First Mandarin Oriental branded residences in Southeast Asia

SET to look across the Chao Phraya River in Bangkok is the first Mandarin Oriental branded residences in Southeast Asia. It is part of the 20-acre THB50 billion (RM5.89 billion) Iconsiam integrated development by The Iconsiam Superlux Residence Corp Ltd, a joint venture between Thai property developer Magnolia Quality Development Corp Ltd, retail company Siam Piwat Co Ltd and conglomerate Charoen Pokphand Group.

The Residences at Mandarin Oriental (The Residences), a 52-storey tower to sit on 1.9 acres, is a luxury freehold property to be managed by the Mandarin Oriental Hotel Group, which is well known for the luxurious hotels, resorts and residences it owns and operates worldwide.

The Residences has achieved a take-up of 30% since its launch last November in several cities, including Hong Kong, London, Taipei, Singapore and Kuala Lumpur.

In an exclusive email interview with City & Country, managing director of The Iconsiam Superlux Residence and Magnolia Quality Development Thanawan Chaiwatana shares details about The Residences and talks about the Bangkok property market and trends. With an engineering background, Thanawan is leading the development of numerous luxury properties in Thailand, including the Magnolias Ratchadamri Boulevard condominium, Waldorf Astoria, and Magnolias Waterfront Residences at Iconsiam, all in Bangkok.

“The Residences will be unlike anything the Thai property market has seen before. Not only will it be a prestigious and ultra-luxurious condominium that boasts the finest furnishings and design elements but we also will spare no expense in creating an environment for good living,” says Thanawan.

Luxury riverside residences

Located 45m from the edge of the water, The Residences will offer 146 units, all with views of Thailand’s iconic Chao Phraya River. Its 2-bedroom units are 127.87 to 165.4 sq m in size while its 3-bedroom units are between 222.21 and 228.88 sq m. The penthouse units and penthouse duplexes will have built-ups of between 380.93 and 383.98 sq m and between 386.12 and 707.28 sq m respectively.

The units are priced at THB350,000 per sq m (psm), almost double the average price in the central business district of THB197,000, while its penthouses and penthouse duplexes are priced at THB550,000 psm.

All units will come with a private lift lobby, custom-designed flooring, high ceiling (3.2m), full-length windows, walk-in closet, storage and wash areas, and infrastructure system. In addition, buyers can opt for units furnished by award-winning interior designer Joyce Wang, which will come with furniture, carpets, curtains, wallpaper, tailor-made headboards by Fromental and lighting fixtures.

Residents will have access to facilities spread across 3,000 sq m over four floors, including the Sky Pavilion on the 36th floor, which will have lounges, a business centre and library. The other facilities on levels one, four and five will be a clubhouse, private dining spaces, an outdoor infinity lap pool and Jacuzzi, a fitness centre that has a golf simulator, and games and media rooms.

Further, the building will have Bangkok’s first residential automatic parking system that allows residents to leave their cars at the entrance lobby area where an intelligent lift will park their cars in one of the 324 bays available.

“Our buyers are sophisticated individuals who appreciate a sense of luxury and understand the value of a premium asset such as an ultra-luxurious residential unit. We believe that the unifying factor of the buyers is their understanding of rare and luxury collectible assets,” says Thanawan.

According to him, The Residences targets local buyers, expatriates and foreign investors, and a significant number of the international buyers are from China, Europe, Hong Kong, Malaysia, Singapore and the US. He notes that most of the purchasers took up the 2 and 3-bedroom units.

“The legend that is Mandarin Oriental can now become a personal legacy for the owners of residences in this extraordinary project that is set in one of Asia’s most exciting cities. Our brand promise includes an unrivalled commitment to providing the finest property management and hospitality services, which has made the Mandarin Oriental name synonymous with exceptional standards of luxury living,” says Mandarin Oriental Hotel Group executive vice-president and operations director of Asia Richard Baker in a release by the developer.

Residents will be enrolled in a special programme by the hotel group, which offers privileges at Mandarin Oriental hotels worldwide. They will also get to enjoy privileges when shopping at Iconsiam. The Residences is slated for completion in 2018.

