The Sukhumvit 28 condominium

AP seeks more foreign buyers

Asian Property Development Plc (AP) plans to tap the luxury condominium segment with the launch of two new projects, in Sukhumvit Soi 28 and Sathon Soi 12, worth a combined five billion baht in the third quarter of the year.

The new projects will be joint ventures with Pacific Star, an international real estate investment firm. It will hold 49% in each, and they’ll be developed with a new design and under a new brand.

‘‘The partner can help us bring international property development ideas to locals. They build our confidence to develop luxury condominiums as they join us from the design process and give us an advice on the master concept,’’ said Visanu Suchatlumpong, a senior executive vicepresident with AP.

With the partner’s network abroad, the company can market to foreign buyers. It aims to increase the proportion of foreign buyers from less than 10% to 30%, says Mr Visanu.

With more foreigners as target purchasers, the new condominiums will adjust unit sizes. For example, a twobedroom unit marketed to a foreign buyer would be 80 square metres, 25% larger than those marketed to Thai buyers.

‘‘Unit prices per square metre will be at least 130,000 baht as the market price in the central business district has risen significantly from last year,’’ Mr Visanu said.

He noted that top-end developments in the Sathon area were fetching 200,000 baht and up per sq m and in the early Sukhumvit sois prices averaged more than 100,000 baht.

The Sukhumvit 28 condominium will be located on a newly acquired two-rai site on Sukhumvit Road near Soi 28. It will have 300 units worth two billion baht. Unit prices will start at six million baht.

The Sathon 12 development worth three billion baht will be located on a 3.5-rai plot in Soi 12, 150 metres from Sathon Road. It will have 490 units sized between 50 and 80 sq m. The developer plans to change the brand, currently known as The Address Sathon 12.

Earlier, AP and Pacific Star had a joint venture for the Life@MRT Ratchada condominium but they changed to the Sukhumvit 28 site. The Ratchada project, worth three billion baht, will be launched in May with 900 units sized between 55 and 60 sq m.

Environmental regulations requiring developers to provide one mature tree for every one ton of air-conditioner capacity have been abolished. However, environmental impact assessment (EIA) regulations are now stricter.

As a result, AP needs to adjust unit prices of the Ratchada project from 70,000 baht to between 75,000 and 88,000 baht per sq m as the stricter rules will increase its development costs by 10-15%. It will offer buyers some furniture to compensate for higher prices.

In Ratchada-Lat Phrao area, the company will also develop Life@MRT Lat Phrao 18 after acquiring the plot this month. The project value and unit number will be the same as at the MRT Ratchada project.

Late this month, AP will also launch sales of Life@Sukhumvit 67 worth 350 million baht, comprising 29 units priced from two million baht. AP shares closed on Friday at 6.95 baht, up 10 satang, in trade worth 29.9 million baht.

KANANA KATHARANGSIPORN

Asian Property Development Plc (AP) plans to tap the luxury condominium segment with the launch of two new projects, in Sukhumvit Soi 28 and Sathon Soi 12, worth a combined five billion baht in the third quarter of the year.

The new projects will be joint ventures with Pacific Star, an international real estate investment firm. It will hold 49% in each, and they’ll be developed with a new design and under a new brand.

‘‘The partner can help us bring international property development ideas to locals. They build our confidence to develop luxury condominiums as they join us from the design process and give us an advice on the master concept,’’ said Visanu Suchatlumpong, a senior executive vicepresident with AP.

With the partner’s network abroad, the company can market to foreign buyers. It aims to increase the proportion of foreign buyers from less than 10% to 30%, says Mr Visanu.

With more foreigners as target purchasers, the new condominiums will adjust unit sizes. For example, a twobedroom unit marketed to a foreign buyer would be 80 square metres, 25% larger than those marketed to Thai buyers.

‘‘Unit prices per square metre will be at least 130,000 baht as the market price in the central business district has risen significantly from last year,’’ Mr Visanu said.

He noted that top-end developments in the Sathon area were fetching 200,000 baht and up per sq m and in the early Sukhumvit sois prices averaged more than 100,000 baht.

The Sukhumvit 28 condominium will be located on a newly acquired two-rai site on Sukhumvit Road near Soi 28. It will have 300 units worth two billion baht. Unit prices will start at six million baht.

The Sathon 12 development worth three billion baht will be located on a 3.5-rai plot in Soi 12, 150 metres from Sathon Road. It will have 490 units sized between 50 and 80 sq m. The developer plans to change the brand, currently known as The Address Sathon 12.

Earlier, AP and Pacific Star had a joint venture for the Life@MRT Ratchada condominium but they changed to the Sukhumvit 28 site. The Ratchada project, worth three billion baht, will be launched in May with 900 units sized between 55 and 60 sq m.

Environmental regulations requiring developers to provide one mature tree for every one ton of air-conditioner capacity have been abolished. However, environmental impact assessment (EIA) regulations are now stricter.

As a result, AP needs to adjust unit prices of the Ratchada project from 70,000 baht to between 75,000 and 88,000 baht per sq m as the stricter rules will increase its development costs by 10-15%. It will offer buyers some furniture to compensate for higher prices.

In Ratchada-Lat Phrao area, the company will also develop Life@MRT Lat Phrao 18 after acquiring the plot this month. The project value and unit number will be the same as at the MRT Ratchada project.

Late this month, AP will also launch sales of Life@Sukhumvit 67 worth 350 million baht, comprising 29 units priced from two million baht. AP shares closed on Friday at 6.95 baht, up 10 satang, in trade worth 29.9 million baht.

KANANA KATHARANGSIPORN