Strategically located within the prime Sukhumvit 19 area of Bangkok, the SHÁÁ Asoke is about 250 metres from Asoke Interchange rail station, with prices starting from about Bt10 million and installments at Bt30,000 per month.

Presales for the project will be held from May 25 to 27, KPN Land chief executive officer Rawee Tahtniyom said on Tuesday.

The Asoke area, including sois 19, 21 and 23, is recognised as a prime location with potential to appreciate more quickly than other areas, said Aliwasa Pathnadabutr, managing director of CBRE Thailand.

The popularity of the area is evidenced by the number of new developments burgeoning in the recent past, from mixed-use properties to hotels to condominiums.

Additionally, land prices in the Sukhumvit area have increased by 30 per cent over the past two years, consequently increasing condominium prices, she said.

Presently, average condominium prices in this area have reached Bt300,000 per square metre. Thanks to the centrality of the Asoke area, CBRE expects there to be a continued demand for this location from both Thai and foreign buyers, whether it be for personal use or investment, Aliwasa added.

“The overall luxury real-estate market is also expected to grow thanks to improvements in the economy, political sentiment, a strong tourism industry, capital-market growth, and increased foreign investment in Thai property,” she explained.

Residential prices will rise by at least five per cent during the rest of this year when the minimum daily wage will increase by 5 per cent with effect from tomorrow, as the land price was also increasing by more than 10 per cent, a property developer said.

LPN Development Plc’s chief executive officer and managing director Opas Sripayak told The Nation recently that when minimum daily wage increases by 5 per cent it will have an impact on the property sector as labour makes up about 25 per cent of total construction cost.

“When the minimum daily wage increases by 5 per cent, it will affect construction cost by about one per cent. Land price has also increased more than 10 per cent this year compared with last year following the government’s planned infrastructure projects. It will boost land prices around the new mass transit routes which are in the construction process,” he said.

The combined impact of the increase in minimum daily wage and land prices will hike residential prices by 5-10 per cent this year, depending on the location, Opas said.

The property market in the first quarter of this year has seen slight growth over the previous year when the demand for residences was limited in the middle and upper segment, while the lower-income market dropped as commercial banks restricted approval of mortgages for those who have the ability to buy residences whose cost did not exceed Bt1 million per unit.

“Normally the demand for residences priced at not more than Bt1 million account for an average of 30 per cent of total residential projects in the market a year. But since last year, the demand for loweri-ncome market has dropped by more than a half. As a result the property market cannot register growth even though the demand in the middle and upper-income market – those who buy residences priced at more than Bt2 million per unit – still exists. But it is limited,” Opas said.

Due to the current market trend, Opas said the company had changed its target customers from lower-income to the middle- and upper-income market by launching residences priced at over Bt2 million per unit. By the first quarter of this year, the company had launched two new condominium projects at Sukhumvit Soi 76 and Cha-Am in Phetchaburi province worth a combined Bt1.4 billion.

Successful projects

Both projects have been successful with 50 per cent of total project value sold out. Both the projects and existing projects have generated pre-sales for the company of Bt1.8 billion in the first quarter of this year.

In the second quarter of this year, the company also plans to launch three new projects worth a combined Bt7.4 billion. The first project was launched last weekend at Suthisarn under the brand Lumpini Selected Suthisarn-Saphankwan worth Bt1.2 billion with more than 50 per cent sales. The next project will be a mixed-use project combining office, retail, and residential worth Bt5 billion located on Vibhavadi Road. The project after that, worth Bt1.2 billion, will be located on Pinklao district.

The company expects pre-sales from its three new projects and its existing projects in the second quarter of this year of more than Bt4 billion. This is a part of its pre-sales target of Bt18 billion at the end of this year, he said.

The Siam Cement Group or SCG has said it would introduce its latest innovative products such as a floating solar solution, and a total packaging solution provider that provides a service to customers who want to recycle their packaging. Its SCG Express service will also introduce a home-buddy application for customers who need a consultation to solve their residential problem.

SCG’s president and CEO Roongrote Rangsiyopash said that the group has focused on innovative products to improve the quality of life for its customers. He singles out the latest SCG Eldercare Solution – a robot to take care of elderly family member – as something to check out at Architect Expo 2018.

Conwood Co Ltd, a subsidiary of Siam City Cement Plc, is focusing on innovative products under the theme of “Urban Energy Cafe & Lifestyle”. The line was inspired by the latest energising exercise trend for physical fitness and the urban trend to “well-being” work and relaxation corners. The cafe will highlight the Conwood Eave Fit, made with decorative wood with easy-to-use features, natural beauty and longer durability. Conwood products are promoted as being environmentally friendly and usable for all types of decorative works.

