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Friday, 25 July 2008 |
source: CBRE/The Nation on July 21, 2008
Most of the freehold land
recently acquired in Bangkok's central business district has been for
residential developments and hotels rather than office buildings.
In the
next four years, office space will be limited and rents are expected to continue
to rise. The demand for offices would probably be much higher if Thailand
promoted itself as an attractive location for companies providing services to
the domestic economy and developed Bangkok as a suitable city for their regional
headquarters.
One of the drivers of demand for office space is demand
from multinational companies (MNCs). Other Asian cities, such as Singapore, Hong
Kong and Shanghai, have benefitted greatly from such demand, both in terms of
benefits to the property sector and in terms of jobs created for locals. These
countries have established policies that provide incentives to encourage MNCs to
use their countries as a place to establish a branch to serve the domestic
economy and conduct regional and global operations.
Thailand's abundant
land and major ports, and its improvements in infrastructure and transportation,
including the mass transit systems, as well as its ability to offer value in
terms of quality of office and residential accommodation against cost, make it a
suitable location for service industries as well as a manufacturing base.
There are many reasons why a company chooses to set up operations in a
particular country instead of another. One is accessibility; Thailand,
especially since the opening of the new airport, is as easily accessible as any
other country in the region. The size of the local economy is also often
important and Thailand has developed rapidly over the past two decades, even
though it trails regional competitors, such as Singapore and Shanghai, in terms
of infrastructure.
Other, more significant reasons concern government
incentives. Some countries, such as Singapore, offer a strong package of
benefits to any company that sets up its regional headquarters there, or wishes
to provide services to the local economy. These benefits include lower taxes,
easier authorisation for the employment of foreigners (work-permit rules and
visas), limited bureaucracy and others. In short, these countries make it easier
for companies to set up an office.
Also important is the quality,
training and availability of local staff. While a company setting up regional
headquarters will no doubt hire foreign workers, a sizeable portion of the
workforce will be nationals of the host country.
Thailand has been very
active and successful in attracting foreign-direct investment in the
manufacturing sector but continues to lag behind competing countries in
attracting investment in the service sector and regional offices. We need to
boost the office market as well, to create jobs that employ the next generation
of Thais who are entering the market with suitable qualifications.
There
will also be knowledge and knowhow transfers from foreign workers to local
staff, all of which will definitely add value to Thailand's overall economy.
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Friday, 25 July 2008 |
The Nation July 24, 2008
Global money eyes island property
Developers and foreign property funds from Pakistan, Bangladesh, India,
the Middle East and Europe are mulling investment in residential and hospitality
projects on Phuket, collectively worth up to Bt100 billion, before the end of
2010.
Huge returns on investment are behind the rush. One survey by
property consultancy Colliers International Thailand has found that property
investment in Phuket generates returns of up to 100 per cent within two years.
Risinee Sarikaputra, head of research, said 17 new residential projects
worth about Bt20 billion would be launched this year. As well, property funds
from Pakistan and Bangladesh and India's Taj Exotic Group are planning both
residential and hospitality projects in Phuket next year and in 2010 worth
nearly Bt50 billion.
UK investor Gulu Lalvani, founder and chairman of
Binatone, a global leader in communications technology, has also spent nearly
Bt10 billion on residential projects and a luxury retail development in Phuket.
Risinee said Taj Exotic was the largest investor. It is one of India's
leading property firms, with residential and hospitality projects in many
countries. It is expanding its business in Thailand through a joint venture with
Thai partners.
Taj will buy 30 rai of land on Koh Lone, off the
southeastern coast of Phuket, and spend Bt7.6 billion to build just 49 luxury
residences. Each of them will sell for about Bt314 million. Taj also plans to
spend nearly Bt5 billion to build a luxury hotel on Koh Lone by the end of next
year.
Risinee said the property funds from Pakistan and Bangladesh were
strongly interested in investing in Phuket and nearby provinces like Phang Nga
and Krabi. They have an investment budget of nearly Bt10 billion to spend over
the next two years.
Up to 90 per cent of residential buyers in Phuket
are foreigners, especially from Europe, the Middle East, Scandinavia and Asia.
Most of them buy under conditions of a 30-year lease, renewable for a further 30
years.
Nearly 95 per cent of new investors in Phuket are also foreigners
who set up joint ventures with Thai partners, in order to comply with Thai law
covering land ownership.
