New property developer Amaranta Development Co has launched a new condo project worth 800 million baht in Huai Khwang district to tap strong demand in the area.
Managing director Sopon Asawanuchit said the project will be developed under a new business model of hotel and condo development in the same or nearby location to differentiate from high competition in the market.
"We will develop and open the hotel before launching the condo so that the condo can benefit from the services and maintenance from the hotel," he said. "Many condo projects face problems because of poor after-sale service, dragging the unit price down."
Mr Sopon, a former executive vice-president for investment banking at Siam Commercial Bank, jumped into residential development last year, establishing Amaranta with registered capital of 100 million baht.
The company yesterday launched Amaranta Residence, an eight-storey condo on a 1.2-rai site on Pracha Rat Bamphen Road Soi 5 in the Huai Khwang area with 159 units sized 30-77 square metres and priced from 3.4 million baht or 126,000 baht per sq m.
The project will be located near the 70-room Amaranta Hotel and the 10-room Amaranta Suite, the company's two hotels, which will provide services and maintenance for the condo.
According to Mr Sopon, if the first project reaches 80% sold, Amaranta will launch a new low-rise condo project in the same location with 200 units worth 1 billion baht next year.
It plans to develop two new projects worth a combined 2 billion baht per annum under a concept of hotel and condo near the same location.
"There's a niche in the property market which small-sized developers need to fill," he said.
"Differentiation, lower fixed costs and speed are the keys to success for new or small-sized developers when competing with large developers."
Phanom Kanjanathiemthao, managing director of property consultant Knight Frank Chartered (Thailand), said condo demand in the Ratchadaphisek-Lat Phrao area remains high with a take-up rate of 86%.
Condo supply in the area totalled 36,803 units, of which 4,861 units were available for sale. Average condo prices also rose 5% per year from 98,000 baht per sq m in 2011 to 127,000 baht this year.