Posts Tagged ‘luxury’

Voters don’t lie! Bangkok named ‘World’s Best City’ by Travel + Leisure magazine

Thursday, July 15th, 2010

Travel + Leisure Magazine has released its 2010 “World’s Best” list, with Bangkok voted as the top city in the world, followed by Chiang Mai, in the annual poll voted on by the American luxury travel magazine’s readers.

We’re quite certain there has to be a bit of celebrating going on in the offices of Thailand’s Tourism Authority, which has been battling hard to bring back the tourists following the recent unrest in Bangkok. (Though it must be noted the Travel + Leisure survey was completed before this year’s mass protests.)

Rounding out the top 10 on the “World’s Best City” list are Florence, San Miguel de Allende (Mexico), Rome, Sydney, Buenos Aires, Oaxaca (Mexico), Barcelona and New York City.

Thailand’s hotels did well too, with the Peninsula Bangkok rising from No. 66 in 2009 to No. 7 in 2010, while Thai Airways was voted the world’s eighth best international airline. Check out Travelandleisure.com for the full list of 2010 winners.

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Chinese efforts have “cooled property market”

Tuesday, June 15th, 2010

BEIJING (AFP) – China’s recent measures to rein in soaring property prices had been effective in stabilising the real estate market, a top housing official said on Friday during a rare online chat with Internet users.

“The trend of excessively fast rising residential property prices in some cities has been curbed, sparking a wide, positive response in society,” Qi Ji, vice minister of housing and urban-rural development, told web users.

Qi also warned excessive increases in property prices posed a risk to “living standards, security of the financial system and social harmony and stability”.

The online discussion attracted hundreds of questions from web users, highlighting growing fears that China’s property market was at risk of overheating.

Beijing has introduced a series of measures in recent weeks to cool soaring prices amid growing complaints they are out of the reach of many Chinese people.

Questions posted on the central government’s website covered a range of issues such as the lack of affordable housing and corruption among officials.

One web user with the name “Give Me Hope” complained he and his wife could not afford to buy an apartment in a second-tier city and were jealous of “house slaves”, referring to people with a mortgage.

“We cannot afford the down-payment at all, particularly after the issuance of the new policy requiring a down-payment of at least 30 percent,” he wrote.

Prices in major cities rose 11.7 percent year-on-year in March, the fastest pace since a nationwide survey was widened to 70 cities in July 2005, official data show.

At the Beijing Real Estate Expo last month, the average price of a new apartment in the Chinese capital was 21,164 yuan (3,100 dollars) per square metre, double that of last year, state media said.

That means a 90-square-metre apartment in Beijing would cost 1.9 million yuan, compared with the average per capita income of 17,175 yuan in 2009.

A government-backed survey showed consumer confidence in the first quarter hit the highest level since 2007 but people were less willing to spend money, possibly due to rising property prices, state media said Friday.

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NO IMPACT ON HOUSING DEMAND

Monday, May 31st, 2010

Despite the political turmoil, Thailand’s property firms have launched new residential projects worth several billion baht so far in the second quarter of thie year.

Most of them say their presales in April and May have been close to estimates.

Sansiri’s president Srettha Thavisin said his company’s presales in April and May reached Bt1.4 billion – close to the figure it expected.

The company is preparing to launch its latest Bt1.9-billion project, Keyne by Sansiri, close to the Skytrain’s Thonglor Station on Sukhumvit Road. The project will have only 208 units, with a starting price of Bt5 million each.

“The political uncertainty has not affected our sales. Demand to buy residences outside central Bangkok is growing strongly, and we believe that our sales will reach our target of Bt22 billion by the end of this year,” he said.

Quality Houses has boosted the number of new residential projects it will launch this year from 14 to 21. Seven of them will be developed by its new subsidiary, The Confident Company, which has been established to specialise in residential projects with prices lower than Bt3 million per unit.

Quality Houses’ chief executive Ratt Panichaphan said political problems had not affected demand for residential projects, so his company had proceeded with new launches.

