With Bt5 billion in fresh funds coming from its European partner Primeamerica, a subsidiary of financial giant Prudential, Ananda Development’s CEO Chanond Ruengkritya is in a fix.
He is under pressure to build even more condominiums than the roughly 4,000 units he is now putting on the market.
“We now have seven sites and we plan to buy land to build seven more by year-end,” he said yesterday.
Already the first Bt8 billion injected into Ananda last year has reaped big returns with his Ideo brand projects, which are built close to subway and Skyrain stations in Bangkok.
Chanond has sold more than 3,500 units and already closed sales at three sites: in Lat Phrao Soi 17 and Phaholyothin and Phya Thai roads.
His newest site in Sukhumvit Soi 103 is already 25-per-cent booked. The two-tower project with 1,200 units on a 7- rai plot is expected to be worth Bt2.6 billion when sales close, he said.
“ There is no guarantee building next to a Skytrain station on Sukhumvit Road will draw buyers,” said Aquarius CEO Yongyuth Chaipromprasert, who is behind the design of the Ideo units and a key consultant to Chanond.
“Close to our Sukhumvit site are many other condominium projects, some selling cheaper, but many are just not attracting buyers,” said Yongyuth, who formerly headed Sansiri subsidiary Plus Property.
Chanond said the secret to Ideo’s success was the firm’s ability to produce fully fitted units that start from Bt62,000 a square metre.
“A 24-square-metre studio sells for Bt1.5 million, which is affordable to urban workers,” he said.
Moreover, changing trends among young Thai adults are boosting Ideo’s sales figures.
“Graduates are now telling parents not to buy them a car but an Ideo condominium instead,” said the CEO.
“ We have a resounding appeal with youths, because we are fully supporting the move to fight climate change,” said Chanond.
The developer dislikes car ownership, as it is expensive and robs Thai workers of a large chunk of their savings.
“It is far better for them to buy property, which over time increases in value,” he said.
But the speed at which his projects are selling is stunning even the builder himself.
“I did not expect the 470 units at Ideo Q on Phya Thai to sell out so quickly, being launched just last quarter, “ he said. “Its average floor price was Bt100,000 a square metre.”
The first 300 units in Sukhumvit Soi 103, which offers only studios and one-bedrooms, are also booked.
If buyers own cars, however, the Ideo estates do have ample parking facilities. The company has already obtained approval for five of its projects from the environmental impact assessment ( EIA) board, said Chanond.
“We try to be the most environmentally responsible and energysaving developer in Thailand to comply with all the regulations under the new city administrators,” he added.
Lately, the rules have been strictly enforced, and developers failing to measure up have been forced to chop off high floors that exceeded EIA rules. A number of developers denied EIA approval were also recently forced to return cash deposits to buyers.
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