Dr. Torsak Lertsrisakulrat, managing director of Eastern Star Public Company Limited (ESTAR), has expressed confidence that the company will shine even more brightly in the country's property industry in 2018. Regarding the 2018 business plan, he reveals the firm intends to ride on its 2017 success and expand its businesses into new segments such as low-rise condominiums and housing projects. The projects will mainly focus on Bangkok and look more to EEC (Eastern Economic Corridor) market. With the planned launch of a 2-3 projects worth between Bt3billion and Bt4billion this year, ESTAR expects its sales to reach Bt1.6billion or more than 50 percent increase from last year. The firm has now prepared more than Bt2billion in budget for the procurement of more land plots in Bangkok as well as Rayong. These plots will be used to develop its future projects.
In its latest move, ESTAR has unveiled VELANA as a brand for Gen X & Y. This new brand targets young executives aged between 35 and 45 years old. Recently the Company has launched the first project under VELANA Brand called VELANA GOLF HOUSE located inside Eastern Star golf course in Rayong Ban Chang district next to U-Tapao Airport. This Bt500million project features two-story detached houses. Embracing Modern Contemporary style allows the house looks beautiful and private. All public-utilities lines are underground to keep surrounding clean. The project also boasts a well-equipped Club House with full-scale Function i.e. swimming pool, fitness room and big green yard for family. The VELANA Golf House indeed presents the uniqueness of quality environment and society that consumers will not find anywhere else in Ban Chang. Spanning over 24 rais of land, the project has only 98 housing units. Prices start from Bt3.9million, with choices of 164, 191, and 242 square meters of usable space per unit. Target groups are business owners, company executives, doctors, pilots, engineers, project managers and foreign expats in Rayong.
"The idea of products under VELANA brand is to develop project that can balance lifestyles of middle to upper income segments. Lifestyles of target group for us is the most important part of our project development. We intend not to solely follow business trends but will balance them with the attitude trends. The attitude trend in this context means current lifestyles that people need for life. We see people now want to find a balance in life. They want to stay connected via technologies while still look for quality time with their family. Managing time by searching for perfect location where perfectly suits their work and other aspects of their life. Therefore, VELANA is offering so called "Social Innovation" that consists of, for example, learning spaces for children at the project to support home school activities, co-working space and co-lockers to ensure our customers can share a better quality of life," Dr. Torsak said.
He reveals further that in 2017, ESTAR sold and transferred a huge number of housing units to buyers. Its recognized total revenue thus exceeded initial projections. On the overall, ESTAR achieved the sales of Bt1,026 million last year. Of the amount, Bt875 million came from Bangkok-based projects (85.3%) and Bt151 million came from the Rayong-based projects (14.7%). When compared with 2016 performance, the sales grew by 23 per cent. The growth was in line with ESTAR's rising total revenue. The firm's total revenue jumped by 37 per cent from Bt1,830 million in 2016 to Bt2,516 million in 2017. Of the amount, Bt2,354 million came from Bangkok-based projects (93.6%) while Bt162 million came from Rayong-based projects (6.4%).
Presently, ESTAR has had housing units from as many as six projects for sale with the total project value at the end of 2017 stood at Bt8.9billion. Of these six projects, three are condo projects in Bangkok namely the Star View in Rama III area, the Nara 9 at Sathon – Narathiwas intersection, and the Amber Condo near the Yaek Tiwanon metro station. Three other housing projects are in Rayong. The Vintage Home Village 3, Hamlet 3, Sinthavee Garden 2. In addition, ESTAR has operated Seastar Properties, the rental business unit for house and service apartment as well as hotel located in the same compound of the Eastern Star Country Club and Resort, just 1 kilometer from Pattaya – Ban Chang motorway.
Dr. Torsak says the country's economic situation is now favorable to ESTAR's business-expansion plan. He points out that Thai economy trend set to grow further, as the country's exports and tourism remain robust. The government's mega projects have also continued. Among them are high-speed train, dual-track railways, motorways, ring roads, and the EEC initiative. By now, there are clearer city plan and progress of infrastructure development for the EEC zone. All these clearer policies have created opportunities and raised potential of Rayong. In the market, the middle to the upper income segment are the highest potential groups for new housing projects. Foreign investors, particularly those from China, have demonstrated solid confidence in Thailand's economy and property industry. Aging-society trends have also raised public interest in elderly-housing units. In the eyes of Dr. Torsak, all these factors are supportive of ESTAR businesses.
"VELANA launch is just one of our strategic moves in 2018. ESTAR will definitely introduce more stars to the property scenes so that our customers have more alternative. With ESTAR, they will discover the happiness that caters best to their lifestyle," Dr. Torsak concludes.