Story : James Goyder

A housing crisis may be looming in the U.S. but in South Asia it seems investors have far more cause for optimism. Business Asia One report that the impact of the sub-prime mortgage woes in the U.S. has been limited in Asia because of ample cash in the regions’ banking systems. They firmly believe that the ‘Asia miracle’ will continue into 2008, offering even more investment opportunities.

In Thailand, however, this optimism is not shared by all with the Bangkok Post reporting that, if the U.S. sub-prime mortgage crisis deteriorates further, economic growth in 2008 could fall below the 5% projected earlier by the Finance Ministry.

The Nation also warn that investors are avoiding Thailand. Apparently The International Business Report 2007, conducted by Grant Thornton International, has shown that Thailand has gone through a period of slowing growth this year and is losing investment opportunities to Vietnam and Malaysia, due mainly to political turmoil and uncertain economic policy. There is a glimmer of hope though. According to one of the reports authors, ‘In the short term, Thailand has lost investment opportunities to Vietnam and Malaysia due mainly to its uncertain investment policy. However, in the long-term, I still believe that Thailand shows a bright outlook and could return to be the most attractive country among foreign business persons, thanks to its strong infrastructure.’

The Nation also report that returns from investments in foreign markets have been marginalised by the appreciation of the baht. However it was not all bad news for investors in The Nation this month. They also report that, in a move aimed at increasing foreign investors’ confidence, the Commerce Ministry plans to set more flexible conditions to enable foreign investors to operate their businesses more easily under the amended Foreign Business Act (FBA). The Foreign Business Act covers three lists of protected business sectors. The most protected category is Annex 1, followed by Annex 2. Currently, any foreign investor who wants to operate a business listed in Annex 3 is required to ask for the subcommittee’s approval on a case-by-case basis. If the new law comes into effect, foreign investors would no longer be required to ask for the subcommittee’s permission. The application and approval process would be predictable and clearer.

Estate Issues
In Bangkok construction costs and land prices in suburban areas grew slightly, by 4% and 6% respectively, this year compared with last year, according to The Nation. Meanwhile, land prices have also increased slightly because most developers bought land in the past few years and as a result didn’t buy new land to develop this year.

Meanwhile, also in The Nation, land prices in the resort city of Hua Hin have increased by 25% to 50% so far this year following huge investment by local and foreign land developers. This according to Double 8 Realty, a licensed partner of German-based real estate firm Engel & Volkers (Thailand).

Demanding Neighbours
Finally The Nation compare the property market in Thailand favourably with that in neighbouring Vietnam. They note that Thai investors have been warned that Hanoi and HCM City are more expensive than Bangkok for real estate by Sopon Pornchokchai, president of the Thai Appraisal Foundation. He thinks that prices of real estate in Ho Chi Minh City and Hanoi are more expensive than those in Bangkok largely due to shortages. Widespread speculation in the property market has become a major concern for Vietnamese authorities, who are well aware of the lessons from the 1997 Thai financial crisis, which was triggered by the collapse of the real-estate market.

In Vietnam itself The Saigon Times comment that over the past two years Vietnam has welcomed many new Korean investment enterprises in the heavy industry and real estate sectors. They believe this trend reflects Korean confidence in Vietnamese economy development. However Vietnam Economy feel that the real estate market is now overly hot, not because of the overly high demand for accommodation, but because of overly high speculation. They estimate that 60% of buyers only purchase land and houses to sell later.

Heating Up
In Malaysia The Star warn that Penang is short of high-value property schemes for real estate investment trust (REIT) companies to invest in. Rising construction costs, resulting from the surge in oil prices, will likely cause a delay in a number of large property projects in the country’s major cities, according to a property consultant.