Risinee said although the number of new
residential units launched in Phuket this year was below last year's figure,
their value had shown strong growth, because they were targeting the luxury
rather than the middle market.
Colliers International Thailand believes
969 residential units will be sold in Phuket
this year, more than last year's 828 units but still below the 1,473 sold
in 2006.
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Friday, 25 July 2008 |
The Nation July 24, 2008
Investment-led buying, strong tourist interest
are aiding demand in the region
The majority of property investors in
Phuket are expatriates based in Asia, particularly Hong Kong and Singapore.
Phuket is becoming popular with property purchasers from many new markets, such
as Russia, Korea, the Middle East and India.
The Phuket property market
is expected to show strong growth despite political instability and slower
economic growth in Thailand, research by property agencies showed.
Property-consultancy company Colliers
International Thailand managing director Patima Jeerapaet said Phuket is
attracting professional investors and international hotel brands. Phuket's
fast-growing real-estate market is supported by a strong tourism market. Phuket
is also an attractive retirement destination. Thus, the increase in interest
from overseas in purchasing property has, to some extent, aided economic
recovery in Thailand.
The company's research head Risinee Sarikaputra
said the number of residential units for sale in Phuket recorded a peak in 2006,
with 1,473 units for sale. The figure dropped last year with 44-per-cent
decrease compared to 2006, due to political instability in the country. This
year, that trend has been reversed.
The majority of property investors
in Phuket are expatriates based in Asia, particularly Hong Kong and Singapore.
Phuket is becoming popular with property purchasers from many new markets, such
as Russia, Korea, the Middle East and India. Their decision to purchase a villa
or condominium tends to be investment-led and they are looking for potential
capital appreciation and possibly rental income. Property-sales transactions by
foreigners in Phuket tends to be in the form of 30-year leaseholds; there are
some sales transactions in the form of freehold, especially for condominiums.
Location, the branding of residential units and property management
remain key to commanding high prices. The projects are integrated with hotels
and the hotel manages the residential component. The hotel also manages the
letting out of the property, or part thereof, on behalf of the owners, generally
through a rental pool system.
Risinee said that from the study, it is
evident that land prices in the western and eastern areas range widely. The
selling price per square metre in some projects on the eastern coast is actually
higher than that on the western coast, although the land price per rai in the
western areas is Bt35 million per rai on an average, while the land price in the
eastern area averages Bt17 million per rai. However, the selling price of
residential units in the eastern area shows the average price of about Bt130,000
per square metre while the selling price of residential units in the western
area is approximately Bt100,000 per square metre.
The east coast seems
to be the future destination for high-end developments in Phuket, with three
marinas in the area. Two additional marinas, which are under development, raise
the area's capacity to 800 yacht berths.
The marinas benefit the
island's real-estate industry because residential projects generally crop up
around them. Such a facility might be necessary for Phuket's tourism industry to
stay ahead because one of its regional rivals, the Malaysian island of Langkawi,
may develop facilities for megayachts.
CB Richard Ellis Thailand, the country's
leading international property-services company, said that the Phuket market is
expected to show strong growth, especially in the high-end market, after the
upgrade of the Phuket International Airport, which will close to double its
capacity by 2010.
Tourist arrivals grew from 2.4 million in 2005 to 4.7
million last year. Roughly 20 per cent of foreign tourists to Thailand last year
visited Phuket.
Infrastructural improvements have also helped fuel
demand. Phuket has three marinas, with another three slated for completion in
the near future. The island's six golf courses include The Blue Canyon Country
Club, the three-time host of the Johnnie Walker Classic.
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Friday, 25 July 2008 |
source: Bkk Post July 24 2008
The Land Department has revoked title
deeds issued to land plots in Phuket and Phangnga provinces, said a department
spokesman.
Suchart Dokmaipeng said the department has resolved to revoke
Nor Sor 3 Kor land occupation papers issued to 29 land plots in Phuket's tambon
Rassada, Muang district.
According to Mr Suchart, the plots are in
forest areas and thus the land papers have been unlawfully issued.
The
department is cooperating with the Land Development Department in further
examining those plots to facilitate the revocation process, he said.
In
Phangnga, the department has agreed to revoke Nor Sor 3 Kor papers issued to 21
plots in tambon Phru, Ko Yao district, as the land sits in forest reserves.
