Thailand Real Estate News

Phuket real estate in the eyes of Robert Krause

2009-11-04T15:55:00.000+02:00

Robert Krause, the owner of condominium rentals & founder of Professional Property Consultants. He is originally from the US and used to run a furniture business in Hawaii for many years before decided to move to Phuket fifteen years ago. He is now the residence.

Lets’ take a look at what he thinks about the island’s real estate market.

How long have you been monitoring the developments on Phuket-Thailand real estate market?
“I’ve been coming here the past fifteen years. I had a vacation home for ten years and now I live here for five. I really have my eyes on this business. By the long time, I’ve seen the ups and downs in Phuket and I do believe in the future it’s going to be very popular.”

Luxury villas are outperforming other real estate in the popular Thai resort of Phuket

2009-09-06T08:25:00.000+03:00

The firm's Managing Director Bill Barnett pictured said supply and demand fundamentals for the high end are continuing to strengthen given that excess supply is being absorbed, while macro issues are restricting demand for new product launches.

'While market recovery prospects are being set back to 2011, there has continued to be a gradual upswing in activity, driven primarily by earlier than anticipated momentum in many of the financial source markets where potential overseas buyers originate from' Barnett said.

The report values the existing luxury villa inventory Bt10 billion with 92 units currently on the market. Between January to June of this year 19 properties were sold, while the resale market saw over Bt1 billion in transactions.

Property Investment in Koh Samui

2009-07-15T11:03:00.000+03:00

Overseas investment property specialists, DSR Asset Management Ltd. has come over all oriental this month with the addition of the exotic Koh Samui to its expanding investment property offerings

Koh Samui is known for its rich natural resources and the uninhabited mountainous jungles. Considered as Thailand’s third largest island, the place has been attracting tourists from all parts of the world because of its natural white sandy beaches and coral reefs. Its unspoiled public image has made the island’s tourism industry successful and brought forth the prosperity of Thailand investment property.

Bangkok real estate

2009-06-29T22:40:00.000+03:00

With the new BTS extension from Saphan Taksin to Wongwian Yai already running, and the Bang Na extension nearing completion, investment potential along the new routes is coming to the fore, albeit complicated by the current market climate.

James R. Pitchon, executive director, CB Richard Ellis (Thailand) Co., Ltd., told Property Report Thailand, "The mass transit system has completely transformed Bangkok, serving to refocus development to the city centre. The extension of the BTS lines is a welcome continuation of that trend.”

Real Estate recovery?

2009-06-20T17:00:00.000+03:00

Worst performer was Dubai, with a 40% drop in prices, followed by Singapore with 16%, although Ireland didn’t feature in this article, and I know for a fact that the Irish real estate market has been hit very badly, with prices collapsing dramatically. Another survey I read reported US real estate prices down nearly 20% over the year.
To give you an idea of the wild fluctuations in real estate agents moods, valuations and outlook in London, I was quoted two different “firm estimates” by the same real estate company for the same apartment I wished to sell, over a space of 3 weeks.

Incredibly, the second quote was $40,000 higher than the first one, only because people seem to be cheering up about the economy and real estate prices, and there had been a number of very positive reports on demand, prices and mortgage applications in the UK during the time between quotes, so suddenly everyone was becoming less negative.
Similarly, I think it has recently become fashionable (and sensible) to talk down Thailand and its real estate markets, both at home and abroad, especially following the country’s self-inflicted wounds.

Thailand Property Awards 2009 are open

2009-06-14T21:23:00.000+03:00

The Thailand Property Awards celebrate the best of the best and showcase Thailand´s residential real estate industry. Now in their fourth year, the awards assist in promoting the high level of quality of Thailand´s real estate, construction, architectural and interior design as well as industry professional services, and through a professionally-run awards system helps put Thailand real estate on the world stage.

Nominations can be made by anyone – industry and the public. The only rule is that people cannot nominate the company they work for or own. Nominating a company does not mean that company will win an award, and nominating the same company many times does not mean they have a better chance to win. A single nomination for a company is enough, and that will mean the company will then go through to the entry stage.... if of course they are eligible.

