The company is confident of developing quality projects, capitalising on its experience in construction.

Peerawat Wanitwat, managing director of Teka Real Estate Co Ltd, said that despite the current economic slowdown and sluggish growth in the real estate industry, the company foresees opportunities. He said they hope to benefit from the expertise and 35 years of experience of Teka Construction Co Ltd.

Over the next five years, Teka Real Estate will develop three low-rise projects worth a total of Bt2.1 billion to Bt3 billion (each project will be worth about Bt700 million to Bt1 billion). The three projects are in Nonthaburi, not far from the outer ring area; in Ramindra area, not far from Fashion Island Department Store; and a project in Bangna area, not far from King Kaew Road.

“Teka Real Estate will focus on developing low-rise projects, including detached houses, townhouses, and semi-detached houses, with selling price at between Bt3 million to Bt7 million per unit, ” Peerawat said.

The first project that the company has started to develop is “The Essence Chaiyapruek – Wongwaen”. The project is located on 43 rai of land, on Bankluay-sainoi district in Nonthaburi province. The project has been developed in the form of townhouse over 16.5-22 square wah with selling price starting at Bt1.55 million to Bt2.2 million per unit; semi-detached houses of 35-50 square wah, with selling price from Bt2.89 million to Bt3.3 million, totalling 421 units. The project value is about Bt950 million. This project has been divided into three phases and each phase has about 100 units. Sales of the first phase started in 2018. About 50 per cent of the first phase have been sold. The second phase is set for sales in early 2020, while the third phase will be sold by the end of 2020.The company expects to conclude the entire project by the end of 2021.

He said the company’s total revenue of Bt618.65 million in the first half of this year was lower than estimated because the property market has been facing high competition due to a limited demand for residential property and restrictions on loans approved by commercial banks.

However, the company has decided to go ahead with the launch of seven new residential projects worth Bt7.2 billion, two of which will be launched in the third quarter of this year worth a combined Bt2.64 billion and five projects in the fourth quarter worth Bt4.78 billion, he said.

Of this, more than half was from two transactions in Bangkok – the sale of the Sun Towers office complex and an 11-rai development site near BTS Mo Chit station, according to the Thailand Property Intelligence Centre by property consultancy JLL.

JLL’s Thailand Property Intelligence Centre monitors publicly-disclosed real estate investment activities in Thailand by private and public companies and funds.

There were four transactions worth more than Bt1 billion each recorded in the first half of 2019. The largest transaction was Singha Estate Plc’s Bt-5.7 billion sale of Sun Towers, an office complex on Vibhavadi-Rangsit Road, to its sponsored REIT, the S Prime Growth Leasehold Real Estate Investment Trust.

Sino-Thai Engineering & Construction Plc (STECON) and its subsidiaries were the second largest investor in the first half with two transactions totalling more than Bt5 billion. In April, STECON purchased an 11-rai development site near BTS Mo Chit station from U City Plc for Bt4.3 billion that will be developed into an office complex. In June, one of the firm’s subsidiaries, ST Property & Logistics Co Ltd, acquired the Summer Hill community mall and Summer Hub office building next to BTS Phra Khanong station from Boutique Corporation Plc for Bt957 million.

JLL’s managing director Suphin Mechuchep said that STECON’s investments thus far in 2019 mark the continuance of the re-entry of contractors and construction companies expanding into real estate investment, after nearly two decades of absence following the 1997 Asian financial crisis.

Other construction firms investing in real estate include Saengfah Construction’s joint venture with AIRA Securities Plc and Sena Development Plc for the development of Spring Tower, an office tower near BTS Ratchathewi station, and Thai Obayashi’s 2017 acquisition of a development site next to BTS Nana station for a then-record-setting Bt2.6 million per square wah, where it is now building O-NES Tower, the firm’s first office building investment since the Nantawan Building near BTS Ratchadarmi station in 1991.”

The most expensive land transaction thus far in 2019 on a per square wah basis was Shangri-La Hotel Plc’s February acquisition of a 658 square wah site in Thonglor for Bt1.9 billion, or Bt2.86 million per square wah.

“The price per square wah for the site acquired by Shangri-La Hotel Plc is the highest per square wah price the market has seen for the development of a hotel, but did not break the all-time record high price of Bt3.1 million per square wah achieved by the 880-square-wah plot on Langsuan Road that JLL sold on behalf of the owner in 2018,” she said..

