The high demand for seaside condominium units in Hua Hin town has driven the land price of plots along the beach to as high as 150 million baht per rai (0.6 hectare), an international property consultant said.
Phattarachai Taweewong, research and communications director of Colliers Thailand, said land prices on the Hua Hin seaside in Prachuap Khiri Khan province had reached 150 million baht per rai.
The high land prices had prompted more property developers to develop condominiums in the middle of the town, away from the seaside and the hillsides, Phattarachai said.
He said hillside land prices were about 60,000 baht per square metre and condo buyers were more interested in condos developed there because the unit prices were not too high.
During the past 10 years, 71 condominium projects had been built in Hua Hin, Cha-am in Phetchaburi and Pran Buri in Prachuap Khiri Khan with 29,152 units and total value of 123.7 million baht.
Phattarachai said condominium sales in Hua Hin and Cha-am were booming in 2011 and 2012 with some 7,000 to 8,000 units sold each year.
Of the 71 projects, 31 were developed by listed firms, providing 16,188 units, and the other 40 projects with 12,964 units were developed by private builders.
He said Colliers Thailand had surveyed and found that 84.6 per cent of condo units along the seaside had been sold while 83.8 per cent of the units on the hillside had been sold so far.
He said buyers included Russian and Chinese people as well as Thai investors. He said Colliers Thailand expected real estate developers to continue developing new projects in Hua Hin this year as the demand is still high.
Real estate giant Sansiri is staking 31.2 billion baht on an expectation the Thai property market will grow strongly in the second half of 2022.
The money will be spent on developing nine detached house projects, two mixed projects, five townhome projects, and 15 condominiums, the firm announced on Tuesday.
Sansiri’s chief operating officer Uthai Uthaisangsuk said prospects were bright as Thailand’s twin economic engines of exports and tourism powered up and the government introduced policies to stimulate the real estate market.
He expects upper and middle levels of the property market to grow, saying that people were buying real estate to escape inflation woes.
The condominium market would also be buoyed by the return of foreigners to Thailand, he added.
This year, Sansiri plans to launch 46 projects worth a total 50 billion baht.
Of these, 78 per cent will be housing projects and the other 22 per cent condominiums.
The firm has already launched 15 projects worth a total of 18.8 billion baht in the first half.
Uthai said Sansiri earned 18.3 billion baht from presales in the first six months, 52 per cent of the targeted 35 billion baht in 2022. Housing projects earned 12.7 billion baht in the first half, with six projects fully booked.
Meanwhile, the company earned 14 billion baht from transfers in the first half, 40 per cent of the 35-billion target.
Uthai expressed confidence the target would be reached, explaining Sansiri also had 10.5 billion baht of backlog to be transferred and 10.5 billion baht of to-go sales and transfers in the second half of 2022.
He added that it also had a presale backlog of 20.3 billion baht from the second half of 2022 to 2024.
Meanwhile the company had liquidity of 15 billion baht to tackle any situation.
Second-half plans feature housing projects to meet demand in several areas and price ranges under the concept “Home for Everyone”. The company also plans to construct condominiums near electric trains, riversides, workplaces, and communities, including in provinces outside Bangkok.
Uthai said that Sansiri three-year target through 2024 was to launch 150 billion baht worth of projects with a presale target of 120 billion baht.
The price of land in the Siam Square area of Bangkok is still the highest in Thailand at 3.5 million baht per square wah (4 square metres), influencing land prices in three areas, namely Phloen Chit, Chidlom and Nana, to rise to 3.3 million baht per square wah.
The rise in land price despite the impact of Covid-19 on the economy was attributed to the move by Property Management of Chulalongkorn University (PMCU) to develop the Siam Square area constantly, said Dr Sopon Pornchokchai, president of the Thai property research centre, Agency for Real Estate Affairs.
He said the PMCU recently renovated Siam Square’s 63 rai (100,800 square metres) of land into a modern commercial area, as well as the opening of mixed-use area SiamScape to become a new landmark in the centre of Bangkok.
“In addition, Scala Cinema on 7 rai of land was demolished to build a small shopping centre run by Central Pattana,” he said, adding that these factors had caused the land price at Pathumwan intersection to rise further, as it is an area where leading shopping centres are located.
He expected land prices in Phloen Chit and Chidlom to rise to 3.5 million per square wah, similar to Siam Square, this year.
He also pointed out that land price in the Siam Square area has risen sharply from 400,000 baht per square wah in 1994.
Sopon added that land price in the Ekamai area was 1.79 million baht per square wah, higher than the Kluai Nam Thai area’s 800,000 baht per square wah, thanks to the BTS Skytrain system in the area.
