Published on July 24, 2006 - Buyers now busy with interior plans

With 82 per cent of its luxury units booked, Park Chidlom is cruising for an easy finish with the completion of its two towers in the next few months.

With Bt4.6 million worth of residential condominiums already booked, the company is left with a little more than 40 apartments to sell. The remaining units should fetch more than Bt1 billion for the company. David Nardone, chief executive of Hemaraj Land & Development, the developer of the 5.4-rai enclave for upper-end buyers, said the company was now devoting quite a bit of time to servicing clients keen to furnish their apartments. "Every day we get buyers who come in to speak to the interior designers about what they want to do with their condominiums," he said. The sales office on Soi Chidlom is constantly abuzz with designers and buyers going through the floor plans while the two towers are being built just a few metres away.

Park Chidlom will be the largest high-rise condominium in Ploenchit, one of Bangkok's prime inner-city zones.

The estate comprises two buildings: the 35-storey Somkid Tower and the 28-storey Chidlom Tower. Together they contain 219 units, each ranging between 140 and 310 square metres in floor area.

But even with the success of Hemaraj's first residential endeavour, Nardone is cautious about embarking on yet another condominium project.

"We will not buy at any price," he said, adding that current market conditions require a degree of prudence. Land prices in some areas have remained at giddy heights despite weaker conditions in the luxury housing market.

Among the things that could spur the market out of the doldrums, said Nardone, was for the government to consider expanding the 49-per-cent foreign ownership law and to make it easier for foreigners to buy properties in Thailand.

He said it would make sense for the government to streamline the process for expatriates to buy homes. "On the one hand the Board of Investment is trying hard to encourage foreign firms to come here, but at the same time, the current regulations make it hard for foreign investors to buy condominiums."

Meanwhile, Hemaraj is keeping busy by attending to its other divisions, mainly its core industrial estate business.

It also has interests in factory construction, petrochemical, energy and turnkey facilities, Nardone said.

The present strategy calls for the company to consolidate its industrial estates in Rayong and Chon Buri, as well as building a power plant in Map Ta Phut.

Hemaraj has over the past year expanded its industrial land from 8,600 rai to 17,000 rai because of strong demand from global companies such as General Motors, Ford and Mazda.

Itthi C Tan
The Nation