Asset Wise predicts boost from Thon Buri MRT launch
2019 property in the doldrums thus far
The opening of the MRT extension running to Thon Buri should help the property market recover in the second half after a gloomy first six months, says property developer Asset Wise Co.
Chief executive Kromchet Vipanpong said the mass transit line is a key driver for property growth because it helps create new demand and boosts residential sales.
“The market in the first six months was unfavourable not only because of the new lending curbs but also overall sentiment,” he said.
After seeing the second-quarter performance, Asset Wise cut its presales target this year by 10% from more than 5 billion baht. The company recorded 2.6 billion baht in presales in the first half, below the target.
Last week, SET-listed Ananda Development announced the cancellation of a 10-billion-baht condo project launched in May, Ideo Q Pahol-Saphan Kwai, saying the sales rate was less than 10%.
“Condo demand among those with purchasing power remains strong, but they seek products at the right price,” Mr Kromchet said. “If the price is affordable for target buyers and the location is less competitive, the condo can get a good sales rate.”
On Aug 17, Asset Wise plans to launch a new condo project, Modiz Collection Bangpho, worth 1.2 billion baht. There will be 235 units sized at 24-100 square metres and priced at 3-18 million baht a unit.
As the property is near the new parliament and Bang Pho MRT station, scheduled to start service in March 2020, target buyers will include members of parliament and those working at or near Bang Sue Central Station.
An Asset Wise market survey found that there were more than 8,400 condo units at the location with a sales rate of 89% in 2018.
Under the current circumstances, the company expects to have 50% of the units sold within six months of the launch.
This year, Asset Wise also plans to launch a low-rise condo with four buildings and a total of 1,000 units worth 1.7 billion baht near Thammasat University’s Rangsit campus.