Through the partnership, KE Group intends to leverage Plug and Play’s global ecosystem to identify the latest cutting-edge technologies to drive innovation across its business units.

“As one of Thailand’s largest real estate developers, we see the need to constantly strive for innovation. Plug and Play’s established global network will allow us to gain access to the latest technologies and identify key strategies that we can implement in our business units,” said group executive chairman Kaveepan Eiamsakulrat.

“Plug and Play’s inaugural programme in Thailand will focus on the smart cities theme that will bring together key players in real estate, energy and sustainability, mobility and the Internet of Things, and digital health,” said Shawn Dehpanah, vice president, APAC, Plug and Play.

“Our demand-driven and stage-agnostic approach provides corporate partners with unique access to solutions catered to solve their pain points and welcome the consumer-driven digital era. Our tested and best-in-class methodology will assist to facilitate a scalable platform for collaborations between start-ups and corporations based in Thailand and connected to our regional and global networks,” he said.

In harmony with the government’s Smart Cities Project, which aims to establish 100 smart cities nationwide by 2022, Plug and Play aims to provide its partners with horizontal access to its global ecosystem of start-ups across the United States, Europe and Asia. With more partners set to join its smart cities platform in Thailand, Plug and Play will continue expanding its reach within the thriving innovation scene in the region, the firm said.

The official launch of Plug and Play’s programme in the country will take place on September 17. The event will showcase panel discussions from industry experts, as well as start-up pitches from the company’s global ecosystem.

Office occupiers continue to seek “higher-quality space” in markets with robust infrastructure and social amenities despite weaker global economic growth in the first quarter of 2019 and worries about the US-China trade war, the report said. The race to attract talent by securing the most desirable work environments also remains intense. Due to limited supply and moderate construction in most cities, prime office occupancy costs have risen to new highs.

These increases persist even as space efficiency and cost management are top concerns for many tenants around the world. The continuing challenge for office occupiers is how to secure quality space and location that meet the increasingly exacting demands of the workforce, while also controlling costs. In this context, measuring superior productivity and user experience of such space becomes ever more important, the report said.

Bangkok is following this global trend. A handful of the best grade A buildings in the central business district (CBD) have rents significantly higher than the average. These buildings are not just in prime locations but are also technically better than their competitors in terms of air conditioning, lifts, energy efficiency and several other factors.

According to the report, the highest rents achieved in Bangkok are in Gaysorn Tower at Bt1,500 per square metre per month, Park Ventures at Bt1,300 and Bhiraj Tower at EmQuartier at Bt1,250, higher than the average CBD grade A rent of Bt1,040 per square metre per month for a small unit.

The rate of increase has, however, slowed over the past 12 months and was below the five-year average. The report said there would be a limited amount of new offices on the market up to 2021, but after that “new supply will exceed historic levels of growth in demand”. Many of the new buildings will be of a very high standard in terms of design, specifications and amenities.

For many tenants, there is an incentive to upgrade as they move to “agile” workplaces where there are no fixed desks. The population densities will be greater and so buildings need better lifts and air-conditioning systems to deal with additional staff. Employees also want better amenities and facilities and, if companies want the best talent, they will need to offer the best office environment.

The unanswered questions are how many office tenants will be willing to pay a premium rent that is higher than the average grade A rent for a better-quality building and how big will that premium be.

The Bt10-billion project, featuring the highest condominium in Rayong, will become a new lifestyle hub and landmark in inhe province, the company said, adding that it will launch a series of pre-sales from September 28 onward with unit prices starting at Bt1.29 million.

Insee Kerdmanee, Deputy Governor of Rayong Province, said the development of smart cities is part of the  national agenda and a priority of the administration.

The government is keen on adopting smart technology and innovation to enhance the efficiency in city management, distribute prosperity across the nation and to boost the quality of life.

The Eastern Economic Corridor (EEC) – covering Rayong, Chonburi and Chacheongsao is a pilot project and the first phase of the government’s Smart City Plan. It involves several government agencies such as the Digital Economic Promotion Agency (DEPA) and Smart City Thailand Office.

“Under the roadmap, the government will set up 100 smart cities nationwide by 2022. The private sector is allowed to submit their existing projects and projects still under development, in applying for a  Smart City Symbol, to the steering committee. Origin Property has kicked off development of the  smart city project in Rayong, a prototype for the province. This project will turn the government’s policy into reality and  a new landmark in the EEC,” said Insee.

Peerapong Jaroon-ek, Chief Executive Officer of Origin Property Plc (ORI),  said the company was determined in developing the Origin Smart City Rayong as a prototype project. It is located on 24 rais of land at the corner of Nernsamlee intersection, Sukhumvit Road, Rayong.  The province has the potential to become a new central business district , he added.

Co-developers of the project, which will lead to a new liftstyle under the “Beyond A Living Platform” concept,  include the Provincial Electricity Authority (PEA), True Corporation Plc, KasikornBank (KBank), Cotto and Class Cafe.

