Managing director Teerawit Limthingsakul said the commercial market continues to grow overall, particularly in retail space in the Central Business District spanning Siam, Ratchaprasong and Phrom Pong.

The average occupancy rate in the first half of 2019 was 95 per cent.

The food-and-beverage sector remains a key selling point for most shopping centres, but in the meantime the drive to stay fit is boosting growth in businesses such as sportswear, healthy foods and especially gyms.

Fitness clubs can now be found in almost every general-use building, including condominiums, malls and office buildings.

“Gym operators have become magnets and anchors for retail spaces because they require large spaces and generate vitality for the building, so demand for space is spiralling,” said Teerawit. “Gyms also create more ‘footfall’ because their customers come in at least two or three times a week.”

He said the big names such as Fitness First and Virgin Active are likely to continue opening new branches, but both of these targets high-end customers, leaving a gap for the middle-income segment.

New players thus have an opportunity to make a significant contribution, and the current leader there is Australia-based Jetts Fitness.

Jetts chooses convenient locations and reduces the typical size of a costlier gym –2,000-3,000 square metres – to 600-1,000sqm. By doing this, Jetts can open two or three branches in one location to serve various demands and keeps them open around the clock.

Jetts Fitness has launched 19 branches in the past two and a half years in Bangkok, Pattaya and Korat.

In 2018, it opened 10 outlets in prime locations, such as the FYI Centre at Rama IV and Ratchadapisek roads and SP Tower (the IBM Building) near the Ari BTS station.

This year there are seven more branches and the first outside Bangkok. Another 15 are already in the pipeline.

“Nexus is entrusted to find the best locations for Jetts Fitness,” Teerawit said. “We’re looking for elite spaces to support its expansion, such as retail spaces on the first or second floor, easy access and BTS or MRT stations nearby. The gyms have to be able to operate 24 hours a day. Jetts Fitness aims to open more than 100 branches in Thailand by 2024.”

The debentures offered are unsubordinated and guaranteed with a debenture holders’ representative with a 3-year tenure and a fixed coupon rate of 4.75 per cent per annum. Risland has appointed Kasikornbank as the sole lead arranger and bookrunner for this offering.

The total issue size is Bt1.5 billion, placed to institutional investors only. The debentures are rated “AA(tha)” by Fitch Ratings (Thailand) Ltd.

This is the first debenture issuance for Risland since the company officially started operations in Thailand in June 2017. The company is a real estate developer with the portfolio of both single house and condominium projects. Risland’s current portfolio consists of 1 single house project called Lake Serene and 4 condominium projects, namely Artisan, The Art, Cloud Thonglor, and Cloud Asoke.

Speaking after the successful debentures launch, president Zhang Liangang said: “This first time issuance of Risland’s Thai Baht debentures marks another milestone for the company and demonstrates the warm welcome from market participants. As Risland plans to launch several projects this year, it also establishes more market awareness about our presence to the general public and debenture investors. The company’s vision is to provide good houses at affordable prices for everyone in Thailand. We hope to continue the good support from investors for the next transaction.”

The 56-unit project is the prototype of what AP Thailand Group calls the Luxury Duplex Home, a combination of single detached home and townhome.

The Sonne Srinakarin-Bangna features 3-floor homes built on plot sizes ranging from 40-71 square wah. The functional area is 245 square metres with 4 bedrooms and 4 bathrooms. Prices start from Bt12 million, the company’s chief business group-low-rise Pamorn Prasertsan said on Thursday.

The Sonne Srinakarin-Bangna is designed on the “New Original Living” concept to support sustainable cross-generational co-living, allowing a wide range of activities for an extended family. Its universal design of space offers particular convenience for the elderly with ramps to the house and an elderly room as well as doors for wheelchair use. Security is provided through AP’ intelligent “personal guardian” Katsan.

Previewing will be available from early September, he said.

LPN Development’s chief executive and managing director Opas Sripayak noted that its customers have reported increased rejections when applying for mortgages from the banks since the introduction of the new measure that restricts loans to 90 per cent for the first home, 80 per cent for the second home, and 70 per cent for the third home.

“According to the new LTV rule, people wanting to buy a residential property priced at Bt1 million have to put down Bt100,000. This is hard for lower income people who do not have sufficient savings for the down payment,” he said.

AP (Thailand)’s Pamorn Prasertsan said that the between 25 and 35 per cent of the company’s customers face rejection when applying for mortgage loans depending on the project site, five per cent more than before the LTV came into effect.

“We suggest to our customers how they should go about applying for a loan and also ask the banks to give them advice,” he said.

