Bangkok Property for Rent & Sale

Official Google's New Project 10^100

2008-10-09T10:46:00.001+07:00

Google marks 10th birthday and celebrates the spirit of our users and the web, launches Project 10^100 (that's "ten to the hundredth") a call for ideas that could help as many people as possible, and a program to bring the best of those ideas to life. CNN will be covering this project, including profiles of ideas and the people who submit them from around the world. For a deeper look, follow along at Impact Your World.

Ideas are due by October 20, 2008. Get started submitting your own ideas, and come back on January 27th to vote on ideas from others. We hope you feel inspired enough to try. I wish you to submit your ideas here. Wishing good luck, and may the ones who help the most win.

Official Google Blog: Project 10^100

Content Central Blog: Announcing Submit Your Content

2008-10-09T10:30:00.000+07:00

Content Central Blog: Announcing Submit Your Content

Deals for early birds

2008-07-19T16:52:00.001+07:00

Rising inflation and soaring oil prices that push up construction costs have triggered increased activity in the new supply of condominiums reaching the Bangkok market this year, says James Pitchon, executive director of CB Richard Ellis.

As soaring building material prices pushed construction costs up by 20-30% in the first half of this year, end-users and investors are now shopping around for good units among buildings that have been completed or are to be completed this year because they were built from a lower cost base. This is also what gives this new batch of buildings a clear edge over new projects being sold off-plan.

One example Mr Pitchon gave is Athe'ne'e Residence on Wireless Road, where resale units have been sold for as high 150,000 baht a square metre but this is probably cheaper than the price a new project in the same area could be sold today.

"This year I expect we will see increased activity in The Met which will be due for completion in the first quarter of next year. People driving past that side of Sathorn will see very fast construction progress."

Soaring costs have hit Bangkok harder than some other key metropolises. Here, the construction element is as much as 50% of the development cost whereas in cities such as Hong Kong, Singapore and London the land element can be as much as two to three times more than the total construction cost. CB Richard Ellis has observed that building material costs are similar across the globe with the difference being labour charges.

Resale units at Athénée Residence are fetching up to 150,000 baht a square metre, but a new luxury building in the same central Bangkok location would likely cost a lot more.

Mr Pitchon added that while many markets around the world were declining, Bangkok was fortunate to be in a more stable position because price increases here had been closely linked to construction costs rather than land price inflation or abnormally large developers' profit margins.

"In summary, it's not going to be any cheaper to build a new condominium unless there is a fall in construction costs which is unlikely in the next 12 months."

Clearly, developers of condominiums reaching the market this year are sitting pretty, provided their projects are well located and the designs match market requirements. Aside from the price factor, buyers appreciate the fact that they are getting something that has already been built and can be assessed as is.

"Buyers will have the opportunity of having a wide range of projects that are approaching completion. They can see what they get in terms of quality. They significantly reduce risk because it has been built - if the building is finished, it's there and ready. "

Also it is end-users and investors who will drive prices in the new wave of buildings hitting the market this year and not speculators because they are the ones who will be buying. Mr Pitchon expects each building to set its own benchmark price based on what the market thinks the quality of development is.

However, he observed that not all buildings had benefited from this turn in the market. Some of the last generation of buildings, which are around 10 years old, are only able to achieve around half the price of the the product next door.

"One of the main reasons is co-owners have not invested in refurbishment of common areas. In a single ownership property such as an apartment or a hotel it would be normal every five to seven years to significantly remodel the lobby area and the corridors. This has not happened in many residential buildings because they were not able to get agreement from a large enough number of co-owners to contribute to capital improvements. The achievable price of some of these older buildings is the same as it was in 1994, whereas there is a new product selling at double the price."

Mr Pitchon underscored that today's situation was in fact an opportunity for existing building co-owners to substantially increase the value of their property by making their buildings more attractive. If a building's sinking fund has depleted then co-owners should raise the cash required because they should invest in their property.

From the developers' point of view, the challenge this year is managing risks. The biggest risk is the cost of building their projects and in Mr Pichon's view they would be wise to fix these costs with contractors before launching sales.

"In addition, buyers want to see that buildings have all the necessary permits before buying off-plan, so buyers will want to see a building permit and environmental impact assessment if that is required. This is because there have been cases where developers have not been able to transfer units because either they have been in breach of their building permit or they have not received environmental impact assessment."

Despite these market challenges, Mr Pitchon observed that Bangkok had changed significantly over the last 10 years with the biggest change being that condominium living has become more acceptable both for the wealthy and the middle class.

"People want to live in the city centre and the central routes of BTS and MRTA have firmly defined where the city centre is. So Bangkok has become an inward-looking city where people have no choice really but to live in condominiums because single detached houses and townhouses are too expensive in the city centre.

"Despite the challenges of construction costs, I think the concept of living in a condominium is here to stay and the development pattern of Bangkok has changed from a city that is constantly moving outwards to a city that has become far more centrally focused."

Source: BangkokPost

Rental business grabs spotlight

2008-07-19T16:46:00.002+07:00

With economic difficulty inhibiting business growth, an opportunity exists within the property industry to generate high returns on investment.

This opportunity lies in the rental segment.

Unlike condominium projects, which face a higher degree of competition, the rental business is growing increasingly popular among land owners in Sukhumvit Road and other main streets of Bangkok due to lower investment and less competition.

Jones Lang LaSalle's residential agency head Daonum Verapong said the rental business was becoming more popular among investors because it not only creates value from the assets, but also generates high profits.

"Many investors and owners of land between 200 and 400 square metres in Bangkok will build houses for rent for use by foreigners," he said.

"This kind of investment helps increase income for landowners rather than keeping the land, which otherwise devalues with time," Daonum said.

Clients in the luxury and high-end segments require a high degree of security, private zones and integrated services.

Clients, who are usually executives in large organisations, are willing to pay a rent of between Bt150,000 and Bt300,000 a month for a two-to-three-year contract for a property covering 400 to 450 square metres.

Beside houses located in business areas, Bangkok's surrounding districts - such as the Ekamai-Ram Indra Road, also known as the Beverly Hills of Bangkok - are some of the more interesting locations for the rental business.