He said land price at the Asoke intersection was 2.9 million baht per square wah, as Terminal 21 shopping centre, many large luxury hotels, the BTS and MRT trains systems are located there. He added that the land price in the middle of Sukhumvit Soi 21 was 2.53 million baht per square wah.
Land price in the area near BTS Phromphong station was 2.6 million baht per square wah, due to The Mall Group’s move to develop Emsphere, a mixed-use area consisting of Emporium and Emquartier department stores.
“The land price in the centre of Bangkok is likely to increase further in line with developments as we believe that every square centimetre of land will be used,” he said.
He also questioned the government’s move to evaluate land price in the Siam Square area at only 1 million baht per square wah and wondered whether the government didn’t want millionaires to pay high land tax.
Many massage parlours in Bangkok have been turned into residences, offices or hotels as the Covid-19 pandemic has either resulted in properties being seized or operators selling off.
Even though entertainment venues, including massage parlours, have been allowed to operate, not many have been commercially viable due to a drop in customers and insufficient funds.
Many real-estate developers have purchased massage parlours to turn them into residential units, office buildings or hotels as they are located in the centre of town with easy access to transport. Closed down massage parlours are also attractive to developers because land in downtown Bangkok is running low and is very expensive.
For instance, the Chaophya 2 Bath and Massage in Phya Thai district has been turned into an office complex after the business shut down at the beginning of the year, a Bangkok Metropolitan Administration source said.
The source added that only some 100 of more than 500 massage parlours in the capital are still surviving.
Meanwhile, the Agency for Real Estate Affairs managing director Wasan Kongchan said more than 80 per cent of massage parlour operators have sold off their venues because their business came to a standstill due to the Covid-19 pandemic.
Investor sentiment around the Thai industrial market is rebounding after the COVID-19 pandemic, whereas demand is exceeding supply for Serviced Industrial Land Plots (SILPs), driving up rents and asking prices. The logistics market continued to grow at a steady pace in Q1, with average land price increasing to THB6.79 million per Rai, up from THB6.58 million per rai in Q4 2021.
Thailand’s logistics market continued to grow at a steady pace in 1Q 2022. Leasing activity in Ready Built Factories (RBFs), and Ready Built Warehouses (RBWs) remained active, driven by the growing demand for logistics property in the e-commerce sector. Total RBFs stock in Q1 2022 increased to 2.76 sq m or 0.05% q-o-q. The overall RBFs vacancy rate dropped to 10.18% from 11.44% in Q4 2021. Total RBWs stock was recorded at 4.15 million sq m, growing by 0.53% q-o-q. The overall RBWs vacancy rate edged down from 9.97% in Q4 2021 to 9.68% in 1Q 2022. Average asking rent for RBFs were recorded at THB187.0 per sq m per month, up by 1.82% q-o-q. Average asking rent for RBWs increased to THB153.0 per sq m per month, up by 0.97% q-o-q.
The industrial market recovered from last year, as Thailand remains a prime overseas factory base for foreign manufacturers. Total supply of Serviced Industrial Land Plots (SILPs) in Q1 2022 rose to 205,849 rai, growing by 3.26% q-o-q. The overall sales rate increased to 86.15%, up from 82.28% in Q4 2021. The average land price increased to THB6.79 million per Rai, up from THB6.58 million per Rai in Q4 2021.
Phongphan Phloiphet, Senior Manager, Logistics & Industrial, at Cushman & Wakefield, Thailand, said, “As we begin to move away from the COVID-19 pandemic, investor sentiment around the Thai industrial market is rebounding. Thailand’s favourable investment conditions, including access to good facilities, strong transport links, and a skilled labour force are drawing new investors from around the world and are incentivizing them to establish or expand operations in Thailand. We are beginning to see the impacts of this with demand exceeding supply for SILPs and subsequently increasing rents and asking prices.
“When considering ready-built warehouses, we are advising and assisting our clients with thorough due diligence and careful planning to ensure their preliminary needs are met. The same goes when examining land for development, with clarity being essential on preferred site layouts and features, land price, construction budget and overall timeframes, as the lack of existing supply may necessitate a flexible approach to site location.”
Cushman & Wakefield Thailand’s Logistics & Industrial department provides a wide array of services for investors, operators, and occupiers. We have vast local experience and knowledge that equips us to recommend what is the best approach for our clients:
Brokerage Services – Site Acquisition & Disposal
Tenant & Landlord Representation – Renewals, Reviews, New Contracts, Agreements, and Legal
Coordination and Project Management
Research and Commercial Advisory
Market Analysis and Value Insights
Supply Chain Consultancy
For further information, please contact Khun Phongphan Phloiphet (Den) via mobile +66806547959 or email: Phongphan.firstname.lastname@example.org
Combination of global brand concept with premium location pushes sales over Bht 4,700 million
“We’ve been pleasantly surprised by the high demand for ultra-luxury homes that emphasize close-to-nature living and a ‘no-compromise’ approach to design and build quality. The Six Senses brand promise and concept, combined with an exceptional location at The Forestias, has been a winning proposition.”
