Aquarius to manage B1.5bn condo sales

The property consultant and developer Aquarius Estate Co Ltd plans to manage the sales of remaining units of finished condominium projects, targeting sales of 1.5 billion baht by the end of the year, said chief executive Yongyutt Chaipromprasith.

He said the number of condominiums offered in Greater Bangkok each year totalled around 30,000 units. Of the total, 65% are taken up while 35%, both completed and under-construction units, remain unsold.

The 3,000 finished units priced at 3 million baht on average are the company’s target. For 2010, it aims to manage sales of 500 units worth a combined 1.5 billion baht.

The company would provide strategic consultancy to developers who are unable to close sales of completed condominium projects after it sold out the remaining 60 units worth 250 million baht at The Clover Thonglor condominium in Soi Thong Lo.

“We called it the Clover model,” Mr Yongyutt said yesterday. “It’s not just location, location, location that is key to success. There’s more to it than a single dimension.”

The Clover, with a sales value of 2 billion baht, opened sales four years ago but unit transfers and the opening of the building for use were delayed. After the project was completed, the developer Living Land Capital Plc reopened sales because not all units had been sold.

With 60 unsold units, Living Land commissioned Aquarius, which suggested additional spending of 500,000 baht to renovate the project and add a new look including an additional playground, new design in the lobby and the swimming pool.

At the same time, the remaining bare-shell units were fully furnished before sales resumed. As a result, the developer was able to increase unit prices to 90,000 baht per square metre from 70,000 baht – a lower price than other projects in the same area.

Apart from the makeover, there was also a financial package for buyers. All were sold out within a week during the relaunch in early May.

Mr Yongyutt said the company expected to manage four new projects with 500 units worth 1.5 billion baht in the second half of the year. It would also spend 300 million baht to buy new plots of land for development of townhouse and condominium projects.

Currently, it manages property development and sales for the Navatanee housing project on a 70-rai site on Seri Thai Road worth around 4 billion baht. The design, size and pricing, as well as market research, was under study.

During the first five months of the year, it recorded 80 million baht in revenue – 30% from fee-based business and the rest from sales of its Aequa Condominium on Soi Sukhumvit 49 and from the Samui hotel business.

He said the hotel business had slowed in the past two years after Phuket made a comeback. Average occupancy last year was 50% and 70-80% on Chaweng Beach, a famous destination on the island. The company’s Shasa Resort had 30% occupancy in 2009 and expected 45% in 2010. In May, it was 35%, down from 65% in April and most guests were Thai tourists.

SOURCE: Bangkok Post