Thai developers are hitting the road to showcase luxury condo developments
Faced with a flagging market, Thai luxury condo developers are striking out abroad to showcase their projects.
Leading the charge is Pace Development Corp, the mastermind behind the 77-storey MahaNakhon Tower also known as Thailand’s tallest building. The property developer’s chief executive officer, Sorapoj Techakraisri, told The Nation that it will head to Hong Kong in September for a roadshow that will promote the Ritz-Carlton Residences at MahaNakhon.
Techakraisri has resolved to sell out the remaining 30 percent of units at the Ritz-Carlton Residences, after “witnessing demand” from foreign buyers, including investors from Asia, Europe and the Middle East.
Pace has a sales backlog of THB14.5 billion (USD418 million).
Not to be outdone, Sansiri will also hit Hong Kong, Singapore and Japan in the final months of the year with a sales target of THB42 billion (USD1.2 billion).
This pivot to neighbouring countries comes amid a slowdown in the Bangkok residential market. Sales in the city and suburban areas decreased by 4.5 percent to THB171.22 billion (USD4.9 billion) in the first half of the year, according to property firm Pruksa Real Estate.
Developers can still pin their hopes on a strong finish this year. According to Pruksa Real Estate, the property market in Bangkok and its suburbs may yet grow by 8 percent this year to THB383.18 billion (USD11 billion), compared with THB354.79 billion (USD10.2 billion) last year.
Even the strengthening baht has not gotten developers worried. “It did not impact on demand to buy luxury condominiums in Thailand because most foreign investors were confident that Thai property prices were still lower than those in other countries in Asia,” Pace Development chief financial officer Natha Kittiaksorn explained.
– By Al Gerard de la Cruz | August 19, 2016