Noble Development recently launched its fourth residential condominium this year - at Soi Chamchan, off Soi Thong Lor (Sukhumvit 55).

Executive vice president Thongchai Busraophan said the company was continuing to place its faith in developments in Bangkok's central business district, sticking mainly with areas such as Sukhumvit and Ploenchit.

"The demand is strongest in these areas, among both local and foreign buyers," he said.

Solo, a single tower rising 33 floors, will have 109 units, with prices starting from Bt70,000 a square metre. The average floor space costs about Bt78,000 a square metre, with prices rising with each ascending floor.

"The market today favours city condominiums near mass transit lines. While prices of condominiums are limited by the purchasing power of fixed-income middle-segment buyers, there is little downside risk, even though there is considerable supply in the Sukhumvit area," said Thongchai.

The cost of transport has risen to such a point that more people are opting to move closer to the city centre to save travelling time and to cut their overall cost of living.

People are also opting for smaller units instead of more expensive units that are beyond the means of most Thai buyers.

Earlier this year, Noble launched two smaller condominium sites at Soi Ruam Rudee and Soi Sarasin, both eight-floor structures with prices starting from about Bt90,000. More recently, it launched Remuix at Sukhumvit 36. Bookings have been very healthy. Prices include air conditioning but not built-in units or kitchen sets. The sales office at Soi 36 also offers buyers mock-up units of the Solo project.

Noble expects to perform a little better than last year's results, while its earnings are expected to at least match last year's figures.

"The dividend yield on our stock is about 5 per cent and we pay dividends every year," said Thongchai.

Over the long term, the company stands to benefit from Bt3.8 billion in unrealised earnings from booked units. It will then start to include them in its books from the first and second quarters of next year.

Thongchai said one of the most important tasks of Noble was to instil confidence among buyers and investors.

"We hold quarterly meetings with analysts to maintain transparency. We do not encourage speculation," he added.

Although a fair quantity of buyers tend to be punters, Thongchai said the company did not encourage staff members to indulge in speculation as that could affect the overall performance of the firm.

Later this year, Noble will launch a detached-housing project on a 100-unit site next to its Noble Wanna project in northern Bangkok. The homes will start at Bt3.8 million, targeting mid-range buyers.

Itthi C Tan

The Nation