Physical progress of condo construction is tipped to be the best marketing and sales tool for small or new property firms, says developer Albright Holdings Co.
“As a small property firm, we need to start construction first to secure consumers’ confidence,” managing director Somchai Amnueypornsakul said yesterday.
Bright Wongwian Yai, a 3-billion-baht project by Albright Holdings, will be a 46-storey building with 472 units priced from 4.2 million baht. The company has achieved 15% sales since construction started two months ago. The project is due to be completed by the end of 2017. It expects an increase in sales after 10 floors are completed.
“We saw a good sales rate at our first project, the Bright Sukhumvit 24 condo, when the project’s building got topped off. Consumers want to see construction progress by non-branded developers before making a decision.”
After launching that first project in 2009, Albright launched a second one in May on a 3.5-rai site between Somdet Phrachao Taksin Sois 8 and 10, only 100 metres from the skywalk to Wong Wian Yai skytrain station.
The 3-billion-baht Bright Wongwian Yai will be a 46-storey building with 472 units sized from 35 to 118 square metres and priced from 4.2 million baht a unit or 124,000 baht per sq m.
Albright has achieved 15% sales since construction started two months ago. The project is due to be completed by the end of 2017. It expects an increase in sales after 10 floors are completed.
It spent 340,000 baht per sq wah to buy the land last year from a landlord who rented out 94 shophouses on the plot, but it needed to wait for the last tenants to leave before starting construction.
The company has two plots in prime locations. It bought a two-rai site near Sukhumvit Soi 3 a year ago for 700,00 baht per sq wah. It plans to develop a condo but is waiting for a general election before launching the project.
The other plot is a three-rai site on Sukhumvit Soi 36 that it bought for 600,000 baht per sq w two years ago. It is waiting for supply in the area to be absorbed before launching a condo project.
“Since 2009, condo market competition has been very high, with a lot of supply launched each year, but the absorption rate is not very fast,” said Mr Somchai.
“The segment with too much supply is the low end, small units of 20 sq m and priced at 70,000 baht per sq m.”