Nov. 5--Cash-rich early birds are investing in condominiums for attractive returns at a time of low deposit interest rates, says Kittisak Jumpathippong, chief executive of the property consultant Century 21 Realty Affiliates (Thailand) Co Ltd.

"No business generates higher margins than property," he said. "The situation now is like in 2000-01 when the country just came out of the crisis and investors started their investments"

However, this year the crisis has not been as severe as in 1997-98 as far fewer people or businesses have gone bankrupt. As well, the property market is stable.

Mr Kittisak said developers launching new condominiums generally had their own funds and were not new in the property industry. Property investment opportunities this year would be better than next year as supply now is limited and interest rates are still low.

"In 2010 when the economy recovers more than now, competition will be higher as there will be a lot of new supply added to the market. So developers cannot ask

[for high] prices so much."

Competition plus rising interest rates will trim gross margins of projects launched next year by three to five percentage points, compared to those launched this year, Mr Kittisak forecast.

But developers should have fresh funds and a real estate background to convince financial institutions to provide financial support for their projects.

Among cash-rich investors are the Thai-Indian group Vertex Millennium, which has developed low-rise residences in the Srinakarin and Lat Pla Kao areas and serviced apartments on Sukhumvit Road; and Apollo Asset, a textile maker and owner of the ATM clothing malls.

The two groups plan a joint venture to launch the 620-million-baht Voquecorrect Residential, a low-rise condominium on Soi Sukhumvit 16, on Nov 21. It will have 140 units priced at 69,000 baht a square metre with Century 21 as the project consultant.

Mr Kittisak said they invested in the land and received a project loan from Ocean Life Insurance for 70 percent of the construction cost or 140 million baht.

Century 21 will soon launch two projects developed by Benz BKK, a luxury car importer. One will be worth 1 billion baht in Hua Hin and the other a mixed-use project worth 4 billion baht near the Bang Na-Sukhumvit intersection.

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