This area is located close to the city, offers a convenient commute, is well known among foreigners and is well connected to Sukhumvit Road.

Due to these factors, the area is fast replacing Sukhumvit Road as the destination of choice for upper-class residents. Depending on the property's size, the rent can be between Bt60,000 and Bt120,000 a month.

Many properties are available for rent in the area.

Bangkok Villa, operated by City Realty and located on Ekamai-Ram Indra Road (Lat Phrao Soi 84) on 13 rai, is one such property. The project offers 30 to 40 units for a monthly rent of Bt80,000-Bt90,000 per unit. Each unit has two-to-three bedrooms, and offers facilities such as a sauna, cable television, a swimming pool, cleaning services and security.

Perfect Masterpiece on Ekamai-Ram Indra, developed by Property Perfect, offers 17 units for rent at Bt65,000 to Bt100,000 a month depending on the size of the property and duration of the contract. Jones Lang LaSalle is the sole agent for the project.

Daonum said this project targets foreign executives who are looking for single houses with a convenient commute to Sukhumvit Road .

This project, built on 97 rai, has 167 single house units, which are available either in finished form or can be built to order.

The project is valued at Bt3.49 billion and units are available for sale at prices between Bt11 million and Bt57 million. Although the project offers only 17 units for rent, owners in the project are also offering houses for rent. The rental fee can be negotiated within the Bt60,000-to-Bt70,000 range if the contract is for more than two years.

The rental market targeting foreigners is a new alternative for investors to generate high returns.

Many major property developers have turned their focus more on the rental business. Landowners, who are unaware of how to generate value from their assets, should consider the rental business for investment as it holds great potential at the moment.

Source: Nation

Developers say rules will cut profits

2008-01-17T21:38:00.000+07:00

Green law will offset power use with trees

Proposed changes to environmental impact assessments (EIAs) relating to green space and air conditioning have raised concerns among condominium developers who fear lower profit margins. Teerachon Manomaiphibul, chief operating officer of the listed developer Property Perfect Plc, said the new proposed EIA measures require projects with more than 79 units to have one tree per tonne of British Thermal Unit (BTU) capacity of air-conditioning systems. He said the measure would increase costs by 10-20% due to limited space for unit development.

"Every new project faces this problem," he said. "Many need to revise plans by reducing units to have enough space to plant trees. This will increase prices per square metre or developers will need to have lower margins."

Since the new EIA measures were proposed last year, Property Perfect had to delay by three months the launch of a condominium on Ratchadaphisek Road. The company had to reduce the number of units from 1,750 to 900.

Meanwhile, to maintain a gross profit margin of 35%, the average price per square metre would have to be increased to 65,000 baht from 55,000 baht, said Mr Teerachon. The project would be launched by the second quarter of 2008.

"It's a trade-off for condominium buyers. If they buy a project that received EIA approval before new measures, they will pay lower prices.," he added.

Among other condominiums that faced delays were Noble Development's Noble Nano, with about 500 units on Pattanakarn Road.

Although the project opened for bookings in August of last year, the company needed to refund deposits to its customers and would re-launch the project during the second half of 2008.

Noble president Thongchai Busrapan said the EIA board suggested that any project with more than 100 units should receive EIA approval before selling units to customers to prevent a possible problem such as an adjustment in the plan.

New condominiums today have more limited space as some are located in prime areas with high land prices.

"The board should consider applying international standards that allow developers to plant the trees elsewhere like in the park or allow them to contribute money to environment-related organisations," Mr Thongchai said.

Mayta Chanchamcharat, chief executive officer of Plus Property Co, a subsidiary of Sansiri Plc, said condo developers this year might face lower margins due to expensive EIA measures.

Mr Mayta said the project's sellable area would fall but that developers might not be able to increase prices due to stiff competition. Thus, developers might absorb the cost by reducing gross margins.

Kittipol Pramoj Na Ayudhya, vice-president and secretary-general of the Thai Real Estate Association, said the new EIA measures would delay construction and unit transfers. This could cause buyers to delay their purchases.

Phatra Securities said the impact of the measures is already being felt since condominiums launched after last July do not yet have EIA approval.

Condominium developers need to buy additional land to meet the requirements. This has allegedly increased by 4-5% for high-rise projects in prime areas and 1%-3% for mid-rise projects in the suburbs or C+ areas.

There should not be any impact on property companies' earnings in 2008 given that projects scheduled for 2008 are approved and under construction. Developers may face losses of 2-6% in 2009 if they need to buy additional land.

Source: Bangkokpost by KANANA KATHARANGSIPORN

Jury still out on condotels

2007-11-21T22:36:00.000+07:00

A new trend emerging in the Bangkok property market is the condo-hotel, and while such developments are seen as sound investments, the jury is out on whether people want to live in a place that has a ful-time hotel atmosphere.

Among the entrants in the segment is T.C.C. Capital Land, which last week announced plans for a resort-style condotel, North Park Place, located at the Rajapruek Golf Course on Vibhavadi Rangsit Road. HKR Asia-Pacific International, a subsidiary of HKR International in Hong Kong which owns the five-star Sukhothai Hotel, earlier announced plans for a high-end condominium attached to the hotel. Rajadamri Residence, a subsidiary of Minor International Plc, has also announced the construction of St Regis Hotel and Residence on Rajadamri Road near the Minor-owned Four Seasons Hotel.

Ian Soo, the managing director Hamptons Property, believes condotels would likely be more successful in resorts than in the capital because the units would be mostly rented out to holidaymakers who stay there only briefly.

A certain type of individual might choose a condotel as a permanent residence but that person would have to accept some trade-offs, he said. "A lot of people, if they're living there long-term, want a more homely atmosphere; you see other families in the lobby rather than businesspeople."

In a hotel lobby one has strangers checking in and out all the time whereas in a more natural setting one's neighbour might say hello and there would probably be children playing within the compound, Mr Soo said, adding that a hotel atmosphere is not always relaxing.