“PEA will facilitate Smart Eco to ensure efficiency and sustainability in energy management. True Corporation will support Smart Tech by setting up a network infrastructure for 5G while Class Cafe plans a major outlet and a 24-hour co-working space.

To create a new lifestyle hub in Rayong, we will turn this place into a smart city prototype which will meet all living and lifestyle demands as well as fulfilling the potential of the province.

The project will also embrace renewable energy, Peerapong said.

The 58 townhome units will each have 310-320 square metres on 26 square wah of land. The purchase price starts at Bt22 million.

The 99 single-detached units will each have 340-490 square metres on 56-100 square wah. The starting price is Bt44 million.

Booking is set for September 14-15, with early birds eligible for a discount price and gifts worth up to Bt3 million.

“Demand from overseas investors for residential units priced under Bt10 million has been dropping since the second quarter, and the baht has appreciated 8.07 per cent against the yuan, from Bt5 per yuan to Bt4.35 in August this year, while rising against the dollar by 5 per cent,” Prasert Taedullayasatit, chief executive at Pruksa Real Estate Plc, told The Nation recently.

He said residential prices had risen an average of 8 per cent in yuan terms and 5 per cent in dollar terms, curbing demand among foreign buyers for units under Bt10 million.

But demand for luxury residences above that price is still growing, Prasert said, thanks to foreign investors looking for second homes in Thailand, particularly Hong Kong people wanting luxury condominiums in Bangkok amid the current political unrest in the Chinese territory.

“We were successful with sales of our new luxury condominium, Chapter Charoennakorn-Riverside, last week, with 10 per cent of the units booked by Hong Kong customers,” he said.

Prayongyut Itthiratchai, first vice president at SC Asset Corp Plc, said 9 per cent of buyers for its 28 Chidlom luxury condo were foreigners overseas, and half of them Hong Kong people looking for a second home in Thailand.

The 28 Chidlom condo was unveiled in 2017, asking foreign buyers for down payments of up to 20 per cent, he said.

Prayongyut concurred that foreigners’ purchasing power had dropped due to the baht’s appreciation and said his company had to revise its residential business strategy to focus on domestic rather than overseas demand.

An Agency for Real Estate Affairs survey found that overseas demand for Thai homes dropped in terms of volume from last year’s average of 20 per cent to 14 per cent in the first half of this year.

In terms of value, the decline was from 25 to 19 per cent.

Meanwhile, unit prices of the new condominium have risen by 10 per cent from 2016 when the      luxury project was launched in the market, he said.

SC Asset Corporation Plc introduced  28 Chidlom in 2016 at a starting price of  Bt320,000 per square metre but it has since soared to an average of Bt351,000 per square metre, he said.

The demand for condominium units among foreign investors has seen  slight growth as the baht strengthens, Prayongyut added.

Thais accounted  for  91 per cent of  buyers in the project  with overseas customers  from Hong Kong, China and Singapore making up the balance.

“Most foreigners have delayed making a decision to purchase this year whereas overseas buyers of   28 Chidlom had to settle a down payment equivalent to  more than 20 per cent of the unit’s price,” he said.

28 Chidlom comprises two buildings, worth a total of  Bt8 billion. The first, the Villa,  consists of  20 floors, of which 40 per cent of  the 182 units have been sold. Unit types in the building range from one to three bedrooms with  usable space from 37-132 square meters.

The other building, the Tower, houses 47 floors and 243 units. Unit types range from one to three bedrooms and penthouses with the usable space from 40-200 square meters. 80 per cent of all units in the building have been taken up. .

The company has started the transfer of units to buyers and expects to hand over properties worth a total of Bt3.5 billion by end of this year.

The company will transfer condominium units worth a total of Bt6.5 billion this year.  Units with Bt3 billion in value were handed over to buyers in the first half,  he said.

According to a survey by Colliers International (Thailand) Co Ltd,  the new supply of condominiums in the second quarter of this year totalled 26 projects,offering  9,632 units worth  Bt74.87 billion. An average 38 per cent of these projects have been sold since booking started.

However, demand to buy luxury residential units for investment has continued to grow, given the  capital gain from investment in posh condominium units averages five per cent and 6.5 per cent per year –   higher than the interest rate on a bank deposit. With the rental yield at an average of 4.5 per cent and 5.5 per cent per year, it remains attractive for investors  looking for high gains from rental, the research said.

According to the survey, LPN Development Plc had success in selling its residential projects on Rama 2 in 2018, and also in sales of its Lumpini Town Place Rama2-Tha Kharm after its launch in August this year. The demand for accommodation in this location continues to grow, as the government has budgeted to develop the Rama 2-Bang Khom Then-Mahachai tollway as well as to extend the purple rail route from Rat Burana to Rama 2.

Meanwhile, Ratchathewi, Ploenchit and Sathon have also enjoyed success in sales of new project launches, such as Samyan Business Town which sold 91 per cent of its total 32 units upon the launch this year.