Pruksa Holding reveals that its presales dropped by up to 25 per cent between April and June as a result of this new policy. Rejection of mortgage loans is around 40 per cent, up eight per cent from pre-policy days, the company’s deputy group chief executive officer Supattra Paopiamsap said recently.

Government Saving Bank’s president Chatchai Phayuhanaveechai accepted that the bank rejection mortgage loan rate has increased about five per cent to around 30 per cent.

“We try to help customers by recommending they open savings accounts and put aside money before buying a residence as this provides the bank with a financial record on which they can make a decision to approve a loan,” he said.

Kitti Pattanapongpibul, president of the Housing Finance Association, noted that growth in house ownership was unlikely to exceed five per cent following the BOT’s implementation of the new LTV measure, down from eight per cent last year.

However, the first half of 2019 showed a 38-per-cent rise in mortgage loans as homebuyers rushed to transfer their residential projects in the first quarter before the LTV became effective. The second quarter revealed a 10-per-cent drop in loans compared to the same period of last year.

Meanwhile, non-performing-loans recorded 1.53 per cent in the first half of this year, he said.

The company reported Bt34.118 billion in total revenue in the first six months, rising Bt1.753 billion or 5.42 per cent year on year. The growth, despite a slowdown of the overall economy in Thailand, was driven by higher sales of cooling products caused by hotter climate, such as air-conditioners and electric fans, as well as the company’s continuous sales promotion activities.

The company will focus on developing working efficiency and enhancing its gross profit margin through the selection and quality development of its products to meet the needs and requirements of individual shoppers.

Kunawut Dhampromkul, managing director of Home Product Center Plc, operator of Home Pro stores, said of the total revenue in the first half , about Bt31.826 billion came from sales, up Bt1.506 billion or 4.97 per cent year on year, driven by the expansion of Home Pro and Mega Home stores, as well as growth in sales at new Home Pro outlets.

In the period, the company earned Bt1.285 billion from retail space rental and service fees, up Bt135.15 million or 11.75 per cent year on year, due to an increase in rental income especially at its Market Village complex and Home Pro stores, and higher revenue from Home Service app.

He said that the company also earned Bt1.006 billion in other incomes, up Bt111.31 million or 12.43 per cent over the same period last year, from growth in sales through co-promotional campaigns with its partners, as well as interest and other miscellaneous activities.

The six projects are a part of its 23 new residential projects worth Bt27.26 billion in the second half of this year, the company’s chief corporate strategy and creation Vittakarn Chandavimol, said at a press conference on Thursday.

The projects are: four single detached houses and townhome such as Sonne Srinakarin-Bangna worth Bt630 million, The City Ekkamai-Laprao worth Bt1.02 billion, Cetro Maha Chesadabodin Bridge worth Bt370 million, and Grande Pleno Ratchapruek worth Bt1.35 billion, as well as two condominium projects, Life Sathorn Sierra worth Bt6.3 billion and The Address Siam-Ratchathewi worth Bt8.8 billion.

They will be launched at the AP World event at Parq Paragon from August 1-7 by expects    presale up to Bt800 million from seven days event.

“The six new projects will boost our presales to achieve our target for this year,” he said.

AP (Thailand) Plc announced that total presale for the first six months of 2019 represented a 20-per-cent growth over the same period last year.

Of the 23 projects launched in the rest of this year, 12 are townhomes worth Bt9.25 billion, 10 are single detached houses worth Bt11.715 billion and one is a condominium project worth B 6.3 billion.

“Despite the many factors that shaped the real estate industry in the first half of the year such as the slowdown in the world economy or the domestic control measures that affected the business atmosphere, we believe there is still a demand from customers looking for a residence. It is just that the demand is more specific. This means that the location, the house model and the price package must be absolutely right to warrant a buying decision,” he said.

“In the second half of the year, we believe that every developer will be alert and watch the situation closely. The main factor that will stimulate public confidence and buying and selling is clarity in the political situation. In particular, we will see a clearer future after the new government and its economic team are formed. The industry is expected to benefit from the new government’s economic stimulus plan, which should help get national economic growth back on track again,” Vittakarn said.

As of June 30, the company had a backlog valued at Bt57.31 billion, of which low-rise developments account for Bt10.13 billion. All are expected to be realised within this year. Condominiums (joint ventures included) account for Bt47.18 billion, Bt5.65 billion of them wholly owned by AP and Bt2.604 billion of them will be realised this year. Of the Bt42.53 billion worth of joint venture projects, Bt5.505 billion will be realised this year and the remainder through to 2023.

In summary, the company has 40 new projects worth around Bt58.05 billion.

The process will be facilitated by what the company calls its Sansiri Service.

The property is located on Ekkamai 12, an eclectic lifestyle neighbourhood that caters to urbanites of different backgrounds.

