The Sukhothai Residences, 47 Storey : Sathorn - Page 7

***Chad*** · July 5th, 2007, 12:31 PM

The Land parcel of 7-rai will only consis of a single building., The only way of building anything up adjoining the tower is to cover-up the Sukhothai Residence entire swimming pool., Which I do not think they will.

Honestly, I'm highly confident for this project., nothing compare to anything in Bangkok except W-Rethreat residence in Samui and The Shangri-La Villas in Phuket.

There are Luxuries, The Met, The River and 185 Rajadamri (which at the latest I know, they are reducing the average unit sizes and lower the starting price to late 100K.), then there are Super Luxury...The Sukhothai Residence.

I might be wrong, but this is defineitly one of a kind which we dont see everyday...

jooons · July 5th, 2007, 04:36 PM

so tell us superchad, how much did you pay for a one-of-a-kind sqm ?

Kaxper · July 5th, 2007, 04:58 PM

looks like sukhothai will be for farangs by farangs judging by the pricing

.. on the 7-rai single building, are you 100% positive chad ... the plot where the show units are will be bare after its knocked down will likely be enough to do something. alternatively, the front of the hotel towards sathorn obviously has enough land to also do something, although the whole feel of the hotel will change (for the worse).

***Chad*** · July 5th, 2007, 05:07 PM

Just as far as I know, there wont be an office building going up there for sure as well as another condo tower.

~200,000 per sqm. is about the price.

Kaxper · July 5th, 2007, 05:16 PM

whao .. i would expect 185 to be similar in pricing then .. surprise that you said 185 is scaling it down a bit in size .. too risky to do large park-chidlom-like size units at this time with these prices i guess.

Kaxper · July 5th, 2007, 05:16 PM

sukothai will be a great residence .. i love how the elevators open up to you private area .. great design.

vinl · July 5th, 2007, 06:46 PM

Quote:

Originally Posted by Chad

Just as far as I know, there wont be an office building going up there for sure as well as another condo tower.

~200,000 per sqm. is about the price.

well done chad, for the leap of faith..

PADTHAI · July 6th, 2007, 07:09 AM

Indeed. Remains to be seen how large an 'elite' market like that really is...

LionKing · July 6th, 2007, 06:51 PM

The pricing at Sukothai is lower than I was told last year when the news first leaked out that there would be a new "condotel" at Sukothai. So the developer had come down to earth some. But it still is 25% higher than the highest on the market right now. Two things can happen: 1) It is so high that it screens out everyone except the very "elite" who are not price-sensitive, thus creating a "exclusive private clube" atmosphere. or 2) it is so un-realistically high that after the intial "new launch" rush is over, all buyers and agents stop going to the show offices and do not want to waste time with this "white elephant" anymore. I think we will know in less than 6 months which scenario it will play out. Personally, I think BKK condo prices are still relatively "cheap" compared with other major international cities in Asia. Even with a 200,000baht/m price tag, Sukothai is no more expensive than the regular run of the mill class A condo in Shanghai and far cheaper than any class A in Singapore or god forbid, Hong Kong! Of course, BKK is still a long way from Shanghai, Singapore or Hong Kong, and therein lies the explanation of the "low" condo prices, but potentially, BKK has lots of room to grow if not for the circus like political farce that occurs every few years.

Kaxper · July 7th, 2007, 02:14 AM

at 200k/sqm, i am not a buyer. capital appreciation will be slow, and if you let sukhothai decorate and rent it out for you like the condotel concept, then your returns are also probably limited. but i am positive on what i see is new segments/demand coming into the bangkok property market - the global luxury leisure traveller.

condotels, fractionals, private residence clubs, destination clubs - ie. very expensive timeshares! - have done very well in the US. this (along with the st. regis residences) might be the initial forays into bangkok, as supposed to the traditional phuket destinations. the people buying this are not looking at investment in assets per say, but investment in leisure which carries a different price tag and service requirement by the developer.

jooons · July 7th, 2007, 06:42 AM

Quote:

Originally Posted by LionKing

The pricing at Sukothai is lower than I was told last year when the news first leaked out that there would be a new "condotel" at Sukothai. So the developer had come down to earth some. But it still is 25% higher than the highest on the market right now.

