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Tuesday, 06 May 2008 |
source: Bkk Post May 5 2008
The sharp rise in developments seeking EIA approval has increased the workload
at the Office of Natural Resources and Environmental Policy and Planning. In the
past, the ONEP received between 200 and 300 EIA reports for approval each year.
But currently it has 1,400 reports on its table, up from 500 at the end of last
year, says secretary-general Kasemsun Chinnavaso.
''Given the increasing number of projects, I really sympathise with the seven
officials working for this division who are responsible for the initial
revisions of the reports,'' he says.
The workload has been even heavier lately because two of his staff are on
maternity leave.
''We have to work without holidays, spending so much time reading reports that
are around 400 pages. The number of jobs has increased but we can't add more
staff. And we can't outsource the work because there are no related laws
supporting such activity.''
The expert reviewers also work hard. Currently there are 11 committees with
experts from different agencies, who have to review reports for at least 3,000
projects a year. Only two of the committees are responsible for residential and
serviced property projects.
''The number of meetings has also increased from once a month to every week _
otherwise the 1,400 projects might not finish,'' says Mr Kasemsun.
It's been suggested that developers might take the EIA process more seriously if
they had to pay into an environmental fund. One proposal involved a fee of 0.5%
of the project value. This money could be used to correct environmental problems
or cover related liabilities.
Mr Kasemsun disagrees, saying it would be hard to establish and administer. It's
also not clear what would happen to the funds, and whether all the money should
be returned to a developer after each project completes construction.
Some officials proposed a special fund after a recent incident in which a
concrete block fell at a construction site and injured passers-by.
''Instead, I proposed additional insurance coverage, which project owners
normally have, for third parties,'' he says.
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Tuesday, 06 May 2008 |
source: Bkk Post May 5 2008
Green seal of approval
Property developers have been complaining about Environmental Impact Assessment
(EIA) reports, saying they are a major cause of delays in starting construction
or delivering units to customers. But for property buyers, an EIA is a
significant factor for concern when deciding to buy a unit. ''An EIA is a
guarantee that a project owner gives to customers,'' says Kasemsun Chinnavaso,
secretary-general of the Office of Natural Resources and Environmental Policy
and Planning (ONEP).
''Many people misunderstand that an EIA is a permit but it's not. It's a must
report for any place including a hotel, residential building, condominium or
serviced apartment where many people live together for any activity, as the
environment might be affected before, during and after the construction.''
For example, before construction, the area will be assessed and if there is
piling work or other activity that may cause noise, dust or damage to the
surrounding areas, the EIA report will specify how to prevent or manage possible
danger.
After construction, the EIA is a guideline for how many people can live in the
area without feeling crowded. An EIA report for a residential project must
contain provisions for a green area where people can relax. If it is a large
housing project, plans for public spaces and waste-disposal areas are required.
''Take Muang Thong Thani as an example,'' explains Mr Kasemsun, referring to one
of the largest residential complexes in Asia. It is next to one of the region's
biggest convention centres as well. ''When there's an exhibition, the number of
people going there may be as many as 100,000 or more _ the equivalent to the
population of Chiang Mai's Muang district. Everyone consumes and produces waste.
So how can we manage waste water and rubbish amounting to at least 10 tonnes?''
The main goals of an EIA report, he says, are prevention, reduction, treatment
and maintaining environmental quality.
Still, some developers resent what they see as more paperwork and delays at a
time when costs of building materials and labour have been rising rapidly. Some
invoke Article 39 of the Building Control Law to start construction before
obtaining a construction permit.
That's a very bad idea, in Mr Kasemsun's view. ''Consumers will end up having
problems,'' he says.
''Some developers agree to pay more for fast-track approval. But if they do
everything legally and properly, they can save unnecessary costs. If they cannot
do things right, finally the issue will return to square one.''
For property buyers, if an EIA report has not been approved, they may not be
able to obtain their units as the project cannot be registered as a lawful
building.
Mr Kasemsun believes developers should use EIA approval as a selling point
instead of complaining about the system. Over the past two months, he has been
talking to developers with approved reports, suggesting that they place messages
confirming EIA approval in their brochures or advertisements.
''Many customers don't know how an EIA is important to them,'' he says. ''It can
build confidence among buyers.''
"Many people misunderstand that an EIA is a permit but it's not. It's a must
report for any place including a hotel, residential building, condominium or
serviced apartment where many people live together for any activity, as the
environment might be affected before, during and after the construction," says
Kasemsun Chinnavaso, the ONEP secretary-general. THITI WANNAMONTHA
A thorough EIA report should cover waste management and water treatment systems,
traffic flows, green area, air flow, security, fire prevention and sprinkler
systems _ the most important elements in a high-rise building.
