It will apply Japanese know-how and standards in the development of the project under the  Hidden Gem concept.  

Yoshihiko Maeda, president of the board of directors of Keihan Real Estate Co Ltd,  said the group is expanding its overseas investment towards the goal of sustainable growth,  particularly in Asia.

The group expects its overseas asset to reach 50 billion yen (approx Bt14.232 billion ) by 2027.

Currently, Keihan Real Estate boasts a total overseas investment of more than 3.3 billion yen (approx Bt942 million), including residential projects in Thailand in collaboration with  Sankyo Home (Thailand) and a golf villa in Jakarta, Indonesia.

“Thailand is a dominant country in Asean.  Thai culture is similar to Japan’s and it has received numerous investments from Japanese companies. The  joint venture project with  Sankyo Home (Thailand) was a follow-up of our long alliance with Sankyo Home in  developing high-quality residential projects in Japan.

With the same vision and know-how, we are commited to bring Japan’s premium standard and  technology to Thai homebuyers ,” said Yoshihiko

Sophida Ogawa, Managing Director of Sankyo Home (Thailand) Co Ltd,  said  SYMYS Sukhumvit 61 is a 7-storey luxury condominium in the prime location of  Thonglor-Ekamai.

Developed on  1-1-52 rai , the project comprises 109 units, ranging in sizes between 33-88 square metres with 1 or 2 bedrooms.  It also provides three floors of underground parking for 120 vehicles, or 113 per cent of the total number of units.

Facilities of project  include a courtyard, a private gym,  a library, community space, a meeting lounge, a private meeting room, residence living area, chef table area, a game room, private Spa & massage, a private salon, SYMYS private lounge, Infinity swimming pool and jacuzzi. Each unit is equipped with high-quality materials such as Kuppersbusch-branded kitchenware and Toto-brand sanitaryware. The project has already received EIA approval.

Selling prices for one-bedroom units starts from Bt7.5 million, or Bt220,000-Bt240,000 per square metre. Presales is scheduled for August 3-4, 2019 (10 am to 7 pm), at the sales office opposite Soi Thonglor 23.

Sankyo Home (Thailand) Co Ltd has developed three projects worth close to Bt4 billion.  They are: 1. Moniiq Sukhumvit 64. The Bt954-million project is sold out and realised 100 per cent revenue.

2. The FINE Bangkok (Thonglor-Ekamai), the first joint venture project with Keihan Real Estate, worth 1.68 billion baht. The project was launched in mid 2018 and is now 80 per cent sold.

3. SYMYS Sukhumvit 61, the second joint venture, worth Bt1.2 billion.

In the future, the company aims to launch 1-2 projects every year and uses these three brands to serve different market segments. It is looking to more joint ventures projects with Keihan Real Estate.  Keihan Group, or Keihan Holdings, has more than 50 subsidiaries operating in the transportation, real estate, retail  and hotel/leisure industries.

For the fiscal year 2018 (April 2018-March 2019), the group reported a consolidated revenue of 326 billion yen (approx Bt93 billion.

Siam Piriya Development rolled out its “Tenant Kick-off Meeting 2019” with 13 partners from both the public and private sectors, along with more than 400 SMEs/retail operators, all of whom announced they were ready to open Mixt Chatuchak, the company said on Tuesday.

Rental rates at the shopping centre start at an “attractive Bt1,000 per square metre per month”, the firm said.

“The company’s vision is to make Mixt Chatuchak a new shopping destination for both Thai and foreign tourists in the heart of Chatuchak – the largest market in Thailand,” said Siam Piriya Development executive director Miporn Chaiyupatumpa. “We are ready to serve the needs of shoppers and tourists while building trust and confidence with our tenants and partners. Mixt Chatuchak will complement the world-famous Chatuchak Weekend Market while also helping to boost economic growth for SMEs in the third quarter of 2019,” Miporn added.

