Siamese Asset Co. will launch 7 new projects in 2017 worth over THB 13 billion. As part of its plans, the company is looking to market its projects to real estate investors in addition to those buying a unit to use, reports local media. The company sees strong demand from investors who want to buy condo units in Bangkok’s prime locations.
“To tap into this demand, the new condo projects we plan to launch from this year onwards will have separate facilities like lobbies and swimming pools that serve tenants and unit owners separately,” says Siamese Asset Managing Director Kajonsit Singasansern to the Bangkok Post. “We will also reserve some floors for investment buyers so that owners will live with tenants.”
Siamese Asset noticed a trend of people buying condos for investment purposes from previous projects it has launched. One problem the company had at these projects was that some unit owners were not happy with the constant stream of new renters coming in and out of the building.
The company has recognised this and in order to support the new market it has established affiliate companies that will help with letting out process. These companies include property management company Siamese Property Service Co and rental management firm Siamese Hospitality Co.
While some investment buyers are Thai, the company has seen an increase in foreigner investors who are from China and Hong Kong, says Kajonsit. A smaller number of Singaporean, Japanese and European buyers have also bought investment units and the company partnered with Singapore-based property agent Angel Real Estate Co. a few years ago to help make it easier for international buyers to complete sales.
“Investment condo units in prime areas like Sukhumvit Road can generate a yield of 6-11 per cent, per year, depending on the location, as it is preferred by foreign tenants,” says Kajonsit.
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