Thailand Real Estate News

HBA seeks extension of property tax cuts

2010-01-14T22:52:00.000+02:00

y Kanana Katharangsiporn, Bangkok Post, Thailand

Jan. 12--Property tax incentives due to expire this March should be extended to boost the industry and the overall economy, says Issara Boonyoung, president of the Housing Business Association.

Extending the breaks beyond March 28 would help combat negative factors which are likely to crop up this year, said Mr Issara.

Potential headwinds for the Thai economy and the property sector include political instability, the Map Ta Phut case and a possible hike in interest rates in the second or third quarter of the year, he said.

Although megaprojects under the Thai Khem Kaeng infrastructure package should boost new property developments, higher demand would also likely increase construction material prices.

INTERVIEW-UPDATE 1-Thai Preuksa sees 30 pct 2010 sales growth

2010-01-13T22:30:00.000+02:00

New projects to drive 2010 revenue up 30 pct

* To launch 48 projects worth 30-35 bln baht this year

* Plans 1.5-2.0 bln baht of bonds to fund expansion (Add details, quotes)

BANGKOK, Jan 11 - Preuksa Real Estate PCL, Thailand's second-largest housing firm by market value, said on Monday it expected revenue growth of at least 30 percent this year, more than forecast, as it launched new housing projects.

Seventeen projects launched in the fourth quarter of 2009 and another 48 new projects worth 30-35 billion baht this year would help push up growth, chief financial officer Somboon Wasinchutchawal told Reuters.

"This year's growth will mainly come from new detached houses and town house projects which were already released late last year," Somboon said, adding they would realise revenue of 9-10 billion baht this year.

Thai property market lagging Asia: REIC

2010-01-09T11:17:00.000+02:00

(Source: Bangkok Post)trackingBy Bangkok Post, Thailand

Jan. 7--The property market should improve this year due to progress on new mass

transit routes and greater capital flows, but mitigating political risk will remain a key factor in ensuring a smooth recovery, says the Real Estate Information Center (REIC).

The strength of East Asia's economy in part buoyed the Thai economy last year, helping the country to better cope with upheavals caused by the global financial crisis, the report said.

Economies such as China, South Korea and Taiwan, recovered quickly due to an increased influx of capital seeking the higher returns available in the region. The rise in East Asia's stock markets outperformed those in other regions, enabling investors to reap the gains and make investments in property, said the report.

Thai property market lagging Asia

2010-01-07T23:38:00.002+02:00

Thai property market lagging Asia

2010-01-07T23:38:00.000+02:00

The property market should improve this year due to progress on new mass transit routes and greater capital flows, but mitigating political risk will remain a key factor in ensuring a smooth recovery, says the Real Estate Information Center (REIC).

The strength of East Asia's economy in part buoyed the Thai economy last year, helping the country to better cope with upheavals caused by the global financial crisis, the report said.

Economies such as China, South Korea and Taiwan, recovered quickly due to an increased influx of capital seeking the higher returns available in the region.

The rise in East Asia's stock markets outperformed those in other regions, enabling investors to reap the gains and make investments in property, said the report.

Stimulus packages implemented in China and other countries including Thailand, aided the rebound.

More capital will flow into the region throughout 2010, especially in China whose economy is larger than Germany's and is now ranked third in the world behind the US and Japan.

China's economy is likely to exceed Japan's within the next two years, the report said.

Thai risk from Dubai crash

2010-01-05T21:44:00.000+02:00

Thailand's direct exposure to the Dubai market crash has been very limited, but a greater impact could come from deteriorating global sentiment if the situation worsens, says international property consultant Colliers International Thailand.

Dubai World, the emirate's largest corporate entity, announced on Nov 25, 2009, that it would seek a "standstill" agreement on its US$80 billion in debts.

The news sent shockwaves through the global financial community and questions were raised in relation to Thailand's exposure to firm and its offshoots.

The first Islamic bond payment of US$3.59 billion for its real estate arm Nakheel, due on Dec 15, was covered by the Dubai government thanks to a $10-billion loan from Abu Dhabi.

Maintaining liquidity key to sector's growth, say officials

2010-01-03T21:45:00.000+02:00

Major players of the UAE's construction sector gave a mixed opinion about the prospect for 2010.

While some major contractors expressed confidence that stalled projects would restart, others said it would take another eight to twelve months for the situation to get back to 2007- 2008 levels.

This year will see a slight increase in the prices of building material prices. The leading players in the UAE construction industry are concerned that maintaining liquidity in the market is essential in 2010, and that otherwise might affect the smaller subcontractors' and suppliers' ability to continue doing business in the market.

Consolidation, restructuring and diversification of their portfolio risks will be the name of the game in the coming year, they said.

According to a recent report by Economist Intelligence Unit (EIU), lower oil production allied with slowing construction activity depressed the UAE economy in 2009. It is expected to rebound by nearly four per cent in 2010.

Thai Company Signs Franchise Deal To Set Up 44 Tune Hotels In Five Countries

2009-12-31T10:16:00.001+02:00

Evolution Capital, listed on the Stock Thai Exchange, is planning to invest over US$200 million in the next few years to build, refurbish and operate 44 Tune Hotels.com in five countries.

