Ratchadaphisek spurs luxury house segment

Charn Issara to launch 2 projects next month

An artist's impression of Issara Residence Rama 9, a new luxury project to be launched on Aug 8 with 20 units priced 80-120 million baht.

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The emerging business district of Ratchadaphisek Road and an upcoming shopping mall in the Bang Na area have boosted housing demand in the luxury segment at nearby locations where new supply is limited, according to property consultant CBRE (Thailand).

Managing director Aliwassa Pathnadabutr said new commercial properties that have emerged in the past few years on Ratchadaphisek Road in the Din Daeng district have spurred demand for luxury housing.

"This demand comes from executives whose offices relocated to the new central business district on Ratchadaphisek Road," Ms Aliwassa said.

"They are looking for large low-rise homes in nearby locations for their family, as condos which are usually small in size do not fit their requirements."

The supply of luxury single houses is limited on Ratchadaphisek and Rama IX roads, she said. Land plots available for new projects are scarce, and prices are high for low-rise development.

Only a few units remain for sale at Parc Priva, a 60-unit luxury single-house project with units priced 40-60 million baht. The property on Thiam Ruam Mit Road in Huay Kwang district launched early last year.

In the Bang Na area, new supply of luxury single houses has been rare for years. Available supply came mostly from existing projects that had new phases, but the location has greater potential now with the forthcoming Bangkok Mall by the Mall Group.

"Demand for luxury single houses in Bang Na comes from both people working in the city and seeking an outer city unit and those living in an old project in the location where they have lived for 20-30 years," Ms Aliwassa said.

To capture consistent demand for luxury single houses at both locations, SET-listed Charn Issara Development Plc (CI) will launch two new projects next month, including Issara Residence Rama 9, worth 1.8 billion baht with 20 units priced 80-120 million baht.

The other will be Baan Issara Bangna, worth 2.6 billion baht, which will be located on a nearly 25-rai site on Bang Na-Trat KM 8, comprising 43 units priced from 46 million baht, said Charn Issara's chief executive Songkran Issara.

"The property market in the second half may slow as the property tax incentives ended last April," he said.

"But the upper-end housing segment will continue growing as the purchasing power in this segment is strong."

The developer expected to have up to 4 billion baht in revenue by the end of the year, higher than the earlier target of 3 billion baht, as it would realise 2 billion baht in the first half which was boosted by the property tax incentives.

Mr Songkran said the company would move Sri Panwa Hotel Property Fund, worth 2 billion baht, to a real estate investment trust by the fourth quarter this year and would sell Sri Panwa Phase 2 worth 1.25 billion baht into it.

CI shares closed yesterday on the Stock Exchange of Thailand at 2.30 baht, up six satang, in trade worth 9.21 million baht.

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