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Despite its own report showing a lot of condominiums available or planned in Bangkok, the listed developer Raimon Land Plc is preparing to introduce at least two luxury developments worth combined 8.5 billion baht within the year. Raimon chief executive Nigel Cornick said the company was confident that location would be the key selling point of its two new developments, on Ratchadamri Road in Bangkok and a beachfront site near Amanpuri in Phuket.

According to Raimon's latest Condominium Focus report, 29 new condominiums with 8,148 units were launched in inner Bangkok last year, up 75.5% from 4,632 units in 16 projects in 2005.

Average selling prices last year rose by 4% to 84,187 baht per square metre even though average unit prices at new launches fell from 7.65 million baht in 2005 to 5.5 million baht in 2006.

The change reflected a shift by developers to offering smaller units in line with what buyers felt they could afford. Half of the newly launched units were in Sukhumvit, entrenched as the most popular residential location due to its entertainment options and proximity to public transport routes.

Total units sold last year were valued at 42.5 billion baht while unsold units were valued at 37.4 billion baht. Of the unsold units, the value was 13.3 billion baht in the Sukhumvit area, 8.7 billion in Silom and Sathorn, 6.9 billion in the riverside area, 5.6 billion in the central Lumphini area and 1.5 billion baht in the Phaya Thai and Rama III areas.

Mr Cornick said Raimon this year would launch 185 Rajadamri, located on the site where the Cambodian Embassy was formerly situated. Worth six billion baht, the building will have 300 condominium units priced about 150,000 baht per square metre, with completion scheduled by the end of 2010.

The company also plans to develop villas and apartments for sale worth 2.5 billion baht on a 37-rai site near the world-famous Amanpuri resort in Phuket.

Unit prices would range from 35 million to 157 million baht.

Last year there were a total of 2,933 units worth a combined 35.3 billion baht launched in Pattaya, Phuket, Hua Hin and Samui, up from 1,953 units in 2005.

As of the end of 2006, 4,129 resort condominium units out of the 6,595 launched since 2003 had been sold. The current take-up rate stood at 62.6%, down from 68.3% in December 2005. There were 2,466 units worth a combined 29 billion baht remaining unsold.

Raimon Land plans to invest 5.7 billion baht to develop its two luxury projects over the next few years and another one to two billion baht to acquire new land for future development.

"Our completed projects have higher resale prices and rental opportunities as they are situated in prime locations such as Sathorn, Phuket and Pattaya," said Mr Cornick.

"We're confident the new projects will be attractive among our target buyers."

The company currently has five completed projects with 491 units worth a combined 4.87 billion baht, with 98.7% of the units sold. Four other uncompleted projects have 1,439 units worth 22.91 billion baht with 29.6% sold.

The company expects to realise two billion baht in revenue from residential sales this year. Raimon Land shares closed yesterday on the Stock Exchange of Thailand at 0.87 baht, down six satang, in trade worth 10.37 million baht.

This article was first published in the BANGKOK POST 28th March 2007