BTS Group Holding is about to unveil two condominium projects with a market value of Bt10 billion. The condominiums, with the Abstracts brand, will be on Phaholyothin Road and at Sukhumvit 66/1.

Managing director Kavin Kanjanapas said teh buildings would be constructed under a deal between his company and a Hong Kong construction afffiliate called Hip Hing Construction (Thailand).

Both projects should be completed next year.

Supalai’s chief executive Prateep Tangmatithum said his company was confident it would generate Bt15 billion in presales this year. It has already recorded presales worth Bt5.5 billion in the first quarter.

Supalai’s revenue was Bt3.19 billion in the first quarter and net profit was Bt831 million, up 53 per cent and 54 per cent respectively from the first quarter of 2009. The company’s backlog is valued at Bt18.31 billion.

The Nation

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Real estate launches rise 22% in value in Q1

Monday, May 31st, 2010

INCREASE IN LAUNCHED HOUSING UNITS Up 72% 22,333

Real estate launches in the first quarter rose in value by 22% year-on-year to 50.89 billion baht from 81 projects with 22,333 units, a rise of 72%, according to a survey by the consulting firm Agency for Real Estate Affairs.

The agency’s president Sopon Pornchokchai said the supply in the first quarter rose in line with rising investor confidence and improved economic sentiment, as investors were largely unconcerned about political risk.

In his view, the surge in launches may not relate to the government’s property incentives.

Most developers applied a presales policy, so their launches would not necessarily be completed before incentives end on June 30, after being extended from May 31 in reaction to political unrest, he said.

Large developers have expanded their investment plans, partly supported by the raising of the ceiling price for a BoI home to 1.2 million baht.

This opens up tax incentives for developers from the Board of Investment,under its policy to promote affordable units for low- and middle-income earners.

Based on the first quarter’s figures,AREA forecasts that 89,332 units may be launched this year,55% more than in 2009.

But the figure may be 10-20% lower than the prediction, he said.

The agency found that 43% of new launches in the quarter – or 9,604 units – were sold in the quarter, more than triple the 2,195 units sold in the same quarter last year.

Condominium units made up 55%of launches in the first quarter. The figure of 12,287 condo units launched was an increase of 142% from 5,073 units in the first quarter of 2009.

New townhouses totalled 6,227 units,up by 101% from 3,092 units. New single houses numbered 2,549 units, a dip of 18.35% from 3,122 units.

AREA found the average unit price for the first quarter was 2.279 million baht, down by 29% from 3.211 million a year earlier.

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HOTEL PIPELINE Bangkok Top’s 9,032 New Rooms

Friday, April 30th, 2010

Despite nearly 24 months of political tension in Bangkok the hotel pipeline has continued to surge ahead with 9,032 new rooms now in development. According to data issued by STR Global, for the Asia Pacific region Thailand follows only China (131,175) and India (43,448) with active projects representing an increased supply of 15,449 rooms.

Based on C9 Hotelworks market research there are currently 31 properties with 4,600 rooms under planning and development in Phuket. The nearby resort island of Koh Samui will see 6 new branded hotels with 541 keys set to open over the next 15 months.

Thailand has continued to see substantial new activity for hospitality assets as indicated by strong domestic liquidity, dynamic performance of SET (Stock Exchange of Thailand) listed property firms and high net worth individuals becoming increasingly interested in diversifying into the sector.

While there look to be signs of hotel oversupply and continued trading volatility in many of the country’s major tourism destinations; to date this has not severely dampened development.

Viewing STR’s Asia Pacific report showing a pipeline of 976 hotels with 249,156 rooms the biggest chain scale segment activity is within luxury and upscale while the economy segment is seeing the smallest growth.

The Phuket Insider April 26, 2010

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Property funds still shine

Monday, March 15th, 2010

Property funds remain an attractive option for long-term investors, thanks to sustainable returns with relatively low risk of falling asset values, says Therdsak Thaweetheeratham, head of research at Asia Plus Securities.

Speaking at an investment conference yesterday, Mr Therdsak said current dividend yields for listed property funds are a relatively strong 8%.

