By Kanchana Paha:
When the MahaNakhon project was launched in 2009 it became an overnight sensation and the name of Pace Development was thrust into the global spotlight. Construction on the 314-metre high project that will forever change the Bangkok skyline is progressing well. DDproperty.com’s Editor Kanchana Paha spoke to Pace Development’s frontman Sorapoj Techakraisri to talk about progress of the project and his outlook for the luxury property market in Thailand.
What is the latest progress of the MahaNakhon project?
The MahaNakhon complex consists of two buildings. The first one is a 77-storey building which will include residential units and a luxury hotel, and the second one is a 7-storey lifestyle and retail centre. Currently, the piling phase of what will be Bangkok’s tallest building has been completed. We’re now continuing with below ground works for the smaller "Cube" building. Excavation has continued to approximately 18-metres below ground level. This underground area will form the four car park levels and plant room for the retail complex. We also plan to pull down the sales gallery once the building construction is completed and turn it into a park with a multi-purposed courtyard. The Cube retail centre is scheduled to open in September 2013 while the whole MahaNakhon project is expected to be completed in mid-2015.
Why is Pace only focusing on high-end projects?
We have always seen the opportunity in this market. When compared to other sectors there are only a finite number of players in the luxury market in Thailand, which means a smaller number of projects and units. It’s our mission to become the leader in Thailand’s high-end property market. It’s also my personal preference to develop a quality project with quirky design and innovation, which I think that only high-end products will allow me to do.
Compared to neighbouring countries and the rest of Asia, how do you see luxury property market in Thailand?
There are still not many players in Thailand’s luxury sector. There should have been more supply in the market but it got delayed due to the political unrest and economic crisis. When we look into the balance between demand and supply for a condo priced at THB200,000 per sqm, you’ll find there is still under supply, so there’re definitely rooms to grow. When you compared our products with what is available in neighbouring countries, with the exception of Singapore, we seem to have the best quality products in the market. Singapore seems to be far ahead of us and other countries in South East Asia in terms of both quality and pricing, which I think has almost reached the peak. We’re only at the early stages and there’s still a lot of room to grow. The market that can be the best match for us should be Malaysia where the quality of products and pricing is quite close.
What is considered to be the signature of developments by your company?
First is a ‘quality’ that can be felt when residents move into our developments. Second is a design that encompasses great innovation, leading to a unique and outstanding development. We always try to add what we think is best, and better than what have already been on offer in the market.
Thailand will be part of the Asean Economic Community (AEC) in 2015. How will it impact Thailand’s property market?
Participating in the AEC will allow more foreign buyers and investors, who are potential customers for luxury developments, into the market. This will also increase the level of competition. Personally I think Bangkok will benefit a lot from the AEC, considering it’s the centre of the country. Pricewise, we’re quite competitive. Quality-wise we’re second to none. From now until the day we officially join the AEC the high-end residential property market in Thailand should be booming.
Kanchana Paha, Editor of DDproperty.com, wrote this story. To contact her about this or other stories email kanchana@ddproperty.com.
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