Residential firms turn to mall, other projects to boost sales

Amid an intensely competitive property market, leading developers have had to create a new business model in order to boost demand for their residential projects by building community malls and other facilities close to their projects.

This new type of approach has been adopted by companies aiming to sell out their residential projects and meet their targets, according to property experts.

For example, Sansiri has introduced a community retail project, Habito, at Sukhumvit 77, located close to several of its residential projects worth Bt8.7 billion in total.

The nearby projects are Blocs Sukhumvit 77, The Base Sukhumvit 77, The Base Park East Sukhumvit 77, The Base Park West Sukhumvit 77, Garden Square Sukhumvit 77 - an upscale townhouse development with prices starting at Bt10 million - and its latest condominium project, Hasu Haus.

These projects comprise more than 1,000 units in Sansiri's portfolio.

We Retail, the retail arm of Property Perfect, is investing Bt20 billion to develop four new community malls from last year through to the end of 2015. They are also located close to the developer's residential projects.

Two of the mall projects, worth Bt1.5 billion, commenced construction last year, with operations scheduled to begin in the final quarter of this year. They are Metro West Town, located at Kalapapruk, and Metro East Town, located at Sukhumvit 77-Lat Krabang.

One of the other projects will be situated on Ram-Indra, with retail space of 150,000 square metres and an investment cost of Bt6 billion, and the fourth on Ratchadaphisek, with retail space of 300,000 square metres at a cost of Bt12 billion.

Construction of these two projects is scheduled to commence next year.

Besides its community-mall development programme, Property Perfect has also sold land on Bang Na-Trat road to The Mall group for the development of a shopping mall, which will be located close to its Sky Sukhumvit condominium project.

Originally posted here:
Residential firms turn to mall, other projects to boost sales