Noble targets CBD areas

Managing director Thongchai Busrapan said after introducing the Bt1.5-billion Noble Unite condominium project yesterday that this would be its last condo launch this year.

Noble is targeting total presales of Bt9 billion by the end of the year. In the first eight months, the company recorded presales of Bt8.2 billion.

"We believe that demand for condominiums will continue to grow, especially in locations close to the mass-transit system and in particular the Green Line from Ari station to Ekamai and Siam to Surasak station," he said.

This is the reason that the company plans to launch at least four new condominium projects next year worth an average of Bt2 billion to Bt3 billion per project. One of them will be on Ratchadaphisek Road.

This year, the company has launched only two condo projects worth a total of Bt15 billion. Noble Ploenchit has sold about 51 per cent of the total project value, while Noble Unite at Surasak/Silom will open to presales on Sunday.

Nobel Unite targets people who work in this location, offering a price of Bt110,000 per square metre or Bt3.9 million for a studio unit of about 30 square metres, and up to Bt8 million for a two-bedroom unit with combined utilisation space of 65sqm.

The company has a backlog - projects already sold and awaiting transfer to customer - worth Bt14 billion. That will generate revenue from this year through 2013.

Noble also has inventory worth Bt15 billion, or 2,133 units. About 200 units, worth a total of Bt1.4 billion, are low-rise residences, including both detached houses and townhouses.

The company is targeting revenue growth of 10-15 per cent a year.

Thongchai said Bangkok's new city plan might affect developers of high-rise condo projects if the final draft dictates that condominium buildings higher than 23 metres must be located on roads at least 12 metres wide. This could lower land prices in small roads.

However, Noble Development focuses on condo developments on main roads and close to the mass-transit system. Therefore, it will not suffer a negative impact from the new city plan, tentatively set for 2013, he said.

Meanwhile, the company has set up a new service for its customers who buy for investment. Called "Serve", this service finds tenants for Noble customers who offer their residences for rent.

So far, the company has succeeded in finding tenants for about 300 units. The service, which is for Noble Development residential projects only, now has 100 units for rent.

"Our customers average return on investment of 6 per cent a year," he said.

The demand for rentals is for one-bedroom units averaging Bt20,000-Bt25,000 per month.