“To hit the ground running, the company organised the ‘Mixt Chatuchak Tenant Kick-off Meeting 2019’ in collaboration with thirteen leading partners from the public and private sectors, including the Department of Industrial Promotion, the Office of Small and Medium Enterprises Promotion, the Professional Tourist Guides Association of Thailand, Siam Commercial Bank, Bangkok Smartcard System, Haupcar, CCT Group, Maenam Siam Angkor Tour, Central Restaurant Group, Fast Ship, Suntory Pepsico Beverage (Thailand), and more than 400 SMEs and retail operators to announce the opening of Mixt Chatuchak – a new dimension of Chatuchak Market,” Miporn said.

Built on 10 rai of land and featuring more than 700 retail shops occupying a space of 60,000 square metres, the new centre is designed to offer a “complete shopping experience” seven days a week under the theme Mixt Chatuchak Selected, which encourages visitors to shop for a wide variety of unrivalled and exclusive goods from the huge range of shops, the company said.

“Mixt Chatuchak is a prime location for SMEs and retail operators to invest in,” said Mixt Chatuchak executive adviser Sirichai Praphanturaki. “It is also a venue that unlocks the limitations of shopping as we will be open seven days a week from 10am to 10pm. Rental rates start at an incredibly attractive price for SMEs and retailers – at only Bt1,000 per square metre each month.

“This new shopping centre will take things to another level with eight different categories of products and services offered by more than 700 stores – fashion, accessories, food & beverage, food courts, home and decor, spa & beauty, souvenirs and service businesses. Our comprehensive set of unrivalled facilities includes a prayer room, first-aid room, drivers’ waiting room, a parking area for 20 buses and parking capacity for more than 700 vehicles. Fun and interesting ‘shopping spree’ events will be held twice a month in a designated space covering over 800 square metres. Customers can rest assured that they will be pampered with a complete set of comforts that meet the needs of both Thai and foreign shoppers,” Sirichai promised.

Wipa, 48, bought her first condominium to rent out in the year 2004 at Ratchada road at a cost of Bt990,000 for 30 square metres of unit size.

She opened for rent at the price of Bt10,000 per month for the first two years after the condominium completion, while continuing to pay Bt6,500 monthly instalments to the bank. That left her with Bt3,500 per month in extra income that she put against the mortgage. Now the condominium unit already belongs to her, and provides her with Bt7,000 per month in income.

She then expanded her investment to buy two new condominium units. The first at Phetchaburi-Thong Lor road was a one-bedroom unit of 32 square metres and cost Bt2.5 million. The room is renting for Bt15,000 monthly, higher than her Bt11,000 monthly mortgage payment to the bank.

The second unit is located at Soi Lasan on Sukhumvit Road and cost Bt1.3 million. It is already renting at Bt6,500 monthly, equal to her monthly Bt6,500 payment to the bank.

“I decided to invest in condominiums when I saw the business opportunity to generate recurring income for the long term in a period of rising residential prices, especially in those locations close to the mass transit system,” Wipa said.

She added that when investing in a condominium, she selects the location by focusing on its proximity to office buildings and education institutes that will create a strong demand for condominium housing.

Vasin Mahaphon, 37, received an offer of Bt12.5 million for a 26-square-wah townhouse he had bought in Ekkamai Soi 28 for Bt5 million in 2012 – a surge of over 100 per cent in six years. The property was renovated at a cost of Bt1 million.

“I moved to Ekkamai Soi 12 from Nonthaburi province six years ago after purchasing a 35-square-wah townhouse for Bt5.2 million plus a renovation cost of Bt400,000,” said Vasin in an interview with The Nation.

The strong demand for homes in the area later led to the idea of buying and renovating existing properties for sale, he said, adding that he had worked in Thong Lor for 15 years before moving to the location.

Vasin began with the purchase of a 35-square-wah twin house for Bt8.2 million, followed by a Bt400,000 renovation. A year after, the house was sold for Bt12.5 million – a 45-per-cent price increase in 12 months.

As the rise in residential prices continued, Vasin turned to renting out his properties. Two units have now been taken up by tenants for monthly rentals of Bt60,000 and Bt70,000.

“Rents rise in line with market prices. Besides, the sale price of my units will also be much higher,” he added.

