Bangkok average price of condominiums could grow at least 8% in 2018

The average price of condominiums could grow at least 8% in 2018, despite the looming land and buildings tax, says property consultant Nexus Property Marketing Co.

Managing director Nalinrat Chareonsuphong said the land and buildings tax, due to come into force in January 2019, is unlikely to harness the increase in land prices in Bangkok, allowing condo prices to keep rising.

“There is unlikely to be forced sales among landowners who are pressured by the land and buildings tax,” she said.

“If the tax is effective, they have options to apply to their assets anyway and will not need to sell the plots.”

As land prices will keep rising, condo prices will also rise next year. This year the average selling prices of new condos in Bangkok rose by 8% to 130,600 baht per square metre from 121,000 baht per sq m last year.

The average increase of condo prices in the past five years was 9% per year.

Pathumwan and Ratch…

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Thai Property executives accused of embezzlement

Four active and former executives of KC Property Company have been accused by the Securities Exchange Commission of embezzlement for allegedly issuing and selling the firm’s short-term BEs (bills of exchange) for their own benefits.

An informed SEC source said that the accusation against the four was made possible after the auditor had uncovered the illegal transactions made during September 2015 and October 2016 worth about 425 million baht.

The source said that the four suspects forged the company’s meeting minutes and opened bank accounts to receive money transfers from the sale of the BEs without recording the sale in the firm’s book.

Evidence about the case will be forwarded to the Anti-Money Laundering Office and the Department of Special Investigation for further investigations.

Earlier, KC Property Company defaulted the payment of its 3-month old BEs worth about 130 million baht with 7.5 percent interest rate after the payment was due on …

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Knight Frank Residential Research Report for Bangkok 2017

Total number of new supply in 1H 2017 increased 39% to 30,493 units compared to 21,927 units in 1H 2016.

On demand front, there were 27,275 condos sold in the first half of 2017, up 11.5% from the same timeframe in 2016. New launching supply in CBD, city fringe, and peripheral were accounted of 6%, 29%, and 65%, respectively.

Majority of the new developments are in lower-end to middle market segments and situated along new mass transit routes especially BTS Light Green Line Extension (Mo Chit – Kukot and Bearing – Samrong), MRT Pink Line (Kae Rai – Minburi), and SRT Dark Redd Line (Bang Sue – Rangsit).

Condominium projects launched in 1H 2017 recorded an average take-up rate of 75%, representing an increase of 1.7% compared to the first half of 2016.

However, certain projects commanding affordable pricing, attractive down-payment packages, exceptional amenities, and convenient locations were able to achieve higher sales within weeks of launch.  …

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SET begins listing of TREIT, the biggest industrial REIT in Thailand

The Stock Exchange of Thailand (SET) will list additional trust units of TICON Freehold and Leasehold Real Estate Investment Trust (TREIT) after finishing the conversion process of three property funds, becoming the biggest industrial real estate investment trust (REIT) in Thailand, on December 28, under the ticker symbol “TREIT”.

TREIT has successfully received the transfer of assets and liabilities from three property funds, namely Ticon Property Fund (TFUND), Ticon Industrial Growth Leasehold Property Fund (TGROWTH) and Tpark Logistics Property Fund (TLOGIS).

SET Senior Executive Vice President Santi Kiranand said that the additional units of TREIT would list and start trading on Property & Construction industry, Property Fund & REITs sector, on December 28, 2017.

Welcomes the additional trust units of TICON Freehold and Leasehold Real Estate Investment Trust (TREIT) after finishing the conversion process of …

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Thailand’s Strategic Property Investors to raise up to $115m via REIT

Strategic Property Investors Co Ltd (SPI), an independent REIT manager, has formed the Strategic Hospitality Extendable Freehold and Leasehold REIT (SHREIT) to raise up to 3.74 billion baht ($115 million) for operating three hotels in Indonesia and Vietnam.