Looking at the general direction of the Bangkok condominium market, Mr Soo and branch manager Kleber Medeiros say that prices are unlikely to move dramatically over the next few months, unless some developers experience trouble, which may cause a panic.

"From the seller's side, I think prices have reached a good point if they are looking to realise value from their units from selling, I think this is certainly not a bad time to sell, prices have increased a great deal," said Mr Soo.

"From the buyer's side, there are some good-value units in the market as well. There is more supply than demand, so it's a buyer's market and they can pick up some great units at good prices. We would tell them, don't hesitate if you can get a good deal."

It is important to remember, he said, that supply-demand dynamics have changed. A lot of people who have bought condos are now trying to rent out or sell them but the number of buyers has not increased at the same level. "So there is this increasing gap _ the number of people who want to buy and sell _ and this is what is putting pressure on prices."

In the current buyers' and tenants' market, Mr Soo says people must carefully monitor what the market is doing in terms of pricing. "If you price yourself out of the market _ you know landlords have these figures in their heads, looking at 12 months previously or two years previously _ there's no point doing that. You have to look at prices now, if you want a tenant, price sensibly."

Where opportunities for speculators and retail investors are concerned, Mr Soo said this depends on the specific unit but generally the opportunities are rarer now. "It's important to differentiate between investment and speculation. Investment is generally a longer-term view, there are certainly opportunities for investment in terms of good rental yield and so on. Outright speculation, I think, is much more difficult now simply because prices have come under pressure so it's not easy to buy something and just flip it a few months later."

Mr Medeiros says speculation was still possible if one buys a unit in a good building and in a good location but this market is not as good as it used to be.

Over the last two months Hamptons has sold good units at Sky Villa, AP Citismart and The Met in Sathon. For rentals, all the new grade A buildings including The Legend, Domus, The Lakes, AP Citismart and Sky Villa are popular.

Mr Medeiros pointed out that the Skytrain and subway continue to be key factors in the condo market. Bangkok's first Bus Rapid Transit, due to open next July and run from the Chong Nonsi BTS station along Narathiwat Ratchanakrin and Rama III roads and then across the river to Ratchaphruek, will not be as much of a factor in his view. The main reason, he says, is that foreigners continue to prefer living in the centre of the city with Sukhumvit being the most popular area along with the Sathon, Silom, Ratchadamri and Lang Suan areas.

Mr Soo noted that the new bus system will help if it operates as planned but it is unlikely to have an effect on local property values. "I don't think it will make a great deal of difference."

Both Hamptons executives doubt whether the riverside will really pick up as a major expat area, especially in Thon Buri, even once Skytrain access is available. The fact remains, says Mr Soo, that anyone with a car would continue to face heavy traffic problems.

"The traffic situation is much more exaggerated here than in London, where everybody would love to live by the river because you have 20 roads coming in and out, so it's no problem. But here it's actually a bottleneck disaster," he said.

Bangkokpost: by NINA SUEBSUKCHAROEN

Premium riverfront sites offer long-term benefits

2007-11-03T22:19:00.000+07:00

Bangkok, not unlike many other great cities around the world such as London or Shanghai, has grown up around a river _ the Chao Phraya River. For generations it has been the economic hub of trade and commerce with businesses and homes cropping up all along the waterway from its origins upstream in Nakhon Sawan.

Over the centuries it has inspired kings and queens, literary greats and architects who have created historical landmarks and cultural icons in the form of temples, palaces, teakwood houses and bridges along its banks.

Its importance for trade is undiminished as longtail boats and rice barges ply the famous channel as the river retains a buzz that is still very much in existence today.

The first international five-star hotels found their home on the banks of the Chao Phraya too, beginning with The Oriental to be joined by the likes of the Shangri-La, Royal Orchid Sheraton and The Peninsula more recently. They have been standard bearers for international hospitality and now it is the turn of international property developers to build on this progress and position Bangkok as a premium property investment proposition that has enormous underlying potential for growth.

The market this year has seen some interesting trends emerge, and these will continue to have a bearing on the riverside property market, an area that remains a busy location for developers representing 26% of new launches in the first half of this year.

The major change this year has been economic factors driving demand at the lower end of the market as housing affordability emerges as a key factor. Stable interest rates and lower pre-completion payments are key drivers of sales in that segment.

Demand in the higher end/luxury segment still appears cautious but has shown positive signs in the first half 2007. This segment is more attuned to levels of confidence in the market and Thailand's general economic outlook. An easing of currency volatility, along with the election in December and clear visibility in future mass-transport and infrastructure projects will be the major forces driving the upper-market segment forward.

Demand will continue to change over time, as preferences move toward condominiums rather than houses. Factors to consider will include close proximity to transport and retail facilities. Purchasers will look for more affordable units, perhaps smaller in size with efficient bedroom/bathroom/living spaces. When buying a property, purchasers should consider what they can afford, and invest in properties they would be willing to live in.

Currently, the best opportunities are in prime sites. These include existing prime areas in desirable inner-city locations, as well as emerging prime sites in new areas covered by future mass-transit systems. The risk attributed to existing and future prime sites is different _ existing prime sites are considered "blue chip", while newer sites are more speculative.

Bangkok still offers tremendous value compared to other regional and international property options, and with it, extremely strong underlying potential for growth. Prices of prime properties in Thailand are still a fraction of those in neighbouring countries. Hong Kong is selling prime properties for more than one million baht per square metre, Singapore for 600,000 to 750,000 baht per square metre. Shanghai and Dubai are now selling for well above 200,000 baht per square metre, having started at the same level as Bangkok in 2003.

Thailand property values, as well as the prices of stocks listed on the Stock Exchange of Thailand, have increased at a slower pace over recent years than those of its neighbours due to the uncertain political situation that has led to increased investor caution.

Once this uncertainty diminishes, we expect prices will begin to push up strongly. The jump could be significant, as we have already seen some developments looking at prices of 200,000 baht per square metre, while a year ago these would have sold for 100,000 baht.

The investment opportunities in condominium developments now, and certainly pre-election, are excellent. Prices are increasing, and are certainly expected to jump even more next year, with the best short- and long-term investment choices in prime areas.

