With Hong Kong property prices soaring, investors from the city are looking elsewhere for property speculation opportunities. Pace Development has cashed in nicely on this trend, with Hong Kong buyers snapping up sales of over THB350 million (US$11.69 million) in just three days after a roadshow for luxury development MahaNakhon, according to the Bangkok Post.
Currently, prices in Hong Kong are about five times as great as prices in Bangkok, with new condo units fetching as much as THB1.2 million (US$40,080) per sq m. Currently, interest rates for deposits are usually around two per cent, and thus purchasing property has become the preferred form of investment for wealthy Hong Kong residents and mainland Chinese alike. As prices continue to climb, eyes have started to turn elsewhere, and Thailand is a popular alternative location.
Speaking with the Bangkok Post, executive director for investment and project marketing at CB Richard Ellis said, “Bangkok is still a top-two destination for lifestyle in the eyes of investors in Hong Kong. Their interest in luxury Thai property is driven by a lift in optimism about the overall political and economic environment in Thailand.” Pace Development executive Sorapoj Techakrasri claimed interest picked up after the election, with investors optimistic about new proposed infrastructure projects, which could cause many developments to appreciate considerably in the near future.
After the enthusiastic response in Hong Kong, Pace will hold another roadshow in Singapore this weekend. It targets sales of 15-20 units at a value of about THB600 million (US$20.04 million) from both roadshows.
Mr. Sorapoj said smaller units were preferred by investors while larger ones were more suitable for buyers seeking a residence.
The super-luxury MahaNakhon mixed-use project will be worth THB19 billion (US$634.6 million) and will have 194 condominium units priced between THB225,000 (US$7,520) and THB345,000 (US$11,523) per sq m. The 77-storey building will be the tallest in Bangkok. It will also house a hotel, Bangkok Edition, operated by Ritz-Carlton and will have 27,000 sq m of retail space.
Mr. Sorapoj said luxury project units with a hotel brand were easier to resell.
Pace has sold 35% of the MahaNakhon units and expects the figure to increase to 40% after the two roadshows. It aims to have sold 45% of the units by the end of the year.