CB Richard Ellis Group, Inc. Report Finds Global Rents Continue Decline
London’s West End is again the world’s most expensive office market, according to CB Richard Ellis (CBRE) Global Research and Consulting’s semi-annual Global Office Rents survey. Tokyo’s Inner Central has slipped to second place, followed by that city’s Outer Central market. Hong Kong’s Central Business District (CBD) and Moscow are fourth and fifth respectively in the CBRE report, which tracks office occupancy costs in nearly 180 cities around the globe.
Office markets worldwide are experiencing declines in prime office occupancy costs. The year-over-year change in prime office occupancy costs of the 179 markets monitored revealed an average drop of 7.7% worldwide over the 12-month period ending September 30, 2009 (in local currency and on an un-weighted average basis). The majority of markets – 131 markets in total – experienced a year-over-year decline including nearly 50 which saw rents tumble by double-digit percentage-points.
Many of the world’s bellwether financial centers are at the top of the list of fastest changing markets, including Hong Kong Central CBD(-40.7%) and New York, Midtown(-29.7%) along with emerging markets such as Ho Chi Minh City(-45.4%) and Abu Dhabi(-38.6%). Kiev led the world with the largest year-over-year decrease in office occupancy costs, falling 64.6% from year-ago levels.
“While there are signs that commercial real estate values are stabilizing in some markets in Asia and parts of London, underlying property fundamentals are still weak,” said Dr. Raymond Torto, CBRE’s Global Chief Economist. ”However the office market may be on the cusp of moving from intensive care to the stabilization stage - the first step to getting back to good health.”
Forty-one markets experienced positive growth. Aberdeen, Scotland and Rio de Janeiro, Brazil both grew by more than 10% as not all markets have been as affected by the decline in global demand and demand for office space has proven resilient in some areas due to the local market dynamics.
Office occupancy costs measured in U.S. dollars are affected by changes in the dollar’s value versus the respective local currency. Hence, office occupancy costs when converted into U.S. dollars are driven by both the local market dynamics of supply and demand, as well as currency changes.
Asia-Pacific
Tokyo (Inner Central) was Asia’s most expensive market with an occupancy cost of THB 5,130 per square meter per month (US$172 per square foot per annum). while that city’s Outer Circle market was second with occupancy costs of THB 4,157 per square meter per month (US$139 square foot per annum). Hong Kong (CBD) follows with occupancy costs of THB 4,113 per square meter per month (US$138 square foot per annum). Mumbai and New Delhi were the other two Asia-Pacific markets in the world’s top 10 most expensive cities roster. Bangkok, one of the cheapest market, was ranked at 151st out of 179 markets surveyed with occupancy costs of THB 694 per square meter per month (US$23 square foot per annum), followed by Jakarta ranked at 177th with the lowest occupancy costs in Asia at THB 481 per square meter per month (US$16 square foot per annum)
For the Asia Pacific region, the office markets that experienced the largest decreases include Singapore (-53.4%), Ho Chi Minh City (-45.4%), as well Hong Kong which declined over 30% in the past year. The Asia-Pacific region had 17 cities with double-digit declines in office occupancy costs.
Europe
London’s West End was the world’s most expensive office market at THB 5,525 per square meter per month (US$185 square foot per annum). Moscow was second in Europe with occupancy costs at THB 3,932 per square meter per month (US$132 square foot per annum). Dubai, Paris and the City of London all were in the top ten most expensive markets.
Kiev led the world with the largest year-over-year decrease in office occupancy costs, falling 64.6% from year-ago levels. Other markets in Europe that are experiencing the largest decreases include Moscow, Oslo, Warsaw and Dublin. The EMEA region had 17 cities with double-digit declines in office occupancy costs.
Americas
Two cities in Brazil -- Rio de Janeiro and São Paolo -- have supplanted New York’s Midtown as the most expensive office location in the Americas. Rio de Janeiro’s occupancy costs of THB 2,600 per square meter per month (US$87 square foot per annum), was good for twelfth place on the global list, while São Paulo came in at 16th globally with occupancy averaging THB 2,451 per square meter per month (US$82 square foot per annum). New York’s Midtown’s market has dropped to third in the Americas and 24th globally with occupancy costs of THB 2,062 per square meter per month (US$69 square foot per annum).
Boston’s CBD led the Americas, with a decline of 33.9% year-over-year, followed by New York’s Downtown and Midtown markets. Fifteen markets in North America posted double-digit declines. Meanwhile, Latin America held up stronger than the rest of the world, with only six cities registering a decline, including a 6.3% decrease in Buenos Aires, Argentina.
Tuesday, December 15, 2009
Moody's says newly listed Chinese property developers face challenges
Moody's Investors Service says that eight major Chinese property developers succeeded in substantially enhancing their capital bases and liquidity positions during September-December
2009 with a total raising of HK$38.5 billion (US$4.9 billion) through IPOs on the Hong Kong Stock Exchange, but these improvements to their financial fundamentals could prove short lived.
"Debt leverage is likely to rise again and exceed the levels seen at the time of the IPOs as the sector continues with its ingrained strategy of pursuing high growth and bigger scale," says Peter Choy, a Moody's VP and Senior Credit Officer.
"It was common for the debt to total capitalization of those developers already rated by Moody's to increase -- some by 10-15% -- in the 2 years after their IPOs, and such a similar trend is therefore expected for most of the recently listed developers," says Choy.
"Most usually, funds are spent on the expansion of land banks and larger scale developments, and experience indicates that Chinese developers generally come over budget in their land acquisitions," says Choy.
Choy was speaking on the release of a special comment -- authored by him and Kaven Tsang, a Moody's Assistant Vice President and Analyst -- on the implications of recent IPOs by Chinese property developers.
"Once their listings are complete, developers will experience -- in line with past examples -- strong shareholder pressure to grow," says Choy.
"As a result, the newly listed companies are likely to see debt leverage increase over the next 2 years."
Even though the Chinese real estate market in 2010 is expected to be stable, conditions will not be strong enough to support the very aggressive targets set by the newly listed companies, and their reliance on strong pre-sales to reduce their borrowing needs may prove misplaced, the report says.
In addition, Chinese banks will likely strengthen their capital bases and reduce loan growth in 2010 to help reinforce the stability of the banking system; and, as such, availability of mortgage finance to property purchasers will not be as strong as in 2009, the report says.
