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Developers want to get ‘connected’

Healthcare the future for real estate firms

Connected living will be a new trend for real estate development, with a focus on healthcare and wellness because Thailand is an ageing society, though the key consumer group will be millennials, industry analysts say.

Wei Siang Yu, chairman of healthcare technology and service provider Borderless Healthcare Group, said real estate is about to be transformed from 4.0 (smart living) to 5.0 (connected living).

“The next wave coming up is condos with connected services,” he said. “Most buyers of new homes today are in their 20s, 30s or early 40s. They are IT-savvy and live in an age in which services come to them.”

Mr Wei said real estate will no longer be dominated by 99-year leasehold contracts because this is a sharing economy with co-living and co-working spaces.

The key consumer group will be millennials, Mr Wei said. Many have young children, but also parents over 60. They need to buy something relevant to their parents, he said.

In the hospital sector, it will take a few years to build a hospital on empty land, a further few years to build a brand name and an additional four to five years to bring in more patients.

With cloud-based services, hospital investors, while building a hospital or before, can have a group of top-class, internationally renowned medical experts converging with local doctors with the multilingual video call centre.

“Forget about launching a hospital. Forget about a smart hospital,” Mr Wei said. “With this system, you are launching a connected hospital because it already has a database of people who can connect with the hospital at home.

“Hospitals will no longer be valued by the number of beds, but rather the number of consumers the hospital connects or families it is serving. Electronic medical records are already old-school. Healthcare data belongs to the consumer.”

He said malls should stop adding food courts if they are losing retail tenants, instead focusing on high-tech medical centres.

The supermarkets of tomorrow will be not passive, Mr Wei said. They want to be involved with people’s lives. The food cloud will be connected to a blockchain farm, the internet or nutritionists around the world, allowing people to learn about and offer personalised recipes.

Hotels can make revenue from other services with connected-living tech like a medical consultancy. Guests can talk to the doctor in a hospital via connected devices like the TV screen.

“The next big things to transform the hotel sector will be property technology [proptech] and wellness,” said Suphin Mechuchep, managing director of property consultant Jones Lang LaSalle Thailand.

Proptech, in which global investment will reach US$65 trillion by 2020, will include face recognition for a hotel check-in or opening the door of the hotel room, or even concierge robots.

Chatbots and artificial intelligence can provide a quick response to improve services, while the Internet of Things will be used in a device such as a sensor to detect and manage inside and outside temperatures for energy conservation.

“Many hotels apply visual reality for in-room entertainment or games and to give the guest an experience of a 360-degree view of the hotel or room before making a reservation,” Mrs Suphin said.

Big data is also used as a marketing tool, and augmented reality lets guests easily find things that match their lifestyle or expectations.

Best areas for completed condo units

Some developers, anxious to improve cash flow, are reducing prices of unsold units on hand. By Surachet Kongcheep

  • Published in Bangkok post: 04 Apr 2019 at 04:00
  • NEWSPAPER SECTION: Business | WRITER: Surachet Kongcheep

Purchasing power in the Bangkok condominium market in the past two years has decreased, because prospective buyers are still concerned about the long-term economic situation and stricter loan approval procedures by banks. Some have postponed decisions to buy condominiums and others have been unable to complete transfer of units because they could not obtain mortgage loans.

But a developer who had started building a condominium cannot stop construction just because sales are going poorly. Even if the building contains 400 or 500 units and only a few have been sold, the developer needs to complete the entire building and hope that market interest picks up.

All unsold units, as well as common facilities, are the responsibility of the developer until the units are transferred to the buyers. It is thus in the developer’s interest to do everything possible to make the building appealing to prospective purchasers.

There are currently about 28,000 unsold units in existing condominium projects now on sale in the Bangkok market. This excludes the many other units held by investors. Out of the total of 28,000 units, construction of about 8,300 has been completed. Approximately 57% of all completed and unsold units are selling for less than 3 million baht each, with 33% offered at 2-3 million baht.

Mass transit still dictating condo choices

Mass transit still dictating condo choices

Existing or planned routes for the BTS and MRT have been the developers’ favourites, and buyers are getting on board

The presence of mass-transit routes continues to be the main factor influencing condominium developers’ decisions in Bangkok. The latest figures show that 85% of all condominium units launched in the first quarter of this year were near existing, under-construction and planned BTS or MRT lines.
A total of 13,737 new condominium units were launched in the first quarter in Bangkok, with 6,079 sold for a take-up rate of 44.2%. It was noteworthy that every one of the newly launched premium and Grade A condominium buildings was located near an operating mass-transit route. Continue reading Mass transit still dictating condo choices

Property Perfect cuts 2015 forecast

SET-listed developer Property Perfect Plc (PF) has cut this year’s presales forecast to 15.5 billion baht from 18 billion, blaming the country’s unfavourable industry and economic prospects.
Assistant chief executive Theerathat Singnarongthon said people’s purchasing power remained low due to the inactive economy.
Moreover, financial institutions have been tightening their lending approval for fear of high household debt. Continue reading Property Perfect cuts 2015 forecast

Mc Donald and Max Value has added lots of value for The Lake at metro park sathorn

Continue reading Mc Donald and Max Value has added lots of value for The Lake at metro park sathorn

Property market faces hit from political woe

Pruksa chief concerned about lengthy conflic

Thailand’s property market is likely to contract this year should the political crisis run into February, warns Thongma Vijitpongpun, chief executive officer of the SET-listed developer Pruksa Real Estate Plc (PS).

He said yesterday that the overall property market, which is sensitive to economic and political circumstances, will grow no more than 5% to 640 billion baht nationwide, with major provinces and border provinces key drivers.

However, if the political situation worsens or the turmoil does not end this month, then the property market will shrink by 2%, he said.

The impact will be greater on the Greater Bangkok property market which will decline from around 330-340 billion baht last year. Continue reading Property market faces hit from political woe

Property sector set for strong growth

Lack of prime sites to spur residential market

The retail, office and central business district (CBD) condominium sector was strong in the fourth quarter last year and will continue to be so in 2014 due to limited supply, according to property consultant DTZ Debenham Tie Leung (Thailand) Co.

Over 3,000 new condo units were launched in the fourth quarter, bringing the overall number of new launches to slightly over 10,000 units in 2013 compared to 7,300 units in 2012, a record year for the CBD.

However, a lack of prime development sites will continue to drive demand for top-quality residential products in desirable locations.

The Sukhumvit zone recorded the largest number of new launches with 1,577 units, representing more than half the total in the fourth quarter.

While demand for small and compact condos has been consistently positive over the last two years due to affordable pricing and payment schemes, there is also a burgeoning appetite for larger and more spacious units. Continue reading Property sector set for strong growth

Condo prices up as train lines draw buyers to city outskirts

The condo price index for Bangkok, Nonthaburi and Samut Prakan in the second half of 2013 rose by 5.6% year-on-year, with units along the skytrain extension line in Bang Na and the future MRT Purple Line posting the highest increases.

Bangkok condo prices rose by 5.5%, while those in Nonthaburi and Samut Prakan were up by 8%, said Samma Kitsin, director-general of the Real Estate Information Center (REIC).

The highest increase was found in the price range of 50,000-80,000 baht a square metre, up by 8.7%. Prices for the segment rose by 8.6% in Bangkok and 9% in Nonthaburi and Samut Prakan. Continue reading Condo prices up as train lines draw buyers to city outskirts