0

LPN and Supalai sell out over 4,000 units in four condominium projects in one weekend

LPN and Supalai reported that they had sold the majority of units in four projects that were launched on the weekend of November 21 and 22, 2009.

LPN launched and sold 1,026 units at Lumpini Ville, Ladprao Chokchai. Lumpini Ville, Ladprao ChokchaiThe average unit size was 29.5 square meters and the average achieved price was 1.43 million Baht per unit or around 48,500 Baht per square metre. LPN also reported that they had sold 2,200 units (81.5%) of their 2,702 units at Lumpini Park Pinklao. All of the 2,702 units in this development are 1 bed which come in 4 size options ranging from 28 – 36 square metres, and pricing ranging from 46,000 – 52,000 Baht a square metre.

The company expects to complete Lumpini Ville, Ladprao Chokchai in Q4 2010 and Lumpini Park Pinklao in Q1 2011. LPN has been offering potential purchasers down payments of 10% with 90% on completion.

Supalai reported that they had sold 600 units at Supalai Park Ratchayothin out of 804 units which were 131 two-bedroom units, 643 units were one bedroom, 30 studio units. The average size of the one-bedroom units was 49.5 square meters and we understand that

Prices achieved for the one-bedroom units were 3.22 million Baht ( 65,000 Baht per square metre)Supalai also reported that they sold out all 544 units at Supalai Park Asoke located 600 metres of the Rama 9 MRT station.Lumpini Park Pinklao

We understand that there were 24 studio units, 436 one-bedroom units and 84 two-bedroom units. The studio units of around 32 square metres were priced at around 2.14 million Baht to 2.54 million Baht or 66,875 Baht to 79,375 Baht per square metre.

The 48.5 square metre one-bedroom units were priced at between 2.62 million Baht to 3.38 million Baht or 55,157 Baht to 68,282 Baht per square meter.

The 66 square metre two-bedroom units were priced at between 3.64 million Baht to 4.25 million Baht or 55,151 Baht to 64,393 Baht per square metre.

In addition The Seed Memories development by Preuksa Real Estate located on Soi Kasemsan 2, adjacent to the Jim Thompson House, is also reportedly sold out. It is an 8 storey development with 303 units, of these 229 units are 1 bed with an average size of 40 square metres, they have a starting from of 3.2 million Baht or 80,000 Baht per square metre. Supalai Park Ratchayothin

The sales show the latest trend for one bedroom units.

We do not have an exact idea of whether the buyers are end-users, buy to

rent investors or speculators hoping to resell before completion.

We expect that it is a mixture of all three and understand that some buyers have been purchasing multiple units.

In our opinion investors are being driven towards property investment by low bank deposit rates rather than low borrowing rates and the low total cost per unit has attracted a wider range of investors. Supalai Park Asoke

Other Asian governments are becoming worry of asset bubbles being created by low interest rates.

As we mentioned previously the Hong Kong and Singapore governments have already taken some action to try an cool property speculation.

In Bangkok we have not seen dramatic price inflation but in a city with a plentiful availability of sites, the problem tends to be the risk of oversupply rather than rapid price inflation.

Condominiums offer investors a leveraged bet on the market because the downpayment during construction is only 10-30% of the price providing an opportunity for profit if prices rise and the unit can be resold before completion.Lumpini Ville

The success of these recent projects may encourage ot

her developers to launch projects – the risk is that a particular product in a particular location can quickly become over supplied.

We will be watching the volume of new launches and their reported sales in the coming weeks to monitor the possibility of certain areas of the condominium market becoming oversupplied.

About the Author

James Pitchon is an Executive Director of CBRE Thailand. He has been responsible for the co-ordination of more than 1,000 multi-national corporation property transactions in Thailand over the last nineteen years. He is also a board director of CBRE Vietnam, CBRE Cambodia and the BCCT. He is a Member of the Royal Institution of Chartered Surveyors (MRICS).

Leave a Reply




If you want a picture to show with your comment, go get a Gravatar.