Nigel Cornick is chief executive officer of Raimon Land Public Co Ltd, Thailand's leading international property developer with projects in Bangkok, Phuket and Pattaya. For more information visit www.raimonland.com

Source: NIGEL CORNICK (BangkokPost.com)

Starwood launches second 'W' location

2007-10-13T15:30:00.000+07:00

Starwood Hotels & Resorts Worldwide Inc has announced the expansion of W Hotels worldwide with a plan to launch its second hotel, the W Bangkok in 2011.

Starwood has entered into a management agreement with North Sathorn Hotel Company, a joint venture between Istithmar Hotels FZE and Golden Land Property Development Plc for the new hotel. The property would form a major part of Golden Land's Sathorn Square mixed-use development.

The 400-room W Bangkok would be located on the former Russian Embassy site on Sathon Road, that would also comprise Infinity Condominium and 70,000 square metres of grade A office space with luxury boutiques and shops.

"We are thrilled with the introduction of the W brand into Bangkok. Following the announcement of W Retreat & Residences, Koh Samui, the W Bangkok is a logical extension of W's dynamic growth in Thailand," said Miguel Ko, president of Starwood Hotels & Resorts, Asia Pacific.
The 400-room W hotel will be part of a mixed-use development at the former Russian Embassy site.

Joe Sita, chief executive of Istithmar Hotels, said the prime site in the heart of Bangkok deserved a world-class brand to operate the hotel.

"The W Bangkok is our second W Hotels property in Thailand and I believe it will complement ideally our first project, the W Retreat & Residences in Koh Samui, which is also currently under development," he said.

Istithmar Hotels is expanding its operations across the world. "Southeast Asia is a strategically important region, with Bangkok being one of our key target markets. We continue to look for projects that offer us the right balance between risk and rewards," said Mr Sita.

W Hotels is a global brand with 21 properties in the around the world. W Hotel recently announced plans to open properties in Barcelona, Istanbul, Athens, Hong Kong, Shanghai, Koh Samui, Santiago, Dubai, Doha and Macau.

Istithmar PJSC is the investment company of Dubai World. It has an investment portfolio that includes more than 50 companies. Its real estate business aims to acquire and manage a diversified portfolio in commercial property, hotels and resorts, the leisure and retail sectors.

Source: BangkokPost.com

TCC Land plans huge expansion Developer to invest Bt10 bn a year

2007-09-30T09:27:00.000+07:00

TCC Land, the property arm of liquor tycoon Charoen Sirivadhana-bhakdi, is planning an aggressive investment programme over the next five to 10 years.

It will join with foreign partners to pour Bt10 billion a year into different types of property developments.

CEO Wallapa Traisorat - a daughter of Charoen - said that to become an integrated property firm, TCC Land would set up joint ventures with four strategic partners - from the US, the Netherlands and Singapore - to develop different types of properties from the Sirivadhanabhakdi family's land bank. The family's land bank has properties in many provinces.

The first new business will be called Premium Outlet. It will develop a retail and residential project on about 8 hectares of land on Kaset-Nawamin Road - part of an 80-hectare plot owned by the family. For this project, the company will form a joint venture with Premium Outlet of the US, which has branches in Japan and South Korea, as well as its home base. Contracts will be signed this year, Wallapa said.

The second deal involves a joint venture with a Dutch property firm to develop a 1,600-hectare land plot in Cha-am district of Phetchaburi province as a residential project. Original plans were to locate a Disney theme park on the property, but TCC Land has changed its plans. Another site has been found for the Disney park.

"We continue to keep contact with Disneyland, but we think the Cha-am location is not suitable for the theme-park concept, and as a result we'll change to another area for this project," Wallapa said.

The third joint venture will involve a Singaporean firm that is expert in the logistics business. It will develop a logistics system for the entire business interests of the Sirivadhanabhakdi family.

Currently, Thai Beverage and Berli Jucker both have their own logistics systems to deliver their products. However, the companies believe the group's land and transport resources are sufficient for the development of a single logistics network to serve demand throughout the Kingdom. As a result, TCC Land plans to expand its business interests to cover logistics systems, she said.

The fourth joint venture will involve another Singaporean firm that is expert in the business of industrial estates, and plans are afoot to develop family land in Rayong province as a new industrial estate.

Wallapa said under the company's strategy, TCC Land would own as much as half of each joint venture. It expects the new joint ventures to make combined investments totalling Bt10 billion a year until the business plans are complete. Half of this will come from TCC Land, she said.

"We entered the property business in 2001, and we believe we're now strong and confident enough to expand our business to become an integrated property developer. This will combine residential projects, office buildings, retail business, hotels and resorts, warehouses, logistics, convention centres, theme parks and industrial estates," she said.

As a matter of business policy, TCC Land has taken on new projects only after finding strategic partners with strong experience in project development.

Earlier, it joined Singaporean firm CapitaLand to establish TCC Capital Land, which has developed eight residential projects in Bangkok, both condominiums and detached housing, worth up to Bt20 billion. They are Athenee Residence, Villa Rachahru, Villa Sathorn, Villa Ratchadumri, North Park Place, The Empire Place, The Emporio Place and Royal Residence.

The Royal Residence won Thailand Best Interior Design and Thailand Best Property awards at the International Property Awards 2007, announced in London. Athenee Residence has also won four star awards from Thailand Best Development.

TCC Capital Land expects total revenue of Bt4 billion this year and Bt8 billion next year. It plans to launch four new residential projects next year worth as much as Bt8 billion.

TCC Land has also signed a contract with US-based Starwood to manage its 10 hotels in Thailand and China. Construction of three of them, located in China and on Koh Samui, is now complete, and they are ready to operate. The next three are under construction in Thailand, and construction will start on the final four between next year and 2010. Investment in the Bangkok, Koh Samui and China hotels amounts to Bt10 billion.

Meanwhile, the company is negotiating with the Treasury Department to renew its contract to manage the Queen Sirikit National Convention Centre.

"We believe that when we have good partners who have strong experience and are ready to help our business plans, then we'll achieve our goals. But we have to take time to find the best partners," Wallapa said.