“High land prices and the new land and property tax regulations slated for enforcement in 2020 have motivated and will continue to motivate more owners of underutilised land or land with underperforming buildings in Bangkok’s prime locations to put their sites on the market this year. This will mean more opportunities for well-capitalised investors to acquire prime sites for their new development projects. We believe that visionary investors will still be able to achieve decent returns on investment in their future development projects despite rising land costs.”

JLL expects most of the upcoming major real investment activities in the remainder of 2019 to be land and commercial property investment transactions in Bangkok. The firm also anticipates investment activities to rise in the industrial/logistics sector, particularly in the Eastern Economic Corridor (EEC), as more manufacturers are relocating their China-based operations to Southeast Asia and the fast growth of e-commerce has fuelled demand for logistics real estate in Thailand.

With Asia Pacific being the only region to record a year-on-year increase of 6 per cent globally, the Global Capital Flows report from JLL reveals that the region’s momentum is likely to moderate over the rest of the year, while investment levels are projected to reach a new full-year high in 2019.

“Due to the tightening of yields in core markets across the globe, particularly in Europe and US, investors are made to look beyond their domestic markets in search of higher returns,” said Stuart Crow, CEO of Capital Markets Asia Pacific for JLL. “Joint venture and consortium structures continue to increase in popularity for large deals across the region as investors seek to go more direct and see the benefit in partnering with long-term like-minded groups.”

In the latest US$1.17 billion sale of DUO Tower and DUO Galleria, JLL acted as exclusive adviser on behalf of the seller M+S Pte. Ltd. Allianz Real Estate and Gaw Capital partnered to acquire this iconic Grade-A office and retail asset which is located in the downtown Bugis area of Singapore.

Crow adds: “This deal reflects the strength of the region in attracting international insurance capital. In the next six to nine months, we’re confident that demand from insurance funds will continue to rise and lift market sentiment.”

According to JLL, property investment in Singapore nearly doubled in the first half of this year after a relatively subdued 2018. Driven in part by large-scale transactions, the office sector continues to account for the largest share of investment with nearly US$4.6 billion in acquisitions so far this year, and are likely to reach a new decade high in 2019. This compares to US$3 billion transacted in 2018 and US$4.7 billion in 2017 respectively.

“Singapore’s office sector has become a favoured investment destination over the last 12 months, largely supported by the market’s very favourable demand-supply dynamics and a benign interest rate outlook,” says Chris Fossick, head of Southeast Asia for JLL. “A big draw for investors is also its rising office rents. Singapore’s prime office rents are expected to continue growing over the next few years, backed by robust demand for the technology, professional services and financial services sectors.”

Another example of the spike in interest can be seen with the US$478 million sale by JLL of 71 Robinson Road, a 15-storey office block in Singapore’s CBD, to SV Robinson investment company. Other core funds that have recently sought to take advantage of the city’s long term growth prospects by investing in partial stakes in prime Grade-A buildings include Ocean Financial Centre – Allianz took a 20 per cent stake – and Frasers Tower, in which NPS took a 50 per cent stake.

In June, Chevron House – a 32-storey office and retail building in the heart of the central business district – was sold to U.S. real estate fund AEW for US$750 million, a 35 per cent increase on capital value from when it was purchased in 2017.

“In fact, the real interest rate for mortgages and other loans remains higher than the policy rate, while the market is still facing difficulties from the LTV measure that reduced purchasing power for residences,” honorary president of the Thai Condominium Association Prasert Taedullayasatit told The Nation on Wednesday.

He added that following the introduction of the LTV measure on April 1, 2019, transfers of residential properties through the end of May 2019 dropped 34 per cent in terms of value compared with the same period of last year, and by 24 per cent in terms of units.

Presales in the first half of this year dropped by 13 per cent, the condominium by 17 per cent, the single detached house market by 12 per cent, and the townhouse market by five per cent.

The appreciation of the baht against the US dollar and the Yuan had also impacted demand for residential properties from foreign investors, resulting in a drop in bookings during the second quarter of this year.