“The Thong Lor-Ekkamai area offers a range of facilities that sit well with my lifestyle. It offers many commercial premises, a vibrant night scene and easy access to the central business district. The area is usually quiet on weekends when I jog with my dog in the mornings,” Vasin said.

Property agency firm Nexus Property Marketing Co Ltd (NEXUS) points out that the return on investments by those who buy condominiums to rent them out, records an average of 4-7 per cent a year depending on the location and the number of condominium units for rent around the area.

The company’s managing director Nalinrat Chareonsuphong said the three main factors for projects to make a high yield at 5-6 per cent are the right location, service and maintenance.

The first consideration of tenants is location. The project should be easily accessed, near public transport, linked to main roads and surrounded by convenience stores and restaurants.

Available services also have a strong impact on the purchasing decision. If projects can provide extra services such as a shuttle or private taxi, coordination with a room-keeping service, car wash or repair service agents, those projects are likely to gain more attention from tenants.

Maintenance helps sustain a good image for condominiums. If a project has been operating for a while with good maintenance, tenants feel confident and stay longer. At this point, investors will see higher returns from long-staying tenants than they would from newly-launched projects which that must be bought a higher average price.

Finding a condominium to invest in for a high yield goes beyond being located near the BTS or MRT. Success also depends on those other factors mentioned, Nalinrat said.

According to a survey conducted by the property agency arm of Sansiri Plc, Plus Property Co Ltd, the top three locations for investment in condominiums for rent are Silom-Sathon, Phaholyothin-Lat Phrao, and Phra Khanong-On Nuj.

At Silom-Sathon records show rental prices average between Bt700 and Bt1,000 per square metre per month, an average return on investment of about 5 per cent a year.

Phaholyothin-Lat Phrao records show rental prices average between Bt520 and Bt542 per square metre per month, an average return on investment about 5 per cent yearly.

Phra Khanong-On Nuj offers a return on investment of 5-7 per cent a year by offering an average price between Bt500 and Bt600 per square metre monthly.

Although the investment in property sometimes generates a return on investment lower than investing in the capital market, the investment in property generates a sustainable return on investment when you succeed in selecting the right locations, the property agency found.

The project is designed on the “Urban Riverside Condominium” concept and targets new-generation buyers who want to live in the city but also benefit from a riverside living experience. The units will range in price from Bt3.29 million to Bt34 million per unit, the company’s chief executive officer Prasert Taedullayasatit said.

He added that Chapter Charoennakorn – Riverside is very close to the Sathorn CBD and surrounded by facilities including Iconsiam, Asiatique The Riverfront, community malls as well as many leading schools and top hospitals.

The project offers Studio to 3-Bedroom Riverfront condos with stunning riverside views from every unit, with the elegant water curves making up the main theme of the building design. The project also incorporates the unique features of sailing boats, knots and the lighthouse to perfectly complement both the interior and common space.

The debenture will carry an annual interest rate of 3.9 per cent, repaid in instalments every three months until it expires.

The company has appointed Siam Commercial Bank, Kasikorn Bank, Bangkok Bank and Krung Thai Bank to underwrite the venture.

“Bt1 billion worth of the earnings will to used pay back some of our previous debenture expiring at the end of July, the next Bt1 billion to cover our debenture expiring in October and the remaining Bt2 billion will support our business expansion through the rest of this year,” Wanchak said.

Tris Credit Rating on June 11 assigned the company a BBB+ credit rating.

In the first quarter of 2019, Sansiri’s total revenue was Bt6.63 billion, up 27 per cent from the same period last year.

Its backlog of residential properties ready to sell or waiting to be transferred to purchasers is worth Bt57.2 billion, Wanchak said.

The decision by the developers, Nirvana Daii Plc, will allow Christie’s, the luxury real estate arm of Christie’s, the fine art auction house, to market the high-end development through their Bangkok affiliate, Richmont’s Luxury Real Estate.

Tim Skevington, Richmont’s managing director, said his company was delighted to be heading Christie’s first residential development project in Thailand.