According to Nigel Cornick, chief executive of Raimon Land, The River had units selling for 200,000 Baht a sqm. See the IHT Article

Zimoune · July 7th, 2007, 08:02 AM

Quote:

Originally Posted by Kaxper

whao .. i would expect 185 to be similar in pricing then .. surprise that you said 185 is scaling it down a bit in size .. too risky to do large park-chidlom-like size units at this time with these prices i guess.

it will be higher than we all think!

Kaxper · July 7th, 2007, 11:57 AM

OMG ... what exactly is causing this escalation in pricing .. pure speculation? loose credit? higher construction cost? real new demand? the yen carry trade? i mean, how can something sell for 2x more (sukhothai residence, siri rajadamri) than another one block away (the met, 185 rajadamri) just a few years later? dont tell me that the next project in soi24/26 will go for 150k/sqm!

Kaxper · July 7th, 2007, 11:59 AM

sorry .. corrected version ....

OMG ... what exactly is causing this escalation in pricing .. pure speculation? loose credit? higher construction cost? real new demand? the yen carry trade? i mean, how can something sell for 2x more (sukhothai residence, 185 rajadamri) than another one block away (the met, siri rajadamri) just a few years later? dont tell me that the next project in soi24/26 will go for 150k/sqm!

Zimoune · July 7th, 2007, 12:08 PM

i think if a new developemnt come in soi 24, there could actually get more than 150k.

***Chad*** · July 7th, 2007, 12:18 PM

Talking about the price-skyrocketing....Singapore is a real good model.

Kaxper · July 7th, 2007, 12:28 PM

well, i am not complaining ... just wondering what is driving the pricing thats all, particularly in bangkok

jooons · July 7th, 2007, 01:27 PM

Quote:

Originally Posted by Kaxper

sorry .. corrected version ....

OMG ... what exactly is causing this escalation in pricing .. pure speculation? loose credit? higher construction cost? real new demand? the yen carry trade? i mean, how can something sell for 2x more (sukhothai residence, 185 rajadamri) than another one block away (the met, siri rajadamri) just a few years later? dont tell me that the next project in soi24/26 will go for 150k/sqm!

We will see. I heard that Sansiri is coming up with a project in Soi 39. If it's a nice one, i might actually reach the 150k.

***Chad*** · July 7th, 2007, 04:48 PM

Suk 39 is actually starting at 120K..but ofcourse, thats for the smaller, most lower floor...

PADTHAI · July 7th, 2007, 05:14 PM

To answer your question Kaxper: in the opinion of most independent economists (not those trying to sell any one product) the answer is: global liquidity related to the yen carry trade + Chinese/developing world commodity demand (which is linked).

Even 150K per square meter makes sense in terms of rental yield given how rubbish savings rates are here. For example a 150K/m condo of 100m2 will still yield around 5.8% after service charge of 40b/m. And, Bangkok is still cheap compared to other cities in the region and we are in an increasingly globalised world where some key parts of the city can benchmark themselves internationally, not just locally.

HOWEVER, as always, if everyone is doing it, it stops working. If everyone tries to rent, rents go down, and then the only point in buying is hoping prices go up further. And that really depends on...that's right, global liquidity. Look at the Yen/Dollar rate, the yield on 10-year US treasuries, and money supply growth data around the world as a rough benchmark. When they go up,up, and down (respectively) - start to worry!!

July 5th, 2007, 12:31 PM	#121
*Chad* Kickimus Gluteus Maximus Join Date: Oct 2002 Location: Bangkok Posts: 36,256 Likes (Received): 292	The Land parcel of 7-rai will only consis of a single building., The only way of building anything up adjoining the tower is to cover-up the Sukhothai Residence entire swimming pool., Which I do not think they will. Honestly, I'm highly confident for this project., nothing compare to anything in Bangkok except W-Rethreat residence in Samui and The Shangri-La Villas in Phuket. There are Luxuries, The Met, The River and 185 Rajadamri (which at the latest I know, they are reducing the average unit sizes and lower the starting price to late 100K.), then there are Super Luxury...The Sukhothai Residence. I might be wrong, but this is defineitly one of a kind which we dont see everyday... __________________ You have the right to remain silent, everything you say will be misquoted and used against you in the forum -Imate pravo da ?utite, sve što budete rekli može i bi?e upotrebljeno protiv vas na forumu You know you love me. XOXO.