2009 with a total raising of HK$38.5 billion (US$4.9 billion) through IPOs on the Hong Kong Stock Exchange, but these improvements to their financial fundamentals could prove short lived.
"Debt leverage is likely to rise again and exceed the levels seen at the time of the IPOs as the sector continues with its ingrained strategy of pursuing high growth and bigger scale," says Peter Choy, a Moody's VP and Senior Credit Officer.
"It was common for the debt to total capitalization of those developers already rated by Moody's to increase -- some by 10-15% -- in the 2 years after their IPOs, and such a similar trend is therefore expected for most of the recently listed developers," says Choy.
"Most usually, funds are spent on the expansion of land banks and larger scale developments, and experience indicates that Chinese developers generally come over budget in their land acquisitions," says Choy.
Choy was speaking on the release of a special comment -- authored by him and Kaven Tsang, a Moody's Assistant Vice President and Analyst -- on the implications of recent IPOs by Chinese property developers.
"Once their listings are complete, developers will experience -- in line with past examples -- strong shareholder pressure to grow," says Choy.
"As a result, the newly listed companies are likely to see debt leverage increase over the next 2 years."
Even though the Chinese real estate market in 2010 is expected to be stable, conditions will not be strong enough to support the very aggressive targets set by the newly listed companies, and their reliance on strong pre-sales to reduce their borrowing needs may prove misplaced, the report says.
In addition, Chinese banks will likely strengthen their capital bases and reduce loan growth in 2010 to help reinforce the stability of the banking system; and, as such, availability of mortgage finance to property purchasers will not be as strong as in 2009, the report says.
Thursday, November 19, 2009
SC Asset launched 3 new projects in Q4 Y2009 and its “SC Parade” the privilege campaign to be held on November 2009.
SC Assets announced its latest investment of over 1,300 million Baht to develop 3 new high-end projects , for serve the housing demand in 4Q Y2009. The three new 2009 series are “Bangkok Boulevard Kaset-Navamintra”, a luxurious 3-story detached housing project; “Life Bangkok Boulevard Ratchavipha”, a stylish 2-story detached housing project; and “Work Place Ratchada-Ramindra”, a special-designed home office project. In addition, it will also launch “SC Parade” the privilege marketing campaign on November 8, 2009, which is expected the total sales revenue of more than 300 million Baht.
Mr. Kree Dejchai, Chief Operating Officer, SC Asset Corporation Pcl.,discloses about the company’s project development plan in Q4 Y2009 that SC Asset will continually plan new project developments in accordance with its 2009 operating plan. Highlights will mainly be with projects on high potential locations in all market segments, including high rise and low rise. The company has a plan to launch 3 new projects with a combined value of over 1,300 million Baht.
1.“Bangkok Boulevard Kaset-Navamindra”, The luxurious 3-story detached housing project, which is located on an 18-rai plot of land on Ladplakao Road, will have a combined value of 740 million Baht. Developed under “Modern City Resort Style” concept to allow its urban residents to stay closer to the nature, the project will have only 74 units. With a starting price of only 10.9 million Baht, each unit will have four bedrooms, 5 restrooms, green room and family room to serve the lifestyle of each family member – all within a combined usable area of approximately 260 SQM. The project is most outstanding in its prime location, which is right on main road and well connected to various routes, e.g. Ramindra, Kaset-Navamindra and Paholyothin. It is fully equipped with basic facilities and infrastructure, swimming pool, Wi Fi fitness center and safe with triple security system.
2.“Life Bangkok Boulevard Ratchavipha”, The stylish 2-story detached housing project, which is outstandingly located on a 16-rai plot of land right on Pibulsongkram Road, will have a combined value of 450 million Baht. Developed under “Modern Life in Urban Natural” concept, the project will have only 69 units. With a price range of 5.9 – 8 million Baht, each unit will have 3 bedrooms, 3 restrooms, living room, dinning room and separate drawing room, all within an area of 50 square Wah onwards. Designed to be airy and spacious, all units will come with curtain wall windows to allow its residents to absorb a full natural feeling of its landscape. Project facilities include a luxurious club house, swimming pool, green garden and Wi Fi fitness center.
3.“Work Place Ratchada-Ramindra” , The luxurious home office is the only project of its exclusive in Ratchada-Ramindra, which is Bangkok’s top potential location and future business center. Located on a 4-rai plot of land right on main road, it will have only 20 units and a combined value of 180 million Baht. With a starting price as low as 8 million Baht, this 4-story home office will be 6 meters wide. Designed to be both airy and spacious in order to maximize its business potentials, it is, however, planned in a Privacy Cluster Zone to optimize privacy. With a common parking lot able to accommodate 50+ cars, the project is safe and sound with access card control system. It is conveniently networked with many main routes, e.g. Kaset-Navamindra, Ramindra, Sukapiban 1-2, West Outer Ring Road and Ekamai-Ramindra Express Way.
Besides the three new projects launching, SC Asset will be held the marketing activities in order to stimulate consumer purchasing power. It is launching “SC Parade” campaign on November 8, 2009, which is a complete showcase of its eight quality projects featuring detached houses, townhomes, and condominium. These projects, which will either open its new phases or new designs and functions, will be accompanied by very privilege offers namely “SC Package to visit the 8 Wonders of the World” The campaign is forecasted to generate many visitors and the total sales revenue of over 300 million Baht.
The eight quality projects include (1) Grand Bangkok Boulevard Ratchada-Ramindra with prices ranging from 15 – 25 million Baht (2) Bangkok Boulevard Rajapruek-Rama V with prices ranging from 17 – 30 million Baht (3) Life Bangkok Boulevard Petchkasem 81 with starting price of 5 million Baht, (4) Vista Avenue Petchkasem 81, 2-story townhome with starting price of 2.4 million Baht (5) Vista Avenue Petchkasem 81, 3-story townhome with starting price of 2.99 million Baht (6) Vista Park Changwattna, 3-story townhome with starting price of 3.99 million Baht (7) Centric Scene Ratchavipha, newly conceptualized condominium with prices ranging from 2.5 – 5.55 million Baht and (8) Centric Scene Sukhumvit 64 with starting price of 2.8 million Baht.
Mr. Kree Dejchai further adds that as all projects, launched within the year, have been well achieved which is quite confident that the market would warmly welcome the three new projects as it had in the past. With outstandingly new designs and functions, high potential locations, competitive prices, rising demands, as well as the project’s value-for-money offering, it is expected that the new 2009 series would deliver satisfactory result and that the company would achieve its projected plan and targets.
