Bangkok--19 Jan--Fragrant Property
Fragrant sees potential in Thai property market, continuing to invest as much as 1 bn this year to purchase land bank for new projects
Fragrant Property, a Taiwanese developer in the local real-estate market, said that it continues to see potential in the domestic property market and would pour in another billion baht to purchasing more land bank in central business districts for future development despite the ongoing slowdown in the sector.
Fragrant Property, which has launched the 5-billion baht ‘The Circle’ and ‘The Prime 11’ projects has said that it would be able to close both the projects by the end of this year after nearly 70% of ‘The Circle’ and 90% of ‘The Prime 11’ has been sold out since they were launched.
James Duan, Managing Director of Fragrant Property disclosed that in 2008, the company would be able to generate sales as per its target for both the condominium projects. The 1.3 billion baht ‘The Prime 11” project was currently 90% sold out and “The Circle”- project on Petchburi Road which now generates sale at around 70% of total 901 units so, the company hopes to close both projects this year even property market expects to generate slow growth.
“We believed that we target the right consumers group who would not see much of an impact from the economic crisis based on the fact that none of the customers at its ‘The Prime 11’ project have had to require undertaking a mortgage loan and none of the customers have dropped their down payment at the project amid a global economic slowdown.
Mr. Duan said that the Thai property market generates a slower growth since the end of last year which has also impacted the pace at which the projects were being sold ‘but we have strong financial status together with good planning we can start construction faster than schedule so we have no problem during current situation,” he said.
However, Mr. Duan added that the company won’t rush to invest at this time as the total outlook of the market is slower but the company hopes to see faster recovery in Asian region from world economic crisis, starting with China first and Thailand should be follow soon.
Then the company will wait and see the situation before starting to buy land bank again in the second half of this year to start the new development projects while the acceleration of government budget disbursement and economic stimulus measures are likely to stimulate the purchasing power back again in longer term.
According to the schedule to commence the Airport Link sometimes in August this year, the company hopes to generate advantage from this opening of the much awaited projects to its condominium “The Circle” which is located near the main terminal of the airport link line.
This opening he hopes would be able to push the 250 units remaining at ‘The Circle’ to be able to be sold out within this year, especially accelerating after the opening of the airport link line.
In addition, Fragrant also hopes to start new project with little concern about Thai property market in longer term.
He added Fragrant will operate direct marketing activities especially for marketing events in famous department stores together with public relation to build its brand and create brand awareness continuously in the first half of this year.
Strong marketing activities will start in the second half of this year because the company expects to see economic recovery at that time together with the launch of Airport Link, the project expects to boom residential project besides of its route again.
“We will continue to develop projects with the price range at 3-20 million baht in the CBD area because economic crisis was expected to generate strong impact to premium-end and low-end consumer with lower impact to this group (medium to high end). In addition the group believes in the long-term revival of the Thai property market and therefore Fragrant still plans to move further with distinguishing its concept away from the rest of the crowd and is looking to invest further in key CBD areas,” Mr. Duan concludes.
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