Thailand’s Sansiri to launch luxury condos in Singapore and Hong Kong
By Michael Lim
Apichart Chutrakul , CEO and co-founder of Thailand-listed property developer Sansiri PCL, started launching his Bangkok projects in Singapore and Hong Kong only three years ago. He is happy with the response and even set up a representative office in Singapore last month.
Last year, Singaporeans accounted for 8% of foreign buyers in Sansiri’s projects and, this year, the figure rose to 10%. Hong Kong buyers still account for the biggest proportion of overseas buyers, even though that has dropped from 60% in 2015 to 46% this year. The number of mainland Chinese buyers more than doubled to 23%, from 10%, of foreign buyers. The rest are a mix of American, Russian and Japanese, making up 5%, 2% and 2% respectively.
View of the Thonglor area from the roof of Bangkok Marriott Hotel Sukhumvit
Given the strong response to its projects so far, Sansiri intends to roll out two more condominiums in Hong Kong and Singapore soon. Sansiri will start pre-sales for KHUN by YOO in Bangkok on Nov 4; it has sold 25% of The Monument Thong Lo in Bangkok. KHUN by YOO and The Monument Thong Lo are freehold luxury condos located in the Thonglor area in Bangkok. Including these two latest projects, Sansiri has developed six condos in Thonglor, an upscale residential area popular with old-rich Thai families and expatriates. Sansiri’s first project in Thonglor was SIRI at Sukhumvit, which was completed in 2010. Many of the old houses, shops and commercial buildings have been torn down and redeveloped into high-rise condo blocks, serviced apartments, high-end restaurants, pubs, spas and other entertainment establishments.
The lobby of KHUN by YOO, a freehold development on Thong Lo Road
With rejuvenation taking place in the neighbourhood, demand for land has also increased and, with it, land prices. “Twenty years ago, land prices in Thonglor were just THB100,000 psm,” says Apichart. “Today, they are THB1.5 million psm.”
Many young affluent Thais have also moved to Thonglor. They like condo living and the proximity to restaurants and amenities. To cater for them, hip restaurants, entertainment hubs and high-end apartments have popped up, says Apichart.
Apichart: Twenty years ago, land prices in Thonglor were just THB100,000 psm.
Today, they are THB1.5 million psm.
Famous international restaurants that have opened in Thonglor include Maison de la Truffe Bangkok, the first Asian branch of the Parisian restaurant famous for its truffles. Renowned Japanese restaurants that have opened their first overseas branches in the area are Mikaku teppanyaki restaurant from Kyoto and Kitaohji from Ginza, which is famous for its multicourse dinners.
Other amenities include community malls such as The Market Place, Maze Thonglor and The Commons, as well as international schools (Bangkok Prep School), international hospitals (Samitivej Hospital) and office buildings.
The Maze Thonglor community mall houses chain restaurants and unique independent stores
in a four-storey, open-air dining and shopping space
The Market Place community mall is anchored by local supermarket chain Tops Market,
Laundry, DHL, Starbucks and Swensen’s
72 Courtyard is not only known for its eateries but also as a lifestyle and clubbing hub
However, the most anticipated of all is the proposed MRT Grey line monorail network. One of the new monorail MRT stations is located on Soi 10, a short walk from Sansiri’s KHUN by YOO, which is on Soi 12. In addition, there is an MRT station on Soi 25, near The Monument Thong Lo. The location of these two projects should appeal to both end-users and investors, says Cobby Leathers, Sansiri’s head of international marketing.
In a congested city like Bangkok, investors recognise the convenience and price uplift that come from being located near train or monorail stations. Therefore, it makes sense to launch KHUN by YOO and The Monument Thong Lo in Singapore and Hong Kong, notes Leathers. Both projects are jointly developed by BTS Group and Sansiri, which hold equal stakes.
Leathers says the location of the two projects should appeal to both end-users and investors
KHUN by YOO is a freehold, 27-storey tower with 148 units. The apartments range from one- to three-bedroom units of 447 to 1,615 sq ft. There are also two three-bedroom penthouses of 3,164 to 3,261 sq ft. The starting price for a one-bedroom unit is THB15 million ($580,345). The average psm price for the units is THB390,000.
Typical units are fitted with Duravit, Axor and Kohler bathroom accessories and Smeg and Foster kitchen appliances. The two penthouses are fitted with Agape bathroom accessories and Subzero WOLF and MEX kitchen appliances. KHUN by YOO is the first branded residence by YOO Design Studio, founded by property entrepreneur John Hitchcox and renowned designer Philippe Starck. The apartment tower will be completed in 2020.
KHUN by YOO, comprising a 27-storey tower with 148 residential units, is valued at THB4 billion
The Monument Thong Lo is a freehold 46-storey tower with 127 units. The project comprises a mix of two- and three-bedroom apartments of 1,335 to 2,712 sq ft and three luxurious penthouses of 5,479 to 7,126 sq ft. Prices start from $1.8 million for a two-bedroom unit and $3.4 million for a three-bedroom apartment, and the average psm price is THB350,000. The project is expected to be completed in December 2019.
At average prices of THB350,000 to THB390,000 psm, KHUN by YOO and The Monument Thong Lo are priced at the top end of the market. According to Apichart, the top-end segment has been less affected by the slowdown in the Bangkok condo market because wealthy Thais are still buying, and they are less affected by the tightening of mortgage criteria by banks.
The Monument Thong Lo is located on a section of Thong Lo Road that is closer to Phetchaburi Road
According to CBRE Thailand’s latest report, sales of condos launched in mid-town and suburban areas have been slow, owing to the economic slowdown and banks’ tighter lending requirements. The two outperformers in the lower end of the condo segment are Life Sukhumvit 48, where units were sold at an average of THB98,500 psm, and The Line Asoke-Ratchada, where units were priced at an average of THB170,000 psm. The latter is a joint venture between Sansiri and BTS Group.
CBRE estimates that 35% to 40% of units in most new downtown condos have been sold to buy-to-let investors. The most luxurious condo project launched this year was Sansiri’s 98 Wireless in collaboration with Ralph Lauren Home. The development recorded the highest sale price in Bangkok so far — THB570,000 psm, second only to the Ritz-Carlton branded residences at MahaNakhon, where a penthouse sold to Hong Kong movie star Louis Koo Tin-lok fetched THB480 million.
So far, 45% of the 77 units at 98 Wireless have been sold in previews held in Bangkok, Hong Kong and Singapore. The project is scheduled for completion and expected to be launched by year-end. Sansiri will officially launch KHUN by YOO for sale on Nov 3, while the official launch for The Monument Thong Lo is in 1Q2017.
The living room of a unit at The Monument Thong Lo
This article appeared in The Edge Property Pullout, Issue 750 (Oct 17, 2016) of The Edge Singapore.
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