The three hotels are Pullman Jakarta Central Park, Capri by Fraser in Indonesia and IBIS Saigon South in Vietnam, executive director James Lim told local media.

The total outlay of SHREIT will not exceed 5.42 billion baht ($166.2 million), raising from the subscription of trust units of a combined value of no more than 3.74 billion baht and the remaining 1.68 billion baht in loans from financial institutions.

Veena Lertnimitr, executive vice president, primary distribution, Siam Commercial Bank, said the estimated returns are in the range of 7.67 to 7.72 per cent annually as disclosed in the prospectus.

The subscription will be held in the middle of December and offered to business partners, p…

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Thai property developer Habitat plans to mobilise funds via IPO in 2019

Habitat Group, a Thai developer of premium property, plans to raise up to 1.5 billion baht ($46 million) in its initial public offering (IPO) scheduled for the second half of 2019.

The company will use most of the IPO proceeds to acquire more lands for new developments and nearly 20-30 per cent as working capital, Chanin Vanijwongse, CEO of Habitat Group, told DEALSTREETASIA.

Habitat Group has a registered capital of 181 million baht currently, which would be enhanced before the company looks to see nearly 20 to 25 per cent in the upcoming IPO, he added.

Vanijwongse stepped into real estate in 2004 as a personal investor before turning into a property developer by establishing Habitat Group in 2012.

Currently, Habitat has six ready-to-move and ongoing projects in Pattaya, which are designed for investments and managed for rental by professional hotel chains including X2 and Best Western.

“I chose to start developing the projects in Pattaya…

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Thai listed property developer Sansiri invests $80m in six global startups

Thai listed property developer Sansiri Pcl announced an investment of $80 million across six global technology and lifestyle companies as part of a bid to expand beyond real estate development and into the global market.

Of this, Sansiri will invest about $58 million in US-based boutique hotel chain Standard International and its mobile booking application, One Night. The Thai firm will hold a 35 per cent stake in the hospitality firm.  

The remaining include a $3.1-million stake in Tyler Brûlé’s lifestyle magazine Monocle; $6.6 million in London’s Airbnb management firm Hostmaker; $12 million in Southeast Asia’s co-working space JustCo; and $300,000 in a smart indoor farm technology firm Farmshelf, according to a Financial Times report.

Srettha Thavisin, president of Sansiri Pcl, said that the company’s investments will fo…

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Foreign investment hotspots in Asia Pacific

Cross-border real estate investment in the Asia Pacific region could achieve a record high this year as foreign investors shore up interest and seek assets in greener pastures beyond borders.

As it stands, year-to-date intra-regional cross-border transaction volumes have already exceeded the previous 10-year record high in 2015 (1Q15-3Q15) by 30 per cent, and is currently a 21.8 per cent step up from its 10-year average (2007-2016).

Singapore the main source of intra-regional capital

Chinese would be the largest group of foreign investors if inter-regional flows were part of the picture. But in the context of intra-regional capital flows (which only considers deployment within Asia Pacific), Singapore continues to dominate with year-to-date foreign investments currently standing at US$5.6 billion.

China (US$2.1 billion) and Hong Kong (US$2.9 billion) were ranked second and third respectively given a significant portion of capital are recycled between th…

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Why we need Greener buildings for healthier workers

When we think about green buildings, we are often interested in aspects like energy consumption and efficient energy usage to minimize the environmental impact.

While these are critical elements, we often overlook how green buildings also impact the health, wellbeing and productivity of their occupants.

If your workplace is in Thailand, especially in Bangkok, you will probably notice very poor management of air conditioned facilities with employees wearing a sweater of being sick.

Studies have linked air conditioning use to increased sickness in office workers and more frequent visits to ear, nose and throat specialists. 

While air conditioners cannot account for the lower humidity aspect of the cold-causing viruses, as the New York Times reports, air conditioners can dehydrate the mucous membranes of the nostrils, which could make the nose a more attractive environment for viral reproduction. So perhaps blasting your air conditioner can …

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