At present, TCC Land manages property worth up to Bt100 billion throughout Thailand.

Source: The Nation - www.nationmultimedia.com

Siamphan invests B2bn in Sukhumvit

2007-09-28T20:17:00.000+07:00

The contractor Siamphan Enterprise Plc plans to invest two billion baht to acquire a non-performing asset on Sukhumvit Soi 6 to develop into serviced apartments next year, according to managing director Teerapon Wangmontri. The investment will include the acquisition and renovation of the project, which will comprise 250 rooms with a room rate of about 3,800 to 4,000 baht per night. Operations will start in 2010 by the Singapore-based serviced apartment management firm Fraser.

"We've grown up from the construction business, but margins have decreased since oil prices have risen. Property development has more potential and we have our eye on serviced apartments that we can sell to a property fund," he says.

The company started developing property in 1997 for a project on Sukhumvit 15. Later in 2000, it acquired a leasehold non-performing asset (NPA) from the Tisco Group in the Lang Suan area with an investment of about 1.5 billion baht.

This leasehold asset, formerly owned and partly developed by Golden Land Property Development Plc, was developed as Urbana Lang Suan with a total of 283 units. Of the total, 135 units have been sold.

Meanwhile, the remaining 128 units with a total area of 10,523 square metres were operated as a serviced apartment by Fraser, which generated 60-70 million baht per year to the company.

Currently, Urbana Lang Suan has an average occupancy rate of 85% and an average room rate of 3,400 to 3,500 baht a night, or 80,000 baht a month.

Mr Teerapon said the 128 units of Urbana Lang Suan were sold to Urbana Property Fund (Lease Hold), or URBNPF, for 720 million baht. The fund will be a closed-end fund with leasehold rights of 28 years as the property is leased from the Crown Property Bureau. It has to pay 900,000 baht a month in rent and the rate will increase by 10% every three years.

The company yesterday signed a contract to appoint Siam City Asset Management as a property fund manager and Sicco Securities as an underwriter for URBNPF.

The company's subsidiary, Urbana Estate Co, which has registered capital of 400 million baht, will hold less than 33% in URBNPF, he said.

The fund will have no more than 75 million shares priced at 10 baht a piece. Dividends will be paid every quarter, while the minimum guaranteed returns per year for the first three years will be 8%, 9% and 10%, respectively, with an occupancy rate of 85%.

The company is also in talks with Siam City Asset Management to sell its Fraser Suite Sathorn with 170 units to a property fund. It invested 2.4 billion baht to develop the project, which has started operations in the past three months.

By the end of the year, the company expects to have a total of 520 million baht in revenue. About 400 million baht will be from the construction business and 120 million baht from recurring income and sales of some units at the Sathorn project.

Currently, Siamphan Enterprise has a construction job worth 600 million baht from the Bangkok Metropolitan Authority to build a Chao Phraya River dam. Revenue will be booked in 2008.

According to CB Richard Ellis, two property funds were listed on the Stock Exchange of Thailand in the first half of 2007, bringing the total to 14 with a market capitalisation of about 46.4 billion baht.

The JC Property Fund (JCP) was listed in January. Its 620-million-baht portfolio consists of space in the JC Kevin Office Tower A building and a car park, both held under a 30-year lease with an option to extend for five years.

Gold Property Fund (GOLDPF) was listed in May. It has invested in the 30-year land and building leasehold Mayfair Marriott Executive Apartment serviced apartment complex, and has an option to renew for another 30 years. The 26-storey building is owned by a subsidiary of Golden Land.

Source: BangkokPost.com

Beachfront Property Targeted

2007-09-26T21:05:00.000+07:00

Charn Issara Development Plc anticipates strong growth in the Cha-am and Hua Hin property markets due to higher demand from both Thai and foreign buyers, says managing director Songkran Issara.

Despite the market slowdown in recent months due to the low tourism season, Mr Songkran was confident that the property market would grow into next year as land plots available for future development are limited.

Consequently, beachfront land prices have risen continuously to about 120,000 baht per square wah, double the price a few years ago in same location of about 40,000 to 50,000 baht per square wah.

Phanom Kanjanathiemthao, managing director of Knight Frank Chartered, said the property market, especially resort condominiums, had expanded with the growth in tourism. Average room rates at four- to five-star hotels have jumped to about 4,000 baht per night, compared to 2,300 baht in 2001. More condominiums have been developed in Hua Hin and Cha-am and selling prices have risen significantly since this destination is popular among Bangkok residents. The expansion of Phetkasem Road and Hua Hin hospital to 1,000 beds has encouraged growth.

Charn Issara also tapped this market with the development of its 1.4-billion-baht Baan Chaan Talay on a 14-rai beachfront plot in Cha-am. The project would house 175 units at prices starting from 3.2 million baht.

It has signed a contract with Wisavapat Co to build the project, which is scheduled to be completed in early 2009. About 40% of the project has been sold, and the company expects 60% to be sold within this year.

CI shares closed yesterday on the Stock Exchange of Thailand at 4.04 baht, up four satang, in trade worth 126,000 baht.

Source: BangkokPost.com

Budget-condo leader bucks conventional wisdom

2007-09-24T20:55:00.000+07:00

When the field gets crowded, the brave move on to play in virgin territory, which could apply to L.P.N. Development Plc. The company that pioneered the budget condominium trend and has come to dominate the segment appears to be breaking one of the cardinal rules of the game.

The conventional wisdom has been that the people who buy budget condos do so because, well, they have tight budgets. Many are young working people, and given the choice between a first home and a car, some have chosen the former. Even if they have their own wheels, driving to and from work is inconvenient and expensive, so they want to be near a skytrain or subway station.

There's only one problem with this assumption, says L.P.N. managing director Opas Sripayak. Heavy demand for locations near mass transit has pushed up land prices. That poses a big cost challenge for developers who want to provide quality products for thousands of people with budgets of two million baht or less. For this reason L.P.N. has been moving a bit farther afield.

''These locations are close to the stations but not next to them, but because we have invested in shuttle buses to transport residents to the stations, our clients will have the same convenience as those living close to them, but it is much cheaper,'' he said.