July 5th, 2007, 05:07 PM	#124
*Chad* Kickimus Gluteus Maximus Join Date: Oct 2002 Location: Bangkok Posts: 36,256 Likes (Received): 292	Just as far as I know, there wont be an office building going up there for sure as well as another condo tower. ~200,000 per sqm. is about the price. __________________ You have the right to remain silent, everything you say will be misquoted and used against you in the forum -Imate pravo da ?utite, sve što budete rekli može i bi?e upotrebljeno protiv vas na forumu You know you love me. XOXO.

July 7th, 2007, 12:18 PM	#136
*Chad* Kickimus Gluteus Maximus Join Date: Oct 2002 Location: Bangkok Posts: 36,256 Likes (Received): 292	Talking about the price-skyrocketing....Singapore is a real good model. __________________ You have the right to remain silent, everything you say will be misquoted and used against you in the forum -Imate pravo da ?utite, sve što budete rekli može i bi?e upotrebljeno protiv vas na forumu You know you love me. XOXO.

July 7th, 2007, 04:48 PM	#139
*Chad* Kickimus Gluteus Maximus Join Date: Oct 2002 Location: Bangkok Posts: 36,256 Likes (Received): 292	Suk 39 is actually starting at 120K..but ofcourse, thats for the smaller, most lower floor... __________________ You have the right to remain silent, everything you say will be misquoted and used against you in the forum -Imate pravo da ?utite, sve što budete rekli može i bi?e upotrebljeno protiv vas na forumu You know you love me. XOXO.

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July 5th, 2007, 04:36 PM	#122
jooons Registered User Join Date: Feb 2006 Posts: 482 Likes (Received): 1	so tell us superchad, how much did you pay for a one-of-a-kind sqm ?

July 5th, 2007, 04:58 PM	#123
Kaxper The not-so-friendly ghost Join Date: May 2006 Location: Bangkok Posts: 432 Likes (Received): 0	looks like sukhothai will be for farangs by farangs judging by the pricing .. on the 7-rai single building, are you 100% positive chad ... the plot where the show units are will be bare after its knocked down will likely be enough to do something. alternatively, the front of the hotel towards sathorn obviously has enough land to also do something, although the whole feel of the hotel will change (for the worse).

July 5th, 2007, 05:16 PM	#125
Kaxper The not-so-friendly ghost Join Date: May 2006 Location: Bangkok Posts: 432 Likes (Received): 0	whao .. i would expect 185 to be similar in pricing then .. surprise that you said 185 is scaling it down a bit in size .. too risky to do large park-chidlom-like size units at this time with these prices i guess.

July 5th, 2007, 05:16 PM	#126
Kaxper The not-so-friendly ghost Join Date: May 2006 Location: Bangkok Posts: 432 Likes (Received): 0	sukothai will be a great residence .. i love how the elevators open up to you private area .. great design.

July 6th, 2007, 07:09 AM	#128
PADTHAI Registered User Join Date: Sep 2002 Posts: 1,268 Likes (Received): 0	Indeed. Remains to be seen how large an 'elite' market like that really is...