Over in Singapore, Business Asia One report that the property boom is set to continue with news that the bullish sentiment in Singapore’s residential market continued into 2007 from where it left off in 2006. Finally The Straits Times also comment on the housing crisis in the U.S. but argue that, while a housing market meltdown may be wrecking the U.S. economy and shaking the financial markets, in Asia the question is how to cool things down. Housing prices are soaring amid strong economic growth and surging demand from developers and upwardly mobile families who want to upgrade their homes.
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Dalaaburi Open House Party

Shin Home Co., Ltd. recently celebrated the opening of its Dalaaburi show house. The luxury Balinese style project is available as 3 bedroom villas or 2 bedroom home/office units. Located in the heart of Phuket the development is targeted towards high-end customers, with villas starting at ThB 22 million while home/office units start at ThB 11.3 million. The project has only 29 Units and almost half have already been reserved.

Deputy Managing Director Khun Chayika Wongnapajan commented that, with the facilities such as a communal club house, gardens, and jogging track as well as  having the perfect central location which allows easy to access to all areas of Phuket, she expects the development to be a great success
Special guests, including well-known actors, attended the opening on November 23rd.
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Deva Living

The Deva Living brand was recently launched signaling a new echelon of construction excellence for the Thailand property market. Derived from ancient Sanskrit meaning divine living, Deva Living is driven by a philosophy of quality, not quantity; specializing in boutique projects synonymous with the bespoke lifestyle that one dreams of a tropical island.

A Deva Living bespoke lifestyle includes a custom-built luxury villa in one of Thailand’s most spectacular sites; an oceanfront stretch of the Millionaire’s Mile or perhaps a jungle niche in the misty hills of Khao Yai.

Managing Director Patrick Blaauw is a Phuket veteran having been on the island for 16 years and now concentrates on producing smaller, higher quality projects.

Patrick Blaauw

A professional, experienced developer with a proven track record and comprehensive personalized service from the outset through to after-sales care set the Deva Living approach apart from the rest.

Patrick commented, “With fewer homes under contract, the work load becomes more manageable; we are able to accommodate the clients’ changes more readily and the result is a shorter build time and more satisfied home owners.”

In addition to completing ThaiBali, a niche development of custom-built villas exhibiting a stunning composition of Thai and Balinese architecture, in 2006, Deva Living  currently has two on-going projects. Deva Yama is situated on the last prime cut of Phuket’s west coast, along the Millionaire’s Mile. Set on 6000sqm of wooded hillside the development incorporates just nine superlative villas with extraordinary views over scenic Nakalay Bay. OCEANCLUB11 will launch early in 2008 and promises 11 absolute waterfront residences at the forefront of designer living.

For more information see the Deva Yama website ...............................................................................................

Jomchang

An evening of fine food and specially invited guests saw the launch of Jomchang Two, a development on Phuket’s Millionaire’s Mile. With 70% of Jomchang One already sold, Bob Andrews, Managing Director of Phuket Land, was confident of continued success and spoke at length on the merits of this project.

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L’Orchidée Residences

“Taking a moment in this busy holiday season to say thank you for all your support and contribution to make our Staff Party successful.  With Sincere appreciation for your business and best wishes for the coming year 2008!!! Merry Christmas & Happy New Year”
L’Orchidée Residences Team
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Ayara Hilltops

Treetops Arasia are proud to announce the new name of the luxury establishment: Ayara Hilltops. While there will be no change in the ownership structure of the hotel, the shareholders are now assuming direct management oversight of the resort. The current operational team will continue in their same roles and guests will find the change seamless.

Located on Surin Hill overlooking the Andaman Sea on the west coast of Phuket, Ayara Hilltops resort and spa offers 48 luxuriously appointed suites each with breathtaking views and either en-suite whirlpools or private infinity plunge pools. The resort also offers a sublime experience for the senses at the full service spa where services include a variety of massages, body treatments, body wraps and facials. In addition, the resort boasts a swimming pool, poolside bar, 2 restaurants, meeting facilities, fitness gym and gift shop.

For more information and reservations, please visit www.ayarahilltops.com
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CBRE Pattaya opening

CB Richard Ellis recently opened a new full service office in Pattaya which will be the fourth in Thailand, showing that it is confident about the long-term prospects for the local property market.

“Pattaya has well developed infrastructure, good hospitals, and a range of retail outlets and entertainment.  This lifestyle package makes Pattaya attractive,” according to Ms. Aliwassa Pathnadabutr, Managing Director of CB Richard Ellis Thailand.

