He said the company has already made Bt3.1 billion in presales in the first half, or 58 per cent of its target of Bt6 billion.

“We have been successful because the launch of low-rise residences, such as single-detached houses and townhouses, has been low. We matched the real demand,” he said.

He added that after the Bank of Thailand reduced the loan-to-value ratio for second and third homes from April 1, the demand for condo units and purchase of single detached or townhouses for investment or rental purposes dropped.

However, he said, his company was able to meet the target because it focused on buyers looking for houses for their personal use.

Chayan also said that if the government wants to improve the property market, it should revise its loan-to-value ratio so it helps support the property market during the rest of the year.

The company’s deputy managing director Somsakul Limsuthiphan said on Wednesday that there is still a strong demand for properties in this area, with 80 per cent of the buyers being locals and remainder foreigners.

The survey also showed that 70 per cent of the purchases were for the buyers themselves, while the remainder were for investment purposes.

She added that most of the condominium projects launched in this area experience up to 95-per-cent sale, especially if the units are priced at between Bt100,000 and Bt150,000 per square metre.

Investors who buy condominium units in this location also average a return of 5 to 7 per cent yearly, she said.

Property firm ACE Estate Group is cashing in on the demand by launching its latest Bt545-million high-rise, Arti Sukhumvit 71, with units starting at Bt2.69 million. The condominium has 115 units, designed as studio, one- and two-bedrooms and the penthouse.

The project will be up for booking on July 20 and 21, with Plus Property as its sales agent.

Construction of the condominium will begin in the fourth quarter of this year, ACE Estate’s director Nattapol Jintana said.

The projects combine 13,943 units worth a total of Bt57.25 billion, with per-unit prices averaging at Bt4.1 million, the survey added.

Meanwhile, the sale of new projects launched in June was 15 per cent less than in May, when 20 per cent of the newly launched projects were sold on average.

The firms that launched projects in June include Pruksa Real Estate Plc, Chewathai Plc, Lalin Property Plc, Property Perfect Plc, Supalai Plc, AP (Thailand) Plc, Areeya Property Plc, Sansiri Plc, and Eastern Star Real Estate Plc.

Construction on the project, which will combine condominium units and offices, is slated to start at the end of this year, the company’s director and executive director and executive vice president Petrada Poolvoralaks said on Wednesday.

She added that bookings were now open for the 570 units in the 33-storey condominium project called Metris Rama 9-Ramkhamhaeng at a starting price Bt2.9 million per unit.

The company is also offering zero per cent rates on booking until September 30.

Bookings for Major Tower Rama 9-Ramkhamhaeng, the 25,000-square-metre office building, would start in the fourth quarter of this year.

“We are launching our new project on Rama9-Ramkhaemheang on the basis of the strong demand in this location, where land prices have risen from an average Bt500,000 per square wah to Bt1 million per square wah due to the construction of the new MRT orange line rail route from the Thailand Cultural Centre to Minburi that passes through this location,” she said.

That makes the area a prime spot for condominium and office development, with condo prices averaging between Bt100,000 and Bt110,000 per square metre, she said.

Metris Rama 9-Ramkhanheang will have three types of condos for sale: 30-30.5-square-metre units with one bedroom and one bathroom; two-bedroom, one-bathroom units of between 48-50.50 sqm; and two-bedroom, two-bathroom units of 59 sqm,

“This project is also open for homeowners with pets and will be sold on the concept of Pet-Freindly Residences,” she added.

This trend has been reinforced by the China-US trade war that began in 2018. A new research report by property consultancy JLL indicates that Vietnam, Thailand and Malaysia are the primary benefactors of manufacturers moving out of China.

Foreign direct investments in Southeast Asia’s manufacturing sector have seen a strong rise over the past three years to US$46 billion (Bt1.4 trillion). The relocation of manufacturing facilities from China to take advantage of lower labour costs in the sub-region has contributed to this FDI growth.

Able to offer a high-quality workforce and competitive wages, Vietnam, Thailand and Malaysia are winning more manufacturers as they expand or relocate from Korea and Japan, as well as from China, according to JLL’s report. For example, Thailand and Malaysia have a mid-tech workforce now costing 60 per cent lower than in China, compared to 33 per cent in 2010.

JLL anticipates the trend to accelerate as the China-US tariff war causes more companies in China to relocate their operations to other countries in order to avoid US tariffs and maintain their competitiveness.

“The ongoing China-US tension has reinforced the trend of more manufacturers relocating from China to Southeast Asia in an effort to minimise the business impact of the China-US trade war,” said Subyagorn Sansugtaweesub, the head of industrial at JLL.

So far, the US has slapped tariffs on $200 billion worth of Chinese products and China has set tariffs on $60 billion worth of US goods. The latest meeting between the Chinese and US leaders on June 29 at the G20 conference in Japan ended without a clear path to ending the trade war.

“Thailand launched its Eastern Economic Corridor (EEC) at the right time,” said Subyagorn. “It has drawn strong interest from foreign companies, including those looking to relocate from China.

