For a super luxurious condominium worth more than Bt50 million per unit in a prime location, it is hard to know which building or unit will suit you the best without a real test of actually living in the building.

I suggest that for some high-end purchasers, choosing to rent a condominium unit in a building they are interested in for at least a year will allow them to get real experiences of living in it, before making a purchasing decision and paying a huge amount of money to actually own a unit there.

Once purchased, there is no going back unless you resell it. To avoid the headaches of buying a condominium unit that you may later regret, purchasers may want to make sure which condominium building and unit will meet their minimum requirements.

Simply inspecting the property at the site or the show unit is not enough to really tell what the actual living experience will be.

But renting a unit for at least a year in the condominium building you are eyeing would give you a sense of whether it will meet your requirements, in terms of your preferred location, facilities in the building, unit layout and functionality, the quality of building management and the neighbourhood.

When people want to buy super cars, they usually take a test drive. Super luxury condominiums are more expensive than super cars, so some purchasers might want to rent to test what it’s like to live in the building.

I have seen that some discerning purchasers have decided that it is a better option for them to rent before they buy. They are choosing the condominium building and unit that suit their preferences and renting it for a year.

When they actually live in that chosen building, they come to better understand the location, get to know the neighbourhood including where to eat and shop, see what the traffic will be like day and night, discover how long it will take to and from their kids’ schools and where to find the closest healthcare.

By test living in the chosen unit, you can better discover your feelings about it, such as whether you really like that unit layout, the amenities of the project, unit size, as well as the building’s overall floor plan. Moreover, you can decide whether you really like the building facilities such as the lobby, swimming pool, common area or even the elevators.

All of this experience from actually living in a property cannot be duplicated from merely checking out the bare shell unit, nor judged based on the paper brochure. Even better, once you are a tenant, you can easily go and check all the units that are put on sale in the building you rent.

Taking into account the cost of an exclusive condo unit, it is better to think carefully and even better to be trying before buying.

Writer  By Aliwassa Pathnadabutr, Managing Director of CBRE Thailand

The company’s board also approved Thongchai’s appointments as chairman and a company director at a meeting last night.

The company made the regulatory filings after the exchange halted trading in its shares in the morning session.

The trading halt had been imposed after the share sale was carried out but the notification had yet to be sent to the exchange.

In the statements to the SET yesterday afternoon, the company reported that its major shareholders, including Ncrowne Pte Ltd and Kitti Thanakitamnuay and his group, had sold down some of their holdings. The shares – amounting to a 23.32 per cent stake in the company – were sold to Thongchai, who had been president of Noble Development Plc and is a grandson of Kitti, who resigned from the company in 2012.

After the transaction, Ncrowne Pte Ltd’s stake has fallen from 24.9 per cent to 23.7 per cent, and Kitti and his group’s holdings drop from 29.61 per cent to 18.86 per cent.

The rankings of the major shareholders now stand at Ncrowne Pte Ltd with 24.9 per cent, followed by Thongchai with 23.32 per cent and Kitti and his group with 18.86 per cent.

The company had been informed that the share deal did not require it to be carried out by a tender offer because the value of the transaction was lower than that stated under the conditions for a tender offer.

At the board meeting last night, the directors acknowledged the resignations of Kitti as a director and chief executive officer, effective immediately.

Thongchai’s appointment as a new director, replacing a resigning director, also took effect immediately, as with his Thongchai’s elevation to the positions of chairman, co-chief executive officer and president.

The board approved the appointment of Kitti as chairman emeritus of the company.

Noble Development Plc was founded by Kitti in 1991. The company reported total revenue of Bt5.15 billion and net profit of Bt986.98 million for 2018. The company has registered capital of Bt1.36 billion.

Yesterday, the developer’s shares jumped 13.66 per cent to close at Bt18.30 each, rising by Bt2.20 from Wednesday’s close. The trading value was Bt1.91 million.

The project covers over 10 rai (1.6 hectares) and boasts a utility space of over 95,000 square metres spread over 11 floors, a parking space for 1,100 cars and a rental space of 39,000 square metres – enough for around 400 stores.

Asset World Corporation is the retail and commercial business property arm of TCC Group, which is owned by beverage tycoon Charoen Sirivadhanabhakdi.

The company decided to open its shopping centre in this location following the rapid increase in the number of people moving to the area due to the large number of new residential projects in recent years, said Napat Chareonkul, head of the retail group of Asset World Retail and manager of Gateway at Bangsue Shopping Centre.

Company research discovered that the population had grown to over 606,000 people within the 56 kilometre radius of the shopping centre’s location, with people spread over five districts in north Bangkok – Bang Sue, Dusit, Bang Phlat, Chatuchak and Phya Thai – as well as the two districts of Nonthaburi city and Bang Kruay in Nonthaburi province.

These residents also possess high purchasing power, at approximately Bt70,000 in monthly household income. As an ever-growing traditional trade centre of north Bangkok, Asset viewed the area as a thriving business hub exploding with opportunities for the company to develop a retail business.

In particular, the district of Bang Sue is a strategic location for commerce and a vital business centre in north Bangkok, surrounded by important places and various economic resources. These include 14 government agencies, the new parliament buildings where people will make contact with the many government agencies daily and over 10 nationally well-known office buildings each with tens of thousands of employees who are also high-spending shoppers. As well, there are 23 prestigious schools and universities, five large hospitals, and 30,000 units in 18 housing projects by leading real estate companies.

