, and the Bang Yai and Phutthamonthon areas within the western zone. The stated localities offered linkages to the city centre and possessed large shopping malls that are able to facilitate convenience for the residents of those localities.

“For the latter half of 2019, supply and demand of detached houses are expected to continue growing at a steady rate. To fight for market share amidst increased competition, developers would have to continue placing emphasis on new projects that answer to the lifestyles of present-day consumers,” said Suwanee.

The number of new projects with prices between Bt5-7 million are expected to grow, whereas there is a tendency for a decline in launches of projects with prices between Bt3-5 million, the currently most dominant segment of the detached houses market, he said, attributing it to rising land prices.

“This means developers need to adjust their offer prices to become more appropriate. Domestic and external economic factors, any revision to the mortgage control policy, and any reduction of the policy interest rate by the Bank of Thailand will have effects on purchasing power in the latter half of the year,” said Suwannee.

The project is targeting those investing in or working at the Eastern Economic Corridor or EEC, Origin Property’s chief executive officer Peerapong Charoon-Eak said on Wednesday.

Starting prices are Bt2.9 million per unit and booking will open in November.

The 26-storey condominium project has 468 residential units. Three commercial units will also be offered.

“The project is designed to extend our business from hospitality to property and to improve our revenue for long term,” Dusit Thani Plc’s Suphajee Suthumpun said.

Piyanuch Boonyiamyien, president of Neo 3241 Development Co Ltd or Neo Group, revealed that Neo Group is a new property development company with old faces who have been in the industry for more than 10 years and are specialised in land  and development as well as project feasibility study with large organisations.

Piyanuch gathered her friends who are interested in and have a passion for property development to bring together their skills, knowledge and experiences to create housing projects that make the most of every square inch of space, and still leave room for further extension.

Four projects have been launched: The Classy Condo Ratchada 19, Neo House Nakniwat 32, Neo Space Sukhontasawas 3, and Neo Space Plus Sukhontasawas 3. All have received  good feedback from the residents.

“The team and everyone involved have been studying the results and feedback from these properties in order to improve our future projects as well as learning the demands of our target customers. We have realised that apart from the key factors of location, potential of the location, convenient transportation and accessibility to food and suppliers, interior and exterior design and space allocation to match space usage without major renovation also figure  in a customer’s decision making process.

“Once the information has been compiled, we will  launch three more projects with a total investment of Bt300 million,  focusing on serving the demands of all lifestyles, including townhomes, home offices, single and twin houses on good  locations in the heart of Ladprao. Our understanding of  customer demands are reflected in a project’s location, design, space allocation and parking among others, to ensure every square metre is fully utilised, given the increasing land prices. Reasonable prices within customers’ budget is another key strength of the three planned properties.  Overall, we are focusing on 4 key elements:  location,  design,  value for money and the balance of function and design”, she said.

Piyanuch  concluded that “ As a small company. we are very quick in managing and making decision, we are in a very strong position to impress customers and response very quickly to their requirements throughout their decision process, both during and after sale”.

The figure rose 10 per cent from the fair last year, said Churat Chakarakul, who was in charge of organising the fair.

The total included 37 per cent of presales for townhouses, 34 per cent for condominiums, 20 per cent for single houses and 6 per cent for attached houses.

The value of bank loan applications during the fair was Bt4 billion.

The fair was co-hosted by the Housing Business Association, the Thai Condominium Association and the Thai Real Estate Organisation.

The latest debenture issue will be spent to pay back its existing debenture, which will expire this year.

The company plans to issue the debenture on October 4, 7 and 8 this year, according to the company’s report with the Stock Exchange of Thailand.

He advised developers launching new projects to pay heed to real customers’ voiced preferences and develop their condominiums accordingly if they want to maintain their competitive advantage.

“Providing special alternative units and lifestyle functions will turn buyers’ attention to the condominium market,” he said.

Khan also added that some developers are also starting new trends by providing more sports facilities, common spaces, services and technology. Also, he said, many projects are getting their condominiums managed by well-known hotel chains to provide residents with five-star services such as 24-hour reception, bellboy, concierge, personal fitness trainer, private chef, doctor on call, limousine service, housekeeping, etc.

He went on to say that developers should go one step further and provide home automation or “smart homes”, so lighting, appliances and entertainment systems can be remotely controlled, as well as build well-designed, spacious exercise areas, such as an Olympic-sized pool and more green areas, to accommodate residents at all times of the day and night.

As for location, he said that most projects are based in CBD areas and near mass-transit lines, especially the BTS Green Line and the MRT Blue Line, which has made many projects unaffordable for some people.

