SET-listed developer AP Thailand Plc, in partnership with the Japan-based Mitsubishi Estate Group, yesterday launched Life Asoke-Rama 9, a mega-condominium development in the central business district.
The 9-billion-baht project will have a starting price of 2.45 million baht per unit (98,000 per square metre).
Located on an eight-rai plot, the development consists of a high-rise condominium comprising two towers (Tower A has 42 storeys and Tower B has 46). The project has a total of 2,248 units.
Sales will be made available online at AP iBooking via the website apthai.com on Nov 8, with the official pre-sale dates scheduled for Nov 11-12 at the Life Asoke-Rama 9 sales gallery.
Vittakarn Chandavimol, chief of the business group for condominiums, said AP understands clients' needs and urban living trends, particularly the lifestyles of customers in the interconnected Asok-Phetchaburi-Rama VI area, where AP has a leading share (over 40%) in the market for mid- to high-end condos.
He said the outstanding feature of Life Asoke-Rama 9 is its large common area spanning more than 7.5 rai, of which 1.5 rai has been allotted for rooftop common elements such as an international standard fitness centre, dubbed Elite Fitness, that takes up two storeys and spans five zones.
"AP is the first in the real estate industry to change its approach to fitness zoning. We've worked with exercise experts to design the fitness centre in response to how people really work out," Mr Vittakarn said. "There are also three pools on the 42nd floor and 45th floor which are divided into two zones: an active pool and a scenic glass pool. AP is the first in Thailand to give swimming pools a unique design with a special section for those who love to swim for exercise and a separate section for people who love to take a dip in the water to relax and enjoy the city view."
As for the overall market for condos in the Asok-Phetchaburi-Rama IX interconnected area, he said the company has found a consistent increase in demand for new condos, particularly from people working with Thai companies and multinationals that are moving into six Grade A office buildings in the new business district, where the developer estimates 78,800 people will work by 2020. As a result, AP's current unsold supply of condo stands at 1,198 units or 17% of all units launched, most of which are high-end condos with a price tag of slightly over 100,000 baht per square metre.
In addition, the take-up rate and yield for condos in the area are growing in the same direction. In particular, AP condos such as The Address Asoke, Rhythm Asoke and Aspire Rama 9 all have an average take-up rate of over 85%. Of all the occupied units, 75% are taken up by buyers and 25% are rented, mostly to Asian tenants from Taiwan, Hong Kong, China, Singapore and Japan.
The average rental rate in the area is 22,000-53,000 baht per month while the average yield is 7-8%.
Mr Vittakarn said prices of condos in the area are still right for investment, so AP believes that Life Asoke-Rama 9 will be well supported by the demand in the market given its central location, as it is only 300 metres from the Phra Ram 9 MRT station. This year, in particular, there are no condo in the area with starting prices below 100,000 baht per sq m, he said.
AP has already had success with two condo projects under its Life brand. They are Life Ladprao, worth 7.6 billion baht, and Life One Wireless, worth 7.5 billion. Both projects have been well received with an 83% take-up rate, thanks to their outstanding locations in the heart of the city, convenience and comfort, Mr Vittakarn said.
As of Sept 15, AP has 15 ongoing condo projects with outstanding sales value of 11.5 billion baht. Of all the ongoing projects, 10 have been undertaken as join developments between AP and Mitsubishi Estate Group, with outstanding sales value of 4.34 billion baht.
AP's condo business reported sales of 16.3 billion baht in the period, up 98% year-on-year and 31% higher than projected sales for high-rise development in 2017.