Mr. Kittiphun Ouiyamaphun, Project Director – The Forestias, MQDC
Bangkok (June 7, 2022) – MQDC (Magnolia Quality Development Corporation), one of Thailand’s leading property developers announced today that the first Six Senses residences in Thailand, located at The Forestias on Bangna Trad kilometre 7, has registered total sales of Bht 4,700 million on 21 of its 27 homes, as of May 31, 2022.
Mr. Kittiphun Ouiyamaphun, Project Director – The Forestias, MQDC, said, “The speed at which homeowners made their decisions has shown there is strong demand for ultra-luxury homes in Bangkok that emphasize close-to-nature living and a ‘no-compromise’ approach to design and build quality. In just the first 30 days after launch, 16 residences were sold, with a further five residences now also sold.”
Six Senses Residences The Forestias range in size from around 790 square metres to up to almost 1,500 square metres in floor space, comprising of 27 detached homes set in their own gardens and around a private lagoon. The homes are available in three sizes ranging from three to five bedrooms, with prices starting from around Bht 180 million to over Bht 360 million.
Mr. Ouiyamaphun said, “These are among the finest and highest specced homes in Thailand, and are backed by MQDC’s 30-year warranty. They come with the extraordinary services and privileges expected from Six Senses, including bespoke concierge services, a Clubhouse, and the assurance of exceptional care in the running of a community centred on wellness, hospitality, and sustainability.”
He said Foster and Partners and DT Designs are the design and architectural consultants, and Six Senses Hotels Resorts Spas are the interior and overall project consultants. “They have helped ensure that the homes are nestled in greenery, seamlessly blending indoor and outdoor living, with onsens and pools, and views of the lagoon, and benefitting from the natural ventilation through the flow of breezes throughout the spaces.”
The first homes are expected to be completed in the second quarter of 2024.
The Forestias will also be the location for a new Six Senses hotel with around 85 rooms, scheduled to open in the first half of 2024.
Six Senses residence owners will have privileged access to the new hotel’s facilities and its extensive list of services that range from housekeeping and baby-sitting, to butler services, as well as additional benefits on services, rooms, food and beverage, and the spa.
He added that The Forestias’ other luxury residential component – Mulberry Grove branded homes – have also seen strong sales of Bht 3,720 million as at May 2022.
“The Mulberry Grove Villas cluster-home residences are specifically intended for multi-generational families who wish to live close together in multiple detached homes that are conveniently connected. There are 37 homes of three different sizes with four to six bedrooms and with functional areas that range from around 1,000 square metres to 1,700 square metres,” Mr. Ouiyamaphun said.
The Forestias is a 398-rai community located in the rapidly developing Eastern Economic Corridor. It includes large areas of parkland, residential properties under multiple brands that appeal to different lifestyles and age-groups, as well as numerous community and commercial components with a focus on healthy living and environmental quality.
Chinese bought the most condominiums among foreigners in the first quarter of 2022, the Real Estate Information Centre (REIC) reported.
REIC acting director-general Wichai Viratakaphan said 2,107 condominium units worth THB10.26 billion were transferred to foreigners in the first quarter of 2022.
In the same quarter last year, foreigners that bought the most condominiums were:
Chinese: 949 units
Russians: 134 units
US citizens: 114 units
Britons: 91 units
Germans: 81 units
French: 77 units
Taiwanese: 53 units
Indians: 51 units
Canadians: 40 units
Australians: 34 units.
As for value, the foreigners that spent the most by nationality in quarter one of 2021 were:
Chinese: THB4.57 billion
Russians: THB435 million
Cambodians: THB401 million
Taiwanese: THB391 million
French: THB390 million
US citizens: THB344 million
Britons: THB325 million
Australians: THB318 million
Indians: THB271 million
Germans: THB255 million.
In the first quarter last year, 45 per cent of condominiums sold to foreigners were bought up by Chinese citizens.
However, Wichai said it was surprising that Cambodians spent the third highest amount among foreign buyers with 4 per cent, and was listed in the top ten ranking for the first time.
He added that India was also significant in condominium purchases and value as the country had not been listed among the top ten for the past four years.
Wichai said the number of condominium sales in the first quarter of 2021 was close to the number before the Covid-19 pandemic.
He expected foreign purchasing power to increase with the government easing entry restrictions on international arrivals.
Moreover, if China keeps its lockdown measures and the Ukraine-Russia conflict continues, real estate sales will be limited and property owners might have to rely on domestic purchasing power in the second half of this year, Wichai added.