“In my view, the interest rate cut will do little to improve the property market for as long as the LTV restriction remains in place. The BOT will also be introducing measures to restrict the debt service ratio or DSR on all personal loans and this will have a direct impact on purchasing power in the domestic market. These forces will reduce domestic consumption at a time when the baht is appreciating, with the latter already having a major impact on exports and the tourist business. So a cut of just 0.25 per cent in the interest rate cannot improve the economy during the rest of this year,” he said.

He also forecasts that the property market will continue to drop, possibly reaching double digits by the end of the year.

LPN Development’s chief executive officer and managing director Opas Sripayak agreed with this assessment, stressing that the cut in interest rate would not lead to any improvement in the property market while buyers continued to face restrictions on obtaining mortgages from the bank,

“The property market is going through a hard period with both domestic and overseas demand dropping as a result of the LTV coming into effect and the baht appreciating,” he said.

These factors have led to a number of property firms revising their plans to launch new residential projects during the remainder of 2019 and some even suspending projects that had already been launched them. For example, Ananda Development returned down payments to customers who had booked units in IDEO Q Phahonyothin-Saphan Khwai when sales failed to meet estimates.

The company says the project will appeal to people with what it calls the “6 MITR factors”. These include its prime location for a mixed-use project; the diverse demographics of its target group, which includes office staff, residents and guests of condominium and hotels; university students; and the general public. The retail space that stays open around the clock and will satisfy the needs of new-generation consumers. Samyan Mitrtown is slated for opening on September 20.

Thanapol Sirithanachai, president of Goldenland Property Development, said that the project,on which construction began in 2016, has been designed to showcase the  6 MITR factors. These consist of:

1) MITR direct link, which refers to its prime location right next to Samyan MRT station. Samyan Mitrtown has allocated a budget of Bt300 million to build a tunnel linking Samyan Mitrtown with the MRT station to ensure ease of access for customers coming in through the MRT. In October, the subway extension on the Bangseu-Tha Phra Blue Line is scheduled for opening, which will result in customers’ greater mobility and increased traffic.

2) MITR mixed-use complex covers 222,000 square metres offices, residential units and retail zones plus a large multi-purpose hall. There’s parking for 1,578 cars. The complex seeks to maximise space utilization.

3) MITR Modern grade A office  refers to the office zone, or Mitrtown Office Tower. The top-grade 31-storey office tower with a gross floor area of 48,000 square metres for rent accounts for 30 per cent of the project’s total area. The office tower uses an intelligent system that’s linked to office equipment in the building for customers’ added convenience. It is expected that there will be approximately 5,000 office staff and visitors per day, the company said.

4) MITRT Own Neo-Explorer Condominium, with 33 floors, accounts for 15 per cent of the project’s total area. The condominium has the residential zone or “Triple Y Residence” condominium with 516 rooms. About 50 per cent of the condo units have been sold in presale. The move-in date is around early September.

5) MITR upscale design hotel refers to the project’s hotel zone that plays host to a design hotel called Triple Y Hotel with 102 rooms. The hotel and condominium zones boast separate communal areas for privacy and security of the residents. The hotel is set for opening in early September.

6) MITR meaningful retail space represents the six-storey retail zone that has 36,000 square metres of net leasable area accounting for 30 per cent of the project’s area. The retail space spans from B1 to the fourth floor. The fifth floor is home to a multi-purpose hall while the rooftop hosts a large  garden. The multi-purpose hall has a gross floor space of 5,000 square metres. Another highlight of the retail zone is its 24-hour zone that features Thailand’s leading stores and that is ready for opening.

“Samyan Mitrtown is the first and most perfect mixed-use project on Rama IV Road. It has the potential to attract the constant flow of target customers including office staff, university students, freelancers, start-up entrepreneurs, tourists, residents of [the project’s] condominium and hotel and locals of the Samyan neighborhood,” says Thanapol said.

“These are the people with high purchasing power. Samyan Mitrtown retail space is ready for the grand opening. We are confident that our store partners who have partnered with us will be the ones who create a new legend for Samyan so that the area is given a new lease on life and continues to prosper together with us.”

It is expected 30,000 customers will come in each day, including those using the services in the 24-hour zone.