Mr. Kree Dejchai, Chief Operating Officer, SC Asset Corporation Pcl.,discloses about the company’s project development plan in Q4 Y2009 that SC Asset will continually plan new project developments in accordance with its 2009 operating plan. Highlights will mainly be with projects on high potential locations in all market segments, including high rise and low rise. The company has a plan to launch 3 new projects with a combined value of over 1,300 million Baht.
1.“Bangkok Boulevard Kaset-Navamindra”, The luxurious 3-story detached housing project, which is located on an 18-rai plot of land on Ladplakao Road, will have a combined value of 740 million Baht. Developed under “Modern City Resort Style” concept to allow its urban residents to stay closer to the nature, the project will have only 74 units. With a starting price of only 10.9 million Baht, each unit will have four bedrooms, 5 restrooms, green room and family room to serve the lifestyle of each family member – all within a combined usable area of approximately 260 SQM. The project is most outstanding in its prime location, which is right on main road and well connected to various routes, e.g. Ramindra, Kaset-Navamindra and Paholyothin. It is fully equipped with basic facilities and infrastructure, swimming pool, Wi Fi fitness center and safe with triple security system.
2.“Life Bangkok Boulevard Ratchavipha”, The stylish 2-story detached housing project, which is outstandingly located on a 16-rai plot of land right on Pibulsongkram Road, will have a combined value of 450 million Baht. Developed under “Modern Life in Urban Natural” concept, the project will have only 69 units. With a price range of 5.9 – 8 million Baht, each unit will have 3 bedrooms, 3 restrooms, living room, dinning room and separate drawing room, all within an area of 50 square Wah onwards. Designed to be airy and spacious, all units will come with curtain wall windows to allow its residents to absorb a full natural feeling of its landscape. Project facilities include a luxurious club house, swimming pool, green garden and Wi Fi fitness center.
3.“Work Place Ratchada-Ramindra” , The luxurious home office is the only project of its exclusive in Ratchada-Ramindra, which is Bangkok’s top potential location and future business center. Located on a 4-rai plot of land right on main road, it will have only 20 units and a combined value of 180 million Baht. With a starting price as low as 8 million Baht, this 4-story home office will be 6 meters wide. Designed to be both airy and spacious in order to maximize its business potentials, it is, however, planned in a Privacy Cluster Zone to optimize privacy. With a common parking lot able to accommodate 50+ cars, the project is safe and sound with access card control system. It is conveniently networked with many main routes, e.g. Kaset-Navamindra, Ramindra, Sukapiban 1-2, West Outer Ring Road and Ekamai-Ramindra Express Way.
Besides the three new projects launching, SC Asset will be held the marketing activities in order to stimulate consumer purchasing power. It is launching “SC Parade” campaign on November 8, 2009, which is a complete showcase of its eight quality projects featuring detached houses, townhomes, and condominium. These projects, which will either open its new phases or new designs and functions, will be accompanied by very privilege offers namely “SC Package to visit the 8 Wonders of the World” The campaign is forecasted to generate many visitors and the total sales revenue of over 300 million Baht.
The eight quality projects include (1) Grand Bangkok Boulevard Ratchada-Ramindra with prices ranging from 15 – 25 million Baht (2) Bangkok Boulevard Rajapruek-Rama V with prices ranging from 17 – 30 million Baht (3) Life Bangkok Boulevard Petchkasem 81 with starting price of 5 million Baht, (4) Vista Avenue Petchkasem 81, 2-story townhome with starting price of 2.4 million Baht (5) Vista Avenue Petchkasem 81, 3-story townhome with starting price of 2.99 million Baht (6) Vista Park Changwattna, 3-story townhome with starting price of 3.99 million Baht (7) Centric Scene Ratchavipha, newly conceptualized condominium with prices ranging from 2.5 – 5.55 million Baht and (8) Centric Scene Sukhumvit 64 with starting price of 2.8 million Baht.
Mr. Kree Dejchai further adds that as all projects, launched within the year, have been well achieved which is quite confident that the market would warmly welcome the three new projects as it had in the past. With outstandingly new designs and functions, high potential locations, competitive prices, rising demands, as well as the project’s value-for-money offering, it is expected that the new 2009 series would deliver satisfactory result and that the company would achieve its projected plan and targets.
Thursday, November 12, 2009
The wonders of Panatda's rooftop garden
"Growing plants is like raising children, you get emotionally attached, when they grow up you feel good. It's even better than children because they never talk back at you.
Just about everyone finds the idea of having a private garden within the confines of their home very appealing. It's the perfect place to relax.Wouldn't it be great if this garden could provide shade and double as a vegetable garden as well?
Not only will you be increasing the green area, but you can eat fresh, delicious vegetables too.
If you don't know what vegetables you'd like to plant, then maybe Panatda Tokiartrungruang, aka Aunty Neng, can give you a few pointers.
This 54-year-old woman revamped the entire rooftop of her 5-storey shop-house into a most enviable vegetable garden, streaming with variety and vibrant colours.
Panatda's garden is an award-winning vegetable garden in the rooftop category.She competed in the recent "Vegetable Garden in My House" contest at the National Herbs Exhibition in September.
Her 30-square-wah shophouse is in the Sathon area of Bangkok. After recovering from heart surgery, her body gradually healed itself and became stronger. From then on she decided that she wanted to take good care of herself.
Once she was able to walk up the five flights of stairs, Panatda set out to transform her shophouse rooftop into a hydroponic vegetable garden, where the fruits of her labour could be used in the kitchen or sold.
Alas, the cost of hydroponics was just too high for her.
Recycled garden
Panatda previously earned a living in the recycling business, so she knows a thing or two about used materials and how to find them. It just so happened that next to her shophouse was a large recycling business.
She decided that recycled and discarded materials would be the building blocks of her vegetable garden.
It was her decision to use recycled materials that won the hearts of the judges at the competition.
Old electric cable sheaths became a web to support greens and veggies as they become heavy with produce.
The butterfly pea (anchan)is Panatda's baby: It blooms beautiful blue flowers throughout the floating garden as green beans slither in between.
"Most people will use a steel frame for the greens to cling on and grow but steel is heavy and a conductor of heat. I don't think vegetables would want to be around a hot frame for support. There are strong winds on the rooftop as well which makes it prone to falling down," Aunty Neng said.