''Being a bit further away from the station means there is less commotion and this is better than having it on one's doorstep with the whole area being so busy.''

Buyer response seems to vindicate Mr Opas's decision. Interest has been high in the company's new development in the Rarm Intra-Laksi area, and while sales of another condo in the Pracha Chuen area have not started officially, the model units are ready and the sales office is open.

''We launched a project in Rarm Intra-Lak Si and it has been quite successful,'' he said. ''The total number of visitors to the site hasn't dropped. Each week around 200 to 300 people come to the project, some weeks the total is even 400 especially during the launch.''

This strategy is also working because it matches Bangkok's demographic profile. Mr Opas explained that the lifestyle of the new generation means families are smaller with children moving out when they complete their education and get a job. But should they opt for a townhouse or a single house it often means moving much farther away from the parental home, while a condo in the neighbourhood would keep them close. Of course, the price is another lure with suburban condos being cheaper than townhouses or single houses.

In selecting locations, L.P.N. takes several issues into consideration. Chief among these is the total number of apartments because this means the area is well populated. Its marketing depends heavily on persuading people that they can own an L.P.N. condo for about the same money they're now paying to rent an apartment.

''Another thing we look at is whether it is an old residential neighbourhood,'' he said.

Mr Opas acknowledges that consumers are more thrifty these days _ witness slowing auto sales and the never-ending campaigns by department stores to draw shoppers. But he says L.P.N.'s business has not been affected. After all, he points out, people's incomes haven't dropped, only their confidence.

However, some buyers have had difficulty obtaining mortgages. Mr Opas and his developer colleagues have complained that banks have been rejected as many as 40% of their buyers.

''I think that is the meanest they can get,'' he said. ''I don't think the sub-prime crisis will make the banks tougher. As I see it, the financial crisis Thailand passed through in 1997 taught everyone a lesson, especially the financial institutions, and these institutions have been very, very tough in giving loans to both buyers and developers of late. If developers' sales don't reach a certain point they don't get a loan, and if banks are uncertain about a buyer, they won't give him a loan.''

He expects banks to continue being tough, with interest rate directions also affecting the rejection rate. Whether buyers who fail to get a mortgage get their downpayments back depends on the company, but L.P.N. does take this into consideration.

In some cases banks reject a mortgage application because the client has been blacklisted by the Credit Bureau without being aware that it has happened. ''Property buyers should check their credit ratings,'' is Mr Opas's advice.

Many others have been rejected because they have not been able to adequately demonstrate a steady income. Sometimes this is because their employers do not provide pay slips, or they are freelance workers.

''There is an automatic system in place to score loan applications, and to pass you need certain papers and when these aren't available they can't do anything, so it is not approved.''

As a result, Mr Opas advises buyers to get a mortgage pre-approved before they even book a unit.

While getting a mortgage is important, there are those who buy condos in cash. L.P.N. has noticed that up to 90% of the buyers of its lower-end projects need bank financing but when it comes to units costing 1-2 million baht a unit, up to 30% buy in cash. People from the provinces are notable in this regard.

Buyers are also cautioned not to expect the value of their units to double in 10 years, unless they're in a prime area.

Rather than hoping for capital appreciation, Mr Opas says buyers should look to obtain decent rental returns. ''For example, if you have one million baht today and you put it in a fixed bank deposit this you will get a little over 2%. But if you buy a condo in a good location where there is high rental demand, the monthly rent could be a lot more, it could return 5-6%, which is better.''

Source: BangkokPost.com

Bangkok Property Market Begins to Slow

2007-09-21T20:23:00.000+07:00

The Bangkok property market has slowed down over the year following last September's coup as economic factors continue to be unfavourable due to persistently sluggish consumption and investment, according to the Thailand office of the international consultancy Jones Lang LaSalle.

Most property segments continued to expand over the past 12 months, with rentals and capital values rising further in some segments but at a relatively slower pace, said Dan Tantisunthorn, head of research for JLL in Thailand.

He said the endorsement of the new constitution, which set the stage for a general election on Dec 23, had lifted sentiment in general to a certain degree.

"However, we believe the property market will not see any significant activity before general elections are held and a new government is formed in 2008," he added.

JLL viewed that the property market was hit by a number of surprises over the first few months after the coup. These include the Bank of Thailand's reserve requirement on short-term capital inflows in an effort to curb the strengthening baht, the New Year's Eve bombings and proposed amendments to the Foreign Business Act (FBA).

All of these dampened the market outlook for 2007.

It said the proposed amendments to the FBA had had the strongest impact on the property market and continued to dim the outlook.

Demand in the office and retail sectors has been most affected by the proposed amendments. Existing international companies and retailers appear reluctant to expand their businesses, opting to wait and see how the new act will affect foreign business operations in Thailand. The establishment of new multinational companies has been scarce.

On the property investment front, the proposed amendments have highlighted impediments foreign institutions face to real estate investment in Thailand, JLL said.

The law is very specific in that, with few exceptions, foreign entities are prohibited from owning land in Thailand.

However, these proposed legislative amendments have yet to be pass and many hope they will remain that way and should be reviewed by a newly elected government, JLL said.

Source: Bangkokpost.com

Second Marriott Executive Apartments in Bangkok in 2008

2007-09-20T20:08:00.000+07:00

Marriott International will open its second Marriott Executive Apartments facility for extended stay travellers in Bangkok in early 2008 under a management agreement reached with Metrostar Property Public Company, Ltd., a listed company on the stock exchange of Thailand.

The 184-unit Sathorn Vista, Bangkok -- Marriott Executive Apartments will be housed in a stand-alone, 31-storey tower on Soi Suanplu, off South Sathorn Road in the heart of Bangkok's central business district. Nearby are the offices of various banks and the embassies of Singapore, Australia, France, Germany, Austria and Denmark. The Suan Lum Night Bazaar and the Lumpini subway station as well as the Saladaeng BTS station are all located in close proximity to the site. Bangkok’s new international airport is a 40-minute drive away.

