Hong Kong-based investment group Hongkong Land is bullish about property development in Bangkok, with plans for at least three new luxury residential and commercial projects through joint ventures with three large developers.
William Bright, director of HKL (Thai Management) Ltd, a subsidiary of Hongkong Land, said Bangkok is an attractive city for investment, with the capital's property market having gradually recovered.
"The trend is up, as we've seen from good sales at our residential projects, which achieved their targets," he said.
Those projects include Lake Legend Chaengwatthana and Lake Legend Bangna-Suvarnabhumi, each worth 6 billion baht, in which the company had joint ventures with residential developer Property Perfect Plc.
The Chaeng Watthana project was launched two years ago and has recorded over 1 billion baht in sales, while Bang Na-Suvarnabhumi tallied 1 billion baht in presales, with a plan to launch in the first quarter of next year.
Wongsakorn Prasitvipat, managing director of Property Perfect, said the 12 single detached houses sold at the Bang Na-Suvarnabhumi project were 70% bought by Chinese through a Thai company, with the remaining 30% acquired by Thais.
"Demand in the luxury residential segment is strong and better than expected since last year," he said. "This momentum will continue in the future. We expect to record 2 billion baht in presales at the Bang Na site by the end of 2022."
Mr Bright said Hongkong Land resumed investments in Thailand four years ago following its first project in 2000 through a joint venture with Gaysorn Property Co.
From 2017 until now, it has invested around 10 billion baht through joint ventures with two other developers: Central Pattana Plc (CPN) and Noble Development Plc.
Of that amount, 9 billion baht went to a joint venture with CPN for a 23-rai plot on Wireless Road, formerly owned by the British Embassy. They are designing a mixed-use project comprising office and retail spaces.
Another 1 billion baht was invested in a joint venture with Noble for a plot on Wireless Road opposite its venture with CPN. The plan is to use the plot to develop a luxury condo worth more than 10 billion baht.
"We are hands-on with every project we invest in, no matter whether we hold a small or large stake in the joint venture," Mr Bright said. All of the firm's Thai ventures are 49% held by Hongkong Land and 51% by the Thai developer.
"We have a strong commitment in Thailand, even if our investment portion here is in the single digits compared with outlays in China, Singapore and Indonesia," he said.