"But using electric cable sheaths is the perfect solution because it's light-weight and not hot. Just connect them together, crisscross it like a net. If you don't like what you see, just change the pattern. And it's not expensive."
An old laundry basket, used lanterns and the innards of a washing machine are a few examples of what Panatda has adapted to use as pots for her vegetables. A conventional garden pot might cost about 200 baht but Panatda's used materials cost only a fraction, or about 20-30 baht each.
Old foam boxes are great garden pots because foam does not absorb heat. They are also perfectly suited for rooftops,because they are lightweight.
Panatda also uses old clothes hangers, cupboards, old noodle stalls and PVC pipes for greens and flowers to cling to and flourish.
"Washing pans or the old inner structure of drying machines are usually screened out by recycling shops because they don't have any monetary value, unlike the outer structure of washing machines which are made of steel. However they are ideal because there are holes which serve as a good water drainage system. I'd place a plastic cover inside first and then add soil in order to make watering the plants an easy job. Water drains out of the holes on the sides. It's only a few baht. It saves money and is rather durable," she explained.
Panatda buys and shares vegetable seeds from her friends. Some blooms are left to mature so she collects the seeds for future
cultivation. Her main gardening expense is soil:Bags of potting soil cost about 20 baht each.
Aunty Neng does not use pesticides or chemicals. She plucks out frail or bad-looking leaves.
If she finds insects that might be harmful then she cuts the branch and waits for new growth to replace it.
Not only does this save money but the fruits of her labor taste really good,and are in high demand by everyone in the neighbourhood.
"My house specialty is stir-fried green beans with minced pork, garlic and prik-khi-noo chilies. My green beans are very sweet. When they are ripe the harvest is bountiful which is why I sell some of my produce to nearby shops and somtam vendors. Oh! They love it and don't sell it but eat it themselves. They tell me my vegetables are very delicious and sweet when compared to what they usually buy in the market. My vegetables are really organic. They might not be big but their taste is. No matter how many veggies I have, they always sell out,"Panatda said .
Butterfly pea the star of the garden
Most of the space on Panatda's rooftop garden is dominated by butterfly pea flowers.There are butterfly pea blooms in a fresh blue variety, light blue and white colours.Some butterfly peas cling to the walls while others snuggle their way up into a makeshift archway that provides shade and shelter for an afternoon nap.
Panatda explained that her fondness of the butterfly pea plant comes from the fact that it is easy to cultivate, grows fast, and is an epicurean's dream in the kitchen. The flower can be boiled and served as a healthy drink, and is a tasty snack when eaten fresh.It can be used as a seasoning, such as a side dish for chili paste (namprik), dipped in egg and fried, or mixed into fried scrambled eggs, to name just a few delights.
Hence, Panatda selected the butterfly pea flower to be the star of her garden. She says drinking butterfly pea juice daily keeps her in good health: She feels strong and her joints and muscles do not feel weary.
Every morning from 6am till 11am Panatda is working under the shade of her rooftop garden, with her radio to keep her company.
Her chores include watering the plants,tilling the soil and taking care of her plants.But her core responsibility is to harvest the abundant butterfly pea flower. She has more than she can eat herself, so she sells the extra flowers.
"I never thought of selling butterfly pea flowers as a serious profit-making scheme.I shared with my friends at first but some ate the flowers daily and they felt it would be appropriate if they paid for it instead. Now I sell fresh flowers and bottled butterfly pea juice at 10-15 baht per bottle," she said.
"I collect the flowers and put them in the fridge for a week, then I sell them. At 20 baht per bag I sell about 10 bags a week for about 200 baht. Sometimes I boil butterfly pea juice and make merit. I have so many flowers I have to sell them at the market. At 20 baht per bloom I get a considerable amount."
Secret to growing many greens and flowers in one pot
The vegetable garden of Panatda is characterised by its rich variety. There are vegetables and then there are flowers and decorative plants, more than 50 species. She has planted basil, mint, green beans, garden pea, hot chilies, yellow chilies, water bamboo grass (ya-pai-nam), papaya, cassava, bananas,moringa, grenadine, pandanus, jasmine,sweet oleander, common lime and hibiscus:The list just goes on and on.
Panatda said that she has always had a fondness for planting flowers and recalls someone telling her that growing flowers and vegetables together will reduce insect problems because they will pay attention to the flowers instead of the greens.
"At first I didn't know much. I liked flowers so that's all I planted. But then an expert recommended I mix in vegetables. Each pot contains a mixture of flowers and vegetables,so they can help each other. Plants which are left to grow alone do not survive, but once I put them beside other pots they can benefit from the shade and reach maturity.
"For example I put the aloe vera with butterfly pea, or the green beans with papaya and when they mature I can single them out in separate pots."
Having a garden on a rooftop that is exposed to extremely hot temperatures calls for heavy morning watering.
Panatda recommends that you water your plants generously until the water seeps out onto the base of the pot. Watering once in the morning is sufficient.
Gardening and good health
It's been two years since Panatda underwent heart surgery. She's transformed herself into a full-time rooftop gardener with the love and support of her husband and children.
She used to rest in between the flights of stairs but now Aunty Neng casually makes it up and down the five-storey shophouse with no problem at all.
Sometimes she carries a bag of earth on her way up, or she'll come down with a basket full of vegetables.
"Each day is full of happiness for me when I come up here alone. My health has improved tremendously. I don't tire easily, unlike before.When I am in the garden, time flies and there is shade and small birds that fly in frequently,"Panatda said.
"Being with plants keeps me fresh. I am thinking of building a small room in the corner at the back with a built-in bathroom so I don't have walk down to use the toilet.Growing plants is like raising children, you get emotionally attached, when they grow up you feel good. It's even better than children because they never talk back at you," she said, laughing.
"But plants are emotionally fragile because if you forget to water them once, they droop and sag: So you need to take good care of them." she added.
Before bidding goodbye, Panatda made sure mylife took home hundreds of butterfly pea seeds and a number of plants."It's not hard to grow. Once the plants grow you can eat it and reduce global warming as well."
Just about everyone finds the idea of having a private garden within the confines of their home very appealing. It's the perfect place to relax.Wouldn't it be great if this garden could provide shade and double as a vegetable garden as well?
Not only will you be increasing the green area, but you can eat fresh, delicious vegetables too.
If you don't know what vegetables you'd like to plant, then maybe Panatda Tokiartrungruang, aka Aunty Neng, can give you a few pointers.
