Two firms launch residential properties as foreign investors drive sales
TWO property firms plan to launch their new residential projects and a four-star hotel worth a combined Bt14.5 billion in the second half of this year.
The firms, Nirvana Development and VMPC, said the developments were a response to strong demand for luxury residences and tourist businesses.
Sornsak Somwattana, chief executive officer of Nirvana Development, a subsidiary of Singha Estate, said the company planned to launch four single-detached housing projects worth Bt6.1 billion in total in the second half of the year. They are part of its plan to boost presales to Bt2.4 billion this year.
In the first half of the year, the company reported total presales of Bt1 billion.
Nirvana is targeting total revenue of Bt2 billion and net profit Bt240 million this year.
“We decided to launch the luxury single-detached houses in the second half of this year when we saw strong demand in the market. Although the country’s economy has grown only slightly, that did not impact on demand to buy residences in the high-end market,” he said.
He added that the company planned to apply to be listed on |the Stock Exchange of Thailand in 2016.
Meanwhile, VMPC chief executive officer Prinya Tieanworn said the company had set aside an investment budget worth Bt8.4 billion to develop a four-star hotel in Chonburi’s Sri Racha district and a luxury single-detached housing project in the second half of this year.
He added that up to Bt6 billion of the total Bt8.4 billion budget would be spent on constructing the hotel to serve foreigners’ increasing demands for residences in the eastern region.
The single-detached housing project is earmarked to cost Bt2.4 billion.
VMPC is the owner of Astera Sathorn Hotel, Sathorn Gallery Residences Apartment, Astera Residence at Phuthabucha and Astera Pride at Rama 2.
“The number of foreigners demanding serviced apartments |and hotels has been increasing after the political recovery in 2012.
With that, American, European and Japanese people make up most of the investors. Thailand is a good place for living and doing business, but the political situation needs to be stable,” Prinya said.
He said Americans and Europeans started to move back to the Kingdom three years ago, and Japanese businesses had been continuously expanding in the country in the last five years and there was room for the market to grow.
Following its investment plan, the company expects its total revenue from residential sales to be Bt200 million this year, up from Bt120 million last year.
The company recorded rental income worth Bt150 million in 2014 and Prinya expects a similar figure this year.