Banyan Tree Residences Riverside Bangkok is Nirvana’s flagship project – its goal has been to focus on modern and innovative design to truly serve customers’ needs.

With the concept “A Sanctuary for Your Soul”, Banyan Tree offers a unique, luxury lifestyle comprising three key priorities: tranquility, rarity and impeccable quality.

Although the 45-storey condominium block sits on a sizeable 10-rai block, it has a total of only 133 units and has a maximum of 4 units per floor, with five property types from 1 bedroom to a duplex penthouse.

The parking area offers 2 spaces per unit and residents will also be able to commute from a private floating jetty, where a shuttle boat service is available.

Nirvana says 60 per cent of the project has already been booked.

They don’t come cheap, however – the cheapest units are Bt22.9 million, while two-bedroom units start at Bt49 million.

Dexter Norville, one of the bosses at JLL, said on Monday that 877,000sqm of that space – nearly 70 per cent – is managed by JLL.

Excluding owner-occupied offices, the LEED-certified gross floor area in Bangkok totals 630,000sqm, of which 577,000 (more than 90 per cent) is managed by JLL.

LEED is one of the world’s most popular green-building certification programs. Developed by the USGBC, it features rating systems for design, construction, operation and maintenance to help building owners and managers be environmentally responsible and use resources efficiently.

“While LEED certification generally focuses on the physical building and its impact on the environment, the Well Building Standards are a series of certifications by the International Well Building Institute that broadly assess the building’s contribution to the wellness of people who use it. Well certification is becoming increasingly popular among landlords and developers,” Norville said.

JLL is management consultant on two projects pursuing LEED certification – One City Centre, a Grade A office development that is a Raimon Land-Mitsubishi Estate joint venture scheduled for completion in 2022, and One Bangkok, Thailand’s largest mixed-use development project, a joint venture between TCC Asset and Frasers Property Holdings.

One Bangkok is also seeking Well certification.

Norville says LEED buildings involve high-quality standards and must also achieve the operating goals for which they were built. Some also receive LEED EBOM (Existing Building Operation and Maintenance) certification, showing that the landlord and manager are committed to sustainability.

Chakrapan Pawangkarat, Norville’s fellow chief of Property and Asset Management at JLL, said landlords are increasingly aware that sustainable development offers a competitive advantage.

In fact, both landlords and occupiers benefit from being recognised for their commitment to social responsibility and cost-savings through more efficient energy consumption.

A growing number of developments incorporate green features to obtain certification from reliable programmes such as LEED by the USGBC and Trees (Thai Rating of Energy and Environmental Sustainability) established by the Thai Green Building Institute in a collaboration between the Association of Siamese Architects and the Engineering Institute of Thailand.

“To achieve their sustainability ambition, many developers and owners seek help from consultants and experts to assist with developing, operating and managing their green real estate. This has contributed significantly to our growing portfolio of LEED-certified buildings that we manage in Thailand, building on our expertise in this area,” Chakrapan says.

FPT president Sopon Racharaksa said, “We are ready for another asset divestment to FTREIT after the board has approved a swapping of assets from 14 factories to six warehouses totalling 30,000 square metres with approximate valuation of Bt637 million to better align asset management strategies between FPT and FTREIT and maximise shareholder values of both entities.”

FPT will sell and transfer the ownership and/or leasehold within this fiscal year and will recognise sales of those assets in the second quarter, he added.

The build-to-suit (BTS) pipeline remains robust and the company expects to outperform its previously announced development target of 120,000 sq m for 2019 fiscal year, according to a press release on Monday.

The proceeds of the private placement, successfully done overnight on July 19, will be used for future investments and business expansions, said the release. The transaction will also unlock trading liquidity and free float requirement of FPT shares under SET regulations.

The company considers the capital increase to have been successful, reflecting the confidence of investors about its business potential under the leadership strategy of providing a full range of real estate platform services.

After giving the effect to the private placement, FPT now has 2,016,762,975 paid-up ordinary shares at a par value of Bt1 per share.

