Leading Thai property company Sansiri PLC sees plenty of opportunities for growth, particularly in Bangkok’s residential market, on the back of a promising economy with proposed investment plans and infrastructure projects.
After four years of being under junta rule, Thailand’s economy has rebounded with gross domestic product (GDP) growth at a five-year high, thanks to growing exports and tourism. The National Economic and Social Development Board reported a 4.8% growth in GDP in the first quarter of 2018, the fastest pace since 2013.
The country’s stable outlook has also prompted the WorldBank to consider raising its economic projection for the Land of Smiles. Last year, Thailand’s GDP for the quarter to September posted its strongest growth of 4.3% in four years.
Ranked 52 out of 128 on the Global Innovative Index for 2017, Thailand is poised to woo entrepreneurs and innovative investments of high quality from both the domestic and international markets as the military government cuts red tape and steps up efforts to attract foreign investment and boost infrastructure.
Early this year, the Thai government approved new legislation for the US$45 billion Eastern Economic Corridor (EEC) project in the industrial east, offering investors a tax break as well as land for rent up to 99 years.
The EEC committee has also reportedly approved the 260km, US$6.4 billion high-speed rail that would link three airports – Suvarnabhumi, Don Mueang and U-Tapao – in Thailand, thus enabling commuters in the future to travel from Bangkok to the U-Tapao airport in 45 minutes.
E-commerce giant Alibaba is also reported to have invested about US$320 million in a digital hub in the EEC, offering a platform for the Thai agricultural and tourism sectors to tap the Chinese and international consumer markets.
No longer just a tourist paradise, Thailand is swiftly gaining in popularity among start-ups due to its considerably lower cost of living, strategic location in the heart of Asia, a 68-million domestic consumer market and 46 million active internet and social media users. Moreover, the government launched a US$70 million venture fund in 2016 to support and grow start-ups in the country.
Meanwhile, Bangkok’s mass transit system (BTS) has plans to expand its network to 400km from 110km within five years.
Leveraging all the foreseeable prospects for the country, Sansiri anticipates strong growth in the economy over the next five years. With 34 years of experience in the property sector, the US$2 billion asset company has built more than 82,000 homes with over 315 projects in Thailand and three in London.
The company is also the only property developer in the country with joint-venture projects with the BTS, namely The Line series of properties that are in close proximity to BTS stations. Sansiri’s upcoming launch, The Base Sukhumvit 50, is a joint-venture development with Tokyu Corp in the Phra Khanong-On Nut area in Bangkok.
The development, sitting on about three rai (approximately 1.186 acres) of land, comprises two 8-storey residential buildings and one 2-storey facility building and will offer a total of 415 residences. Housed in two blocks, the units come with one or two bedrooms and have built-ups of 25 sq m to 56.75 sq m. This freehold development comes with voice control, smart home system, state of the art gym, fully furnished and are priced from S$142,000 onwards.
Slated to be completed in December 2019, The Base Sukhumvit 50 also offers recreational facilities such as a swimming pool, gym and outdoor courtyards. Residents can expect to pay a monthly common fee of THB68 psm and THB500 psm to the sinking fund.
The project’s location offers easy commute to Sukhumvit’s main arteries and expressways and proximity to public commute. It is situated 1km to 2km to the Chalerm Mahanakhon Express, Chalongrat Express and T77. There will also be shuttle services taking residents to the BTS On Nut station situated 1.1km from the development. Surrounding amenities include hospitals, education institutions, offices and shopping malls.
With prices that are comparable to those in the Thonglo-Ekkamai zone, the Phra Khanong-On Nut area has a high concentration of expatriates in its rental market with 70% of condominiums rented out to foreigners. Rental demand in the area has risen 10% - higher than the 4% seen in Thonglo-Ekkamai.
The area, where properties enjoy 83% occupancy, has seen a 40% capital gain in five years to an average of THB122,000 psm. Rental yield in the area is 5% to 7% with monthly rent for a 1-bedroom unit standing at THB14,000 to THB18,000.
Sansiri has become a choice brand among local and overseas investors. Its subsidiary Plus Property Co Ltd, the largest property management firm in Bangkok with over 20 years of market presence and overseas offices, was set up to take care of its local and international clientele.
The launch of The Base Sukhumvit 50 will be held on 20-21 October 2018, from 1100 -1800, at 127 Devonshire Road, Singapore 239885
(By Appointment Only). For more information, email singapore@sansiri.com or call +65 96900666.
You can register by scanning the QR code below and filling up the form attached
This article appeared in The EdgeProp Pullout Issue 853 (October 22, 2018) of The Edge Singapore.