The SET-listed developer Eastern Star Real Estate Plc (ESTAR) has tripled its land procurement budget to 3 billion baht after turning a profit last year, expecting good prices for plots amid the political crisis.
The 2-billion-baht Amber by Eastern Star will be launched on Sunday after being postponed from last November due to the political turmoil.
Chief executive Ratanachai Phatinavin said land negotiations this year are much easier because many landlords are not confident in the political crisis and want to sell their plots.
"Land brokers and buyers are fewer in number," he said yesterday. "We get a good deal when buying a plot in terms of negotiability, price and payment over a longer period."
Eastern Star's land purchase budget is usually 800 million to 1 billion baht per year.
"The political problems will likely be resolved in the second quarter and property market sentiment will recover in the second half," said Mr Ratanachai.
It plans to launch two condo projects worth a combined 7 billion baht this year.
One is in Bangkok's central business district, where it is negotiating with a landlord.
The deal will be finalised this year, and project value will be about 5 billion baht.
Another will be Amber by Eastern Star, worth 2 billion baht, which will be launched on Sunday after being postponed from last November due to the political turmoil.
Located on a two-rai site near the Purple Line's Yaek Tiwanon subway station, the project will be a 37-storey building with 563 units sized 35-76 square metres and priced 80,000 baht per sq m on average.
About 10 new condo projects have been launched in the area over the past four years.
Most were sold out, with about 1,000 units remaining for sale. Resale prices have risen 20% to 80,000 baht per sq m.
"Before the Purple Line was planned, land prices on the main road in this location were only 80,000 baht per square wah.
It rose to 120,000 baht when the mass transit started construction and now it is 300,000 baht," Mr Ratanachai said.
The developer also has an eight-rai plot nearby where it plans to develop a community mall.
Eastern Star targets 1.8 billion baht in presales and 1.65 billion in revenue this year. It has a backlog of 3.7 billion baht that will be realised this year and next.
Shares of ESTAR closed yesterday on the SET at 73 satang, unchanged, in trade worth 67.4 million baht.