In addition, Bang Sue has been designated Thailand’s largest transportation hub and is set to become a new Central Business District (CBD) within Bangkok. The development of the Bang Sue central railway station will serve as a model for planned neighbourhoods around other railway stations including high-speed stations, and further increasing the draw to the area’s real-estate projects and make it easier to promote.

Together, these are strongly positive signs for both residential and commercial projects, and with higher traffic in the area, is also ideal as a shopping centre location, Napat said.

“Following the new environment that is changing Bang Sue into a new shopping destination, we expect to recover our investment within seven years after we opened last November,” Napat concluded.

The Bang SueTao Poon location has become the latest destination for residential property developers in view of the State Railway of Thailand’s (SRT) master plan to develop the Bang Sue Grand Station into a mixed-use complex.

Private sector bids will be called to turn the 2,325-rai (372-hectare) site into a new residential/commercial/transportation hub in Bangkok.

A survey by the Real Estate Information Centre of the Government Housing Bank found that land prices in the area increased 38.5 per cent in the first quarter from the same period last year, due mainly to developers acquiring land around the location.

Land prices in the area show higher growth than other locations. For example, land costs in Hua Kwang-Chatuchak-Din Daeng rose 30.2 per cent in the first quarter from the same period last year, while a 24.3 per cent increase was recorded on Sukhumvit road and Nonthaburi-Pak Kerd saw an increase of 16.3 per cent. Also, a 12.9 per cent rise was reported in the price of land alongside the Airport link route from the first quarter of last year.

Meanwhile, SRT is expanding Bang Sue-Tao Poon into the country’s largest mass-transit hub, with a 2020 expected completion, said Knight Frank Thailand’s latest research report.

The location will also become a new business centre in Bangkok, especially since it connected the MRT Blue Line at Bang Sue station with the Purple Line at Tao Poon station at the end of 2017.

The link boosted the attractiveness of the residential area in Bang Sue-Tao Poon, which will be further augmented with plans to develop over 300 rai (48 hectares) of land around the station with a transit-oriented development of mixed-use projects, the report said.

In terms of condominium development in Bang Sue-Tao Poon, there were 30,200 units in the total accumulated supply with an accumulated takeup rate of 90 per cent from 2009 to the end of 2017.

The current average selling price per square metre for grade-A condominiums in the area stands at Bt117,000 per square metre, with the highest at Bt134,000, according to the research.

Meanwhile, the Transport Ministry estimates the cost for infrastructure development at Bt150 billion under the master plan (2019-2024) for Bang Sue Grand Central Station.

Funds from the private sector would flow into projects ranging from commercial buildings, a sports complex, and an international exhibition centre to residential estates, said Transport Minister Arkhom Termpittayapaisith.

Development of the 2,325-rai site will be split into three phases. In the first phase, Bang Sue Grand Central Station and commercial, office buildings will be integrated with the transport system from 2017 to 2024.

Then a centre will emerge to serve the meetings, incentives, conferences and exhibition (MICE) sector, a sports complex, as well as retail, office and residential projects around the station from 2024 to 2029.

Under the third phase, more housing projects will be built from 2029 to 2031.  All structures will come under the theme of Smart City and Green Complex.

The master plan, drafted by the Transport Ministry and its Japanese adviser, will see the Bang Sue Grand Station area becoming the next central business district (CBD) in Bangkok, rivalling Sukhumvit and Silom. The station will be a key link in Bangkok’s mass transit system, serving all existing rail systems (BTS Skytrain, the MRT, and the Airport Rail Link) as well as the 10 planned rail networks and three high-speed routes – Bangkok-Nong Khai, Bangkok-Chiang Mai, and the high-speed service linking Suvarnabhumi, Don Mueang, and U-Tapao international airports.

The mega-project comprises seven zones, covering 2,325 rai in the Bang Sue district:

l Zone A will house a 32-rai Smart Business Complex;

l Zone B will be the site of an Asean Commercial Business Hub, incorporating retail and office space;

l Zone C will see the development of the meetings, incentive travel, conventions, exhibitions or MICE Super Arena and Exhibition centre and the sport complex;

l Zone D will cover Chatuchak park and Chatuchak Weekend Market on 83 rai;

l Zone E will be for public and state agency offices;

l Zone F will host a shopping mall; and

l Zone G will be a residential area covering 360 rai.

The Smart Business Complex in Zone A will be the first project to open for private-sector bidding. SRT will set the terms of reference (TOR) and invite private sector bids by the end of this year.

Meanwhile, a survey by The Nation found 15 condominium projects have been launched in Bang Sue-Tao Poon area, offering a total of 15,566 units worth Bt34 billion and priced between Bt2 million and more than Bt4 million per unit.

Among these project is the Chiwathai Residence Bang Pho by Chewathai Plc. It has 172 units, priced between Bt4.19 million and Bt4.6 million per unit, of which 70 per cent have been sold.

Others include the U Delight Bang Sue Station by Grand Unity Development Co Ltd. All 645 units of the project have been taken up.

The 1,319-unit Metro Sky Prachachun by Property Perfect Plc is another development recently launched in the area. Priced from Bt1.9 million to Bt2.6 million per unit, 70 per cent of the project has been sold.

“Most of these projects have been successful, thanks to the development plan of the Bang Sue Grand Central Station,” said Knight Frank Thailand’s managing director Phanom Kanjanathiemthao.