Thailand’s first CENTURY 21 franchise opens in Bangkok

2009-05-22T19:18:00.000+03:00

The first Thai franchise of the world’s largest residential real-estate sales organisation, US-based CENTURY 21 International, has opened in Bangkok and expects sales of Bt3-4 billion in the first year of operations.

Kitisak Jampathip-phong, CEO of CENTURY 21 Realty Affiliates (Thailand), said his company would provide complete real-estate services, including sales, investment and management, both locally and internationally.

Siam Paragon Luxury Property Showcase 2009

2009-05-17T15:16:00.001+03:00

For the third year running, Bangkok’s Siam Paragon shopping mall is hosting a luxury property showcase from today until May 24, in collaboration with three of the country’s biggest real estate agents: Nexus, Knight Frank and CBRE.

More than 40 of Thailand’s leading developers will have a presence at the fair, displaying high-end residential projects from across the country.

“Despite the shadow of the world recession and its across-the-board consequences, many opportunities for judicious investment still exist,” said Siam Paragon Development’s marketing boss Kriengsak Tantiphipop.

Property prices in Cambodia fall more than one-third, say realtors

2009-05-11T01:32:00.000+03:00

CAMBODIA'S real estate market lost more than a third of its value in the first three months of 2009 compared with the same period last year, due to the impact of the global financial crisis, say real estate developers.

"According to our research, the real estate market dropped 40 percent in the first three months in 2009 if we compare the situation to the first three months in 2008," said Sung Bonna, CEO of Bonna Realty Group and president of the National Valuers' Association of Cambodia.

He said that land in Boeung Keng Kang I commune, worth between US$2,500 and $2,800 per square metre during the first quarter of 2008, had fallen to between $1,600 and $2,000 in the same period this year.

Few Skirmishes for Phuket Property: US Report

2009-05-05T16:59:00.000+03:00

Author Alex Frew McMillan visited the island and talked to key people, including Gulu Lalvani of the Royal Phuket Marina.

McMillan was told there have been no property sales at RPM since Lunar New Year, in late January.

''People are not in the mood to buy second homes,'' said Mr Lalvani, whose own Grand Villa covers 1900 square metres at the entrance to the marina, with space for three yachts in front of an expanse of lawn.

Even more to the point is Larry Cunningham, chief executive of Phuket One Real Estate, who told McMillan: ''The market is not slow in Phuket; it is dead. It is absolutely dead.''

Turmoil Stalls Phuket Vacation Home Boom

2009-04-30T11:25:00.000+03:00

PHUKET, THAILAND — When there’s blood in the streets, can you sell real estate, even if it is your own? That is the question facing property developers, brokers and investors here.

The island, Thailand’s largest, is one of Asia’s top markets for vacation villas. Behind the casuarina trees along “Millionaire’s Mile,” luxury multimillion-dollar homes perch on cliffs, their marble swimming pools looking out west over the Andaman Sea. Along Phuket’s roads, billboards tout “no risk” deals and flash pictures of fancy seafront apartments.

But its rampant development has ground to a halt as a result of the global financial crisis and the political crisis since the removal of Thaksin Shinawatra, the former prime minister, in a coup in September 2006.

'Endless Summer' as Phuket Goes to Market

2009-04-22T14:05:00.000+03:00

RESORT managers and tourism chiefs will be meeting on April 23 to talk about Phuket's weather. Economic forecasts for the island will be discussed, too.

Let's hope Thursday isn't windy or raining, because the whole idea is based on selling Phuket's so-called low season as ''Summer'' instead.

The real advance is that for the first time, key people will be gathering to talk about a collective island fightback.

Baan Suralai, or "Home of the Angels" in Thai, was built on the island of Koh Samui in the Gulf of Thailand

2009-04-17T21:43:00.000+03:00

When Lynn Grebstad of Hong Kong first thought about building a villa in Thailand, she was set on Phuket, the grande dame of Southeast Asian resorts. But Mrs. Grebstad was persuaded to shift her attention to Thailand’s other coast, to the lesser-known island of Koh Samui, by a friend who owns a holiday house here.

The small, 247-square-kilometer (95-square-mile) island in the Gulf of Thailand was shaking off its backpacker past and going upmarket. Bangkok Airways was also planning to start direct service between the island and Hong Kong. (The island is far from the protests that have engulfed the country in recent days.)