This 54-year-old woman revamped the entire rooftop of her 5-storey shop-house into a most enviable vegetable garden, streaming with variety and vibrant colours.
Panatda's garden is an award-winning vegetable garden in the rooftop category.She competed in the recent "Vegetable Garden in My House" contest at the National Herbs Exhibition in September.
Her 30-square-wah shophouse is in the Sathon area of Bangkok. After recovering from heart surgery, her body gradually healed itself and became stronger. From then on she decided that she wanted to take good care of herself.
Once she was able to walk up the five flights of stairs, Panatda set out to transform her shophouse rooftop into a hydroponic vegetable garden, where the fruits of her labour could be used in the kitchen or sold.
Alas, the cost of hydroponics was just too high for her.
Recycled garden
Panatda previously earned a living in the recycling business, so she knows a thing or two about used materials and how to find them. It just so happened that next to her shophouse was a large recycling business.
She decided that recycled and discarded materials would be the building blocks of her vegetable garden.
It was her decision to use recycled materials that won the hearts of the judges at the competition.
Old electric cable sheaths became a web to support greens and veggies as they become heavy with produce.
The butterfly pea (anchan)is Panatda's baby: It blooms beautiful blue flowers throughout the floating garden as green beans slither in between.
"Most people will use a steel frame for the greens to cling on and grow but steel is heavy and a conductor of heat. I don't think vegetables would want to be around a hot frame for support. There are strong winds on the rooftop as well which makes it prone to falling down," Aunty Neng said.
"But using electric cable sheaths is the perfect solution because it's light-weight and not hot. Just connect them together, crisscross it like a net. If you don't like what you see, just change the pattern. And it's not expensive."
An old laundry basket, used lanterns and the innards of a washing machine are a few examples of what Panatda has adapted to use as pots for her vegetables. A conventional garden pot might cost about 200 baht but Panatda's used materials cost only a fraction, or about 20-30 baht each.
Old foam boxes are great garden pots because foam does not absorb heat. They are also perfectly suited for rooftops,because they are lightweight.
Panatda also uses old clothes hangers, cupboards, old noodle stalls and PVC pipes for greens and flowers to cling to and flourish.
"Washing pans or the old inner structure of drying machines are usually screened out by recycling shops because they don't have any monetary value, unlike the outer structure of washing machines which are made of steel. However they are ideal because there are holes which serve as a good water drainage system. I'd place a plastic cover inside first and then add soil in order to make watering the plants an easy job. Water drains out of the holes on the sides. It's only a few baht. It saves money and is rather durable," she explained.
Panatda buys and shares vegetable seeds from her friends. Some blooms are left to mature so she collects the seeds for future
cultivation. Her main gardening expense is soil:Bags of potting soil cost about 20 baht each.
Aunty Neng does not use pesticides or chemicals. She plucks out frail or bad-looking leaves.
If she finds insects that might be harmful then she cuts the branch and waits for new growth to replace it.
Not only does this save money but the fruits of her labor taste really good,and are in high demand by everyone in the neighbourhood.
"My house specialty is stir-fried green beans with minced pork, garlic and prik-khi-noo chilies. My green beans are very sweet. When they are ripe the harvest is bountiful which is why I sell some of my produce to nearby shops and somtam vendors. Oh! They love it and don't sell it but eat it themselves. They tell me my vegetables are very delicious and sweet when compared to what they usually buy in the market. My vegetables are really organic. They might not be big but their taste is. No matter how many veggies I have, they always sell out,"Panatda said .
Butterfly pea the star of the garden
Most of the space on Panatda's rooftop garden is dominated by butterfly pea flowers.There are butterfly pea blooms in a fresh blue variety, light blue and white colours.Some butterfly peas cling to the walls while others snuggle their way up into a makeshift archway that provides shade and shelter for an afternoon nap.
Panatda explained that her fondness of the butterfly pea plant comes from the fact that it is easy to cultivate, grows fast, and is an epicurean's dream in the kitchen. The flower can be boiled and served as a healthy drink, and is a tasty snack when eaten fresh.It can be used as a seasoning, such as a side dish for chili paste (namprik), dipped in egg and fried, or mixed into fried scrambled eggs, to name just a few delights.
Hence, Panatda selected the butterfly pea flower to be the star of her garden. She says drinking butterfly pea juice daily keeps her in good health: She feels strong and her joints and muscles do not feel weary.
Every morning from 6am till 11am Panatda is working under the shade of her rooftop garden, with her radio to keep her company.
Her chores include watering the plants,tilling the soil and taking care of her plants.But her core responsibility is to harvest the abundant butterfly pea flower. She has more than she can eat herself, so she sells the extra flowers.
"I never thought of selling butterfly pea flowers as a serious profit-making scheme.I shared with my friends at first but some ate the flowers daily and they felt it would be appropriate if they paid for it instead. Now I sell fresh flowers and bottled butterfly pea juice at 10-15 baht per bottle," she said.
"I collect the flowers and put them in the fridge for a week, then I sell them. At 20 baht per bag I sell about 10 bags a week for about 200 baht. Sometimes I boil butterfly pea juice and make merit. I have so many flowers I have to sell them at the market. At 20 baht per bloom I get a considerable amount."
Secret to growing many greens and flowers in one pot
The vegetable garden of Panatda is characterised by its rich variety. There are vegetables and then there are flowers and decorative plants, more than 50 species. She has planted basil, mint, green beans, garden pea, hot chilies, yellow chilies, water bamboo grass (ya-pai-nam), papaya, cassava, bananas,moringa, grenadine, pandanus, jasmine,sweet oleander, common lime and hibiscus:The list just goes on and on.
Panatda said that she has always had a fondness for planting flowers and recalls someone telling her that growing flowers and vegetables together will reduce insect problems because they will pay attention to the flowers instead of the greens.
"At first I didn't know much. I liked flowers so that's all I planted. But then an expert recommended I mix in vegetables. Each pot contains a mixture of flowers and vegetables,so they can help each other. Plants which are left to grow alone do not survive, but once I put them beside other pots they can benefit from the shade and reach maturity.
"For example I put the aloe vera with butterfly pea, or the green beans with papaya and when they mature I can single them out in separate pots."
Having a garden on a rooftop that is exposed to extremely hot temperatures calls for heavy morning watering.
Panatda recommends that you water your plants generously until the water seeps out onto the base of the pot. Watering once in the morning is sufficient.
