Archive for December, 2009
Asia Pacific investments to double in 2010
eal estate investments in the Asia Pacific region are set to hit US$85 million in 2010, almost double the amount invested in 2009, according to DTZ.
DTZ´s research found that out of the $315 billion capital currently targeting real estate, 27 percent or $85 million, has been targeted for the Asia Pacific region.
This is almost double the $43 billion of capital transacted in the last 12 months.
“Regional investment patterns are expected to continue in line with 2009 trends, with 27 percent of capital targeting investment in Asia Pacific,” says David Green-Morgan, head of research for DTZ Asia Pacific.
DTZ´s research also found that the $315 billion capital available for investment in real estate globally in 2010 is double the $157 billion of capital transacted in the last 12 months, with the ratio of capital targeting real estate now at 2:1.
This is equivalent to $2 of capital chasing available stock compared to only $1 in the last 12 months.
“Asia Pacific and Europe are both relative winners, with more money targeting these regions for investment than they are raising and investing elsewhere,” says Morgan.
Europe took the biggest market share with 50 percent of the capital targeted for the region.
Collectively, Asia Pacific and Europe are targeted for 77 percent combined of the total investment in 2010.
However, DTZ said only 49 percent of the available money for both regions have so far been raised.
DTZ also said there are two main categories of investor for 2010, namely third party managed funds and institutions.
The third party managed funds are the largest category of investor comprising 60 percent of the market share while institutions make up 28 percent.
DTZ´s research was based on an analysis of data generated by its equity tracker, which covers capital-raising globally from a range of investor groupings.
Property Report
16 December 2009
Tourist predictions for 2010 upto 16 million
The number of foreign tourists to Thailand should reach 16 million next year as the global economic crisis and local political problems have eased, Tourism and Sports Minister Chumpol Silpa-archa said yesterday.
As well, he said, the Thai economy was showing positive signs of improvement and the Thai Khem Kaeng stimulus spending programme would be a key factor that would spur tourism.
“I think the country has already passed the worst including the airport closures in late 2008, the cancellation of the Asean Summit in Pattaya and political violence in April. It is expected that the tourism industry will clearly improve next year on condition there are no new incidents,” he said.
The minister made the comments as the Tourism Authority of Thailand (TAT) introduced Suraphon Svetasreni as its new governor, filling a post that had been vacant for eight months.
Mr Suraphon said the TAT had set its own arrivals target at between 15 million and 15.5 million with total revenues of 560 to 570 billion baht. Arrivals this year are estimated at about 13.5 million, down by 7.4% from last year.
Trips by domestic tourists are forecast to rise to 90 million with total revenue of 430 billion baht, up from 87 million trips generating 400 billion this year.
“However, the TAT will try its best to increase the number of tourist arrivals to exceed the target set by the ministry,” Mr Suraphon said.
Strategies to promote tourism next year will include waiving visa fees from March 2010 to the end of the year. The ministry also plans to develop new tourist attractions with 138 sites planned. It will also seriously promote medical tourism and try to solve problems such as illegal taxis, a frequent source of complaints. Online and social networking will be used more to promote Thai tourism as well.
Prakit Chinamourphong, the president of the Thai Hotels Association (THA), agreed with the latest arrivals estimate of 13 million for this year, saying the association had been reviewing figures and found arrivals still low, even in the current peak month.
The occupancy rate of hotels in Chiang Mai and Phuket stands at around 65%, down from 85% in a normal period, and in Bangkok it is lower than 60%.
“We think this reflects the fact that the tourism industry has not clearly recovered in December as much as we expected. We plan to talk with the new TAT governor about organising the first hotel mega-sale next year,” Mr Prakit said.
Unexpected tourist increase
The Tourism Authority of Thailand has raised its year-end forecast for foreign arrivals to 14.1 million due to an unexpected surge in tourists last month.
Foreign visitors to Thailand rose by 24.91% year-on-year to 1.34 million in November, according to TAT figures. The percentage rise, however, is from a period last year when arrivals were affected by the blockading of Bangkok’s airports by yellow-shirted protesters.
This month’s arrivals should hit 1.4 to 1.5 million, said the agency, which has raised its forecast for the year to 14.1 million from a previous projection of less than 14 million, down from 14.6 million arrivals last year.
More than 1 million foreigners visited Thailand each month for nine of the past 11 months, said TAT chairman Wichai Srikwan. Only May and June arrivals failed to hit seven figures after political unrest in April cut arrivals to 923,918 and 954,772, respectively.
Buoyed by last month’s results, Mr Wichai said foreign visitors could reach 1.5 million in December, up on an average of 1.2-1.3 million in recent years. Promotions for charter flights to hotspots such as Pattaya, Koh Samui, Krabi and Phuket this month would support the rise.
The wave of new arrivals was in part down to the TAT’s promotional campaign to restore the country’s tourism industry, battered by political turmoil, he said.