Thai Siam Nakorn Property Co Ltd will introduce its innovative products including EZY Wall, home accessories under brand Schon, new designs for kitchen accessories under brands Gustro Covent, Home Automation, and others.

SB Furniture Co Ltd will open the SB Designer Club at Architect ’18. SB Designer Club will introduce its 52 designers who joined together for an interior design campaign, 52 Weeks of Design at SB Design Square, the company’s director Thanyarak Chawandis said recently.

Meanwhile, the event will also offer exhibitions under theme, Beyond Ordinary, such as transforming local architecture to mix and match with the modern lifestyle; contemporary architecture; and how to use local raw construction materials such as bamboo, wood, soil, brick to achieve a contemporary architectural design.

Atchapol Dusitanon, chairman of the Association of Siamese Architects under the Royal Patronage of His Majesty, said that Architect Expo is aiming to showcase state-of-the-art products and innovative construction technology, architecture-related materials, interior design, and landscape architecture.

“We put together many exhibitions, activities, and multi-national seminars that cater to both our members and the general public,” said Atchapol.

“This expo will also focus on the role and transition of architectural and local design in the Thai contemporary lifestyle, featuring the knowledge inherited from the past and the design concept utilising practical local materials,” he said.

Apiradee Kasemsuk, president of Architect Expo 2018, said that this year’s objective, “Vernacular Living”, under the concept of “Beyond Ordinary” will emphasise the procedure of architectural design in Thai contemporary lifestyle. It is the first time that members of the profession, designers, craftsmen, and talented people of diverse age groups get together to discuss and question Thai contemporary architecture and present their own ideas on vernacular living, said Apiradee.

The Architect Expo 2018 this year has received great response from exhibitors and participants from all over the world, said Supaman Munka, deputy managing director of TTF International Co Ltd, an organiser of this event.

The event will display state-of-the-art construction technology from IMAG GmbH, affiliates of Germany’s Messe Munchen, which organises BAU, the world’s most famous and biggest architecture expo. Moreover, there will be many other displays of innovative construction materials from various countries including Australia, Japan, Korea, Singapore, Malaysia, China, US, and Vietnam.

The 75,000 square-metre Expo has hosted more than 850 exhibitors and 400,000 attendees in the past.

“I’m thrilled to say that the Architect Expo 2018 will be an important key to the economic index and is expected to generate more than Bt10 billion in revenue,” Supaman said.

Ratchayud Nunthachotsophol , chief business group officer for single detached house, said demand is growing for detached homes in the middle-to-high-end segments with prices ranging from Bt 5 million to more than Bt 15 million.

The number of presales of low-rise residential projects in the first quarter grew 64 per cent or an equivalenceof Bt5.2 billion. It is an indicator of real demand from customers looking for a new place to live, he said.

In particular, detached homes are well received by customers planning on family expansion as well as career people with high incomes wanting to move from condominium units to single detached homes in a new high-potential location, where they have easy access to the city centre.

In celebrating their mega venture that gives the Japanese partner exclusivity to all RML’s future projects, both sides expressed upbeat expectations.

Tatemono’s director Katsuhito Ozaw who heads its huge overseas business that stretches from China to US, where it has ties up it has tied up giant Vanke, said his firm will “bring bold designs and concepts never seen before”.

To be sure, Tokyo Tatemono is one of Japan’s oldest real estate company, with origins dating more than 125 years. It employs nearly 5,000 people and its revenue last year was Bt77.8 billion.

Tatemono’s portfolio of super projects in recent years has brought it back to the forefront of global construction.

Katsuhito highlighted Otemachi Forest” and Otemachi Tower both completed in 2014 as among the company’s proudest achievements in Tokyp.

The projects played key parts of an “urban renaissance” programme to revitalize Otemachi financial district. Tatemono recreated an “authentic forest covering 3,600 square metres, regarded as a Herculean effort that took 6 years to complete.

The forest comprised a third of the total commercial site and serving people working and living in Otemachi district.

Within the forest is Otemachi Tower, a 38-storey commercial and retail building that houses Aman Tokyo, considered Japan’s nest luxury hotel today.

Aman Tokyop occupies 6 floors from the 33rd to 38th levels. It is part of the Aman Resort chain that has its roots in Phuket’s Amanpuri and Bali’s Amandara.

Katsuhito said Tatemono’s founders laid foundations for modern Japan, establishing Fuji Bank, now renamed Mizuho Bank. It is housed in the new tower that replaced the demolished Mizuho Bank Building.