Gardening and good health
It's been two years since Panatda underwent heart surgery. She's transformed herself into a full-time rooftop gardener with the love and support of her husband and children.
She used to rest in between the flights of stairs but now Aunty Neng casually makes it up and down the five-storey shophouse with no problem at all.
Sometimes she carries a bag of earth on her way up, or she'll come down with a basket full of vegetables.
"Each day is full of happiness for me when I come up here alone. My health has improved tremendously. I don't tire easily, unlike before.When I am in the garden, time flies and there is shade and small birds that fly in frequently,"Panatda said.
"Being with plants keeps me fresh. I am thinking of building a small room in the corner at the back with a built-in bathroom so I don't have walk down to use the toilet.Growing plants is like raising children, you get emotionally attached, when they grow up you feel good. It's even better than children because they never talk back at you," she said, laughing.
"But plants are emotionally fragile because if you forget to water them once, they droop and sag: So you need to take good care of them." she added.
Before bidding goodbye, Panatda made sure mylife took home hundreds of butterfly pea seeds and a number of plants."It's not hard to grow. Once the plants grow you can eat it and reduce global warming as well."
PS keeps ambitious 30% growth target
The listed developer Preuksa Real Estate Plc aims for continuous growth of around 30% next year as it plans to launch 48 projects worth 20-30 billion baht, said chief operating officer Prasert Taedullayasatit.
Chief executive officer Thongma Vijitpongpun said the company expected to spend approximately 7.5 billion baht to acquire 50 plots of land for the development next year. One of the plots in the Rama II area is for a prefabrication manufacturing factory to support its growth plan.
A few plots will be in provinces such as Chon Buri, Phuket and Khon Kaen,where the company plans to develop townhouses and single houses priced between two million and 2.5 million baht each.
The prefabrication facility will cost around 700-800 million baht and cover 100,000 square metres. Its existing facility in Pathum Thani has reached its full capacity using 100,000 sq m, so the company needs another factory.
Expanding abroad is another growth strategy for Preuksa. The company has already engaged in projects with a combined value of around 3 billion baht in Bangalore, India, and Haiphong, Vietnam. It is now looking at the Maldives,where the island state's housing authority needs to develop around 1,000 condominium units for its people.
Mr Thongma said a Maldives deal,worth around US$10 million, would likely take place next year. Preuksa projects 4-6% of its total business in 2010 will come from projects in other countries.
Mr Prasert said Preuksa outsourced the construction of a condominium project, Ivy Thong Lor, for the first time as the company wanted to focus its fleets on the construction of townhouses and single houses.
PS launched 17 projects worth 8.96 billion baht in the first three quarters and plan another 17 projects worth about 10 billion baht in the final quarter of 2009.
Among new projects, there will be a new townhouse brand, Urbano, worth 600 million baht in the Sukhaphiban 3 area. Its Seed Theme is a new high-end condominium brand to be launched this year.
The company posted 651 million baht of net profit in the third quarter, up 15%year-on-year from 565 million baht on total revenue of 3.844 billion baht, up 19% year-on-year from 3.233 billion baht.
Its nine-month net profit was 1.978 billion baht, up 32% year-on-year from 1.497 billion baht, on total revenue of 11.287 billion baht, up 29% from 8.75 billion baht.
The company has backlog sales of 15.21 billion baht, with 8.33 billion ready to transfer this year, meaning it would exceed its full-year revenue target of 17 billion baht. Sales for the first nine months were 15.046 billion baht, up 13.1% from the same period last year.
Mr Thongma said PS maintains a favourable outlook next year though expiring tax incentives mean prices will rise by 6-7%.
PS shares closed yesterday on the Stock Exchange of Thailand at 15.40 baht,down 10 satang, in trade worth 58.52 million baht.
Chief executive officer Thongma Vijitpongpun said the company expected to spend approximately 7.5 billion baht to acquire 50 plots of land for the development next year. One of the plots in the Rama II area is for a prefabrication manufacturing factory to support its growth plan.
A few plots will be in provinces such as Chon Buri, Phuket and Khon Kaen,where the company plans to develop townhouses and single houses priced between two million and 2.5 million baht each.
The prefabrication facility will cost around 700-800 million baht and cover 100,000 square metres. Its existing facility in Pathum Thani has reached its full capacity using 100,000 sq m, so the company needs another factory.
Expanding abroad is another growth strategy for Preuksa. The company has already engaged in projects with a combined value of around 3 billion baht in Bangalore, India, and Haiphong, Vietnam. It is now looking at the Maldives,where the island state's housing authority needs to develop around 1,000 condominium units for its people.
Mr Thongma said a Maldives deal,worth around US$10 million, would likely take place next year. Preuksa projects 4-6% of its total business in 2010 will come from projects in other countries.
Mr Prasert said Preuksa outsourced the construction of a condominium project, Ivy Thong Lor, for the first time as the company wanted to focus its fleets on the construction of townhouses and single houses.
PS launched 17 projects worth 8.96 billion baht in the first three quarters and plan another 17 projects worth about 10 billion baht in the final quarter of 2009.
Among new projects, there will be a new townhouse brand, Urbano, worth 600 million baht in the Sukhaphiban 3 area. Its Seed Theme is a new high-end condominium brand to be launched this year.
The company posted 651 million baht of net profit in the third quarter, up 15%year-on-year from 565 million baht on total revenue of 3.844 billion baht, up 19% year-on-year from 3.233 billion baht.
Its nine-month net profit was 1.978 billion baht, up 32% year-on-year from 1.497 billion baht, on total revenue of 11.287 billion baht, up 29% from 8.75 billion baht.
The company has backlog sales of 15.21 billion baht, with 8.33 billion ready to transfer this year, meaning it would exceed its full-year revenue target of 17 billion baht. Sales for the first nine months were 15.046 billion baht, up 13.1% from the same period last year.
Mr Thongma said PS maintains a favourable outlook next year though expiring tax incentives mean prices will rise by 6-7%.
PS shares closed yesterday on the Stock Exchange of Thailand at 15.40 baht,down 10 satang, in trade worth 58.52 million baht.
Sunday, November 8, 2009
Murdoch outbids Crowe for mansion
Lachlan Murdoch paid A$23 million (US$21 million) to buy France's former consulate in Sydney's eastern suburbs, setting an Australian auction record for a single house and beating out actor Russell Crowe.
