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Tuesday, 02 September 2008 |
source: Bkk Post Aug 19 2008
Raimon Land Plc is seeking Thai buyers for
its unsold condominiums at two sites as the 49% quota for foreign buyers is
full.
Henri Young, sales and marketing director, said foreign
buyers had taken up their quota at The Lofts Yennakart in Bangkok and North
Point in Pattaya. The former has 40 units left while Northpoint is 70% sold.
He said the company had drawn interest from Thais by showing them that
the rental yield at The Lofts Yennakart was between 6.3% and 8%. It offers three
units under a rent-to-buy programme. At Northpoint, rental yields are up to 11%.
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Tuesday, 02 September 2008 |
source: Bkk Post Aug 18 2007
Investment
not linked to SC Asset
The Shinawatra family plans to develop a
luxury residential project comprising a hotel, condominium and villas for sale
priced at $2-3 million each on a 160-rai plot on Mai Khao beach in Phuket next
year.
An industry source said the development was not linked to the
family's property arm, SET-listed SC Asset Corporation Plc.
''If SC were
to have resort developments in tourist destinations outside Bangkok, it would be
over the next few years, not in the next year. This may be the family's own
investment,'' said SC vice-president Kree Dejchai.
The property
consultant Colliers International estimated the project would require an
investment of at least 10 billion baht, excluding land cost. The market price
for land plots on Mai Khao beach is 10-12 million baht per rai.
Mai Khao
is emerging as an attractive area to local and overseas investors as land prices
are lower than for other beachfront locations on the island. Patong beach, for
example, can command 30-40 million baht per rai and available plots for new
development are scarce.
Mai Khao is only a 10-minute drive from the
airport and most of the land is still held by local people who do not want to
wait for price appreciation.
In the past decade, there was no new
development on Mai Khao except for the JW Marriott Hotel. Minor International
Plc, which owns the JW Marriott, plans to launch the luxury villa Anantara at
rates of 20,000 baht per night next
month. By the end of the year, it will develop a four-storey building housing a
Villa Market supermarket and high-end restaurants to support its guests.
The family of former Prime Minister Thaksin Shinawatra, who fled to
England last week claiming his pending court trials in Thailand would not be
fair, bought the Phuket plots through its representatives late last year.
A Dubai-based group also spent US$60 million to acquire 180 rai on Mai
Khao from Thai owners and it plans to invest another $250 million to develop a
Venice-style hotel.
As well, a Hong Hong-based investor is taking up 380
rai, and a joint venture between local and foreign investors is taking another
100 rai to develop a five- to six-star hotel and luxury villas.
SC
Asset, meanwhile, will be sticking to its core business of mid-market
residential development in Bangkok for now, according to Mr Kree.
This
year the company plans to launch five new projects worth 2.1 billion baht,
comprising two single-house projects and three townhouse estates.
After
launching Vista Park Vibhavadi 2 early this month, only seven of 37 units remain
for sale. The prices of three-storey townhouses range between 5.9 million and
6.9 million baht each. The company plans a similar project in the Chaeng
Watthana area to tap rising demand from people working at the new government
centre.
SC Asset reported a first-half net profit of 280 million baht,
down 10% year-on-year, on sales of 1.91 billion baht, up 17%. Last year, its
recorded high profits because of it had extra earnings from investments in three
subsidiaries.
SC's net profit in the second quarter 129 million baht, up
21%, on revenue of 958 million baht, up 34%. Revenue in the second quarter
included 757 million baht from sales of units and 199 million baht from rentals.
The company plans to launch a resale service for its customers in order
add value for its products.
SC shares closed on Friday on the Stock
Exchange of Thailand at 8.00 baht, up five satang, in trade worth 8.73 million
baht.
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Tuesday, 02 September 2008 |
source: The Nation August 15, 2008
A widening bid-ask spread has emerged
in major real estate markets across Asia, as property owners, supported by solid
market fundamentals, remain reluctant to lower their asking prices, according to
CB Richard Ellis' Asia Pacific Investment Market Report for the second quarter
of 2008.
Although Asian markets have been affected by slowing economic
growth and unsettled capital markets, financiallysound institutional investors,
including pension and sovereign wealth funds, remain active across major cities
in Asia, and direct commercial property transactions in Asia were up moderately
yearonyear in the first half of 2008, according to the company.
A number of large transactions were completed in
Thailand, with the focus squarely on hospitality properties and the
country's major resort markets, where investment sentiment remained robust on
the back of sustained growth in the hospitality and tourism sector. Numerous
hotels in Phuket changed hands, with some to be renovated and rebranded. Land
transactions included the sale of a freehold plot for around Bt1 billion on Koh
Siray, and CB Richard Ellis expects this trend to continue as some investors
realise sizeable capital gains from holding properties for the past two to three
years.
Investment activity in the Bangkok property market, in
comparison, was highlighted by the acquisition of a plot of land in Sathorn for
Bt1.4 billion by AIA, demonstrating that investors retain confidence in the
sector's prospects. Other notable transactions in the capital included the sale
of multiple hotels and commercial properties.
Regionally, Japan
continued to attract the most investor interest, accounting for over 30 per cent
of Asia's major investment transactions.
Banks and financial
institutions have been curbing lending activities this year in Japan. Highly
leveraged investors therefore sought to reduce debt by bringing assets to the
market and this resulted in a repricing of residential, suburban retail and
fringe offices properties.
However, asset pricing for the best located
and highest quality properties remained relatively firm.
Singapore's
investment market turned quieter compared with the preceding year.