So, in 2005, Mrs. Grebstad decided to buy a 1.3-rai (half-acre) plot on a hillside on Samui’s northeast corner with her business partner, Paul Hicks. The two own Grebstad Hicks Communications, a public relations firm based in Hong Kong that represents luxury hotels and other high-end brands.

Real Estate in Phuket

2009-04-15T18:29:00.000+03:00

Five year boom in Phuket property markets comes to halt

2009-04-13T20:37:00.000+03:00

The popular Thai resort of Phuket experienced a marked decrease in the number of overseas property investors buying on the island with the forced closure of its airports due to public disorder last year playing its part.

An analysis of the situation by CB Richard Ellis has uncovered a significant drop in real estate transactions, fewer property launches and an increase in the number of projects being cancelled.

In its latest report it confirms that five years of a rising property market came to a halt in the last quarter of 2008. But Phuket is unlikely to suffer a property crisis like that seen in Spain, which also relies heavily on foreign property investors, analysts say.

Thailand popular with expats and investors looking for the best property Thailand has to offer

2009-04-10T00:34:00.000+03:00

With more than 14 million vacationers arriving in Thailand each year, tourism continues to be the main driving force behind the continued growth of the Thai property market.

The resort locations of Pattaya, Phuket, Koh Samui and Hua Hin are the locations of 30% of the country’s luxury apartment inventory, and have as a whole experienced annual growth of 9.5% in international arrivals since 2003.

Currently Russians top the list of nationalities buying property in Thailand, followed by Thais, British and Australians. Property in Thailand offers investors the opportunity to achieve good annual appreciation, rental yields of 6-10% and the ability to buy off plan projects with financing. In this article we take a look at the best places to buy property in Thailand at the moment…

With it’s proximity to Bangkok and the new Suvarnabhumi airport, Pattaya is the most popular area to buy property in Thailand outside of Bangkok, with 66% of all new development launches for the nation in 2007.

Nakheel to develop island resort in Thailand

2009-04-03T19:56:00.000+03:00

Bangkok: Nakheel, Dubai's master developer, has joined Thailand's Amburaya Hotels & Resorts to transform Thailand's idyllic Koh Samui Island with the launch of a stunning integrated resort development comprising 17 luxurious private residences and a 75-key all-villa hotel.

The joint-venture project is positioned on an exclusive 27-acre headland site with 900 metres of private beachfront, approximately 15 minutes' drive from Samui International Airport.

The W Koh Samui Retreat & Residences will be among the first W-branded residential projects in Asia when the 17 residential villas are completed in 2010 and will boast some of the most prestigious real estate in Thailand right on the shores of the Gulf of Siam.

NEW PROPERTY TAX INCENTIVE FOR HOMEBUYERS BUYING IN 2009

2009-03-29T09:50:00.000+03:00

Individual taxpayers can deduct the interest paid on their mortgages during a given tax year from their taxable income.

From the 2008 tax year onwards, the maximum mortgage interest allowance has been increased to 100,000 baht from 50,000 baht.

The current global economic crisis has had a considerable effect on Thailand's real estate market, and house purchasing demand has decreased accordingly. The stagnant housing market will have an impact on many businesses, especially real estate developers, financial institutions, construction companies, and construction material suppliers.

To address this issue, on Jan 20, 2009, the cabinet passed a resolution that provides tax measures intended to stimulate the Thai economy. One measure is a personal income tax deduction on mortgage loan principal payments of up to 300,000 baht. The cabinet resolution is not yet law, but is expected to be announced in the Government Gazette in the near future.

Samui's luxury property market faces challenging times

2009-03-25T13:18:00.000+02:00

Global and domestic crises are worsening and moving through the first quarter of 2009 the market outlook forecasts an extremely challenging property market in Samui and other key resort areas in Thailand, according to C9 Hotelworks latest Samui Luxury Villa Market Report.

"The evolving tourism sectors and broadening access to Samui introduce a new set of potential investors to the islands real estate market, and with changes to how the island is governed it may well alleviate concerns about necessary infrastructure development and other local issues," said Bill Barnett, Managing Director of C9 Hotelworks.

