Charn Issara expands into condos
Major local property developer Charn Issara Development plans to capture a share of the condominium market by launching three new projects next year worth a total of Bt3.7 billion.
With this aim in mind, the company has formed a joint venture with construction firm Nawarat Patanakarn. Charn Issara Development owns 60 per cent of the joint venture, named CIN Estate, and Nawarat Patanakarn 40 per cent. CIN Estate last week increased its registered capital from Bt12 million to Bt250 million. Charn Issara Development managing director Songkran Issara said it was his company's first condo project, after more than 10 years of success in developing detached-housing projects. "We must expand our portfolio to condominiums, because the lifestyle of Bangkok residents has changed. They want to stay near their offices and reduce transportation costs now that oil prices have risen. Demand for condo projects has thus increased this year and will continue to do so next year," he said. Because of this high demand, CIN Estate will launch two new condominium projects in Bangkok: one worth Bt500 million in Sukhumvit Soi 42, and another worth Bt2.2 billion on Lat Phrao Road. A third project will be located in Cha-am district of Phetchaburi province. These three new projects alone are expected to generate Bt1 billion in sales for the company next year, equal to its estimate of Bt1 billion in total sales for this year. Charn Issara Development announced sales of Bt391.65 million and a net profit of Bt7.18 million for the first half of the year. Currently, 15 per cent of revenues comes from rental fees, the rest from residential sales. The rental fees come from managing the Charn Issara Tower 2 in Bangkok and a hotel and resort in Phuket. "We believe demand for condominium projects will continue to see strong growth next year once the government approves funding for three new routes for the Skytrain and subway. That will boost demand for condos located near the mass-transit system," said Songkran. He added that interest rates and oil prices were expected to fall next year, which would be good news for the residential market, although the political situation would remain unpredictable.
Somluck Srimalee
The Nation
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