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| • EXCH RATES |
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Baht/$ 33.32/36
Bid/Ask
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GOLD |
15,150
+ 150
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PROPERTY
KANANA KATHARANGSIPORN
Star Property Fund, a local property fund, expects a 80% capital gain from the sales of all of its 30 freehold units worth a combined 800 million baht at All Seasons Mansion on Wireless Road after holding them for six years, according to its sales agent Nexus Property Consultants Co Ltd.
The fund, managed by One Asset Management, acquired the units, totalling 8,000 square metres, at an average price of 70,000 baht per sq m in 2002, said Apisit Limlomwongse, the managing director of Nexus.
''Though the fund can generate more gains if it holds on to the property, it has a commitment with investors to sell it. Generally, a property fund holds an asset for no longer than five years,'' he said.
The fully furnished units are among the 170 units at All Seasons Mansion, a condominium building at All Seasons Places. The fund's units are being sold at price of 120,000 baht per sq m or between 16.6-36 million baht for sizes between 130-300 sq m.
In face of rising construction costs and a shortage of prime sites, he said the price was attractive when compared to other prime condominiums which are quoted in the range of 150,000 to over 200,000 baht per sq m.
After launching the sales in the past few weeks, 35% of the total area has been sold. The company expected to close sales within three months.
Mr Apisit said the units were the only freehold condominium units on Wireless Road and some were being rented out at the rates of 70,000 to over 100,000 baht a month, depending on size.
''Buyers would be able to generate annual yields of between 6-7%, the same rate as the fund. At the same time, the capital gain is expected to rise to 200,000 baht per sq m in the next five years,'' he added.
During 2004 to the first half of 2008, condominium supply in Bangkok totalled 100,000 units, 80% of which were acquired and 40% were in inner Bangkok. The average selling price per sq m was 72,000 baht, up from 70,000 baht at the end of 2008.
''If there are no new supplies or fewer than 20,000 units are added to the market next year, the gap between demand and supply will be narrowed to 15% from the current 20%,'' he said.
Many factors are likely to obstruct additional new condominium supplies. They include increases in oil prices, unknown construction costs, soaring inflation and uncertain political situation.
Nexus Property Consultants, established seven years ago, recorded four billion baht in sales during the first six months of 2008.
It expected the sales to double by the end of the year.
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