Capital G Development, a construction company turned developer, is committed to launching condo projects with a unique marketing gimmick: offering an investment return guarantee for up to 10 years to potential buyers.
Investment buyers give less weight to room design, says Mr Chairat. PORNPROM SATTRABHAYA
Managing director Chairat Piroonhapat said the company has spent 500 million baht this year to develop two new condo projects with unit prices starting at 890,000 baht.
The projects are Avenue Venice with 210 units in the Bang Na area near ABAC University's Bang Na campus and Avenue Valley with 576 units in the Rangsit area near Rangsit University.
Both have been 20% sold since their launches earlier this year.
"Condos near educational institutions offering a 10-year investment guarantee receive good feedback from investment-oriented buyers," Mr Chairat said on Tuesday. "Our first two projects sold out and are now fully occupied."
The guarantee includes a return of 5,500 baht a month throughout the life of the contract, extending up to 10 years. Each contract starts at one year with an option for renewal.
Under the scheme, Capital G will find tenants if the buyer declines to move into the unit. But owners may get the unit back by notifying the company three months in advance if they change their mind and want to occupy the unit.
Avenue is a brand for the company's "condo for investment" concept, which focuses on development near schools.
This market is less sensitive to politics, economics and even natural disasters, according to Mr Chairat.
Launched in 2010 and located in Bang Na near the ABAC University Bang Na campus, Avenue@10th and Avenue Beach, with 77 units each, saw investment-oriented buyers account for 50% and 90% respectively. The rest were parents buying a unit for their children.
There are four distinct sets of property buyers: those who buy property strictly as an investment, stock traders, small and mid-sized business owners and employees at the management level.
"About 60% of buyers for investment purposes do not consider room function when visiting the sales office," said Mr Chairat. "They just come with a calculator in hand, evaluating the investment before making a decision."
Next year, Capital G will develop the three-star Avenue Hotel concept with units to be sold to investors at three resort locations in Pattaya, Hua Hin and Khao Yai, where the company has a six-rai site on Thanarat Road.
Next month, Capital G will launch a single-home project worth a combined 200 million baht on 10 rai in the Bang Yai district of Nonthaburi. The Villa will offer 50 units of 50-100 square wah with prices starting at 3 million baht.
About the author
- Writer: Kanana Katharangsiporn
Position: Business Reporter