The property market in resort destinations and the luxury segment have seen little effect from political problems, as indicated by new projects attracting interest from Thai and foreign buyers.
About 30% of units at Celeste Condominium Hua Hin in Khao Tao have been sold since the project was launched in April.
A condo launched in Khao Tao in Prachuap Khiri Khan province and a luxury riverside project in Bangkok have both received a positive response.
“The property market in Hua Hin, Cha-am and Pran Buri received less of a negative impact from the political crisis,” said Jirawattchara Amatayakul, managing director of hotel and property developer Kao Tao Bayview Resort Co.
The company has sold 30% of its 321-unit Celeste Condominium Hua Hin in Khao Tao worth 1.7 billion baht since it launched in April.
“Our hotel in Khao Tao also got Thai customers during the political crisis to replace foreign guests,” said Mr Jirawattchara.
The company is confident of achieving good sales at Celeste, where it claims prices are lower than those at other newly launched projects in the same location.
According to property consultant Colliers International Thailand, 590 condo units remain for sale in Khao Tao. They are from four projects with a combined supply of around 900 units launched from 2007-13.
They are priced at 80,000 to 100,000 baht per square metre on average, compared with 120,000 to 150,000 baht in Hua Hin. Celeste’s price is 77,000 baht per sq m.
“We can do lower prices as our land costs are lower,” said Mr Jirawattchara, who has collected about 40 land plots in Khao Tao and Hua Hin over the past decade.
He said land prices in Hua Hin and Khao Tao have more than doubled over the past five years from 12 million baht per rai on average to 30 million baht at a recent transaction.
The company has a 20-rai plot in Hua Hin where it plans to develop a single-house project with unit prices of 12-25 million baht, aiming to tap foreign buyers.
Thanawan Chaiwatana, managing director of developer Magnolia Quality Development Corporation, said the company had 150 units booked at Magnolias Waterfront Residences in Bangkok after luxury retail project Iconsiam was launched early this month.
The booked units with a combined sales value of 3 billion baht came from networking by Iconsiam's three partners — Magnolia, CP Group and Siam Piwat. Half the buyers were foreigners, mainly from Hong Kong and Singapore.
This weekend, Magnolia will launch one of the project's two towers — a 70-storey building with 379 units worth 9 billion baht. Unit sizes will range from 60-222 sq m and be priced from 230,000 to 360,000 baht per sq m, or 14-125 million baht a unit.
The company plans to hold a road show with Iconsiam in Hong Kong to introduce the project by the fourth quarter.
“The overall property market slowed down in the first five months,” Mr Thanawan said. “But the luxury segment is an exception. The sales rate is not as big as other segments but it comes in at a steady level.”
In the first six months, six units worth more than 100 million baht were sold at Magnolias Ratchadamri Boulevard, a luxury condo project on Ratchadamri Road near the Ratchaprasong intersection with a 75-year leasehold contract.
Mr Thanawan said the property market is enjoying steady growth after the return of political stability.
Due to better market sentiment in the country, SET-listed developer Pruksa Real Estate Plc will shift to focus on the domestic market in provinces and freeze new investment in overseas projects.
“The property market, inflation rates, legal issues and currency exchange in overseas countries are significant obstacles. They are no longer worth an investment,” chief operating officer Lersuk Chuladesa said yesterday.
After earlier announcing it would invest in four countries, Pruksa will invest only in India, where the market is more favourable.
It will withdraw from the Maldives and Vietnam, where it has invested in recent years, while its plan for Indonesia will be frozen.