However, he said, if we go a little further along the MRT Orange Line, we will find projects at more affordable prices. Also, he said, since the MRT Orange Line will be completed in the next few years, it will make commuting easier. “Such seamless transportation connectivity strongly affects the area’s potential for residential development projects,” he said.

In addition to targeting the local market, foreign buyers are also serving as one of the major drivers of Thailand’s residential market. However, overseas marketing strategies have not been very effective over the past six to eight months.

“Developers should be cautious and keep a close watch each quarter on their marketing plan and budget when investing in overseas markets such as Hong Kong and, in particular, China. The Chinese market, which is an important investor, possesses strict regulations on money transfers. This financial tension is significantly hampering demand from the Chinese market,” he said.

Part of the “AP World, A Vision for Quality of Life” initiative, the philosophy will be channeled into developing quality condominiums, single detached houses and townhomes. The first project into which the philosophy has been put into practice is Life Sathorn Sierra.

Located just 150 metres from Talat Phlu BTS station, Life Sathorn Sierra is being introduced as a prototype of sustainable and balanced vertical living on the “Forest Park in the City” concept and boasts more than 8,400 square metres of common areas.

Channelling the philosophy from its partner Mitsubishi Estate Residence, a member of Mitsubishi Estate Group, AP’s main mission is to draw a blueprint for good quality of life for everyone in society.

Planted with a wide array of flora, the project is a valley of trees in the middle of the city – a hub that connects stories of human beings, insects, towns, buildings, large trees and surrounding environment into a single entity and leading to sustainable growth.

The company has plans to channel the concept behind Izumi Park Town, a prototype for sustainable living, into developing its future low-rise projects to deliver good quality of life.

With the cooperation of a partner like Mitsubishi Estate Residence, which attaches importance to sustainable, balanced property development, AP intends to pass on sustainability know-how with a biodiversity philosophy which focuses on building a balanced ecosystem to ensure a lifestyle where human beings and the environment support

each other.

“Basing our ideas on the biodiversity philosophy of Japan, we created a forest in the city at Life Sathorn Sierra. We hope the green areas of Life Sathorn Sierra will eventually connect with surrounding green areas so that eventually we have a perfect ecosystem that supports

sustainable co-existence of man and the environment,” said Vittakarn Chandavimol, Chief Corporate Strategy and Creation, AP (Thailand).

“AI BIM (Artificial Intelligence Building Information Modeling) was a major component in the master planning of the project and used to control the quality of construction, interior functional design and landscape design. AIBIM also takes account of sunlight direction, wind

strength as well as the selection of flora that suits each season to ensure that Life Sathorn Sierra will be a real model for building a forest park in the city,” he adds.

Life Sathorn Sierra is surrounded by trees and boasts a frontal landscape that looks like a multilevel vertical valley of trees. It incorporates a hiking trail surrounded by a variety of flora together with a serene pool 100 metres long in a shape that is in harmony with nature.

The 40th rooftop floor is a panoramic sunken lounge designed as a large clear glass box surrounded by a man-made forest that’s inspired by The Cafe by Aman in Japan and which offers a view of Bangkok’s horizon.

“Over the last six years of our collaboration with Mitsubishi Estate Residence, we have drawn on their know-how to develop quality properties. This is another major step taken by AP Thailand to build on the main mission to draw up a master plan for sustainable living. Izumi Park Town in Sendai is a very interesting prototype for building an ideal town. It can be channeled into AP’s future low-rise projects that will deliver good living quality for residents in a truly comprehensive way,” Vittakarn added.

Hotel and resort brand Aman has signed a long-term partnership with Nai Lert to manage a hotel and branded residences under a long-term leasehold ownership. This will be Aman’s first resort and residences in Bangkok, and its second in Thailand after Amanpuri in Phuket.

Under the terms of the agreement, Aman and Nai Lert will develop a luxury hotel and residences project, with construction scheduled to commence in the coming months. The project is expected to welcome its first hotel guests and residents in 2022, Nai Lert Park Development managing director Naphaporn Bodiratanangkura said.

“Thailand holds a special place in our hearts ever since the conception of Amanpuri, and our brand, in Phuket more than 30 years ago,” Aman chairman and CEO Vladislav Doronin said. “Aman Nai Lert Bangkok will be situated in its namesake iconic central city parkland and will further cement our vision to bring the Aman ethos to global cities. Nestled in the century-old tropical gardens of Nai Lert Park, Aman Nai Lert Bangkok will offer a unique connection to the rich heritage and history of Bangkok enhanced by the gracious traditions of Thailand.”