New developer Capstone Asset, owned by Thai and Hong Kong investors, is confident in the Bangkok property market and wants to develop a mixed-use project with Grade B office space to capitalise on limited supply in the market.
Executive director and co-founder Daniel Yu said the company is optimistic about the property market because there are opportunities to develop projects and Thailand is a resilient market.
"We are not worried, but we must be selective because the entire market is not attractive," he said. "It is more difficult to get a freehold plot in good locations to develop a mixed-use project because of high land prices."
Capstone is in talks with a landlord to lease a plot in a non-central business district area near a skytrain station. The project would comprise Grade B office space, retail and a hotel.
Titiwat Kuvijitsuwan, another executive director and co-founder, said Grade B offices charging 800-850 baht per square metre per month are attractive for investment because supply is limited.
Mr Titiwat and Mr Yu were colleagues at SET-listed hospitality, restaurant and lifestyle company Minor International during 2014-15 and founded Capstone earlier in the year as a lifestyle and boutique developer.
Before starting development, Capstone had a joint venture with residential developer Asset Five Group to develop a super-luxury condo, Tonson One Residence, worth 2.85 billion baht.
The project will occupy 385.3 rai on Soi Tonson, off Phloenchit Road, where 2.5 million baht per square wah was spent to buy the Suthat Na Ayudhya family plot last year.
The 19-storey tower will have a total of 80 units sized from 57 to 387 sq m and priced at 300,000-500,000 baht per sq m or from 20 million baht.
According to property consultant CBRE Thailand, condo supply in the luxury and super-luxury segment in the Phloenchit-Lang Suan area is limited to a market share of 6-8% of total condo supply in Bangkok.
The area also has record land prices, the highest price per sq wah on Lang Suan Road at 3.2 million baht, and the highest price per plot at 10.8 billion baht for 15 rai at Park Nai Lert on Wireless Road, bought by BDMS from the Sombatsiri family.