A first-of-its-kind in Bangkok

The development is set to play a major role in a tourism-related initiative to breathe new life into the Chao Phraya River and upscale Charoen Nakhon Road. The river is traditionally flanked by smaller individual developments, and Iconsiam will be the first mixed-use development there featuring a waterfront promenade and shopping, dining and entertainment outlets.

“It will bring back the beauty and charm of the Chao Phraya River, a vital part of Siam’s history,” says Thanawan. The Iconsiam development, situated close to the Krung Thon Buri BTS (Bangkok mass transit system) Station, which is five stops from Silom and seven from Siam.

Apart from The Residences, the Iconsiam development will comprise another luxury condominium (Magnolias Waterfront Residences), a retail complex that houses over 500 stores and 100 restaurants, a stand-alone Takashimaya store and several attractions, including a waterfront promenade and performance venues. The retail component and attractions will be announced consecutively this year.

Says Thanawan, “Iconsiam will create a retail environment that is like no other in the world. We are pioneering revolutionary ideas at the forefront of retail development, which will make Iconsiam a unique destination that provides diversity of inspiration and exciting experiences. Additionally, the development will offer a stunning riverside locale that is the first of its kind in Bangkok, and everything will be at your doorstep at this development.”

Magnolias Waterfront Residences, which will comprise 379 units spread over 70 floors, was launched in July 2014 and fully sold within six months. The average price of the units — ranging from 1-bedroom units to penthouses — is THB250,000 psm.

“The Iconsiam development aims to provide an all-encompassing experience for the owners and visitors. Nowhere else in Bangkok can one shop, eat, relax, sightsee and attend performances all at one destination,” Thanawan says.

Thai property market

Thanawan, who has been a regular speaker at events on the Thai property market, believes that Bangkok is strategically placed to be the hub of Asia, thus a valuable opportunity for investors.

“With more countries around the world applying stricter regulations on property purchases to curb speculators’ demand, it makes Thai properties more attractive for their relatively easy investment. Bangkok is also one of the most affordable capital cities in Southeast Asia and currently offers an excellent investment opportunity for fast capital appreciation and reliable rental returns. In comparison, properties in Singapore are at least four times more expensive than those in Bangkok,” he says.

Knight Frank Thailand’s residential research on the super prime and prime condominium market for 1H2015 reveals that the units, which account for less than 10% of the total condo supply in Bangkok, enjoyed relatively good sales due to their location at the heart of the city and convenient access to transport and amenities.

For reference, super prime condos represent the top 1% of Bangkok’s condo market with selling prices of most units at above THB250,000 psm, whereas prime condos represent the top 6% of the market with selling prices at above THB180,000 psm.

As at 1H2015, the research report states that there were 1,814 units from nine super prime projects and 2,351 units from 11 prime projects in Bangkok. It adds that the take-up at the end of 1H2015 for super prime condos was 67% (dragged by one underperforming project, without which, it would have been 77%), and prime condos, 89%.

While the average selling price of super prime and prime condos was THB329,544 and THB249,622 psm respectively, the report had expected transaction prices of super prime units to reach THB500,000 psm by end-2015, given that the demand for such properties was still strong.

Nonetheless, Knight Frank Thailand director of research and consultancy Risinee Sarikaputra, in the report, says, “Not all the newly launched super prime condominium projects will be able to sell at premium prices. The super prime projects that can sell well are those that match buyers’ expectations in terms of location, quality, design and specifications.”

The report also notes that buyers of super prime and prime condos are typically wealthy Thais and foreigners from Hong Kong, Taiwan and Singapore. The emerging demand will be from China and India.

Thanawan says Bangkok’s property market saw a 96% increase in condominium launches between 2013 and 2015 and an average rental yield of 4% to 5% for luxury properties.

“However, the expected capital gains from such properties are much higher and can range from 7% to 15%. Property prices are going up steadily and the rental yield, especially for luxury properties like ours, is very good. Buyers are also drawn to Bangkok because of their love for the city, the shopping, the food and the way of life,” he adds.

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This article first appeared in City & Country, a pullout of The Edge Malaysia Weekly, on March 14, 2016. Subscribe here for your personal copy.