“We have already seen many of these companies looking for opportunities to acquire land in the promotional zones to develop their manufacturing and logistics facilities. Some are looking to acquire built-to-suit facilities. Others are looking for existing facilities that are put up for sale in the EEC, with specifications that suit or could be easily adjusted to suit their operational requirements,” he added.

Spanning three provinces – Chachoengsao, Chonburi and Rayong – the EEC has become Thailand’s most attractive industrial destination for key industries that have been identified as high-potential future new-growth engines for the country. They include automotive, intelligent electronics, robotics and aviation sectors. The Thai government has implemented a number of incentive policies and programmes to facilitate future industrial growth in the EEC, such as substantial tax breaks, permission for foreign ownership of land for projects promoted by the Board of Investment, and the right to lease state land for a 50-year term with an option, upon approval, to renew for another 49 years.

“Even if the China-US tariff war is put to an end, we believe that Thailand, particularly the EEC, will continue to retain its position as one of the most attractive industrial and logistics destinations in Southeast Asia, due to appealing incentive offers, availability of skilled labour, continued improvement in infrastructure, and the country’s advantageous location in the centre of the sub-region,” Subyagorn said.

Based on the circular Eeconomy concept, the agreement between Sansiri and GC as well as other business partners will lead to the creation of sustainable utilities and furniture to be used in Sansiri’s real estate projects.

GC and Sansiri will lead the way in creating such durable products as water tanks made from GC’s high-quality plastic resins, non-VOC solvent for decorative paint suitable for indoor and outdoor use, construction materials like wood composite and furnishing products made from recycled plastic for both indoor and outdoor use. GC will also bring recycled polyester from the Upcycling by GC project to display at the Sansiri show unit alongside bioplastic utensils that are biodegradable, GC’s chief operating officer Patiparn Sukorndhaman said on Tuesday.

The partnership stems from a shared vision and business goal that focuses on sustainability, natural resources reduction and care for the environment. Both companies are committed to creating a better quality of life for Thais people. From today onwards, furniture made from the innovative upcycling process will be on display at the show units of 32 real estate projects by Sansiri. These projects, built under the concept of Green & Well-Being, include Burasiri Ratchaphruek – 345 and The Line Phahonyothin Park. The furniture will soon go on display at Siri House Soi Somkid, Bangkok’s newest lifestyle and cultural hub by Sansiri; and The Cloud, a new lifestyle space with a concept of “A Healthy Leisure Space” on the 3rd floor of Siam Paragon. Sansiri residents who are interested in using this sustainable furniture, will be able to buy it through the Homestore on Sansiri Home Service Application later this year, Sansiri’s chief operating officer Uthai Uthaisangsuk said.

With this programme, Sansiri will help reduce as much as 664 kilograms of CO2 or equivalent to 74 tons of trees in the first phase of the project, Uthai added.

The company has a market capitalization at its initial public offering (IPO) of Bt1.1 billion (approximately $34.84 million).

mai president Prapan Charoenprawatt said that ARIN would list and start trading in the Property & Construction Industry Group.

ARIN engages in property development for sale, including detached houses, semi-detached houses, townhomes, and commercial buildings in Chonburi province in the eastern part of Thailand and nearby provinces to serve local residential customers under the “Arinsiri” brand.

The company has gained customers’ trust with a proven record of various projects in construction quality and after-sales service for more than a decade, worth a combined Bt4.05 billion.

Currently, the company is managing the development and sale of three projects worth a total of Bt2.19 billion. It also has four upcoming projects for which it has acquired land worth Bt1.39 billion.

ARIN has a registered paid-up capital of Bt300 million, consisting of 450 million existing common shares and 150 million newly issued shares, with a par value of Bt0.50 each.

From July 1-3, 2019, it offered 150 million newly issued shares to the general public via IPO at Bt1.80 each, for a total of Bt270 million. The IPO price was equivalent to a price-to-earnings (P/E) ratio of 60.04, calculated by using the company’s net profit in the past 12 months (April 1, 2018 – March 31, 2019), divided by 600 million fully diluted shares, representing earnings per share of Bt17.99. Country Group Securities is its financial adviser and its lead underwriter.

ARIN chief executive Wimonjit Arintamapong said that the company’s policy is to focus on location selection, property market trends, target customers, customer needs, and appropriate prices. “Currently, our projects are located in major provinces in eastern Thailand with high economic growth and potential driven by Eastern Economic Corridor (EEC) development. ARIN projects are unique in terms of design simplicity, construction quality, decent after-sales service and reasonable price. The funds raised would be used for project development, and/or land investment, bond repayment and as working capital,” he said.

ARIN’s major shareholder after the IPO is Wimonjit Arintamapong Group with 75 per cent. ARIN’s dividend policy is to pay no less than 40 per cent of net profit from the company’s financial statement after corporate income tax and legal reserves.

The debenture will be issued on July 11 this year and will mature on July 11, 2022, offering interest of 2.63 per cent per year.