''If a project is waiting for an EIA and the developer wants to open sales,
information about the contents of the EIA can be put in the brochure as the
developer or its consultant has all the details.''
Mr Kasemsun likens an EIA to a take-home thesis. The ONEP provides a checklist
for the preparation of an EIA report for registered consulting firms
commissioned to do the reports.
Developers who run afoul of the rules could encounter even more costly delays
since work on their projects could be forced to stop.
If the ONEP finds that a developer lacks proper approvals, it will hold
discussions with representatives of the Bangkok Metropolitan Authority (BMA),
the Department of Civil Engineering and its expert review committee. It will
then conduct a site survey to determine whether the breaches are serious enough
to warrant stopping construction.
If construction stops, the ONEP will check whether the report done by the
consultant contained factual errors. If the errors are seen as intentional, the
consultant will get a first warning and the information will be published on the
ONEP website.
Ultimately, the process aims to secure co-operation and benefits for residents
and their neighbours, says Mr Kasemsun.
There are even cases in which rules are eased. In early March the office
cancelled a new requirement for condominium developers to plant one big tree for
every ton of air-conditioning capacity, after deciding the rule was too strict.
''We cancelled it as some projects might have evaded the regulation by claiming
they had no air-conditioning systems in their buildings. And after getting EIA
report approval, they would install them or claim customers had done so later,
at which point we wouldn't have been able to do anything.''
The department has reverted to an earlier regulation calling for one square
metre of green area per resident or 0.5% of the total residential area. Half of
the green space must contain big trees but the types grown are up to the
developers.
Mr Kasemsun suggests that project owners and residents consider approaching the
Forestry Department and the National Park, Wildlife and Plant Conservation
Department, which encourage the enlargement of green areas. Project owners can
even get a tax deduction.
Green areas may create extra work and expense but residents will get many
benefits back, and the developers' images will be improved as well.
''I have trees at my house and every summer I have to sweep leaves _ more than
30 bags _ and hire BMA staff to dispose of them,'' he says. ''What I get back is
shade and many little animals like squirrels, crows, cuckoos and doves and other
birds. Sometimes I don't need an alarm clock. More importantly, I have
'relatives' visiting every year. They're giant honey bees.''
Full EIA report guidelines are available in Thai and English at the ONEP
website: www.onep.go.th/eia
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Sunday, 27 April 2008 |
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source: Scand Asia/Bjarne Wildau Apr 26 2008
Up to 50 Swedish families and disabled have been cheated in a property scandal
in Thailand. The investors were dreaming about owning a peace of paradise in
Bang Phra, but according to the Swedish tabloid Expressen they lost millions of
Swedish Kronor in deals with Thai Care, a company dominated by the Swedish
citizen Mr. Curt Timhede.
The sale of three rooms apartments and villas started in 2006. Costumers liked
what they saw on exhibitions and the Thai Care website. Swimming pool,
rehabilitation center, tailor, security, everything was designed to suitable for
families with children, people with handicaps, and elderly people.
The buyers felt secure with the Swedish speaking sales staff. And happily they
made the needed payments up front, to get closer to their dreams.
According to Expressen, the money started flowing the very same year, when every
signature from a buyer was followed up with a down payment from 100.000 kronor
up to 1.000.000 million. The selling continued, and therefore the money kept
flowing in 2007.
Expressen mentions a total of 30 million Swedish kronor.
The first apartment was promised ready in the middle of the 2006/ 2007 season.
But one month after the other went by, and nothing happened. At that time, the
buyers had no ideas about the financial disaster.
Curt Timhede, had, according to Expressen, previosly gone bankrupt three times
in Sweden, therefore has a huge debt to the Swedish State (Kronofogeden). And he
never told his costumers, that the money was gone down the drain, out of the
project. Living in a village further down the cost, in the village of Bang Sare,
he just kept silent.
To the Swedish tabloid he insists, that it’s not only the costumers who have
been lured. He is innocent. Its other people, who destroyed the project.
Mr. Timhede claims, that he has been cheated by his Thai partners. Partners he
had to involve, because it’s illegal for foreigners to own land in the Kingdom.
The Swedish business man says that the problems are rooted in the cooperation
with a mysteries Thai woman, whom he had known for several years.
