Developing Firm Planning To Open Projects of Total Value 570 Million Baht

A well established developing firm of Phuket, Thailand known by the name of Absolute Group is all set to open two projects of total value 570 million baht in 2009.

These two properties which were about to be launched are:
1. Absolute Bangla Suites – This project consists of 47 suites and around 7 penthouses. The total value of this project is 300-million-baht.This project is situated in Soi Bangla.
2. Absolute Beach Resort – This project consists of 33 suites and a few penthouses. The total value of this project is 270-million-baht. This project is situated in Nakalay, Patong Bay.

Absolute Group is also investing in an association project with another well known developing firm, 'yoo' brand, which is looking for expansion in Asia, to build up a project of lakeside apartment building of total value 1.75 billion baht in Phuket. This project is planned to be opened in 2011. This project consists of approximately 256 rooms. This project is situated in close proximity to the Red Mountain golf course in Phuket. The Absolute Resort Management will supervise this project which is planned to be launched in September 2011. The name of this project will be “yooPhuket”.

The chairman of Absolute Group recently stated that planning to expand at the time of this worst effected circumstance of global economic recession is a huge challenge.
Though, he is very convinced regarding Phuket's competitiveness, because Phuket had turned out to be one of the most preferred hotspots of the world even though the global slump and local political volatility have negatively influenced Thai tourism.

He further stated that their next target will be Samui and Pattaya, which are still in a developing phase.

Absolute Group has accounted 200 million baht in 2009 for businesses, human resources and marketing for properties intended to open in 2009.

Raimon Land Postponed Launch of three Projects.

The developing firm Raimon Land has postponed the launch of its three projects because of the global financial recession. All of these projects are planned to be launch in 2009

These three projects were –
1. Amalfi, a villa style resort project in Phuket,
2. Rajdamri, a high rise condominium project in Bangkok's CBD, and
3. The Edge, a condominium project in Pattaya.

The total value of the projects were not yet known as the value depends on the construction costs and the construction costs can only be evaluated after the start of the construction procedure.

The company actually wants to be very careful regarding new investments in the coming one year. These three projects might be launched after two years, as per the economic conditions and the market conditions.

Raimon Land’s managing director further stated that every new project needs a lot and lot of investment and they don’t have enough cash in hand. Every project requires minimum Bt 2-3 billion. So, the company had to take loan from banks. Due to the current economic crunch, banks are very careful at the time of lending to consumers. They made a clause of having presale of minimum 40%-50% of the entire project value. That is why the company has postponed the launch of new projects in 2009.

In spite of the fact that a leading developing firm Raimon Land’s had postponed launch of its three new projects, several other developers are putting their step forward with the plans of launching their new projects. These developers consider that the condition of Bangkok property market has improved quite a lot since the last quarter of 2008.

Almost ten property developers have planned to launch their new projects in 2009. The total market value of these projects is Bt30 billion.