The new high rise also sits at a key interchange for 5 subway rail lines.

Meanwhile RML chief executive Adrian Lee said the Tatemono deal will have a 51:49 per cent structure with the Thai side holding the larger portion of the investment.

The first two freehold condominium sites are on Sathorn Soi 12 and mid-Sukhumvit in the Phrom Phong a area.

The agreement also gives Tokyo Tatemono’s Southeast Asian division, exclusive rights to all future RML residential projects.

The partners are “currently looking at 25 potential sites for joint developments”, said a top RML source.

“We have been looking for a partner for two years that share the same culture, synergy and DNA as RML,” said Adrian. “It is fortunate we have located Tatemono.”

He said the companies are sharing considerable technological and commercial knowledge that are mutually beneficial.

At the same time, with Tatemono shared the investment cost will allow RML to diversify into other businesses.

Prime land in Bangkok now sells for between Bt1 million and Bt 3 million per square wah. As such, Adrian said it was important for developers ro have partners in order to compete.

RML’s 6-rai project on Ploenchit Road opposite Central Embassy near the Wireless intersection, however, will for the moment, not involve Tatemono.

But in new projects involving specialized fields such as retirement homes, Adrian said “we will definitely want Tatemomp to join in.”

Adrian added that RML has secured both residential and commercial projects that could “double” market capitalisation about Bt 4 billion presently.

“Our target is to reach Bt10 billion in five years,” he said who began diversification efforts for the company to earn recurring income with new properties such as the Ploenchit site.

Another major achievement was he launched The Lofts Silom with immediate success last year when most projects were struggling.

The Lofts Silom is a 37-storey condo project worth Bt 3.2 billion with 268 units.

“We were fortunate to achieve 81 per cent sales to date at an average of Bt240,000 a square metre,” he said of the site that can be accessed from Sathorn or Silom roads.

Adrian’s largest undertaking will be the commercial-retail project opposite Central Embassy. The 6-rai site will have a 60-storey tower with 111,500 square metres of built up area.

It will have 61,000 square metres for office rentals and another 5,000 square metres for retail.

Adrian anticipates a revenue of more than Bt 720 million a year, achieving Bt1 billion in revenues within 3-5 years.

RML has secured a 30-year lease with Thaniya, the landowners of Thaniya Plaza. They have a 4-year grace period before the lease period begins, to complete construction and fitting out the premises.

The office structure is currently being built and scheduled for completion in 2020.

Tokyo Tatemono’s Asean headquarters is in Singapore and it has long been into regional projects in Yangon and Ho Chi Minh City.

Tokyo Tatemono Group’s portfolio also includes real estate consultant service, car parking lots, housing for the elderly, child care service, overseas business and appraiser of real estate value. It has more than 4,800 staff.

Currently it has developed and managed office buildings, condominiums under its Brillia brand. It operates more than 200 commercial sites in Japan.

The two projects will boost its total presale for low-rise residential units to Bt15 billion by the end of this year, according to a company statement yesterday.

The company has already sold off some assets to King Power Group this year, and will also transfer units in residential projects to customers.

These moves will enable it to halve the debt to Bt10 billion by the year’s end, he said.

Pace is also negotiating with King Power for the sale of 53 condominium units in the MahaNakhon project.

If the deal is finalised, the company would then be able to achieve the goal of wiping out the entire Bt20-billion debt pile it faced at the end of last year, Sorapoj added.

The rating downgrade reflects the fact that CI has a smaller scale of business than its rated peers, as well as the company’s “volatile and declining operating performance and its increasing leverage”, TRIS said.

The rating continues to reflect its brand recognition in the middle- to high-end condominium and hotel segments. It also reflects recurring rental income the company earns from the commercial office space it owns, and the dividends received from investments in Sri Panwa Hospitality Real Estate Investment Trust (SRIPANWA) and Bangkok Commercial Property Fund (BKKCP).

Lastly, TRIS said the rating takes into consideration the cyclical and highly competitive nature of the real estate development industry.

With 2.1 million square metres of office space, co-working spaces have boomed.

In line with a global trend, co-working spaces in Thailand have grown by 35 per cent over 2-3 years and foreign chains have started penetrating the Silom-Sathorn area to tap demand from office workers, startups, freelancers and expatriates.

Meanwhile, space in the residential market has been limited for new projects development.

This has resulted in attractive returns of 4-5 per cent per annum for both the resale and rental markets, managing director Anukul Ratpitaksanti said on Monday.