The Voluntary Tender Offer (VTO) for all securities of Golden Land Property Plc or GOLD is on progress. On July 19, Univentures Public Co Ltd, a major GOLD shareholder, announced that its shareholders have approved disposal of 39.28 per cent of shares in GOLD to FPT. The VTO process will end on August 8, 2019.

Sopon added, “We look forward to working closely with GOLD to deliver a world-class integrated property development to our customers. We continue to explore new investment and business expansion opportunities to deliver sustainable growth to our shareholders.”

He added that the supply in this location as at the end of June totalled 14,750 units.

Condominium prices in this location this year are averaging Bt98,323 per square metre, up 32 per cent from Bt74,292/sqm in 2014, posing a challenge to property firms launching new residential projects in this location.

Sena Hankyu Co Ltd, a joint venture firm between Sena Development Plc and Hunkyu Hunshin Property Crop, recently introduced its new condominium project, Niche Mono Ramkhamhaeng, worth Bt4.9 billion and appointed Knight Frank Charter (Thailand) Co Ltd as sole agent.

The project offers an average price of Bt89,000/sqm, with units costing between Bt1.9 million and Bt5.2 million per unit.

“When the new orange route is completed, the demand will get a further boost,” Phanom said.

“We need the new government to consider revising the LTV measure, especially for first-home buyers that have to pay a down payment of 10 per cent, which is a high cost for low-income earners. This segment accounts for up to 20 per cent of the total property market value,” LPN Development Plc’s president and chief executive officer, Opas Sripayak, said in an interview with The Nation recently.

Opas said that for buyers wanting a home priced at Bt1 million, they have to pay a down payment of Bt100,000. This represents a big burden on people who earn under Bt20,000 per month. This requirement has a direct impact on this segment of the market which, with the share of about 20 per cent of the property market, is valued at about Bt600 billion a year.

Pruksa Holding Plc’s chief executive officer, Thongma Vijitpongpun, is another property executive wanting the new government to request that the Bank of Thailand revise the LTV measure for the first-home market. Thongma noted that this segment of the market dropped by more than 20 per cent in the second quarter of this year; the tightened LTV measure took effect on April 1.

“We do not need other measures to boost the market – only the revision of the LTV measure and such an action would boost the market in the rest of this year,” Thongma said.

Research by SCB Securities Co Ltd shows that presales of new residential project in the second quarter of this year dropped 31 per cent compared with the same period of last year, and fell 8 per cent when compared with the first quarter of this year.

All property firms have revised their business plans, which now factor in a reduction in the number of launches for residential projects in the second quarter of this year and for the rest of this year.

The tightening measure has cut into the financial results of developers for the second half of the year.

SCB Securities Co Ltd forecasts that net profits in the property sector will fall by up to 26 per cent in the second quarter of this year compared with the same period of last year. Compared with the first quarter of this year, they are estimated to fall 24 per cent.

The forecasts reflect the fact that many would-be buyers could not secure mortgages for their intended property purchases.

Research shows that presales in the first half of this year for listed property firms will be Bt88.9 billion, a drop of 21 per cent from the same period of last year. Presales of condominiums are expected to drop 32 per cent and those for single detached houses and townhouses by 13 per cent. The figure of Bt88.9 billion is only 40 per cent of the total presales target of listed property firms for this year.

Property Perfect Plc’s chief executive officer, Chainid Adhyanasakul, believes that the property market in the second quarter will fall by more than 20 per cent from the same period of last year. The tough times have forced most property firms to revise the launch schedule of their residential projects in the second quarter and for the rest of this year.

“The LTV measure has had a direct impact on homes priced at no more than Bt3 million and such homes make up about 20 per cent of the total market value. As a result, we had to revise our business model to focus on homes priced at more than Bt3 million,” Chainid said.

Supalai Plc’s managing director, Tritecha Tangmatitham, said that up to 10 per cent of its customers dropped out after the LTV measure became effective. As a result, the company had to revise its business model to focus on real demand for homes priced between Bt3 million and Bt10 million. Such buyers still have purchasing power.”