The land price around the SRT Light Red Line (Taling Chan-Sala Ya) project grew the most compared to other areas, the Real Estate Information Centre (REIC) reported.
It announced that the top five areas with the highest land price growth in the first quarter of 2022 were:
1. The SRT Light Red Line (Taling Chan-Sala Ya). The project will be constructed in the future. The land price grew by 8.5 per cent year over year. The price increased substantially in both Thawi Watthana and Taling Chan districts.
2. The MRT Pink Line (Khae Rai-Minburi). The line is 90 per cent complete. The price of land in this area grew by 8.2 per cent year-on-year. The price increased heavily in Lak Si and Khan Na Yao.
3. The MRT Purple Line (Bang Yai-Tao Poon). The line was opened in August 2016. The land price grew by 6.7 per cent year over year. The price increased a good deal in Mueang Nonthaburi and Bang Bua Thong.
4. The MRT Blue Line (Bang Khae-Phutthamonthon Soi 4). The project will be constructed in the future. The land price grew by 6.3 per cent year over year. The price increased heavily in Nong Khaem and Bang Khae.
5. The BTS Green Line (Samut Prakan-Bang Pu and Bearing-Samut Prakan). The Bearing-Samut Prakan section has already opened while the Samut Prakan-Bang Pu line will be constructed in the future. The land price grew by 5.8 per cent year-on-year. The price jumped in Mueang Samut Prakan.
The Government Housing Bank’s REIC said electric train plans for the future have influenced land prices.
A Bangkok home construction fair generated some 3.6 billion baht in revenue for contractors, with most consumers ordering the building of homes in the 2.5 million to 5 million baht range.
Worawut Kanchanakul, president of the Home Builder Association, said the Home Builder Focus 2022 fair held between March 3 and April 3 in Muang Thong Thani drew more than 10,000 visitors.
He said some 1,000 house models were offered at the fair and the revenue generated from sales was 70 per cent higher than last year.
“In previous years, the fair usually generated up to 1.9 billion baht. Last year, the value of building contracts came in at 2.1 billion baht,” Worawut said. “This year, we did not expect the revenue to rise up to 3.6 billion baht.”
He said 45 per cent of those looking to build new homes signed construction contracts in the range of 2.5 million and 5 million baht, while 32 per cent signed contracts between 5 million and 10 million baht. Only 2 per cent signed contracts below the 2.5 million baht budget, he added.
Worawut said this fair indicates that Thai consumers have higher purchasing power than what was expected by his association and the biggest buyers were in the 35 to 40 years age group.
He said contractors from other provinces also joined the fair, including from Nakhon Ratchasima, Sakon Nakhon, Maha Sarakham, Udon Thani and Chanthaburi.
“The association has seen good economic signs from the fair, including rising consumer confidence. Those who own land can make decisions easily, and the market for home builders is improving,” Worawut said.
With surging crude oil prices pushing up power bills, several key property developers have started including solar roofs and EV chargers in new houses.
Sutirapan Sakkawatra, vice president of Siam Commercial Bank, said this green trend was spotted recently when loans worth 600 million baht were granted to buyers of homes with solar roofs, buyers of electric vehicles (EVs) or those installing solar roofs in their homes.
Praphansak Rakchaiwan, managing director of property consultation company Lumpini Wisdom and Solution Co Ltd, confirmed this green trend. He said the price of solar panels for houses and condominium units has dropped a lot over the past 10 years. Now, the cost of a hybrid solar energy system that connects to the power grid has gone down to about 169,000 baht, which can be easily recouped in five years, he said.
Eventually, he added, solar panel users can end up saving some 945,000 baht over 25 years. He reckoned that at least 20 per cent of new home buyers will opt for units with solar roofs.
Meanwhile, Property Perfect Plc said it plans to install solar roofs in 30,000 units it is building and will install EV chargers in some 50,000 units.
Wongsakorn Prasitwiphak, managing director of Property Perfect, said the company has partnered with SCB, SCG and EV Lomo to install these chargers. The cost of the installation will be added to the price tag of the new units and the company will also offer to install EV chargers for existing customers.
Sansiri Plc said it will install solar roofs in 1,825 units it is scheduled to build this year.
Supalak Chanpithak, CEO of Britania Plc, said its parent company – Origin Property – has partnered up with Gunkul Engineering to make inroads in the clean energy business for housing units.
He added that Britania will install solar roofs on some 200 housing units in projects in Bangkok and its suburbs to build so-called “solar villages”.
Britania will also install EV chargers in public areas of these solar villages.
Separately, Sena Development Plc said it will invest 600 million baht in the installation of solar panels, especially in its new 15-rai Sena Viva Chalong Krung-Lat Krabang project in Bangkok.