Meanwhile, as part of its marketing strategy, the company plans to organise events regularly in the 24-hour zone to raise awareness of the zone and connect with target customers. These events include activities in the morning, at mid-day and in the evening with thematic events during key festivals. The development of the 24-hour zone aims to satisfy the needs of customers who are different from those in the past, the company said.  “This will enable Samyan Mitrtown to emerge as a new destination for the new generation,” the company said.

“In addition, Samyan Mitrtown has set aside a budget of Bt200 million for organising a string of activities and marketing campaigns that continue until the end of the year.”

According to a survey by Lumpini Wisdom, a research firm under LPN Development, the number of condominiums ready for sale to Chinese investors in 2018 totalled 5,000 units in Bangkok and its suburbs worth a total of some Bt25 billion. All are to be transferred to their customers this year and next.

“The demand from Chinese customers to buy residential properties has dropped since early this year, when the Chinese government decided to restrict capital outflow from the country. It aims to reduce investment from its citizens in other countries to not over US$50,000, or about Bt1.5 million, as China’s economy continues to face the negative impacts from the trade war with the US,” LPN Development’s chief executive officer and managing director Opas Sripayak told The Nation recently

This directly impacts the condominium market, which recorded demand of more than 20 per cent from Chinese investors from 2017 till now, he added.

The baht’s appreciation of 7.2 per cent against the Yuan and the Yuan’s recent slide are likely to affect investors’ decisions to buy condominiums in Thailand as it means they are having to pay 7 per cent more.

Meanwhile, Chinese investors who have already bought residences and are waiting for the transfer of the units could change their minds and reject the transfer. This would have a direct impact on the property market in the rest of this year, Opas said.

Prasert Taedullayasatit, honorary chairman of the Thai Condominium Association, said the 2018 property market recorded a total sales value of Bt512.17 billion, up 18 per cent from 2017, for all 121,193 units combined. That figure includes Bt293.72 billion from condominium projects, up 19 per cent from 2017 and spread over 70,066 units. Bt122.58 billion came from the sale of single detached houses, up 22 per cent from 2017, spread over 18,601 units while the remaining Bt87.57 billion was from townhouses, up 13 per cent from 2017, for a combined 30,914 units.

“Most of condominium projects sold last year included sales of up to 20 per cent to Chinese investors, both individual investors, and the brokers and agencies who bought more condominium units than they could sell to individual investors on the Chinese mainland,” he said.

Following strong demand for condominium projects in the past year, which set national records for both sales value and the number of units, market demand this year is likely to slow due to the measures imposed by both the Bank of Thailand and the Chinese government to control capital outflow and the depreciation of the Yuan due to lower domestic growth.

Thai Condominium Association’s president Apa Atthaboonwong said the Yuan’s slide on forex markets would affect customers who have booked condominium projects due for transfer this year as they will have to pay more.

In addition to the Baht’s appreciation against the Yuan, the additional tariffs placed on goods by the US due to come into effect on September 1 will also impact the demand for purchasing residential units by Chinese customers.

“Since 2017, Chinese buyers have represented up to 40 per cent of the sale of new projects but this year that has dropped to less than five per cent,” she said.

The Thai property market has also been affected by the Bank of Thailand restriction on loan to value mortgages that now only allows for 90 per cent loans for a first home, 80 per cent for a second home, and 70 per cent for a third home.

The community mall was designed as an “urban eco-living community” and is located on 5,500 square metres of land as part of the Summer Lasalle project, a fully-fledged office campus space in the Sukhumvit-Bang Na area.

SUNNY will consist of a public park, common area, supermarket, food court and over 40 shops created as part of Bhiraj Buri’s vision to unite office workers and people in the community in a welcoming space, where they can spend their quality time and create endless happiness on a daily basis, according to a company release on Tuesday.

SUNNY is the latest project from Bhiraj Buri Group, which said it has given great attention to details dedicated to every aspect of the mall from the concept, design and construction, down to selecting the shops.

Under the “Urban Eco-Living Community” concept, SUNNY will feature a modern aesthetic with a special emphasis on massive green space to reflect the idea of creating happiness and sustainability. With a sleek yet welcoming design, the community mall is designed to lend itself to natural sunlight, a perfect representation of its name, SUNNY.

Pitiphatr Buri, the executive director of Bhiraj Buri Group, said that “SUNNY is our newest challenge for Bhiraj Buri, and is going to play an important role in promoting happiness and convenience for people in Lasalle and surrounding neighbourhoods.”