The property conveyance of taka Haus will take place from August 16-18.

This is expected to help boost its revenue from the transfer of properties in 2019 to Bt29 billion by the end of this year.

The Thai property developer is attributing its success to quick and efficient project management, as well as the ability to facilitate the whole process itself.

The company’s chief operating officer, Uthai Uthaisangsuk, said that Sansiri’s continued success in responding to all homeowners’ needs with residential development projects in Bangkok and the provinces had resulted in an annual increase in the number of “Sansiri Family” members, of which there are currently more than 126,000 households.

In 2019, the leading property developer will deliver Bt29 billion worth of finished projects, meeting real housing demand in Bangkok and the provinces.

“In the second half of this year, Sansiri has an important mission to deliver finished housing to homebuyers. There are nine condominium projects that will be completed and delivered to homeowners, which are: taka Haus  (Bt2 billion value), The Line Sukhumvit 101 (Bt4.7-billion), The Line Phahon-Pradipat (Bt5.9 billion), The Base Phetkasem (Bt2-billion), The Base Sukhumvit 50 (Bt1.55 billion), The Monument Thong Lor (Bt6.3 billion), Khun by Yoo Inspired by Starck (Bt4 billion), La Casita Hua Hin (Bt2.4 billion) and dcondo Hatyai (Bt800 million).

“Meanwhile, single detached house and townhouse projects will be completed and delivered to homebuyers in phases. There will be more and more property conveyance activities to welcome new members to the Sansiri Family,” Uthai said.

“Since introducing the project to the market in April this year, about 39 per cent of the first phase totalling 396 units have been reserved. It has become clear that the demand to buy into our project in this location does not match with the concept design and for this reason, we have decided to suspend sales and refund booking and down payments to customers. We will now revise the design of this project and will launch it again in 2020,” the company’s chief strategy officer Sumeth Ratanasrikul wrote in the statement released on Wednesday.

Ideo Q Phahon-Saphankhwai is located close to BTS Saphan Khwai station on a six-rai plot. It was originally designed to have 1,114 units at a starting price Bt5.5 million per unit.

He said that after updating the business plan for One Bangkok, its largest mixed-use project to date worth Bt120 billion, the group now owned and was developing six properties on Rama IV. One Bangkok is largest project with an investment value Bt120 billion and combines luxury condominiums, retail property and an office building. The Group’s office building FYI Center worth Bt5 billion is already open while The Parq, worth Bt20 billion and located close with Queen Sirikij National Convention Centre, is a further mixed-used project combine retail, hospitality, and office space.

Samyan Mitrtown is another mixed-use project combine office and retail space worth Bt8.5 billion and is being developed by the group’s subsidiary Golden Land Property Development Plc.

The group is also studying the potential of two land plots on Rama IV including the existing head office of Stock Exchange of Thailand, which is under the design process, and redesigning the Queen Sirikit National Convention Centre, expanding the space from 90,000 square metres to be 170,000 square metres.

Four of the six projects will be completed between 2021 to 2023.

“We expect to develop Rama IV into a green destination and the new landmark of Bangkok by collaborating with BMA to design the landscape, such as taking electricity wiring underground as well as designing the surrounding area on a green concept,” he said.

Also today, the company introduced the latest design of One Bangkok, which is being developed under a joint venture between TCC Assets Co Ltd and Frasers Property Holdings (Thailand) Co Ltd. The project is setting new benchmarks in design, smart-city living and sustainability, and aims to be the first project in Thailand to receive LEED Neighborhood Development Platinum certification. The fully integrated district is poised to become a global landmark, attracting top-level businesses, tourists and locals alike by seamlessly connecting offices, retail, luxury hotels, residences, as well as cultural and social spaces.

“Our ambition is to build sustainable developments that improve quality of life and are part of the fabric of the community. It is our goal to constantly create offerings that connect with their surroundings and which the community can be proud of. We believe One Bangkok will reflect what Thailand’s capital can deliver on the world stage, and our goal is to see the country become the very epicentre of Asean.”

Su Lin Soon, chief executive – Development, One Bangkok, said that to take full advantage of the scale of the district, the company was planning for a diverse mix of uses – offices, shops, restaurants, hotels, and residences – to be complemented by educational, social & leisure, fitness & wellness facilities, including a strong focus on art and culture. “The district is peppered with active public spaces, and we expect the synergy from this mix of uses to create an exceptional destination capable of attracting top-level organisations and a place that tourists and locals alike will want to go to and keep returning to – a place to work, shop, play, and create.”

