Real-estate developer Ocean Property has delayed investment plans worth up to Bt5 billion involving five major projects, because of Thai-land's sluggish economy and continuing political uncertainty, says president Nusara Banyatpiyaphod.

The company had planned to launch all five new projects this year. Three of them are condominium projects on Rama III and Vibhavadi-Rangsit roads, another is a town-house development near Suvarnabhumi Airport, and the fifth is a hotel and resort on Phang Nga's Koh Yao Yai.

Nusara said although interest rates were expected to fall, demand for residential property continued to fall slowly, because most home-buyers were delaying their decisions to buy. Foreign investors are also delaying their purchases of residences in Thailand, because of the Bank of Thailand's 30-per-cent withholding measure on capital inflows.

"We must delay our investment plans until next year, when the political situation will be clearer after new elections," she said.

However, the company is continuing to develop four existing projects worth Bt3.7 billion and on which construction began last year. These are the five-star Asara Villa and Suites in Hua Hin, costing Bt900 million and whose soft opening is this week; Ocean Portofino Condominium on Jomtien Beach in Pattaya, worth Bt1.8 billion and which will be completed next year; O2 HIP Condominium on Withayu Road and worth Bt400 million; and a residential project called Ocean Villas in Hua Hin, worth Bt600 million.

Nusara said these four projects would generate up to Bt500 million in revenues for the company this year and as much as Bt2 billion next year.

The company announced total revenues of Bt145 million last year: 50 per cent from rental fees, 25 per cent from services and 25 per cent from sales.

To achieve the company's revenue targets for this year and next, Ocean Property has set aside a Bt17-million marketing budget. It will hold a road show for its projects in Hong Kong later this year.

"We'll focus on foreign investors who want to buy a second home and whose long-term investment should earn good income. In-

vestment in the property sector is now generating a yield of 6-8 per cent a year," Nusara said.

The company's existing projects will focus on the high-end market, because this has both strong demand and purchasing power, which the middle to lower-end market lacks in the current economic environment, she said.

"If our road show succeeds, and foreign demand for our property projects grows higher than our target, we may be ready to launch our postponed projects before next year. However, that depends on market demand," she said.

Ocean Property is an affiliate of the Ocean Group, which is run by the Assakul family. The group also includes Ocean Life Insurance, Ocean Glass, Koh Samui's Bandara Resort and Spa, Saint Stephens International School and Ocean Marina Yacht Club.

Ocean Property operates two office buildings for rent: Ocean Tower 1, located opposite the Queen Sirikit National Convention Centre on Ratchadaphisek Road; and Ocean Tower 2 in Sukhumvit Soi 19.

Somluck Srimalee

The Nation