Volatility is also significantly lower than in the SET index, as returns are typically generated from long-term rental contracts and assets and fund operations are regulated by the Securities and Exchange Commission.

Mr Therdsak said investing in property funds was also considerably less expensive than direct investment in property.

SEC rules also require funds to conduct a revised asset appraisal every two years by an independent financial adviser.

In addition, listed property funds are trading at a significant discount, averaging 17.4% below net asset values, said Mr Therdsak. Leasehold funds have a discount of 20% while freehold funds are trading at a discount of 12% against NAV.”This means that buying a property fund costs less than to buy real assets,”he said.

Mr Therdsak’s two top picks are the freehold Ticon Property Fund and the leasehold Samui Airport Property Fund.

Sudhipongse Phuaphanprasert, deputy managing director at BBL Asset Management, said political issues could affect investment while tax incentives have had a positive impact on market sentiment, with single detached houses and condominiums gaining from the measure.

BANGKOK POST
11 March 2010

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CONDOS FOR MASS-TRANSIT ROUTES

Monday, March 15th, 2010

Continuing economic recovery and strong demand for condominium units near to Bangkok’s rapid-transit stems have led to surge of condominium projects being launched by leading property firms in the first three months of this year.

A survey by The Nation last week found that the first-quarter condominiums, to spring up around both existing and planned rapid-transit lines, have a collective market value of more than Bt50 billion.

LPN Development will introduce two new condominium projects worth more than Bt4 billion on March 20. The first, Lumpini Place Ratchayothin, will be worth Bt3 billion and the second, Lumpini Place Rama IV-Kluay Namthai, more than Bt1 billion.

Asian Property Development has sold units worth half of the total value of The Rhythm Ratchada-Huai-Khwang, a Bt2.2-billion condominium project that it opened for presales at the end of last month.

Sansiri opened its Pyne condominium project on Ratchathewi Road last week and it sold out in a brief two hours. It has a market value of Bt2.1 billion.

Noble Development will soon launch its least condominium project, called Noble RE:D, close to the Skytrain’s Aree station. It will be worth Bt1.4 billion.

Eastern Star Real Estate is launching two condominium projects this week – Vantage, on Ratcgadaphisek Road and The Breeze, on Narathiwat Road – with a combined value of more than Bt5 billion. The grand opening of presales is based at Siam Paragon.

Supalai has launched a condominium worth Bt3 billion located close to the Skytrain’s KrungThon Buri station called Supalai River Resort. The company says there has been a positive market response.

BKK Group is building its latest condominium project, The Coast Bangkok, on Bang Na Road near to the Skytrain’s Bang Na station. The Bt5-billion condominium will be completed in two or three years.

Meanwhile, several property firms are planning to launch condominium projects in the second quarter. They include Major Development, which plans to introduce two projects close to the mass transit system with a combined market value of Bt4 billion.

Sansiri is also planning to launch more condominium projects in the second quarter.

Asian Property Development’s chief executive Anuphong Assavabhokhin said that demand for city condominium projects had been recovering since the final quarter of last year, following a slowdown in condominium development in the first half of 2009.

His company plans to launch four new condominium projects near to mass-transit systems this year. One of them, The Rhythm Ratchada-Huai-Khwang, has already been launched. The remaining three will be launched in the final quarter of 2010.

Sansiri’s president Srettha Thavisin said home-buyers had changed to condominium living because most condominiums were near mass-transit systems and provided a modern city lifestyle.

The level of demand was clear from Sansiri’s success in selling out its Bt2.1-billion condominium project, Pyne, in just two hours last week, he said.

LPN Development’s managing director Opas Sripayak said his company believed that demand for condominium units priced below Bt3 million had continued to grow. However, this depended upon their location, and proximity to mass-transit services.

“When we had a grand opening for presales of a project located close to the mass-transit system, we sold out in half a day. Some locations have customer lists long enough to launch a new condominium project at the same location. I once thought condominiums were unfashionable. Now they’ve become residences to serve the young lifestyle,” he said.

