The small developer Apollo Asset Co plans to launch a low-rise condominium project worth 400 million baht on Sukhumvit Soi 31 using lower land costs and a smaller-scale project to compete in the heated condominium market.
Managing director Vorathep Srikuruwal said the company would offer unit prices of about 90,000 baht a square metre on average at Voque Residential Condominium Sukhumvit 31.
“We are new in the market so we need to differentiate ourselves and offer more affordable prices,” he said.
Major Development’s Royce and Sansiri’s Siri 31 both opened recently nearby and offered unit prices of 120,000 to 130,000 baht per sq m as their land cost was higher than what Apollo paid.
Mr Vorathep said the new project would be located on a 328-square-wah plot acquired three years ago, which resulted in the lower land cost for Apollo.
Although the plot could accommodate a high-rise building of up to 18 storeys, the company decided to develop an eight-storey building instead with 74 units sized between 48.50-122 square metres.
“A high-rise or low-rise generates the same margin but we chose low-rise as the construction can be finished more quickly,” he said.
A low-rise takes about 18 months while a high-rise takes about three years to complete, he added.
The company expects sales of 70% on the Oct 10 launch when it offers a 5% discount. Construction will start early next year and be complete by mid-2012.
Apollo still holds a few plots of land in the Sukhumvit area and plans to launch a project worth around 500-600 million baht in the future. It is confident the lower land cost will provide a competitive advantage.
The company launched its Voque Residential Condominium Sukhumvit 16 last year.
Apollo Asset is managed by the textile makers and owners of the ATM clothing mall in the Phahurat area.