The six-bedroom estate on Victoria Road in Bellevue Hill, known as Le Manoir, was owned by the French government since 1956 and has ocean and harbour views, said Michael Pallier, the principal at Raine & Horne Double Bay,which ran the sale.
The auction, attended personally by Murdoch, was conducted at 6 pm on Thursday and lasted 10 minutes.
There weren't any signs of a global financial crisis at the auction with 10 registered bidders going hammer and tongs at it, Pallier said by phone. It was one of a handful of Sydney's eastern suburb's trophy homes and they rarely become available.
Lachlan,38, is the eldest son of News Corp chairman Rupert Murdoch. Born in Melbourne in 1931, Rupert Murdoch built News Corp into a global media company with assets including Fox News,the Wall Street Journal and the MySpace social-networking website, after inheriting Adelaide newspaper assets from his own father, Keith. The News Corp chairman was in Australia this week.
The sale was reported earlier in the Australian Financial Review , which said Crowe monitored the sale via the internet.
Lachlan Murdoch could not immediately be reached at the Sydney office of his private investment company Illyria Pty.
"Le Manoir is on 4,097 square metres (1.01 acres) of land with panoramic views,a tennis court, swimming pool and a three-car garage," Pallier said. The house was built in 1926.
"There's probably only a handful of homes that are in Bellevue Hill which sit on over an acre of land, so a substantial offering, a very unique offering," Damien Cooley, director and auctioneer, Cooley Auctions, said by phone yesterday."Topend real estate is really starting to come good. It's been challenging for the last few years, particularly with the global financial crisis."
"The French government paid 26,000 Australian pounds for the property in 1956 and the house has only had two owners," Cooley said.
The six-bedroom estate on Victoria Road in Bellevue Hill, known as Le Manoir, was owned by the French government since 1956 and has ocean and harbour views, said Michael Pallier, the principal at Raine & Horne Double Bay,which ran the sale.
The auction, attended personally by Murdoch, was conducted at 6 pm on Thursday and lasted 10 minutes.
There weren't any signs of a global financial crisis at the auction with 10 registered bidders going hammer and tongs at it, Pallier said by phone. It was one of a handful of Sydney's eastern suburb's trophy homes and they rarely become available.
Lachlan,38, is the eldest son of News Corp chairman Rupert Murdoch. Born in Melbourne in 1931, Rupert Murdoch built News Corp into a global media company with assets including Fox News,the Wall Street Journal and the MySpace social-networking website, after inheriting Adelaide newspaper assets from his own father, Keith. The News Corp chairman was in Australia this week.
The sale was reported earlier in the Australian Financial Review , which said Crowe monitored the sale via the internet.
Lachlan Murdoch could not immediately be reached at the Sydney office of his private investment company Illyria Pty.
"Le Manoir is on 4,097 square metres (1.01 acres) of land with panoramic views,a tennis court, swimming pool and a three-car garage," Pallier said. The house was built in 1926.
"There's probably only a handful of homes that are in Bellevue Hill which sit on over an acre of land, so a substantial offering, a very unique offering," Damien Cooley, director and auctioneer, Cooley Auctions, said by phone yesterday."Topend real estate is really starting to come good. It's been challenging for the last few years, particularly with the global financial crisis."
"The French government paid 26,000 Australian pounds for the property in 1956 and the house has only had two owners," Cooley said.
PHROM PHONG CONDO SELLS OUT IN ONE DAY
The long-standing business mantra - location, location, location - has again worked its magic for Noble Development Plc,which for the second time this year sold all the units in a new condominium within one day of its launch.
Noble Refine is located in Sukhumvit Soi 26, just 180 metres from the Phrom Phong BTS station. There is no denying its appeal,what with the Emporium Department Store,Benchasiri Park and Villa supermarket all within walking distance.
This project, with 234 units, obtained an average price of 105,000 baht a square metre during the late September launch, higher than the 95,000 baht that the 198 units of Noble Reform in Soi Ari in the Phahon Yothin area fetched in March.
Company president Thongchai Busrapan said that other factors that ensured success included his company's in-depth knowledge of the market plus loyal customers who were willing to make additional investments in the new development.
"It's true we are willing to spend more on the land plot, but I have to say we don't pay too much - these prices are known in the market. Others buy land at prices close to ours but we choose good plots; when we are confident that the location will work, we buy it,'' he said.
While some might think that more than 100,000 baht a square metre of condominium space is already very steep and can't get any higher, Mr Thongchai pointed out that prices in Thailand are still cheaper than in some neighbouring countries, while the rental returns are better.
"I understand that in the UK, Hong Kong and Singapore the rental return is only 3-4%,while here it's still strong at around 5-8%. It depends on the PE [price/earnings] ratio: if the return is good people will invest and the price can rise - there is room for this.''
Then too, land prices and construction costs are unlikely to drop in the future, which means 100,000 baht a square metre cannot be considered to be expensive.
Noble is not the only property company doing well.
Mr Thongchai mentioned that other projects launched recently have also found buyers, with the market having picked up over the past two to three months from the nadir it reached last April.
Rather than the glimmers of global economic recovery that have become visible recently, it is the low interest rates that have spurred the market.
"Deposit rates are pretty low and this drives money out of savings accounts into other assets such as property.''
Another factor propelling the market forward is that a large number of people have come to accept the various problems within the country are nothing new to them anymore because the impact has dragged on for so long.
That said, Mr Thongchai himself continues to be concerned about the political situation, and has questions about what will happen next.
"If this government is badly discredited I don't know how long it will stay in power, and if it cannot remain in power there will be new elections. When the prime minister is asked whether he is ready for new elections, he says he is and that he will definitely win,but I'm not sure everyone agrees with him.
"And if the other side comes back to power what will happen? They would try to bring Thaksin back and that would lead to red, yellow and blue shirts demonstrating again.''
Looking ahead, Mr Thongchai warned that when the property tax breaks end in March next year the general market would slow down for a spell.
This does not apply to new condominiums,however, because buyers already know they will not benefit from the incentives when these new buildings are completed in two to three years' time.
From now until the tax breaks expire in March, everything that is completed should sell well, including single houses and townhouses, because some buyers want to move in right away.
The tax breaks are substantial, with the special business tax having been cut from 3.3% to 0.11%, transfer fee from 2% to 0.01%and mortgage registration fee from 1% to 0.01%.
While Noble and other developers would like the government to extend the breaks,Mr Thongchai acknowledges that it might not be necessary to do so because global circumstances have changed since last March,when it was uncertain how this market would be affected by the turbulence overseas.
