MahaNakorn sees full revival in 2010

The Israeli real estate company Industrial Buildings Corporation Ltd (IBC) is optimistic the Thai property market will fully recover by the end of next year, says chief executive Dalit Braun.

Market sentiment has improved since early this year when the company and its Thai partner, Pace Development, formed a joint venture to construct the 14-billion-baht MahaNakorn project.

“IBC entered the project for the long-term. During our entrance, the world was in the middle of a financial crisis but we insisted on investing in Thailand,” said Mrs Braun. “We have an optimistic outlook on the Thai property market in the long run.”

IBC has diverse portfolio comprising industrial parks, offices, commercial and residential buildings. Mrs Braun said the industrial sector has slowed while office market was in poor shape.

Falling oil prices will have a strong impact on the Russian market as the country’s economy depends largely on oil and natural gas exports, she said.

The Dubai market crash will affect European financial institutions that are heavy investors in the Gulf state. MahaNakorn, a luxury mix-used project to be located on a 15-rai site near Chong Nonsi BTS station, will feature 194 condominium units priced at 280,000 baht per square metre.

Some 20 units worth a combined 200 million baht have been sold since presales were launched. The developer used direct mail to potential customers to market the project. Ritz-Carlton, who will manage the residential units, used its database to target high net worth individuals.

It expects to sell an additional 15 units before the sales gallery opens in February 2010. The 5,000-sq-m, three-storey showroom will cost 200 million baht to construct and will display units of one to three bedrooms.

The Architects Council of Thailand on Nov 11 filed complaints with the police against 23 individuals and juristic persons related to the MahaNakorn project accusing them of having violated the 2000 Architect Act by employing foreigners.

Mrs Braun said the company last week issued a letter to the council explaining that the company had not broken the law.

“If Thailand wants an international project, it should be open for international advisers or expertise to get involved in the project,” she said.

She added that, while a more stable political context would be welcome, Thailand’s economy need not necessarily suffer from its political turmoil.

“I’m quite familiar with political problems. I’m from a country where political difficulties have always existed – two wars in 20 years and 10,000 missiles in 15 years. But Israel’s economic growth is 6% a year,” she added.

Bangkok Post, 12 Dec 2009
by Kanana Katharangsiporn