However, financially sound investors remained fairly active and a total
of Bt321.6 billion worth of investment transactions were recorded in the first
half of 2008. Slower global economic growth and a volatile equity market served
to cool sentiment in the Hong Kong property market, as overall investment
activity was subdued during the first half of 2008 |
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Sunday, 10 August 2008 |
source: Bkk Post Aug 9 2008
More buyers
seen declining transfers
The listed developer Preuksa Real Estate
(PS) Plc aims to speed up resales of housing units and maintain overall
inventories in the face of a rising number of buyers who have refused to accept
property transfers since May.
The company has shortened the grace period
to 30 days from 60 days for buyers whose down payments were overdue to reconfirm
their commitments. If the buyers did not want to transfer home ownership, the
company would then terminate the contract and attempt to resell the properties.
Chief financial officer Somboon Wasinchutchawal said the company was
confident it could make speedy resales and would not be stuck with a rising
inventory of unsold homes. The value of its housing inventory is now between 1.8
billion and two billion baht, the same as in the first quarter of this year.
''It's good for us as we can monitor [buyer sentiment] and x-ray their
problems,'' he said.
The rate of
customers refusing to accept unit transfers rose to 12% at the end of
June from 8% in the first quarter, reflecting the growing difficulties some
consumers are having as inflation rises.
Mr Somboon said not all the
refusals reflected inability to pay, as some buyers simply wanted to change
units or move to other locations.
PS has spent three billion baht
acquiring new land plots since the start of this year. The country's
second-largest residential developer expects to spend another one billion baht
on land over the rest of the year.
PS has been looking increasingly at
prime locations for condominium development and lately has seen more chances for
large developers to acquire more plots.
As a result, PS increased the
number of projects launched this year to 46 from 40, of which 25 worth a
combined 12 billion baht would be launched in the second half of the year.
Chief executive Thongma Vijitpongpun said the company had postponed the
launch of condominiums from the first half to the second half as it expected
construction costs would start to stabilise or decline.
''We will speed
up construction jobs during the current six-month period that the government is
offering oil subsidies,'' he said.
PS will also increase prefab
construction from 60% to 82% to accelerate the transfer of low-rise units.
In the fourth quarter, it ill also revise down housing prices by 2-3% as
steel prices are starting to ease.
While the company has suspended its
investment in Vietnam, it will start developing 300 single houses and townhouse
worth around US$5 million in Bangalore, India by the end of the year. KPMG
Poomchai is advising on its Indian subsidiary's structure and registration.
PS also plans to issue bonds or bills of exchange worth up to 1.5
billion baht in the fourth quarter to help fund business growth.
PS
yesterday reported a first-half net profit of 947 million baht, an increase of
54% from 615 million in the same period last year, on sales of 5.51 billion
baht, up 34%. Second-quarter net profit rose 98% year-on-year to 639 million
baht, on sales of 3.28 billion baht, up 47%.
PS shares closed yesterday
on the SET at 8.25 baht, down 40 satang, in trade worth 29.45 million baht.
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Sunday, 10 August 2008 |
source: Bangkok Post Aug 9 2008
Equity Residential Co Ltd, owned by Swechak
Lochaya, has taken over a suspended condominium for 1.6 billion baht to continue
the development.
Managing director M.R. Sasijutapa Varavarn said the
company had acquired Oasis, a half-completed building owned by Srinakorn Land
Co, a property arm of the Techapaibul family, from the owner and creditor Siam
Commercial Bank in 2006. The project was suspended during the economic crisis in
1997.
''The advantage of acquiring a half-finished project is its cheap
price and we will add some money to finalise the construction, which has been
frozen at the tenth floor, said M.R. Sasijutapa, who is Mr Swechak's mother. Mr
Swechak is managing director of the listed developer Everland Plc (EVER).
My Resort Bangkok will feature units priced between 2.8 million and 11
million baht each.
''We also signed a construction contract with one
contractor before the oil crisis, so we can sell the units at competitive
prices.''
She did not disclose the total investment, saying only that
the company would spend another 300-400 million baht from now on to complete
construction, now only 60% finished.
My Resort Bangkok condominium will
have 35 storeys and be located on a two-rai site on New Phetchaburi Road near
Srinakharinwirot University, comprising 381 units sized between 38 and 157
square metres and priced between 2.8 million and 11 million baht a unit.She said
project financing would come from Siam City Bank. Currently, it is 60% sold and
she expects to close the remaining sales in early 2009. Construction is expected
to be completed late next year.
Originally, the project was bought by
EVER in 2006 but Mr Swechak decided to invest on his own through his property
firm Equity Residential. The company, established in 2001, has paid-up
registered capital of 300 million baht.
''Though My Resort Bangkok is
the company's first project, my experiences in the real estate market are not
new,'' she said.
She used to buy second-hand homes in Los Angeles to
renovate and resell them. Once she gained US$500,000 from a unit she bought for
$200,000. She has renovated 20 to 30 housing units in the United States.
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Saturday, 09 August 2008 |
source: Bkk Post Aug 8 2008
The Emporium will hold a high-end home and
condominium fair from Aug 22 to Sept 2.
Participants at The Emporium
Lifestyle Home and Residences exhibition will include Hua Hin Blue Lagoon, Hyde
Park, Ideal 24, Millennium Residence, Musselana Beachfront Boutique Condominium,
Ocean Portofino, Supalai Casa Riva, The BayCliff Patong, The Pano, The Urban
Pattaya, The Vimanlay, Villa Arcadia Srinakarin, Villa Arcadia Watcharapol and
Vincente |
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