Chanin Vanijwongse, CEO – Habitat Group: Launches Three Projects In Bangkok & Pattaya
Habitat Group will launch three new projects with a total value of 3 billion baht in the second half of 2018. Recognising the growing trend of buying properties for investment, the company reveals this sector is growing 10-20% per year and internationals looking to invest in property assets are making up a increasing part of that growth each year. The Group has had a record H1 2018 with sales of 1.9 billion baht, a 63% increase on 2017, and is well on target for 12-month sales of 3 billion baht in 2018.
Mr. Chanin Vanijwongse, Chief Executive Officer of Habitat Group, the country’s leading property-for-investment developer, commented, “We will be launching three new luxury development projects worth a combined 3 billion baht during the second half of 2018. These residential and for-investment condominium developments will be located in the heart of Bangkok and Pattaya.”
Two of these new condominium developments will be launched in Q3 2018 under the Group’s ‘Walden’ brand, and are luxury low-rise condominiums for residence and investment. Located on 0-3-22 rai on Sukhumvit 39 will be the 950 million baht eight-storey 116-unit condominium ‘Walden Sukhumvit 39’ with sales starting from 5.6 million baht per unit. Another 800 million baht project called ‘Walden Sukhumvit 31’ will be a luxury eight-storey 104-unit condominium located on 0-2-65.25 rai on Sukhumvit 31, also with sales starting from 5.6 million baht.
“Sukhumvit area is an important business hub and an area we believe will continue to grow. In addition to residential offerings, Sukhumvit is considered a “complete location” with offices, five-star hotels, shopping malls, tourism, hospitals, and educational institutions. For these reasons, it remains popular with buyers. Walden Sukhumvit 39 and Walden Sukhumvit 31 offer convenient commuting for residents who can use the mass transit system to get around Bangkok easily, as well as being conveniently located nearby to shopping malls such as EmQuartier and Emporium, as well as many well-known schools. In terms of rental return, Sukhumvit is considered an excellent location due to an ever-increasing demand. Habitat Group targets both Thai and international buyers who wish to reside near their workplace, especially the Japanese and Chinese communities, as well as savvy Thai property investors,” said Mr. Chanin.
The Walden Sukhumvit 39 and Walden Sukhumvit 31 developments have a different business model to the Group’s branded-resort developments in Pattaya, as they will be available both for residence and investment. Habitat Group’s hospitality arm, Habitat Hospitality, will be managing the properties and facilitating rent for owners. The company will work to support rental ROI for investors, and also ensure that developments see a capital appreciation of 3-5% annually.
The third development to be launched in H2 2018 is located in North Pattaya with a project value of 1.25 billion baht, and is planned for a Q4 launch. The project will use an investment model with guaranteed returns, and it will be managed by a well-known US hotel chain.
Habitat Group‘s sales in H1 2018 totaled 1.9 billion baht, up 63% year-on-year and already surpassing total sales in 2017, which were 1.298 billion baht. The Group forecasts total sales for 2018 to reach 3 billion baht, a 131% year-on-year increase. This record performance is on the back of successful sales at X2 Pattaya Oceanphere, which is 70% sold; the resort-style condominium on Na Jomtien Beach, Best Western Premier Bayphere Pattaya, which is sold out; BluPhere Pattaya managed by BW Premier Collection, which is also sold out; Wyndham Atlas Wongamat Pattaya which is 90% sold; the ultra luxury residence LEROY Ruamrudee, which is 100% sold; and Walden Asoke which was only launched in March 2018 and is already 80% sold.
Mr. Chanin noted that, “The property-for-investment market has continued to grow over the past three years with many Thais and Internationals investing. We have seen a high number of Internationals investing in the condominium sector during this period and in our own developments our international sales have gone up very quickly. I’m confident that the property-for-investment market will keep growing for many more years to come.”
“The Thai economy offers a positive trend for property investment. With interest rates lower than 1%, and since stock investment comes with risk and a chance for loss, investors want to diversify their portfolios with less risky assets that offer steady returns, and the property market is an attractive option. Statistics have shown an annual growth of 10-20% in number of real estate investors, while long-term investors in this market continue to invest,” added Mr. Chanin.
Thai investors remain Habitat Group‘s largest market at 60%. The remainder come primarily from Singapore, Hong Kong and China, with the latter being the largest nationality of international investors reaching almost 40% of the total. Other international markets on the up include Europe, the Middle East and Myanmar which together are showing an annual growth rate of 20-30% for Habitat Group. This growth in international investment interest is due to the price of property investment in many large cities around the world, where in some cases investors will need to spend 20-30 million baht for a single condominium which will return a yield of only 2-3% annually.
In the case of Habitat Group, guaranteed rental yields of 6% for five years are offered. All Habitat Group developments are in prime locations with award-winning architecture and design, as well as quality built-ins and electric appliances, ensuring yields are high and with land prices continuing to trend upwards investors will profit from this with 3-5% capital gain yearly.
“Incoming foreign investors to Thailand are one of the main disruptors to the real estate market, however, Thai investors remain a big part of the market. Interest in Bangkok’s Central Business District will continue to grow due to limited supply, therefore I see the trend for buying a second residence in the heart of the city or owning an asset for rent will continue to attract expats working in Bangkok, such as European and Japanese residents, as well as Thai people. Habitat Group’s development projects for investment purpose thus answers this need very well. We will help investors take care of all management aspects including yields and returns, rental contracts, and maintenance. As for our projects in Pattaya, investors can use their room for upto 14 nights per year and booking will be managed by the respective five-star world-class hotel chains we work with to ensure the best return for our investors,” concluded Mr. Chanin.