Thailand is still suffering from the recent political events and a national agenda which focused more on domestic affairs whilst other regional economies were gearing up to address the impact of a global downturn. As a positive though, the Thai baht depreciated approximately 15% over the past 12 months versus major currencies and is forecasted to devalue another 5% in 2009, thus creating lower acquisition prices for offshore buyers.

Low End Thai Property Shows Possible Recovery, High End Ails

2009-03-23T10:50:00.001+02:00

Thailand Preuksa Real Estate Plc's sales doubled to Bt900million in January, from just Bt400million in December, and grew to Bt1.3billion in February, according to their chief operating officer Prasert Taedullayasatit in a Bangkok Post interview.

Things seem to be improving across the board in the lower end of Thailand's real estate sector, with up to 20 new developments launched this year so far, it seems some parts of Asia may be as quick to bounce back as they were to fall.

Other parts however do not seem so bouncy: high end condominium developer Raimon Land has frozen all new projects it planned to initiate this year, and is reviewing its development strategy.

Thai companies hit by emirate's property slump

2009-03-17T09:14:00.000+02:00

With the bursting of the real-estate bubble, Thai contractors such as Italian-Thai Development, Nawarat Patanakarn Plc, Ch. Karnchang and Power Line Engineering Plc are all feeling the pain of the problems in the region.

"Yes, there are some problems in the work we are doing in that part of the region and outside Thailand," said Polpat Karnasuta, the president of SET-listed Nawarat Patanakarn.

One of the problems, he says, is the simple fact that the crisis has affected the companies that were undertaking the projects and now they have become "more fussy" with their payments.

Bangkok real estate

2009-03-10T20:24:00.000+02:00

With relatively little new supply in the pipeline, Bangkok’s grade A office sector could be one of the first to rebound when the economic situation improves, according to CB Richard Ellis.

Nithipat Tongpun, CB Richard Ellis (CBRE) head of office services, said prime rental rates in Thailand have not fallen, unlike Singapore and Hong Kong.

The last six months has seen two of the biggest transactions in the history of the office market in Bangkok, including DTAC’s record deal to lease 61,500 sq m in Chamchuri Square, a new grade A office development on Rama IV Road.

Chamchuri Square is the largest office building completed since the 1997 crisis, and over 80 percent of space has been filled since its opening late last year.

Thai island features in disposal programme

2009-03-01T17:31:00.000+02:00

Michael Lindsay, the global head of real estate at KPMG’s corporate finance arm, first visited Koh Samui in 1982, in the days when the Thai island barely featured in travel guides.

Thanks to the collapse of Lehman Brothers, he recently had a professional reason to return to the tourist hotspot. “It was unrecognisable,” he says.

Outsiders have never before got to peek inside the balance sheet of a global investment bank in this manner and he admits to “fascination” at what he has discovered.

His efforts are focused on a particular Hong Kong entity that has an aggregate real estate exposure of $1.25bn, spread across 44 positions, in loans of various forms to hotel developments and retail and commercial buildings.

Instability Adds To Thailands Real Estate Woes

2009-02-25T14:09:00.000+02:00

November was not a good month for Thailand. Legions of protesters took over two commercial airports in the capital Bangkok for eight days practically shutting them down and the ongoing impact on tourism has been catastrophic…

The world was treated to images of trapped tourists venting their frustration while protesters steadfastly tried to get their message across to anyone who would listen.

Ultimately, the protesters got what they wanted: The Thai Constitutional Court broke up the ruling party and prohibited the then Prime Minister, Somchai Wongsawat, from participating in politics.

Baht strengthens- real estate suffers

2009-02-22T20:26:00.000+02:00

The rapid increase in the US dollar and Thai baht exchange rate has largely been explained as weakness of the US dollar around the globe, and more recently by continued inflow of foreign capital to Thailand (particularly via the stock market). Thai baht strength has not only become a major concern for exporters, but also has implications for Thailand´s real estate sectors.

Mrs. Suphin Mechuchep, Managing Director of Jones Lang LaSalle Thailand, said "Whilst certain economists encourage the government to reduce interest rates further in effort to curb the baht strength, low interest rates would help property developers burdened with borrowings. They would also benefit the residential sectors as mortgage for home purchases will be less costly for buyers. However, we expect the impact of the strong Baht to be more negative than positive on the real estate sector.