Mr. Timhede, his to sons who are Swedish citizens like him self, and the Thai
woman registred a company. And, again, according to the Swede, and the Thai
woman’s husband faked Mr. Timhede´s signature. All of a sudden, the Thais were
in total control.
If there still was even the slightest hope among the buyers to at least get some
of there money back, it’s now gone for ever.
The official papers at the land department in Thailand, says very clearly that
the ownership of the land is taken over by the bank, who did lend out the money
at the beginning of the project.
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Thursday, 24 April 2008 |
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source: Bangkok Post: 21 Apr 2008
New projects add sparkle to property market in popular seaside resort, reports
Nina Suebsukcharoen in Hua Hin
The property market in the popular seaside resort of Hua Hin is building on its
strengths this year, with new developments rising and ongoing projects
attracting strong interest. Purchases and development by vacation clubs are also
livening things up.
Praphaisith Tankeyura, managing director of the 80-rai condominium and villa
development Boathouse Hua Hin, said the market should pick up with the launch of
some new condominiums including the Moroccan-themed Marrakesh by Major
Development; Baan San Suk, located at the entrance of Khao Trakiab and developed
by Sanrisi; and the relaunch of Malibu Khao Tao by Maneeya Realty Co.
''The average selling price of condominiums in Hua Hin is more than 100,000 baht
a square metre now with the launch of Marrakesh and Baan San Suk,'' Mr
Praphaisith said at a recent Songkran fair during which six Boathouse units were
auctioned.
''All are on the beachfront but they are low-rise buildings, mainly four to six
storeys. Our price is very cheap compared to theirs. And this despite the fact
that we have invested more than half a billion baht in our infrastructure,
swimming pools and garden.''
This is no empty boast because visitors will clearly see the evidence with two
of the four condominium towers completed and the construction of the third under
way. Perhaps this is why Laguna Holiday Club, part of the Laguna resort in
Phuket, decided to purchase 55 units at Boathouse Hua Hin for around 300 million
baht to serve its time-share members who now total around 5,000, of whom 65% are
Thai.
Mr Praphaisith said several foreign retirement funds were also moving into
Thailand with one from the US developing a low-rise condominium near the Hua Hin
railway station. The goal is to serve American members by rotation but it is
uncertain whether the fund actually calls itself a holiday club.
''This is something new, good for Hua Hin, good for Thailand.''
Phanom Kanjanathiemthao, managing director of Knight Frank Thailand, the
property and rental management form for Boathouse Hua Hin, said that although
the time-share business had a bad reputation in the past, things have changed in
the US and Europe, where regulations have improved the industry.
Such regulations are rare in Asia and Mr Phanom urged the Thai government to
consider new rules because the time-share business had expanded to fractional
ownership whereby a condominium unit or villa is collectively owned by several
people.
''In Europe and America they have laws supporting this and we should too. It
would mean selling a whole building to 500 to 700 people instead of 90, and each
could use the unit for 30-40 days a year or if they don't use it they could
offer it for rent.''
Mr Praphaisith, a former president of Bank of Ayudhya, acknowledges that
condominiums are easier to sell than higher-priced villas, but he has a few
marketing strategies in mind. He plans to visit New York later this month to
approach the approximately 100,000 Thais living in the city and four
neighbouring states, because for them the 15-million-baht price tag is not that
high.
''We have already sold five units to Thais in the States. Hua Hin is a romantic
place for Thais, a magic word, the royal summer place is here. ... It's a place
for your family to enjoy and live _ not like Pattaya.''
While things are looking up for Hua Hin, Mr Praphaisith notes that banks have
tightened their lending to developers and only the strongest players are able to
cope. ''Right now banks require presales of 40-50% before they provide you with
a construction loan, so banks are very conservative.''
He said some projects had not reached the 40-50% presale level, and agreed that
banks have to be cautious in ascertaining that developers have their own equity
to carry a project forward.
''That is the risk, I think buyers really need to know how committed developers
are.''
This change certainly benefits the second-hand market, but Mr Praphaisith noted
that only units in well-maintained buildings have good value.
While some people are a bit uneasy about the direction of Thai politics, Mr
Praphaisith thinks Thai people take such changes in stride. ''Governments come
and go in Thailand. ... The issue is the economy. We have been close to the
bottom for many years so there is not much room left to sink any further but
there is opportunity for us to rise with the increase in rice prices _ rice is
becoming like crude oil now.''
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Thursday, 24 April 2008 |
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source: Bkk Post Apr 22 2008
Plus Property Co, an affiliate of Sansiri Plc, has revised up its sales target
by two billion baht to eight billion and added two more projects, according to
chief executive Maytha Chanchamcharat.