''We are excited by the continued expansion of our lodging portfolio in Thailand,'' said Ed Fuller, president and managing director of international lodging for Marriott International. ''When opened next year, this will be the fifth Marriott International property in Bangkok. All are extremely successful and we are confident that this sensational new serviced apartment facility will be very popular with long-term visitors to Bangkok.''

Metrostar Property mainly focuses on residential developments in prime locations in Bangkok. The agreement with Marriott is part of the company’s strategy to introduce quality projects to the market. Metrostar has indicated that is confident that this project, situated on a much sought-after land parcel in the centre of the financial district of Bangkok, will be a very successful addition to the serviced-apartment market in the city.

Marriott Executive Apartments offer residential-style living combined with the indulgences of deluxe hotel services. Apartments range in configurations from studios to three-bedroom serviced apartments. All Marriott Executive Apartments provide pre-arrival consultation, welcome amenities such as property orientation and city tour, round-the-clock staffing, thrice-weekly housekeeping service, grocery delivery and laundry service.

Each unit contains a fully-equipped kitchen, washer/dryer, security safe and storage; high-quality and comfortable furnishings that create a warm environment; dedicated work area and desk; and double phone and fax lines with voice mail and private line.

For dining, the Sathorn Vista, Bangkok--Marriott Executive Apartments will have a casual restaurant serving three meals daily. Recreational amenities will include a swimming pool, spa and fitness centre. The property will also offer a resident-service desk, a resident lounge, a multi-purpose game room, a sundry shop, a business centre, room service, and an on-site resident storage room.

For small meetings and social events, the property will have an 80-square metre meeting room.

All Marriott Executive Apartments also participate in Marriott’s highly-acclaimed, 26 million-member strong Marriott Rewards frequent guest loyalty program.

Other Marriott Executive Apartments can be found in Hong Kong, Mumbai, Prague, Budapest, Brussels, Dubai, Tokyo, Shanghai, London, Sao Paulo, Beijing, and Jakarta. Future openings include Doha and Manama.

Source = Marriott International

Property Hot Spots Attract Airline

2007-09-16T15:17:00.000+07:00

Bangkok Airways are soon to announce their winter schedule and four new routes starting toward the end of October. As well as further expanding it's regional service, Bangkok Airways are targeting the Andaman Region with new Bangkok-Krabi and Samui-Krabi services.

Samui is Bangkok Airways' stronghold, due in large part to their exclusive access to the island's airport which they privately own. As a result, Samui's growth has been largely attributed to Bangkok Airways and their strong support and promotion of the destination over the years.

Operating Singapore-Samui and Hong Kong-Samui routes has contributed to the growth of the Samui property market through providing easier and quicker access for regional buyers and investors.

Now linking Krabi with flights direct from Samui and Bangkok, the trickle down effect is expected to be seen in Krabi. Not only is Krabi hoping to see increased tourism numbers through more flights to the province and more convenient access, but Krabi´s burgeoning property market is expecting to see gains too.

In property circles, Krabi has often referred to as part of Great Phuket, which includes Phuket, Phang Nga and Krabi provinces. And now with improved air access from key destinations within Thailand, the expansion and development of Greater Phuket, and Krabi in particular, is expected to gain momentum.

Copyright © 2007 Thailand Real Estate and Property Guide and Thailand Real Estate Magazine

Pacific Star launches Sathorn project

2007-09-14T19:41:00.000+07:00

Real Estate investment firm Pacific Star International (Thailand) has launched the opening of sales for Sathorn Gardens Condominium, located on Sathorn Road, Bangkok.

"We are very proud to officially announce the opening of sales of Sathorn Gardens for all prospective clients, having freed the project from all obligations accrued under the previous developer. In paying for a premium lifestyle, anything less than perfection should not be tolerated. We have therefore applied our extensive international experience to fully enhance our first project here in Thailand", said Mr. Gill, Country Head of Pacific Star International (Thailand). "The construction completion of the 350 units and comprehensive renovations and refurbishments include upgrading all common areas throughout the project and facilities management. This will secure the long term investment value of all the condominiums and will put Sathorn Gardens on a par with other premium 5 star residences in Bangkok."

Sathorn Gardens Condominium is set on five rai, just off South Sathorn Road with two 41-story residential towers. The project offers a mix of spacious residential units including: studio units (39-43 square metres), one-bedroom units (63-86 square metres), two-bedroom units (78-94 square metres), three-bedroom units offering 200 square metres of space, and duplex penthouse units covering 462 square metres each. Prices start from 87,000 baht per square metre with the smallest 39 square-metre unit selling for about 3.4 million baht.

"Buyers can benefit as the building is already finished, and units will be ready to move in by January 2008. All units are fitted out with custom-designed kitchens, imported German kitchen appliances, timber floors, air-conditioning and fully-finished bathrooms. It is a wonderful new choice for Bangkokians and it is our intention to bring the best of all aspects to the project. We aim to provide a higher standard of living and a better quality of life to all our valued customers – a principal to which we at Pacific Star always hold firm." Gill said.

Source: http://www.property-report.com/aprarchives.php?id=739&date=120907

Frasers opens third Bangkok Property

2007-09-13T11:57:00.001+07:00

International serviced apartment developer Frasers is set to open its third Bangkok property, Fraser Suites Sukhumvit.

The 118 unit development, on Sukhumvit Soi 11, will open its doors to guests in October. Jacqui Cuthbertson, general manager of the development, says Fraser Suites Sukhumvit will provide both corporate and leisure guests with a high quality beautifully designed living space, suitable for both long and short-term stays.

"I think what's important about this property is the design aspect of it and the facilities that we offer. We understand as Frasers that living in a foreign country is not just about the apartment that you’re living in. It’s also about the home environment, so the facilities that we’re offering always add value to the guest's life when they’re in a foreign country."

Rates start at Bt4,500 a night, and Frasers is offering discounted rates for long term guests. Facilities include a gym, swimming pool, sauna, restaurant, room service, meeting rooms which seat up to 20 people and a business centre. Apartments range in size and include 52sqm studios, 72sqm one-bedroom suites and 160sqm three bedroom penthouses. All units feature fully-fitted kitchens, washer/dryer and a full size fridge/freezer.

