SET-listed developer AssetWise has expanded into new high-demand locations, diversified to other segments of residential development and ventured into recurring-income projects to support sustainable growth.
Kromchet Vipanpong, the company's chief executive, said the residential market this year is unfavourable as domestic purchasing power is weak because of rising interest rates and stricter mortgage rules.
"The diversification and expansion into new locations, segments and businesses help the company remain resilient in all economic conditions," he said. "These new frontiers enable us to grow despite the market slowdown."
Mr Kromchet said the company would place greater emphasis on Phuket and Pattaya, both well-known destinations. He said 60% of the sales value from new projects planned for launch this year is concentrated in these two locations.
PHUKET
"Demand from foreign buyers in these two destinations is very strong, particularly in Phuket, where condo demand from foreigners is overwhelming," said Mr Kromchet. "This year marks a shift in our condo portfolio from campus locations to tourist destinations."
Of the 12 new residential projects with a combined value of around 26 billion baht slated for launch this year, four projects worth 15.5 billion are in Phuket and Pattaya, accounting for 60% of the total.
In Phuket, AssetWise plans to launch three condo projects worth 11 billion baht under The Title brand in Bang Tao, Nai Yang and Rawai, following last year's acquisition of a 67.6% stake in Rhom Bho Property, an MAI-listed developer with a decade of experience on the island.
"Our condo projects in Phuket are in various locations, not only popular areas such as Bang Tao, as we want to attract various groups of buyers," he said.
The company also applied its know-how to the booking and sales systems used in Bangkok. This approach resulted in strong feedback, with its three Phuket projects recording the top sales during the high season, totalling 7 billion baht, accounting for half of the total project value.
The sales backlog for the Phuket projects is projected to be recognised through 2026, said Mr Kromchet.
He said AssetWise learned from the Phuket venture, delivering condo units to foreign buyers fully furnished, including accessories such as dishes, plates, spoons, glasses, hand towels and doormats.
"We provide units with a package to serve foreign buyers who want to move in immediately," said Mr Kromchet.
"Some had no idea where to buy these items. It was our partner's idea to ensure a smooth transfer, allowing customers to move in right away."
Mr Kromchet says the company will emphasise Phuket and Pattaya, both well-known destinations.
PATTAYA
The company plans to launch its first project in Pattaya -- Aquarous Jomtien Pattaya -- in the fourth quarter of 2024. The luxury condo is valued at 4.5 billion baht and will target Russian, European and Chinese buyers, he said.
"Pattaya has developed its infrastructure significantly, improving road access and expanding beaches," said Mr Kromchet.
"Coupled with the growth of the Eastern Economic Corridor [EEC] and industrial estates in Chon Buri and Rayong, this has made Pattaya more vibrant."
He said demand for condos in Pattaya comes from various groups, including locals, EEC workers, foreign tourists and local residents.
For foreign buyers, Mr Kromchet said the company will apply its know-how and experience from Phuket, including product offerings, services, buyer preferences, and strategies aimed at engaging them.
"Tourism is the fastest-growing industry in Thailand," he said.
"It serves as a gateway, attracting foreigners to invest in Thai properties or purchase residences. Tourism greatly benefits the property sector."
In addition to diversifying into new locations where demand is strong, AssetWise has expanded into low-rise housing development to better meet customer needs across various brands.
These include The Honor for luxury pool villas, with unit prices ranging from 40-60 million baht, The Arbor for the premium mass segment, priced between 9-20 million baht, and Esta for affordable units from 3-9 million baht.
This year the company launched Chann, a new brand for riverside boutique houses, starting with Chann The Riverside Boromratchachonnani, located by the Tha Chin River in Nakhon Pathom. The project includes 112 units priced between 15-30 million baht.
COMMUNITY MALLS
AssetWise is also exploring new ventures to generate recurring income. It launched the Mingle community mall brand, operating four in the Bangkok area.
Two community malls are located near Bangkok University Rangsit, one is near Thammasat University's Rangsit Campus, and the other is in Min Buri.
In addition, the company is operating beauty clinics under the Well Aesthetic & Wellness Center brand, with one branch open on Ratchadaphisek Road.
Rocket Fitness is an alternative fitness centre brand, while Vitala is a physical therapy and recovery clinic brand. Branches of Rocket Fitness and Vitala are operating at Mingle Hill Minburi, with two more branches of each planned for the fourth quarter this year, said Mr Kromchet.
"Vitala is not a senior living facility, but will cater to the growing trend of an aged population," he said.
"We studied this market for 7-8 years to find ways to ensure our customers can continue living comfortably in our projects without moving out when they get older."
By the end of the year, the company expects to expand Mingle Mall to Phuket, with the first branch slated for Nai Yang, where it has five residential projects and anticipates thousands of residents.
Mingle Mall is operated by subsidiary Treasure M Co, while the company's health and wellness services are operated by WHB Co, another subsidiary.
Health and wellness can enhance AssetWise's business projects, providing comprehensive lifestyle services to residents at its units while appealing to health-conscious consumers, said Mr Kromchet.
"We plan to grow the health and wellness business alongside our retail and community malls, reaching our target customers more effectively and strengthen our recurring income portfolio," he said.