Siam Sindhorn Co, the property development arm of the Crown Property Bureau, aims to sell the remaining 47 units at its branded residence -- the final component of the mixed-use Sindhorn Village project -- before launching a new development.
Serbpong Kiattivisanchai, deputy managing director of the company, said selling the condo units at Sindhorn Village should be easier now because buyers have a better understanding of the leasehold ownership concept.
"Many luxury property buyers now understand that purchasing leasehold properties, which are often located in prime inner-city areas where land is scarce and expensive, allows them to better manage their wealth by allocating a portion of their funds for other investments," he said.
Mr Serbpong used the example of a buyer who purchased a leasehold condo for 40 million baht 10 years ago instead of a freehold condo in the same location, of the same size and grade, priced at 60 million baht. After a decade, if the buyer of the leasehold property invested the difference of 20 million baht in alternative assets, their value could have doubled over that period, he said.
"Wealth management is more widely understood now, as demonstrated by our introduction of a 60-year leasehold option, in addition to the previous 30-year option. Only half of new customers chose the 30-year lease," said Mr Serbpong.
The price difference between a 30-year and 60-year leasehold unit sold by the company is roughly 30%.
Sindhorn Village has 47 units remaining at The Residences at Sindhorn Kempinski Hotel Bangkok. Two-bedroom units range in size from 140 to 160 square metres, while three-bedroom units exceed 200 sq m.
The unit price for a 30-year leasehold contract averages 280,000 baht per sq m, while the price of a 60-year leasehold contract averages 400,000 baht per sq m.
In addition to the branded residence project, Sindhorn Village has four other super-luxury condo developments under the Sindhorn brand, all of which sold out several years ago.
The company also operates three five-star hotels, which posted an average occupancy rate of 80% last year, with nightly rates ranging from US$200-300. Each includes a Velaa Langsuan community mall.
Roughly 95% of hotel guests are foreigners, while 90% of condo buyers are Thai. Condo sales were particularly strong during the pandemic between 2020 and 2022, said Mr Serbpong.
"We invested 30 billion baht in this development, and our condo projects reached the break-even point early last year," he said.
"We expect to close sales of the remaining units by mid-2025, after which we will begin a new mixed-use development in a prime location."
Prime land plots owned by Crown Property Bureau that are suitable for mixed-use development include an 18.3-rai plot on Ploenchit Road and a 6.5-rai beachfront plot on Phetkasem Road in Hua Hin.
There are 47 units available for sale at The Residences at Sindhorn Kempinski Hotel Bangkok.