As Ratch Burana, Jomthong, Ban Mo, and Bearing have new project launches in the mid-500 units. Some 58 per cent of total units were sold since the projects were launched to the market.

Meanwhile, 103 new residential projects were launched in the first half of this year for a combined 17,873 units, a drop of 3 per cent compared to the same period of last year.

Townhouses were the main products brought to market in the first half, for a combined 10,223 units or 57.2 per cent of the total new residential units launched in the period, but still lower than the 11,894 units for the first half of 2018.

Next up were 44 single detached home projects totalling 5,241 units in the first half, up 20 per cent from the 4,333 units for the same period last year.

The next 23 projects launched in the first half were twin houses for a combined 2,409 units, up 20 per cent from the same period of last year’s 2,060 recorded units.

The research found that the property market in the second half of this year continues to face negative impact from the country’s slight economic growth, a time when exports have dropped and tourism growth was lower than expected.

The country’s uncertain politics and the impact from the loan-to-value requirement will continue to effect the property market, which nearly maintained its numbers for the first half of this year but dropped when compared to the same period of 2019, the research found.

Eighty per cent of  all units in the first phase had been sold, of which 70 per cent have been transferred  to buyers, the company’s chief executive officer and managing director Opas Sripayak said on Friday.

Booking for  units in the second phase starts Saturday (August 31) with offers of price discounts  and gift sets worth a total of  Bt600,000.

Twinhouse comprises 108 units with three bedrooms or three bathrooms and 154.99 square metres of useable space, he said.

The company’s director of research Risinee Sarikaputra said that in the middle of 2019, the supply of condominiums in Hua Hin totalled 26,886 units. An average of 1,120 new condominium units were put on sale annually between 2016 and 2018, as operators began to delay the launch of projects in the Hua Hin area because of the oversupply. In 2011 and 2012, new condos were being launched at a rate of 6,000 units per year, resulting in reduced sales rates of 45 per cent in 2011 and 56 per cent the following year. That same period also saw operators engage in price wars by devising various promotions to boost sales. Many operators had to delay the launch of their projects and some projects were cancelled altogether.

Slightly more than 22,000 condominiums have been sold in the Hua Hin area out of a supply of 26,886 units, which represents a sales rate of 83 per cent. The lowest sales rate was in 2011. The sales rate increased to 71 per cent in 2015 and 78 per cent in 2017. It was the highest in mid-2019, at 83 per cent. The area with the most supply remaining includes Cha-am, with about 3,376 units available for sale while the areas with the least amount of available supply are Hua Hin and Khao Takiab, with only 254 and 295 units remaining, respectively. The sales rates in Khao Takiab and Hua Hin are 92 and 89 per cent, respectively.

Risinee said that the main buyers in Hua Hin are still Thai people looking for a holiday home for their weekend breaks, and they may rent the units out when they are not there. Foreign customers who buy condominiums in Hua Hin only account for 10 per cent of all buyers; this buyer group consists of foreigners from Scandinavian countries, China, Hong Kong and Singapore.

In terms of the price of condominiums in Hua Hin, the average selling price of a condo with sea views is currently 131,494 baht per square metre. This increased 2 per cent from the end of 2018. The price of a sea view condo falls within the range of 107,000 to 176,000 baht per sqm. Lower-priced units are usually those that have only partial sea views or are not directly facing the sea. The average selling price in Hua Hin tends to be higher than other areas. For units that do not have sea views, the prices range from 60,000 baht to 90,000 baht per sqm. In the first half of 2019, the average selling price of units without sea views was 73,685 baht per sqm, reflecting an increase of 2 per cent from the end of 2018, she said.

“We started online sale two years ago on our website www.lpn.co.th., enjoying positive feedback from the local market. We then decided to join up with Shopee to expand sale to the global market. Linking our distribution channel to social media and matching the preference of customers for online purchases was the right strategy ,” he said.

Customers interested in booking our residential units through the Shopee platform will have to pay Bt18 for a voucher. They can then bring the voucher to the sale office for a discount of up to Bt80,000 on the unit’s price and receive eight gifts,

The company tested this marketing concept between August 8 and August 18. Following good response, it has relaunched the campaign, he said.

The ten residential projects include five condominiums and five single detached house and townhouse complexes.

The five condominiums are Lumpini Park Petchakasem 98, Lumpini Ville Ratburana-River View 2, Lumpini Ville Sukhumvit 76-Baring Station, Lumpini Suk Sawas-Rama 2, and Lumpini Township Rangsit-Klong 1.

The single detached house and townhouse projects are Baan Lumpini Town Ville Lad Praduk-Bang Pai Station, Baan Lumpini Town Ville Permsin-Watcharapol Phase 2, Baan Lumpini Town Ville Ransit-Klong 2 Phase 1, Baan Lumpini Town Ville Ratchapruk-Pinklow, and Baan Lumpini Town Park Thakham-Rama 2.

All units of the projects are fully completed and ready for buyers to move in.