Plans falter for projects on Skytrain route
Some construction of city condos in the OnnujSukhumvit 109 area now suspended as demand dwindles
Some property developers who were planning city condominiums around the new Skytrain route between Onnuj and Sukhumvit 109 (Soi Bearing) will delay construction because demand is falling as homebuyers' purchasing power diminishes.
Earlier, developers were flocking to the area. Residential developments on the drawing boards had a market value of nearly Bt10 billion, and about 5,000 new residential units were expected to spring up in the area around Sukhumvit Soi 101 and 103.
Property Perfect's chief operating officer Teerachon Manamaiphibul said the area between Sukhumvit Soi 101 and 103 gained prominence after the government decided earlier this year to extend the Skytrain route from Onnuj to Sukhumvit 109.
However, the construction process has been delayed in the case of some projects because of falling purchasing power.
"We saw the drop in purchasing power when our three new projects, launched last month, failed to reach presales targets. However, we have continued with construction because we are launching phase by phase, he said.
However, some property developers in this Onnuj-Sukhumvit 109 area may be forced to delay construction when their presales do not achieve their targets, Teerachon said.
"Homebuyers now have to ask property developers [if their projects are going ahead] before making a decision to buy, because some projects will be suspended, he said.
Meanwhile, Property Perfect has launched Metro Park Sathorn Phase 3. It will have 2,000 units worth Bt4 bilion. It has also launched another city condominium project with 1,125 unitsand worth Bt4 billion, on Ratchadapisek Road.
Pravit Panyasakulwong, managing director of Pirom Land, a subsidiary of the Niran Group, said his company would delay the launch of a condominium project on 4 rai of land in Sukhumvit 103. It was to be launched before the end of this year, and aimed at the middleincome market.
"We had to delay our new project launch when saw demand for citycon
¬dominium projects falling in this location, he said.Earlier, S&S Residence, a subsidiary of TCC Capital Land, launched a condominium project called S&S Sukhumvit 101/1. With 810 units, it will have a value of Bt2 billion and is aimed at the middle market with a starting price of Bt40,000 per square metre. The company expected that by the end of this year, the project would be sold out. But to date, presales have reached only 60 per cent.
"We see homebuyers delaying their decisions to buy, so we have had to launch a new marketing campaign to boost sales by offering free furniture and discount prices," TCC Capital Land's executive director Somapat Trisorat said.
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