Promoting happiness and convenience is the main objective in every one of Bhiraj Buri’s projects, said Pitiphatr.

“The community mall aims to create a recreational space and meeting area for relaxing and exchanging ideas with activities that welcome everyone to participate equally.”

Bhiraj Buri Group has partnered with Tandem Architects (2001) Co Ltd., an architecture expert and consultant, to create the SUNNY community mall project.

“Since the area where SUNNY is located used to be a rice paddy, we drew inspiration from a vintage barn and selected materials such as corrugated iron and wood, and gave it a modern twist with the addition of glass and structural steel” Jeerasak Nukhuntod, an architect with Tandem Architects, said.

Jeerasak added: “We made sure that the space is open to natural sunlight, which is also going to help with energy reserves and the sustainability of the SUNNY project. We planted a large number of trees and plants to give shade, purify the air and provide a common green space for people in the community.”

A Nation survey uncovered aggressive marketing campaigns aimed at hiking third-quarter sales following slow growth in the first half, blamed on the Bank of Thailand’s reduction of loans-to-value (LTV) starting on April 1 and weak economic growth in all sectors, hampering people’s purchasing power.

The SC Asset Corp Plc marketing campaign “Luxury from the Inside” offers units in its 32 luxury residential projects at prices between Bt3 million and Bt100 million on August 24-25.

Thanasiri Group Plc has discounts and gifts worth up to Bt2 million for homebuyers who book through the campaign “Forever Mom” from August 10-12.

Up to 100 firms will offer promotions at the Home & Condo Show taking place from September 12-15 at Siam Paragon’s Royal Paragon Hall. The event is run by the Thai Real Estate Association, Thai Condominium Association and Business Housing Association.

Up to 1,000 residential projects will have promotional offers attached, such as discounted prices and free transfer fees, said Churat Chakarakul, deputy secretary of the Business Housing Association.

Commercial banks also will offer financial packages at the event, he said.

“We expect over 100,000 visitors and sales over Bt2 billion.”

AP (Thailand) Plc is spending Bt80 million on AP World, which is continuing through August 7 at Parq Paragon. It features technology and designs under the concept “Grow, joy, flow”.

“We expect sales above Bt800 million from this event,” chief of corporate strategy and creation Vittakarn Chandavimol said.

LPN Development Plc is offering discounts of up to Bt300,000 for its new townhome project, Baan Lumpini Rangsit-Klong 2, where unit prices start at Bt1.17 million.

A survey by Collier International Thailand found that new condominium launches in Bangkok dropped by 18,075 units (19.9 per cent) from the same period last year.

The Kasikorn Research Centre forecasts that the residential inventory will hit 201,000 units by year-end after demand dropped in the first half and growth has remained slow since then.

Three of the seven projects will launch in the third quarter – Chewathai Kaset-Nawamin worth Bt1.7 billion, Chewarom Nakorn-In worth Bt1.59 billion, and Chewa Biz Home Eakmai-Bang Bon worth Bt765 million.

The other four coming in the fourth quarter are Chawathai Pinklow (Bt1.58 billion), Hallmark Charan 13 (Bt430 million), Chewa Home Bangkok-Pathumthani (Bt903 million) and the condominium Heart Sukhumvit 36 (Bt270 million).

“This year has been hard for property firms because demand for residential dropped and the commercial banks restricted approvals for mortgage loans, so most companies have had to cut prices and introduce special promotions,” Boon said.

“It’s not our policy to cut prices, but we have tried to improve quality and also collaborates with strategic partners to create more value for our customers. This is the way to boost sales and achieve our target.”

Commax Co Ltd is installing home-automation technology in seven Chewathai residential projects launching in the second half of this year, Boon said.

The technologies are Smart Home Control, Gate Barrier Camera, Bluetooth and Lift Control.

Chewathai Kaset-Nawamin, the first project for the third quarter, will have 649 units on five rai at a starting price of Bt2.19 million.

It features a stylish lobby, sky infinity pool, serene garden, private vertical gardens, active studios, a library, a co-learning and co-working hub, a lifestyle shop and shuttle service.

Bookings are now being accepted, Boon said.