Condominium developer Fragrant Property Co has made the decision to put its residential project located in Na Jomtien, Pattaya on hold due to poor sales.
Aside from this, they also face construction delays in their two high priced condominium projects located in Sukhumvit Road due to persisting disputes with the neighbors. James Duan, Fragrant’s chief executive, said that due to the big scale project and falling share prices, the sales rates stay low.
The Sixth Element Na Jomtien project
Sixth Element Na Jomtien, their Pattaya project, is set to be built on a 22-rai site having a 30-meter beachfront located between Na Jomtien Soi 8 and in Na Jomtien Soi 10. The complex is set to include five condominium buildings: two structures in 10 or more storeys, and three towers in 50 or more storeys, totaling to about 1,400 units amounting to 12 billion baht.
In 2015, they started selling two of the five buildings but only secured 30%, a lower rate compared to that needed by financial institutions prior to offering project financing. Normally, a sales rate that exceeds 45% is required from developers by financial institutions.
For this project, Fragrant already spent about 1.22 billion baht during 2014 on its 34-rai plot. They are planning to develop the 22-rai.
The Circle Sukhumvit 31 and Circle Sukhumvit 11
Mr Duan mentioned that their company also stalled the Circle Sukhumvit 21’s construction for nearly a year already. The 30 storey condo was engaged in a dispute with its neighbor. The site for Circle Sukhumvit 31 is on Sukhumvit Soi 31 which is 720 meters away from the main road. It has 139 units at 46.239 square meters each and cost 6.3 million baht. It is sold by 80% and was scheduled at a September 2017 completion supposedly.
Circle Sukhumvit 11 is on Sukhumvit Soi 11 which is 700 meters away from the main road. It will have 219 units at 46.406 square meters each and cost 7.35 baht. It has the same issue as Sukhumvit 31 but was resolved and now construction is again ongoing.
While it is unfortunate for Fragrant Property Co to hold its developments, the sluggish sales in the property market specifically in condo for sale Pattaya will eventually pass.