Interest payments will be made on semi-annual due dates, with the final payment delivered on the maturity date, according to company reports to the Stock Exchange of Thailand on Tuesday.

In a bid to spur sales as market growth declines, Ananda Development Plc has jumped on the online shopping platform Shopee to boost bookings of its condominium units.

Pruksa Real Estate Plc has also joined up with Shopee for its residential projects while Sansiri Plc is collaborating with Lazada, another e-commerce platform, to boost sales in the rest of the year.

Homebuyer behaviour has changed, especially among Gen C consumers growing up with digital technology who tend to shop online, boosting e-commerce transactions, said Ananda Development Plc’s chief executive officer, Chanond Ruangkritya.

“In line with market trend, we have remodelled our sales and distribution channel through the partnership with Shopee, offering homebuyers convenience in booking our condominium projects,” Chanond said.

Pruksa Real Estate Plc’s executive vice president, Angkana Likhitchanyakul, said the company had opened its Pruksa Official Shop account on the Shopee e-commerce platform as a sales channel for residential units.

“As consumers shift online for most of their purchases, we need to follow the trend to sustain growth,” she said.

Sansiri Plc has opened Sansiri Official Store, at LazMall by Lazada e-commerce platform, to boost residential sales.

Sansiri Plc’s assistant executive vice president-project manager, Piti Jarukamjorn, said this was the first time booking of the company’s products were offered on an e-commerce platform, after seeing potential homebuyers going online for information and showing interest in bookings.

“Collaboration with Lazada will expand our business in e-commerce and a new step in developing a marketing strategy ,” Piti said.

Lazada (Thailand)’s chief marketing officer, Thanida Suiwatana, said after the opening of the Sansiri Official Store at Lazada in June last year that it had recorded 4,500 visitors and 500 clicks, adding, “We believe e-commerce is the new channel for residential units.”

The latest report by the Electronic Transactions Development Agency (ETDA), under the Ministry of Digital Economy and Society, showed that Thai e-commerce led growth in the Asean region last year, thanks to marked changes in consumer behaviour. The total value of e-commerce in Thailand last year was expected to reach Bt3.2 trillion.

The number of internet users has expanded four times over the past 10 years, and many Thai international platforms have expanded to facilitate the growing number of online shoppers, along with increasing confidence in ePayment and faster logistics and delivery services, ETDA said.

Service providers have embraced Big Data to analyse the behaviour and needs of consumers, while artificial intelligence is being used to develop the quality of products and services through the use of Chatbots.

Trends show that growth will continue with the arrival of 5G, creating new innovations to further lift the quality of life for consumers.

Surangkana Wayuparp, president of ETDA, said the results of its surveys showed that the value of e-commerce in Thailand was growing consistently between 8 to10 per cent per year.

“ETDA has been collecting these statistics since 2014. There were only 16.1 million internet users in 2008 compared to 45.2 million users in 2017. This reflects the shift in consumers’ behaviour as a result of changes in technology and communication devices, as well as the reduction in their prices and service fees, leading to online access for more people,” she said.

“Thailand is a country with considerable strength in the B2C sector and is a leader among Asean nations,” Surangkana added.

Before property firms switched to e-commerce platforms, most would open online bookings on their websites. The move was the first step for property firms to widen their distribution channels.

Sansiri Plc began offering the online option for bookings on Lazada during pre-sales in June 2018.

That year, the company recorded Bt2 billion in pre-sales through the online process, out of a total value of Bt48.5 billion, said the company’s chief technology officer, Tawicha Trakulyingyong.

AP (Thailand) Plc offered online bookings for five projects last year, amounting to 10 per cent of 6,422 units launched last year. All 650 units offered online were sold, racking in Bt3.15 billion through the channel. The fastest online booking of its projects was the sell-out in two minutes of the 112 units in the Life One Wireless.

Ananda Development Plc first offered online booking for eight condominium projects in 2017-18, bringing in Bt3.58 billion in revenue with the fastest sell-out being 52 units within an hour of opening.

“The country’s economy is geared towards speed in purchases and services. Property firms should develop a marketing process, especially a sales system, that works continuously,” Tawicha added.

According to data analytics on customer behaviours, the fastest time to book through an app or online is less than a second. But if a consumer stays on the web or app for more than five minutes, he/she is not likely to buy, Tawicha said.

For the first half, the presales came in at Bt10.91 billion, the developer’s chief financial officer, Chaiyuth Chunnahacha, said on Thursday.

Although the company had a successful second quarter, it is reviewing the prospects for business in the rest of this year amid an uncertain outlook in the face of a slowing economy, Chaiyuth said. The company also has to contend with the effects of a reduction in the loan-to-valuation ratio requirement for prospective home buyers. With these pressures, the company is revising its project launch schedule for the remainder of 2019, Chaiyuth said.

Early this year, the company said it planned to launch 10 residential projects worth Bt38 billion in 2019. However, the company launched just three projects in the first half of this year.