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Low prices expected to spur sales at new Sukhumvit condo

The 15 Sukhumvit Residences, a new condominium project between Sukhumvit sois 13 and 15, expects its low prices to attract buyers as it has lower development cost and current regulations limit the heights of new highrise buildings in the area.

Prices at Sukhumvit 15 start from 84,000 baht per sqmfor a bare-shell unit.

The company says its units will cost 15% less than comparable units of other developments in the prime location.

The building, formerly planned as a hotel by Ambassador Hotel Group, was suspended after the 1997 financial crisis. The property developer VSSL Enterprise Co acquired it two years ago for an undisclosed price.

VSSL Enterprises managing director Apichai Taechaubol said the company spent another 1.5 billion baht to redevelop and renovate the 25-storey building.

Land prices in the location were 250,000 to 350,000 baht a square wah two years ago but have reached as much as 1.5 million baht lately. Such high land costs have pushed unit prices up to 120,000 baht a square metre, he said.

However, prices at Sukhumvit 15 start from 84,000 baht per sq m for a bare-shell unit and 92,000 baht for a fully furnished one. After the launch period that began on the weekend, the company will raise the prices by 10-15%.

Mr Apichai said current regulations do not allow construction of building higher than eight storeys in the soi but the building was constructed under older regulations.

According to Knight Frank Chartered (Thailand), the project’s sales agent, unit prices at new projects in nearby locations were at least 120,000 baht per sq m and between 150,000 and 170,000 baht for luxury development.

Established in 1998, VSSL Enterprise has registered capital of 800 million baht and focuses on condominium development as it sees demand from both end-user occupants and investors.

In the same location, rental rates for one-bedroom units are between 22,000 and 25,000 a month, which attracts investors. Knight Frank expects to sell 40% of the units by the end of the year after factoring in cooling sentiment in the condominium market.

The 3.5-billion-baht 15 Sukhumvit Residences has 514 fully furnished units priced from 2.39 million baht each, to be completed by mid-2012.

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