July 6th, 2007, 06:51 PM	#129
LionKing BANNED Join Date: Nov 2005 Posts: 218 Likes (Received): 0	The pricing at Sukothai is lower than I was told last year when the news first leaked out that there would be a new "condotel" at Sukothai. So the developer had come down to earth some. But it still is 25% higher than the highest on the market right now. Two things can happen: 1) It is so high that it screens out everyone except the very "elite" who are not price-sensitive, thus creating a "exclusive private clube" atmosphere. or 2) it is so un-realistically high that after the intial "new launch" rush is over, all buyers and agents stop going to the show offices and do not want to waste time with this "white elephant" anymore. I think we will know in less than 6 months which scenario it will play out. Personally, I think BKK condo prices are still relatively "cheap" compared with other major international cities in Asia. Even with a 200,000baht/m price tag, Sukothai is no more expensive than the regular run of the mill class A condo in Shanghai and far cheaper than any class A in Singapore or god forbid, Hong Kong! Of course, BKK is still a long way from Shanghai, Singapore or Hong Kong, and therein lies the explanation of the "low" condo prices, but potentially, BKK has lots of room to grow if not for the circus like political farce that occurs every few years.

July 7th, 2007, 02:14 AM	#130
Kaxper The not-so-friendly ghost Join Date: May 2006 Location: Bangkok Posts: 432 Likes (Received): 0	at 200k/sqm, i am not a buyer. capital appreciation will be slow, and if you let sukhothai decorate and rent it out for you like the condotel concept, then your returns are also probably limited. but i am positive on what i see is new segments/demand coming into the bangkok property market - the global luxury leisure traveller. condotels, fractionals, private residence clubs, destination clubs - ie. very expensive timeshares! - have done very well in the US. this (along with the st. regis residences) might be the initial forays into bangkok, as supposed to the traditional phuket destinations. the people buying this are not looking at investment in assets per say, but investment in leisure which carries a different price tag and service requirement by the developer.

July 7th, 2007, 11:57 AM	#133
Kaxper The not-so-friendly ghost Join Date: May 2006 Location: Bangkok Posts: 432 Likes (Received): 0	OMG ... what exactly is causing this escalation in pricing .. pure speculation? loose credit? higher construction cost? real new demand? the yen carry trade? i mean, how can something sell for 2x more (sukhothai residence, siri rajadamri) than another one block away (the met, 185 rajadamri) just a few years later? dont tell me that the next project in soi24/26 will go for 150k/sqm!

July 7th, 2007, 11:59 AM	#134
Kaxper The not-so-friendly ghost Join Date: May 2006 Location: Bangkok Posts: 432 Likes (Received): 0	sorry .. corrected version .... OMG ... what exactly is causing this escalation in pricing .. pure speculation? loose credit? higher construction cost? real new demand? the yen carry trade? i mean, how can something sell for 2x more (sukhothai residence, 185 rajadamri) than another one block away (the met, siri rajadamri) just a few years later? dont tell me that the next project in soi24/26 will go for 150k/sqm!

July 7th, 2007, 12:08 PM	#135
Zimoune Zimoune Join Date: Jun 2004 Location: Bangkok Posts: 2,596 Likes (Received): 1	i think if a new developemnt come in soi 24, there could actually get more than 150k.

July 7th, 2007, 12:28 PM	#137
Kaxper The not-so-friendly ghost Join Date: May 2006 Location: Bangkok Posts: 432 Likes (Received): 0	well, i am not complaining ... just wondering what is driving the pricing thats all, particularly in bangkok

July 7th, 2007, 05:14 PM	#140
PADTHAI Registered User Join Date: Sep 2002 Posts: 1,268 Likes (Received): 0	To answer your question Kaxper: in the opinion of most independent economists (not those trying to sell any one product) the answer is: global liquidity related to the yen carry trade + Chinese/developing world commodity demand (which is linked). Even 150K per square meter makes sense in terms of rental yield given how rubbish savings rates are here. For example a 150K/m condo of 100m2 will still yield around 5.8% after service charge of 40b/m. And, Bangkok is still cheap compared to other cities in the region and we are in an increasingly globalised world where some key parts of the city can benchmark themselves internationally, not just locally. HOWEVER, as always, if everyone is doing it, it stops working. If everyone tries to rent, rents go down, and then the only point in buying is hoping prices go up further. And that really depends on...that's right, global liquidity. Look at the Yen/Dollar rate, the yield on 10-year US treasuries, and money supply growth data around the world as a rough benchmark. When they go up,up, and down (respectively) - start to worry!!