Property developer All Inspire Development Plc posted 3.8 billion baht in presales for new condominium projects launched in the first half, driven by foreign buyers, who accounted for 40% of all sales.
Chief executive Thanakorn Thanawarith said foreign buyers are growing in the Bangkok condo market, particularly those from Hong Kong, China, Taiwan and Singapore.
"In a soft market, foreign buyers help absorb condo supply," he said. "In the first half, new condo supply was lower than three years ago, but the take-up rate was good because of foreign buyers."
In the first six months of 2018, All Inspire launched three condo projects worth a combined 4.4 billion baht, including a luxury low-rise condo worth 1.5 billion baht in Phuket and two condo projects worth a combined 2.95 billion baht in Bangkok.
The new projects were 85% sold. Of the first-half presales, around 1.52 billion baht or 40% was from foreign buyers, led by those from Hong Kong who accounted for 24%. The remaining 16% was from buyers in China, Taiwan and Singapore, he said.
Two years ago All Inspire set up a subsidiary, Thai D Real Estate Co, as a property sale agent for foreign markets. Sales from foreigners rose from 450 million baht in 2016 to 2 billion baht in 2017.
The developer plans to launch four new projects worth a combined 5.7 billion baht in Greater Bangkok in the second half. It aims to have a total of 8 billion baht in presales by the end of the year, up from 5.5 billion baht last year.
One of the new projects will be The Excel Ratchada 18, a low-rise condo project worth 800 million baht. It will be located on a 2.5-rai site on Ratchadaphisek Soi 18, comprising two eight-storey towers and a total of 270 units.
"Ratchadaphisek is one of the most popular locations with Thais and foreigners, particularly those from China, Western Europe and South Korea as it is a business area where there are a lot of workplaces and businesses."
Mr Thanakorn said the company will reserve one of the two towers at the project to sell to foreign buyers as it expects 40% of buyers will be foreigners. In August 2018, it will have road shows in Hong Kong, Taiwan, China and Singapore to introduce the project.
"We are not worried about foreign buyers as we collect a high down payment of 30% of the unit price to book a unit," he said. "The mortgage loan rejection rate among Thai buyers was only 5% as most of our customers have real demand."