HABITAT Group is backing its confidence in the property market with plans to launch two big projects in the second half of this year.
The total investment value of the projects – a low-rise condominium in the Wongamat area of Pattaya and a luxury housing development in Bangkok’s upmarket Ruamrudee area – will exceed Bt1 billion.
Chanin Vanijwongse, chief executive of Habitat Group Co Ltd, which is engaged in premium property development for investment, said the company was on track to add projects totalling Bt2.5 billion to its investment portfolio in the second half of 2017.
In Pattaya, the company says, six premium residential projects for investment are well under way; it guarantees a rental return of 7 per cent on the projects for the first five years.
Owners of each property will have the right to use their property for a free stay of 14 days, along with “the full benefits of professional property management service by a world-class hotel chain with international presence and reputation”, the company says.
In the first half of this year, Habitat Group continued work on its new property projects in Pattaya, which include X2 Pattaya Oceanphere, Best Western Premier Bayphere Pattaya and Bluphere Pattaya Managed by BW Premier Collection.
An average of more than 70 per cent of these units have been sold. Other successful projects include X2 Vibe Pattaya Seaphere, which was sold out within six months of launching and will be operated as a hotel by the end of this year. Another project is The Ville Jomtien, which was the company’s first project and was fully sold out within two years. It joined the company’s investment programme in 2015.
“Pattaya remains one of our strategic locations as it has huge potential for growth, driven by the rising number of tourist arrivals with an average occupancy rate of 78 per cent in 2016 and no apparent low season,” Chanin said.
“Additionally, the government will invest in mega projects in the Eastern Economic Corridor covering Chon Buri, Rayong and Chachoengsao and an upgrade of the U-tapao airport, which aims to boost passenger numbers to 1.2 million this year from 700,000 last year,” Chanin said.
He notes that the Sattahip commercial port is to be developed to support East-West transport. This should cut in half the current two-hour travel time. Add in a new motorway to Rayong, and the region could experience as much as a doubling in the number of visitors and investors, he said.
“However, these factors have caused land prices to rise in Pattaya, too, especially in the Wongamat and Na Jomtien areas, where many real estate developers are highly interested in projects. Fortunately, we have plots of land in these two strategic areas in preparation for near-future business expansion and we are very confident that our products will meet the needs of our clients both in terms of investment and tourism,” Chanin said.
The Bt800 million low-rise condominium in the Wongamat district, scheduled for launch in the fourth quarter, will have 192 units on a one-rai (0.16 hectare) plot. The second project, in Bangkok’s Ruamrudee district, will be a Bt250 million luxury residential development on a half-rai plot.
The company is confident that both projects will receive a positive response from the market, given that luxury residential units, especially in the heart of Bangkok, remain in high demand among local and international buyers.
“Habitat Group believes that our business performance in the second half of this year will go better with the government’s clear-cut economic and investment policies, which will enable entrepreneurs to invest and focus on their investment as planned,” Chanin said.
“Moreover, the rising number of tourists, particularly those from China who have a tendency to purchase properties for investment purposes, make up one of the most interesting target groups.
“We project that our pre-sale revenue will surpass Bt1.5 billion in 2017, and that we will have 20 per cent growth in rental income within three years. With these projects, we are confident that we can provide buyers with high returns on their investment.”