“The establishment of our office in Pattaya is another important step forward for CB Richard Ellis demonstrating our ongoing efforts to enhance our business operations in Thailand and the rollout of our comprehensive resort services. With the addition of this office in Pattaya, we believe that we will meet the business objectives and real estate needs of our clients throughout the country,” added Ms. Aliwassa.

The Pattaya office will provide full real estate services covering the luxury condominiums and villas, commercial, investment, and hotel sectors, including sales, leasing, research, consulting, valuation, and property management. The office was opened by Chairman Mr David Simister.
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Acute launch

Acute Realty officially held its new office opening ceremony in Hua Hin on Sunday 18th November. The office is located on Dechanuchit Road and is the third Acute Realty office. The expansion serves to accommodate an increase in customer’s needs in Hua Hin. The experienced & fluent English speaking staff will provide the following services: brokerage service, marketing centre for properties, property consultancy, tenancy management and sale & project management.

Visit www.acuterealty.com and www.thaiapartment.com to find out more
or call us at +66(0)32-530-450-1.

Hua Hin’s long stay resort, Franjipani is now ready for bookings. With the project having an ideal location minutes from the beach, serene gardens, 80m swimming pool as well as many other facilities, bookings are expected to be brisk. Prices start at 35,000 Baht per sq.m.  

Acute Realty is an appointed sale agent and can be contacted
at www.acuterealty.com/franjipani, or +66(0)32 530 450-1.
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The New Blue Book

Phuket Land is beginning 2008 with fresh new branding for their property listings magazine, The Blue Book. Designed and published by Kinnaree Media Marketing, the new Blue Book contains essential information for those considering buying property and living in Phuket.

Phuket Land has over 25 years experience in the Phuket property market and the new Blue Book reflects this with legal advice, buyer’s guide, land table, visa and employment information, lifestyle articles and more.

There are also a number of special featured properties independently selected by Phuket Land. Bob Andrews, Managing Director of Phuket Land, says, “We are truly independent agents and to maintain our independence we have decided, unlike other publications, that we don’t accept any payments for being included in  The Blue Book, and we have no advertisements. We concentrate purely on highlighting excellent properties and ensuring our customers get the best service possible.”

The new Blue Book will be distributed nationwide and is also available online at www.phuketland.com
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Banyan Tree Residences

Banyan Tree Residences saw strong sales at a recent private exhibition at Fullerton Hall, Singapore, with a total of reservations for villas, townhouses & apartments in all five locations where there Banyan Tree Residences are available for sale: Phuket & Bangkok, Thailand; Lijiang, China; Bintan, Indonesia; and Seychelles.

Reservations made during the Singapore launch showed a significant preference for Banyan Tree Residences in Bintan, Indonesia and Phuket, Thailand - which are easily accessible from Singapore via a 1hr-ferry ride and 1.5hr-plane journey respectively.
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Thailand Property Awards

A well-attended evening at the Royal Orchid Sheraton in Bangkok saw the cream of Thailand’s property section celebrate in style.

Over 350 people attended the night with winners including CB Richard Ellis, who won the British Chamber of Commerce Thailand Best International Agent Award, and Royal Phuket Marina followed its recent international successes with the Best Resort Condo Development award.

The Real Estate Personality of the Year was awarded to Robert Collins, Managing Director of Savills.

“The 2007 awards saw a very high level of competition and the winners truly deserve this recognition. There was a good spread of winners from around Thailand, with strong showings from both Phuket and Samui, as well as Bangkok,” said Duncan Worthington, Managing Director of organisers Ensign Media Co., Ltd.

A full list of winners can be found at www.thailandpropertyawards.com
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SMART Show KL

The first ever SMART Investment and International Properties Expo in Kuala Lumpur, Malaysia was held at the KLCC Convention Centre from November 24-25, 2007.

Continuing on from the success of the Singapore show, interest in Thai properties, especially those in Phuket and Bangkok, remains high. Many exhibititors commented that they exceeded their expectations of the event, and the organiser, when speaking to Tropical Living, expressed confidence in the Malaysian market, and commited to organising similar events in the future.
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