He said the department has also revoked Nor Sor 3 Kor land deeds issued
to 598 plots, out of 628 plots being investigated, in Kapong district.
The revocation of land title deeds follows an order by Interior Minister
Chalerm Yubamrung, who demanded investigation into the issuance of land
ownership papers.
In Surat Thani province, the department has revoked
deeds issued to two plots of The Peak property development project and set up a
committee to look into the land papers issued to four plots under the project,
said Mr Suchart.
He also said that investigations into unlawfully issued
land deeds across the country, including on Koh Chang in Trat province and
Chanthaburi's Khao Soi Dao, are under way.
According to him, provincial
governors are being urged to be more careful about issuing land papers following
a report that foreigners have tried to occupy land through nominees.
Meanwhile, Thawal Thimasarn, a Land Department executive in charge of
issuance of land papers, said that authorities are speeding up an inquiry into
alleged encroachment of state railway land by members of the Chidchob family in Buri Ram's Khao Kradong.
He said the inquiry will be wrapped up after the State Railway of
Thailand identifies its land rights
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Thursday, 24 July 2008 |
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Asian Property Development will introduce two detached house projects worth a
combined Bt2 billion in the current quarter.
The mid-market project
will offer houses priced between Bt3.79 million and Bt5.89 million.
The
first project on Sukhumvit 113, called The Centro Sukhumvit 113, is worth Bt800
million. The project will be located close to the new BTS SkyTrain station. This
project will have only 208 units with a utilisation space of between 130 and 230
square metres.
The project offers houses with three bedrooms and two
bathrooms and three bedrooms and three bathrooms at a starting price of Bt3.79
million per unit. The company will open presale bookings this weekend.
The second project on Rattanathibet Khaerai, called The City
Rattanathibet Khaerai, is worth Bt1.2 billion. The project will be built in a
modern contemporary style and will have 216 units with a utilisation space of
between 180 and 230 square metres, comprising units of three bedrooms and three
bathrooms.
The project will be located close to the new BTS Purple line
that links Bangsue and Bang Yai. The company will open presales for this project
next weekend.
"We believe demand for residential projects will grow,
especially projects located close to the mass-transit system. This is despite
house prices having increased 5 to 10 per cent compared to last year, following
a rise in construction costs. Our customers are not worried about the price but
they are concerned about the location," Asian Property Development senior
executive vice president Visanu Suchatlumpong said.
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Thursday, 24 July 2008 |
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The Nation July 23, 2008
Hemaraj Land and Development, a leading
industrial-estate developer, expects revenue growth of 10 to 15 per cent this
year, driven by manufacturing expansion in several sectors.
President and CEO David R Nardone said yesterday that the company
was in talks with companies in the automobile and electronics industries to
purchase sites in Hemaraj's industrial estate in Rayong. He said negotiations
were going well.
"More than 50 per cent of our clients are in the
automobile industry. The government is encouraging companies to expand into new
areas such as eco-cars and we expect our business to grow in line with the auto
industry," he said.
Nardone said Tata Motor was still negotiating to
purchase land in the Hemaraj Eastern Seaboard Industrial Estate in order to
invest in an eco-car project. In April, Tata Motors won tax privileges from the
Board of Investment for the project.
Earlier this year, Hemaraj signed a
land-purchase deal with Suzuki Motor for a 412-rai plot at the estate.
Nardone added that the company had sold sites in its industrial estates
totalling 1,200 rai in the first half of the year, compared to its sales target
of 1,500 rai. Hemaraj will revise its land-sales target next month after the
company announces its second-quarter operating results.
"Although sales
from the industrial-estate business are still good, revenue from the property
sector as a whole has not been good because of sluggish sales of a condominium
development. We may adjust the price of the remaining units in The Park
development in order to close the project," he said.
The company
yesterday signed a land-purchase contract with Danieli Far East, a designer and
manufacturer of equipment for the steel industry, for an additional 121 rai in
the Eastern Seaboard Industrial Estate. However, Nardone declined to disclose
the contract value.
Asia Plus Securities said in a research note that
Hemaraj's land sales could exceed 1,300 rai this year due to expansion in the
automobile industry, which is a major part of the company's customer base.
Asia Plus revised upward Hemaraj's net profit forecast to Bt1.48
billion, which would represent 27-per-cent growth from last year.
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