Fragrant Property has been forced to delay a number of projects for various reasons as the upstart developer struggles with sales and neighbourhood issues. The company’s Sixth Element Na Jomtien has been pushed back while construction has been halted on Circle Sukhumvit 31 (imaged) due to an ongoing dispute.
Sixth Element Na Jomtien is a high-rise residential project in Pattaya’s Na Jomtien area, but it has struggled with weak sales since launching. Fragrant chief executive James Duan told local media that sales rates remain low due to the large-scale nature of the project and bearish market sentiment.
The complex boasts five condo buildings including three 50-storey towers with a total of 1,400 units. Fragrant launched two of the five buildings last year, but secured sales for only 30 percent of the available units which was not enough for the developer to secure financing from banks to begin construction.
Duan also told the Bangkok Post that the company was forced to stop construction of its Circle Sukhumvit 31, condo project due to a dispute with a neighbour. The project has 139 units and is currently 80 percent sold. The developer was hoping to open it next year, but it looks as if that will be pushed back.
“We hope to settle the problem by the end of November. The problem is about post-tensioning construction, as the neighbour has complained about its impact on his building’s structure,” Duan explained to the newspaper. “We’ve notified our customers about a possible delay in project completion and no one asked for a refund as the project is located on a prime location in the Sukhumvit area where condo prices have risen every year.”
The company faced a similar issue at its Circle Sukhumvit 11. However, the issue has been resolved and Fragrant restarted construction at the site. The delay could cause construction to take an additional six months.