Immigration Bureau statistics showed visitors from East Asia rose by 29.78% year-on-year to 660,688 in November. Chinese visitors also surged by 110.38% to 92,541, while Japanese arrivals rose by 14.23% to 87,267. Asean visitors rose by 29.78% to 364,268. European arrivals also boomed, increasing by 16.66% to 418,927, while those from the Middle East rose by 58.46% to 44,987.
Despite the positive statistics, November registered a year-to-date contraction of 7.3% in foreign arrivals to 12.44 million, down from 13.43 million in 2008, according to the TAT.
The TAT board yesterday approved the nomination of Surapol Svetasreni as its new governor. Mr Surapol is scheduled to sign a contract with the agency on Dec 22 and to start work from Jan 1.
Bangkok Post
15 December 2009
High speed rail link from Bangkok through Pattaya FIRST
Thailand’s business ministers meeting approved an investment plan to build a high-speed railway with a Bt100 billion budget for four main routes linking the Thai capital to the country’s four regions.
According to Deputy Prime Minister, Korbsak Sabhavasu, four routes will depart from Bangkok to the northern province of Chiang Mai (745km), to Nong Khai on the Mekong River in the northeast (615km), to the eastern province of Chanthaburi (330km), and to Padang Besar on the Thai-Malaysian border in Thailand’s southern province of Songkhla (985km).
Mr Korbsak said Prime Minister Abhisit Vejjajiva insisted to first build the short eastern route, for it would take less time to execute the work than constructing a long route to begin with.
Developing property markets in Asia favoured by real estate investors, survey shows
Property investors are likely to be more interested in developing Asian real estate markets next year than traditional countries like the UK and the US, according to a new survey.
Some 85% of the 150 strong audience at the annual Thomson Reuters Global Property Outlook said they expected developing Asian markets to deliver total returns in excess of 10% in 2010 as economic growth feeds demand for homes, shops and offices.
In contrast, just 13% of those delegates surveyed said that property returns in the UK or the US would match those seen in developing Asia, even though both markets looked to be nearing the twilight of their real estate corrections.
Some 61% said they expected UK total returns between zero and 10% next year, broadly in line with Eurozone total property returns for the same period.
While around half of respondents expected to see the same zero to 10% total returns range in developed Asian markets like Korea and Tokyo as government measures to thwart real estate bubbles bear fruit.
The survey also found that 42% estimated US total property returns between minus 10% and zero, while 39% expected returns between zero and 10%.
Congested credit markets and a reluctance among some banks to lend to real estate have encouraged bargain hunters to delay investment sprees and 61% said they expected a flat property market next year.
They are not particularly keen on investing in Dubai with a general fear that the worst global real estate slump for generations was not over yet.
Around 50% said they believed Dubai’s debt crisis was a sign of further troubles to come for highly leveraged property markets, while 37% said the problems were too small to spark a calamity outside the Gulf region.
Until valuations stabilise further and banks resolve massive exposures to distressed property loans, real estate will have to compete strongly to maintain its weighting in a diversified portfolio, the survey results indicated.
Stocks are the preferred asset class with 33% expecting shares to perform best in 2010, with 28% picking property and 26% selecting commodities.
JOMTIEN CONSIDERED #1 DESTINATION FOR FOREIGN HOLIDAY HOME INVESTORS
Printed in Pattaya Daily News
Sale and rental transactions have continued to increase in the Jomtien and Pattaya region, due to the value for money that is available to foreign investors. Long haul flights from Europe and America are becoming increasingly affordable with many choosing Pattaya as a holiday location due to its close proximity to Bangkok.
Pattaya, the 8th of December 2009 [PDN]: It’s not surprising that the number of holiday home investors has increased, given that the exchange rate for most foreign currencies has become increasingly favorable. Due to an increase in construction in the luxury condominium and house market, especially in the Jomtien Beach area, the availability of affordable luxury accommodation is higher than ever before.
Thousands of visitors discover Pattaya as a viable holiday location every year, in part down to the new Bangkok airport and the upgraded transport route from the capital, which has cut the travel time down to under 2 hours. Foreigners fall in love with Pattaya’s beautiful beaches, lively nightlife and friendly residents, with many deciding to invest in a holiday home or stay long term in a rental condo.
Jomtien is the smaller of the two Pattaya City beaches and is largely a residential area. As a result this is the area where a lot is being done in the building and development of luxury holiday home market. Both foreign and Thai construction companies have seen the opportunities of the area and have completed or begun construction of multiple developments, with many more planned for construction in the near future.
The Luxury market has become a real focal point in the development of Jomtien Beach and the surrounding area. The roaring success is attributed in part to the affordability that Thailand offers in comparison to other beach holiday destinations around the world. Families and groups are booking Villas way in advance as an alternative to the more common package holiday and hotel booking. Tourists have discovered that not only can they save money by staying in a luxury villa but they also have the holiday of a lifetime, in their own private residence.
