Salan offers cheaper condo near St. John’s
Salan Development Co, a property arm of the St. John’s group of schools, plans to launch a lower-priced condo project worth 1.2 billion baht on Phahon Yothin Soi 23.
Chainarong Monthienvichienchai, chairman of the board, said average prices of 69,000 baht per square metre at the project will offer some of the most affordable units for a new condo project in Chatuchak district.
“We can offer low unit prices because our land cost is low,” he said. “We will develop our land plots, formerly used for schools, and use the profit from property development to develop new schools in the Bang Na area.”
The company has collected land plots totalling 11 rai on Phahon Yothin Soi 23, 800m from the main road, for over two decades. It will use five rai to develop Poly Place Condo @ Phahon Yothin 23 with an investment of 800 million baht.
The project will comprise three eightstorey buildings with a total of 553 units. Units will be 29-58 sq m and be priced from 1.8 million baht a unit, or 63,000 baht per sq m. The launch was postponed from last October to March 4, 2017 because of the mourning period.
It recorded 50% sales at two of the three buildings with 350 units sold despite neither a sales office nor an official launch, said Mr Chainarong. The remaining building will likely be kept by the company for rent for recurring income.
Property consultant Knight Frank Chartered Thailand reported the average price of newly launched condo projects from the Mo Chit skytrain station to Kasetsart University on both Vibhavadi Rangsit and Phahon Yothin roads was 118,146 baht per sq m.
The land price on Phahon Yothin Road from the Lat Phrao intersection to the Ratchayothin area was close to 1 million baht per sq wah. On Phahon Yothin Soi 23, the price was 300,000-500,000 baht per sq w.
Last year condo supply in this location totalled around 24,900 units. Of this amount, 22,800 units were sold, or 91.5%. Demand was driven by an extension line of the skytrain from Mo Chit to Saphan Mai and Ku Kot, scheduled to start by 2020.
The company launched its first condo project three years ago, The Saint Residences, comprising three 41-storey buildings and 1,500 units worth a combined 10 billion baht on a seven-rai plot near the Lat Phrao intersection. Some 30% of units are sold.
Phanom Kanjanathiemthao, managing director of Knight Frank Chartered Thailand, said though the project targets affordable units, there is no concern about mortgage rejections because buyers are mostly salaried employees working nearby, such as at SCB Park. Others are wealthy families looking to add space, he said.