Cuthbertson says they expect the property to do well, as the very nature of the Sukhumvit area is that it attracts both types of travellers – corporate and leisure.

"We understand that serviced apartments are becoming the first choice for so many types of travelers so that it’s really sometimes the first option rather than a hotel for tourism and corporate travelers." she said. "Because we’re targeting both markets we can be quite flexible and adapt our services to suit both types. There’s more space."

Fraser Suites Sukhumvit is the Singapore firm's third Bangkok property, joining Fraser Place in Langsuan and Fraser Suites in Sathorn.

"Frasers is always looking for new opportunities, especially where the market is strong." said Cuthbertson. "In the first two developments we are achieving very high occupancy rates, which are proving to be sustainable all year round. Now Frasers has three very good locations throughout the city. It's a great portfolio to offer all our guests."

As for the current state of the serviced apartment market in Bangkok, Cuthbertson says Frasers is in a good position to continue to prosper, despite the high number of firms that enter the market every year. In fact, they even welcome the competition.

"It keeps us on our toes and raises the standard of quality, so that can only be a good thing for our guests."

Source: http://www.property-report.com/aprarchives.php?id=728&date=070907

Investing in Bangkok Condos

2007-09-11T20:27:00.000+07:00

There is no doubt that real estate has the potential to provide you with a very large profit, as long as you know what it is that you are doing. With so many different types of real estate investments for you to make, choosing one may be difficult. Since so many people find Thailand to be a wonderful place to invest in because the cost of real estate is so affordable, this is something that you may want to take into consideration. Here, we will take a closer look at Bangkok condos, which are one type of real estate investment that you may want to consider making. Bangkok condos are something which has grown to be increasingly popular among people who are foreign to the country of Thailand.

One of the main things that you may be wondering, since there are so many different legal issues regarding people who are foreign to Thailand buying real estate, is whether or not it is legal for you as a foreigner to buy Bangkok condos.

Fortunately, it is legal for you to buy Bangkok condos, even as a foreigner. What this means is that if you are looking for some type of real estate investment in Thailand, Bangkok condos may be a great choice for you.

If this is something that you are thinking about, one of the main things that you may be wondering is what the benefits of purchasing Bangkok condos as a real estate investment are. Well, one of the main benefits is the fact that you will be able to continuously bring in a monthly paycheck. This is one of the main reasons that many people enjoy investing in condominiums or apartments, so you will probably find investing in Bangkok condos to be very advantageous for your wallet. Aside from the fact that investing in Bangkok condos is legal for foreigners, this is one of the main benefits that this type of real estate investment has to offer you.

If you are planning on purchasing Bangkok condos as an investment, or even one for yourself to live in, it is important to make sure that you do an adequate amount of research. You will probably want to visit a lawyer in regards to the Bangkok condos which you are interested in. This will help ensure that you are following all of the legality issues which are related to you buying Bangkok condos as a foreigner. If you are planning on building your own condominium complex in Bangkok, you can trust that your lawyer may be able to provide you with the name of a good developer, as well as information about them. This will ensure that you will be the most satisfied, and also have the largest potential profit, with your Bangkok condos.

As you can see, there is much to take into consideration when it comes to investing in Bangkok condos. However, it is safe to say that this type of real estate investment is a wonderful choice to make, which is why you may want to consider investing in Bangkok condos yourself.

Article Source: http://www.articlesbase.com/real-estate-articles/investing-in-bangkok-condos-208171.html

Flipping a House for a Real Estate Profit

2007-09-11T00:30:00.000+07:00

House Flipping is the term used by investors who purchase a home for the sole purpose of quickly relisting the house for a profit. In many hot markets, a house can appreciate in as little as a few days! In these markets, it doesn’t take long to realize a profit. However, this is the exception rather than the rule.

More commonly, an investor purchases a home in a hot market, performs some general repairs, fixes obvious problems, paints, and replaces flooring. This means that the investor must hold onto the property for a few weeks to a few months. In this case, you must be able to afford to pay the mortgage for a few months.

When searching for an investment that you want to flip, you must find the right property. Not all homes are good candidates for flipping. Certainly, buying a home in a depressed area would not be a wise decision. You should look for an ugly home in a nice neighborhood.

Many potential investors ask whether they need to be a handyman or contractor to successfully flip a house. Not at all! You can be the “general contractor” and manage the house repair while you get it ready to resell. Of course, much of your profits will go to the people doing the work on your home, but you don’t have to give up your “day job” to get the work done.

When budgeting for your flip, a good idea is to get estimates from several contractors. Ask them to quote the price for the fix-ups, and more importantly, the amount of time it will take to complete the job. Remember that the longer the project takes, the more you’ll be paying on your mortgage.

Once you have several firm quotes, double the amount of the quote as a closer estimate to what you’ll actually spend. Unknown problems will be uncovered during the remodel and you’ll need to have some extra capital and have extra time available to complete the job.

Once you complete the project, get the house back on the market! And sell for a profit. Many people are successfully flipping houses as you read this. And many are making huge profits. But the first step is to start! So go buy a property and get it fixed up. Good luck!

Source: www.artickefinder.com
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All Bangkok Property

2007-09-09T09:34:00.001+07:00

Bangkok Property, House, Condo, Apartment and Tounhouse for Rent and Sale
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Bangkok Condos

2007-09-08T21:45:00.000+07:00

The condos in Bangkok are convenient for those who are working in central Bangkok. Condo near sky train or subway are the most convenient places so that you can go to work easily. Finding Bangkok's condo are not easy as you guess, but the agent can find for you, tell them your requirement and they whill show you the condo list that you can select for renting or buying. The recently included Serviced Apartment or condo, showcasing a selection of exclusive residential units with services and facilities that are tailored to meet your individual needs, whether on business travel, holiday, project assignment or relocation, all with easy access to trains, expressways, shopping, dining and entertainment. The recommented condo list to see are as follow.

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Good luck for finding Bangkok condos. If you still need any assistant finding bangkok condo, please contact me at swe@anet.net.th for more information and recommendation.