As a lot of the world still struggles to attract tourism, Pattaya and Jomtien clearly are proving to be a winner with foreign investors, even with the current global financial climate the way it is.
Wealthy investors regain appetite for property
Confidence in the real estate sector is returning among high-net-worth individuals according to new survey from Barclays Wealth.
Over the next two years, 35% of the survey’s respondents said they plan to increase the proportion of their portfolios dedicated to real estate, excluding their primary residences.
The average allocation to real estate among respondents was 28% internationally and 23% in the US. Investors in nine out of ten countries expect to increase their allocation to real estate by 1% to 4% over the next two years, raising the global average allocation to 30%.
Investors who plan to increase their real estate stakes believe that the asset class holds better long-term prospects than other more complex financial instruments, which many blame for igniting the financial crisis. Additionally, thanks to the recent turmoil in nearly all real estate markets around the world, investors believe there are many bargains to be had in the property sector.
Condo Boom In Pattaya – An Excellent Long Term Investment
Condo Boom In Pattaya – An Excellent Long Term Investment
Thailand is one of the most popular destinations to live in. It is even better when you prefer to live in Pattaya, an incredible island destination, situated in the northern Gulf Coast of Thailand. The city of Pattaya is dotted with an amazing range of attractions covering superb beaches, picturesque landscapes, interesting museums and art galleries, beautiful parks and gardens, sumptuous as well as authentic seafood cuisines, and exciting nightlife.
The cost of living in Pattaya is exceptionally cheap when compared to other popular cities of the country, such as, Bangkok. Further, its great culture, salubrious climate, and presence of amicable Thai people all have made Pattaya truly a unique destination. Perhaps for these reasons, many people, especially westerns, choose Pattaya as their retirement destination, apart from a holiday destination. Many organizations function here exclusively for the welfare of expatriates, including, Expats Club of Pattaya, UK Club of Pattaya, and Pattaya Sports Club. Hence, it is no wonder why property market is booming in Pattaya.
A spectrum of properties is available in Pattaya. From affordable and stunning bungalows and villas to apartments and gated communities like flats, accommodation choices in Pattaya are vivid and colorful. However, with the flow of westerners as well as the increased demand for western style of accommodation, the demand for condos is greater than ever before. Many foreigners even prefer to acquire land and build houses as per their tastes and requirements.
However, expenses in connection with the building of single detached houses are quite high. Additionally, in order to own a land and build a house by a foreigner, certain legal tangles are associated with it. For instance, if you are a foreigner, you must require either a Thai spouse or a legitimate company to acquire a land in the region.
But, when comes to owning a condominium unit in Pattaya, the Thai government does not enforce any kind of precincts, except for some requirements to be complied with under the Condominium Act of 1979, including bringing in 100% of cash for the purchase of condominium unit in foreign currency and recording of it through a local Thai bank on a Foreign Exchange Transaction Form (FETF), which is regarded as an evidence to present it to the Land Department office.
Probably for this reason, nowadays both foreigners and natives prefer to own and stay in condominium units. Many of the upscale condo units in Pattaya are centered around such areas as Bang Saray and Tawanron beach, Jomtien beach, and Wong Amat beach.
On the basis of your lifestyle, budget, and preferences, different types of condo units are now available in Pattaya, from low cost condos to high end luxury condos. Condo units are also available depending upon the number of members in your family. You can choose from a range of condominiums in Pattaya, such as, apartment model, townhouse, and sometimes even in the form of a single detached structure.
No matter it is of any model, a condo unit in Pattaya comes complete with amenities such as superb bedrooms attached with relaxed beds, expansive living rooms, sophisticated kitchen, and bathing area with uninterrupted water supply. Some luxury condominium properties are replete with most modern facilities such as game rooms, laundry facilities, whirlpool spas and saunas, pools, meeting rooms, and parking areas.
A plethora of benefits can be derived from owning a condominium in Pattaya. Foremost is that condo living in Pattaya enables you to live in a well-controlled community. Another key benefit of living in condo is security, since many of the condo units are coupled with most sophisticated monitoring system. Low interior and exterior maintenance costs and access to superb facilities such as elevators and swimming pools are the other benefits of living in a condo unit.
In addition, buying a condominium in Pattaya is regarded as an excellent long term investment, guaranteeing good returns. But, the price of condominium units is exceptionally high in contrast to other accommodations options such as apartments and single houses.
With the introduction of the internet, purchasing or renting a condominium in Pattaya is no longer a tiresome process. Scores of realtors as well as real estate firms, property builders, and consultants, are now in the scenario to help in fetching your dream condo unit in Pattaya. Majority of them have their own websites, with details including expected price, amenities available and pictures of the condominium, it allows for convenient purchasing of a condominium. Further, many of them customize condo units according to your specifications.
Written by : Wantanee K. is an independent author evaluating and commenting on leading International Property Consultants in Thailand, especially CB Richard Ellis.