The company now plans 13 projects worth 11 billion baht this year, up from 11
projects worth 10 billion. It cited the stronger real estate outlook following
the introduction of tax incentives, lower transfer and mortgage fees and an
increase in the deduction for mortgage interest to 100,000 baht.
Mr Maytha said Plus saw higher sales in the first quarter and expected to
realise 7.2 billion baht in revenue this year.
Plus will add two new townhouse projects bringing the total to eight worth eight
billion baht under the Town+ brand. The locations would be in Kaset-Navamin, Hua
Mark, Theparak, Pracha Uthit, Yothin Pattana, Onnuj and another two projects are
under the land purchasing stage.
It will also have five condominiums worth three billion baht in locations near
mass-transit routes.
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Thursday, 24 April 2008 |
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source: Bkk Post Apr 21 2008
Company expecting robust 2008 growth -
Transport links boost property
The listed developer Sansiri Plc (SIRI) plans to develop 300 units of high-end
single houses worth 5.4 billion baht next year with an investment of around 800
million baht for new land plots in the Srinakarin, Ekamai-Rarm Intra and
Kallapapruek areas, says Samatcha Promsiri, the company's assistant
vice-president for marketing.
Sansiri has very few high-end units for sale after it recently closed sales of
the last 10 units worth 250 million baht at its Narasiri Pattanakarn estate. To
cover all housing segments, the company needs more Narasiri units.
Mr Samatcha said the three plots would be bought in the third quarter of the
year. They include a 35-rai site in the Srinakarin area, a 40-rai site in the
Ekamai-Rarm Intra area and a 25-rai site on Kallapapruek Road. Each would have
around 100 units priced between 10 million and 20 million baht a unit.
''Srinakarin has high potential for the high-end segment as the location is very
close to Suvarnabhumi Airport with new transport routes such as Kanchanaphisek
and the airport link,'' he said.
The location also has potential for single house rentals, proven by 30 rental
units among the 177 units at the company's Narasiri Pattanakarn.
The rental rate is now 180,000 baht a month for homes on lots ranging from 100
to 250 square wah with a usable area of 300 to 500 square metres. The annual
yield is 6-7%.
''At first, we kept 15 units for rent and planned to hold them as recurring
income. But finally we sold all of them as some customers and investors saw the
potential to invest in single rental houses in the high-end segment,'' he said.
According to company research, Bangkok had a total of 4,200 single-housing units
starting at 10 million baht a unit at the end of 2007. About 1,500 units were
located in eastern Bangkok and 1,600 in western Bangkok.
In the Srinakarin area in eastern Bangkok, the cumulative take-up rate of the
high-end single housing segment was 83% due to strong demand.
''The high-end single-housing segment was in its actual situation last year. The
sales rate did not fluctuate. Sales have been stable since after the economic
crisis. If the economy booms, the segment will also boom.''
He added that the sales rate in the high-end housing segment is not as rapid as
the middle-to lower-end segments. The take-up rate is normally four units a
month and customers in this segment have high purchasing power.
To be successful in the high-end single-housing segment, Mr Samatcha said, firms
must focus on location and price. Next customers care about the developer's
history and relationship with the community.
''We will study more and go in deeper detail for each site before launching a
high-end project. We will adjust unit sizes to be more efficient and increase
functions in each square metre of the unit,'' he said.
''There will be no new Narasiri projects this year as we're selecting land plots
and developing new housing designs.''
Currently, Sansiri's high-end single-housing projects include The Emperor and
The Gallery. But after learning that the brands confused consumers, the company
decided to drop them.
''Our firm name and housing brand can be sellable. Housing brands followed by
location name are easier to market,'' he said.
Of the 26 new projects scheduled for launch this year, seven would be
single-housing projects worth 7.6 billion baht, which Sansiri would develop. The
rest would be high-end condominiums by Sansiri; middle- to lower-priced
condominiums and townhouses by its subsidiary Plus Property; and lower-priced
single houses by another subsidiary, Prom Pattana.
The seven single-housing projects would be the expansion of a new phase in
current projects, including The Emperor in Bang Khae; Setthasiri in the Pracha
Chuen and Seri Thai areas; Saransiri in the Rarm Intra, Chaeng Watthana and
Pracha Uthit areas; and Burasri Sanam Bin Nam.
SIRI shares closed on the SET on Friday at 3.96 baht, down 10 satang, in total
trade worth 31.7 million baht.
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