One Bangkok features 6 access points; from Wireless Road, Rama IV and a new direct connection to the expressway, which is in the process of approval by relevant authorities. These accesses link directly into a common underground infrastructure for easy circulation enabled by smart traffic management system, allowing One Bangkok to promote “walkability” across the district with a network of streets and alleys lined with shops, cafes, art and public spaces, connecting every single component. To ensure pedestrian comfort in the Bangkok climate, these streets are shaded with open-air structures, tall canopied trees, or fully enclosed, air-conditioned spaces, she said.

She added that One Bangkok is set to be Bangkok’s most prestigious corporate address, giving the city a new economic engine with a combined office space of almost 500,000 square metres that will be home to over 500 local and international organizations and their more than 50,000-strong workforce. To be completed in phases from 2023 to 2026, the Offices at One Bangkok has been planned to the highest specifications and targets LEED and WELL certifications. All five office towers are seamlessly integrated into the mixed-use scheme, and each tower has been designed to respond to changing demands of the workplace as places that people want to spend time in before, during and after working hours.

According to the master plan, One Bangkok will have a 1,100-room hotel manage by The Ritz-Carlton, Bangkok and which is scheduled to open in 2023, while 110 ultra-luxury apartments of two to four bedrooms, starting from 130 square meters will launch in early 2020.

One Bangkok is designed to offer a green, safe, and inviting environment for all. Some 50 rai of the total 104-rai land plot is allocated to an integrated system of streets, squares, and open spaces that encourages people to spend more time outdoors together, including a 10,000 sqm landscaped civic plaza that will be a natural venue for international events and Thai festivals. Wrapping around both Wireless Road and Rama IV Road is a 40-metre wide continuous linear park, a natural extension to Lumphini Park, and providing a green and spacious approach to the district.

With piling works already completed in June this year, One Bangkok is expected to open in 2023, with full completion slated for 2026, Soon said.

A survey by the Nation reveals that Frasers Property Group is far from the only property firm looking to develop residential and commercial buildings in this location. When combined with the Group’s investment, these plans bring the total investment in the area to more than Bt350 billion from now until 2023.

For example, the Port Authority of Thailand is planning a mixed-use project on 223 rai in Klong Toei, containing an office building, logistics and warehouse facilities, and a shopping mall. The Bt100-billion project is currently under study and negotiations have begun with the existing lessees on land transfer. The plan will be finalised this year with joint development with private developers as an option.

Central Pattana, the property arm of the Chirathivat family, has teamed up with Dusit Thani Group to re-develop the Dusit Thani Hotel at the junction of Rama IV and Silom roads, after winning a 30-year renewal contract on the site from the Crown Property Bureau.

A mixed-used project worth Bt36.7 billion is planned, comprising a residential condominium, office premises, retail facilities in addition to the hotel.

Pace Development Corp is developing a 53-storey luxury condominium project, Nimit Langsuan. Construction of the Bt7.5-billion property will be completed next year.

Meanwhile, the Athakravi Group, developer of the Manorom building on Rama IV road is completing the construction of a Bt2-billion community mall nearby.

Other condominium projects launched in the area since the beginning of 2014 include the Condolette Pixel developed by Pruksa Real Estate, The Portrail Rama IV-Sukhumvit 38 by Krung Thai Land Development, Land & House’s The Room Rama IV, the Aspire Rama IV by AP (Thailand), and Ananda Development’s Bt6.5-billion Ideo Q. These projects have a total market value of over Bt50 billion.

Aliwassa Pathnadabutr, managing director of CB Richard Ellis (Thailand), said Rama IV Road is a new destination for commercial and residential properties with three major plots of land being developed and projects due for completion between now and 2025.

It will be a new commercial and residential landmark in Bangkok, she added.

Amidst the aggressive investments, land prices on Rama IV road have been increasing by an average of 8.9 per cent a year since 2015, said Ananda Development Plc’s chief executive officer Chanond Reuangkritiya.

The average sales price of condominium units on Rama IV road has now risen to Bt250,000 per square metre. The location has a total supply of 2,430 units as of the first quarter of this year with up to 84 per cent sold, he said.

A survey by Baania.com shows there are 21 office buildings with total space of 530,000 square metres within a radius of 800 metres from Rama IV road. Rentals of these commercial properties average Bt525 per square metre.

The location also saw the launches of 115 condominium projects with 29,700 units. Construction of 74 of these projects with a total of 14,100 units are due for completion before 2012.

Development of the other 41 projects with a total of 5,600 units, are still under way.

He added that by 3pm on Tuesday, no private sector firms had bid to develop the commercial area at Bang Sue Grand Station, and SRT was thus proposing that the TOR be revised. .

“We accept that there was apparently no private sector interest in joining the bidding so we have to delay the process to find a private developer. This could well delay the plan to open the commercial space in parallel with the launch of the station in 2021,” he said.