The company has signed a franchise agreement with Tune Hotels.com.

Its President, Simon Gerovich said 24 hotels would be operated in the first phase within the next four years, with the first scheduled to be operational in Thailand's premier resort island of Phuket by 2010.

Besides newly set up hotels, half of them would be existing hotels to be refurbished as Tune hotels.

"We are leasing most of the land or space for 30 years to keep our initial cost low," he said at the announcement of the franchise agreement between Tune Hotels.com and Evolution Capital.

Property prospects for Phuket and Krabi

2009-12-30T21:27:00.000+02:00

Nick Anthony and Tom Travers of Indigo Real Estate discuss how Thailand’s property sector has been affected by the global economic crisis, and what to watch for in southern Thailand during 2010.

Phuket shakes off the world economic problems
The global financial crisis will rumble into 2010 and will create more surprises. The United States is still in deep trouble, Europe is fracturing and Africa is unstable.

In Phuket most projects went into the global financial crisis under duress caused by the previous two years of political instability, so most developers have escaped the worst of the speculative excesses. Developers have been offering attractive incentives in the final quarter of 2009 that have helped to thaw the standoff from buyers.

In Industrial Thailand, Health and Business Concerns Collide

2009-12-29T19:06:00.000+02:00

MAP TA PHUT, Thailand — Villagers here avoid walking in the rain because they say it burns their skin and causes their hair to fall out. They have trouble breathing at night when, they say, factories release toxic fumes. And they are terrified by what studies show are unusually high cancer rates.
Skip to next paragraph
The New York Times

Map Ta Phut is an industrial zone akin to a midsize city.

Map Ta Phut is the heart of Thailand’s industrial underbelly, an area rarely seen by the millions of tourists who visit the country every year. Jutting out into the Gulf of Thailand, the industrial zone is on the scale of a midsize city — only instead of office buildings and apartments, there are block after block of tangled tubes of steel, vats of chemicals and towering, fire-breathing gas flares.

AirAsia's $3 hotel rooms target Phuket

2009-12-28T00:07:00.000+02:00

Kuta Beach in Bali is one of the locations of Tune Hotels, a Malaysian budget chain affiliated with AirAsia. IT aims to set up 44 properties across Asia in a deal with Evolution Capital, a SET-listed real estate investment and management firm.

19 more projects can seek court permission

2009-12-26T10:14:00.000+02:00

After yesterday's Cabinet meeting, Prime Minister Abhisit Vejjajiva said the four-party committee had reported on the status of each suspended project to the Cabinet. Of the 65 projects, 42 have been given the status of operating, completed construction or under construction, while the remaining 23 have either not sought permission or have yet to start construction.

"Of the 42 projects, 19 come under the same criteria as the 11 projects earlier allowed to resume operations," he said.

Tune Hotels.com has partnered Thailand's Evolution Capital

2009-12-25T13:57:00.001+02:00

Tune Hotels.com has partnered Thailand's Evolution Capital pcl to set up 44 budget hotels across Asia under a franchise deal. Evolution Capital, which is listed on the Stock Exchange of Thailand, will invest US$200 million (RM688 million) and run the hotels using the Tune Hotels.com brand name. It plans to set up hotels in Thailand, China, Bangladesh, the Philippines and Indonesia.

Evolution Capital, a real estate investment advisory and management firm, is confident of recouping its investment in three to five years, its managing director and president Simon Gerovich said.

Gerovich sealed the franchising agreement together with Tune Hotels.com group chief executive officer Mark Lankester here yesterday.

Thai central bank keeps key interest rate unchanged

2009-12-12T19:59:00.000+02:00

Thailand’s central bank on Wednesday kept its policy interest rate unchanged at 1.25 per cent, saying the current rate is “appropriate and supportive of the economic recovery”.

Bank of Thailand (BoT) Assistant Governor Paiboon Kittisrikangwan said the Thai economy continued to recover at a slightly slower pace in the third quarter and October boosted by improvements in domestic and foreign order books, business sentiment, farm income, employment conditions as well as the tourism sector.

As a result, the BoT Monetary Policy Committee (MPC) agreed that gradual economic recovery still “requires sustained policy support.”

The major industrialised and Asian economies expanded in the third quarter at higher rates than market expectations but overall recovery remains dependent on policy support.

Current global inflationary pressure continues to be subdued, but risks to global economic recovery remain and warrant continued close monitoring, Mr Paiboon said.

Vietnamese economy poses no threat to Thailand

2009-12-08T09:05:00.000+02:00

Mr Pisanu said that medical advances in Vietnam lag far behind Thailand. For difficult cases, well-to-do patients still travel to Thailand for treatment because Vietnam's health care expertise is lacking.

Nor was Thailand's status as the world's top rice exporter under threat from Vietnam.

Mr Pisanu said Vietnam exported about 5 million tonnes of rice last year while Thailand exported 8-9 million tonnes.

Thai rice is more expensive because of its higher quality especially the world famous Hom Mali, while Vietnam exports cheaper varieties.

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.''