THE NATION
12 March 2010

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ASIA PROPERTY RECOVERY

Monday, March 15th, 2010

Asia-Pacific rallies; some European countries still suffer

Most housing markets in the world are in the process of recovery, according to the latest survey of residential property by online propertyresearch house Global Property Guide.

During the last quarter of 2009, house prices rose in 22 countries, out of 34 countries for which quarterly house-price statistics were available. Prices fell in 11 countries.

However, Global Property Guide said year-on-year figures told a story of an unhappy year in 2009. In the course of last year, 18 countries’ housing markets experienced price declines, while only 16 experienced house-price increases.

In other words, although figures from the last two quarters suggest that recovery is now taking place, most countries’ house prices are still down on the year, due to earlier declines.

The Global Property Guide’s statistical presentation uses price changes after inflation, giving what it claims is a more realistic picture than the “more upbeat” nominal figures usually preferred by real-estate agents.

The research house said that even in the limited sense of a third-and/or fourth-quarter recovery, the figures are uneven. Some countries in Asia are recovering rapidly. But housing markets in some of the world’s worst-hit countries have continued to decline.

Global Property Gude said the Asia-Pacific continued to rally.

Hong Kong and Taiwan have been Asia’s top performers. Hong Kong’s house prices are already back above pre-crisis levels. The housing market there experienced a quick turnaround. with prices surging 20.81 per cent over the entire year after suffering a 15-per-cent decline in the first quarter of 2009. In Taiwan, house prices were up by 18.29 per cent during 2009 and by 4.7 per cent during the final quarter. Investors’ confidence in the Taiwanese market has significantly improved, after the signing of a number of economic agreements with China, the research house said.

After a painful decline in 2008 (-9.59 per cent), 2009 was a roller-coaster ride in Singapore’s housing market. After price falls in the first half of the year, house prices surged by 14.3 per cent in the third quarter of 2009, and by 6.58 per cent in the fourth quarter. During the entire year, Singapore’s house prices were up 2.12 per cent.

The Singaporean government was quick to react against speculative buying by tightening credit rules, introducing a seller’s stamp duty and lowering the loan-to-value limit for housing loans.

Australia and New Zealand have sustained the increases they experienced during the middle of 2009. Australia’s house prices increased by 11.28 per cent during 2009 (4.63 per cent during the fourth quarter), while New Zealand’s increased by 4.86 per cent (3.4 per cent during the fourth quarter).

Recovery is coming slowly to Japan, Global Property Guide said. The average price of existing condominiums was up by ameagre 0.8 per cent over the whole of 2009. The increase is only evident when prices are adjusted for inflation. However, there was an increase of 3.55 per cent during the fourth quarter.

Thailand’s house prices slumped by 15.56 per cent during 2009, but rose by 1.97 per cent during the last quarter.

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PHUKET LUXURY PROPERTY SALES TOP THB 1.1 BILLION

Monday, January 4th, 2010

Phuket’s luxury property market saw transactions worth THB 1.1 billion for the period of July through November 2009 according to market research by leading Thai consulting firm C9 Hotelworks. A growing resale sector accounted for 50% of the sales.

According to Bill Barnett Managing Director of C9 “this year has seen the absence of new high end product which has propelled the secondary segment, while off plan product remains sluggish.”

Adding further that “the failure to launch new projects is a key constraining factor limiting volume in the marketplace. Despite demonstrated sales of a number of ‘super’ high end villas from THB 165 – 330 million; developers remain on the sideline more out of negative risk concern than fundamentals.”

Market data pinpoints that a growing number of early purchasers in developments are now cashing out at substantial profit levels thus pushing up pricing points for existing product. Geographically Kamala’s Millionaires Mile has experienced the highest level of activity.

Without significant new product entering the supply steam, the second half of 2009 has seen a growing number of premium ocean view lots transacted with buyers set to develop their own luxury residences.

Bill Barnett commented “traditionally the period of December to April remains peak sales season, and feedback in the past few weeks has seen sales traction. Ultimately the market desperately requires new launches to stimulate broader interest if there is to be a return to stabilized trading.”

“The Phuket Insider”
January 4, 2010

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