As he sees it, the global economy has already passed through the worst point and now it is more about how long-term fund-
mentals and economic mechanisms will adjust themselves.``Earlier everyone sold goods to America,and although America is not a small country its population is not that large. Yet this population consumed 25% of global production.Other countries such as India and China, which have much greater populations,did not consume more than 10% of what the US did. It's quite strange.
"So Americans bought a lot of things -we shipped our goods for sale there and got money in return. The money we got was the US dollar and we went and deposited this with [the US] too. With so much money deposited there it pushed their interest rates low, and this in turn led to a real estate bubble that also affected us.
"But now Americans do not have that much money to buy things from us and this imbalance faces a major adjustment. This adjustment will lead to there being both opportunity and danger in every business.''
Mr Thongchai added that these changes mean that Asian countries will be exporting less and will counterbalance this by focusing on domestic consumption. Under this strategy, a lot of funds will be invested under various policies, such as infrastructure development. Developing infrastructure directly helps the property market because it opens new locations for development.
"But all this is long term - we won't see it in the next one or two years.''
Noble Refine is located in Sukhumvit Soi 26, just 180 metres from the Phrom Phong BTS station. There is no denying its appeal,what with the Emporium Department Store,Benchasiri Park and Villa supermarket all within walking distance.
This project, with 234 units, obtained an average price of 105,000 baht a square metre during the late September launch, higher than the 95,000 baht that the 198 units of Noble Reform in Soi Ari in the Phahon Yothin area fetched in March.
Company president Thongchai Busrapan said that other factors that ensured success included his company's in-depth knowledge of the market plus loyal customers who were willing to make additional investments in the new development.
"It's true we are willing to spend more on the land plot, but I have to say we don't pay too much - these prices are known in the market. Others buy land at prices close to ours but we choose good plots; when we are confident that the location will work, we buy it,'' he said.
While some might think that more than 100,000 baht a square metre of condominium space is already very steep and can't get any higher, Mr Thongchai pointed out that prices in Thailand are still cheaper than in some neighbouring countries, while the rental returns are better.
"I understand that in the UK, Hong Kong and Singapore the rental return is only 3-4%,while here it's still strong at around 5-8%. It depends on the PE [price/earnings] ratio: if the return is good people will invest and the price can rise - there is room for this.''
Then too, land prices and construction costs are unlikely to drop in the future, which means 100,000 baht a square metre cannot be considered to be expensive.
Noble is not the only property company doing well.
Mr Thongchai mentioned that other projects launched recently have also found buyers, with the market having picked up over the past two to three months from the nadir it reached last April.
Rather than the glimmers of global economic recovery that have become visible recently, it is the low interest rates that have spurred the market.
"Deposit rates are pretty low and this drives money out of savings accounts into other assets such as property.''
Another factor propelling the market forward is that a large number of people have come to accept the various problems within the country are nothing new to them anymore because the impact has dragged on for so long.
That said, Mr Thongchai himself continues to be concerned about the political situation, and has questions about what will happen next.
"If this government is badly discredited I don't know how long it will stay in power, and if it cannot remain in power there will be new elections. When the prime minister is asked whether he is ready for new elections, he says he is and that he will definitely win,but I'm not sure everyone agrees with him.
"And if the other side comes back to power what will happen? They would try to bring Thaksin back and that would lead to red, yellow and blue shirts demonstrating again.''
Looking ahead, Mr Thongchai warned that when the property tax breaks end in March next year the general market would slow down for a spell.
This does not apply to new condominiums,however, because buyers already know they will not benefit from the incentives when these new buildings are completed in two to three years' time.
From now until the tax breaks expire in March, everything that is completed should sell well, including single houses and townhouses, because some buyers want to move in right away.
The tax breaks are substantial, with the special business tax having been cut from 3.3% to 0.11%, transfer fee from 2% to 0.01%and mortgage registration fee from 1% to 0.01%.
While Noble and other developers would like the government to extend the breaks,Mr Thongchai acknowledges that it might not be necessary to do so because global circumstances have changed since last March,when it was uncertain how this market would be affected by the turbulence overseas.
As he sees it, the global economy has already passed through the worst point and now it is more about how long-term fund-
mentals and economic mechanisms will adjust themselves.``Earlier everyone sold goods to America,and although America is not a small country its population is not that large. Yet this population consumed 25% of global production.Other countries such as India and China, which have much greater populations,did not consume more than 10% of what the US did. It's quite strange.
"So Americans bought a lot of things -we shipped our goods for sale there and got money in return. The money we got was the US dollar and we went and deposited this with [the US] too. With so much money deposited there it pushed their interest rates low, and this in turn led to a real estate bubble that also affected us.
"But now Americans do not have that much money to buy things from us and this imbalance faces a major adjustment. This adjustment will lead to there being both opportunity and danger in every business.''
Mr Thongchai added that these changes mean that Asian countries will be exporting less and will counterbalance this by focusing on domestic consumption. Under this strategy, a lot of funds will be invested under various policies, such as infrastructure development. Developing infrastructure directly helps the property market because it opens new locations for development.
"But all this is long term - we won't see it in the next one or two years.''
DEVELOPERS TURNING TO INTERNET
Thailand's property firms are adapting their marketing strategies to meet the new information-technology era, and are cementing an image change from property market operators to lifestyle businesses.
Although they have not abandoned traditional marketing media, many firms are using integrated marketing with increasing emphasis on new online channels.
For example, Land & Houses (L&H) has launched an Internet homepage, www.my1sthome.in.th, aimed at attracting first-time homebuyers. The company is reaching out to a younger market, such as new members of the workforce, who expect to use the Internet to obtain information.
Sansiri has begun using the wildly popular social-networking power of YouTube, Facebook and Twitter as a means of attracting people to its main website www.homeandicom. It hopes to be able to create a social network between the company and its customers.
Meanwhile, LPN Development plans to bring an online social-net-working atmosphere to its new website, www.30happydays.com. The company has now developed more than 60 residential projects, and it hopes the website will become a centre for communication between the company and its customers.
Property Perfect launched its latest marketing tool via a social online network after 15 per cent of its customer were found to visit its projects through Facebook and Twitter, said project-planning director Thongchai Piyasantiwong.
The company also launched a miniseries that can be viewed at www.thehappylivingstory.com, to help drive its sales, he said.
LPN Development managing director Opas Sripayak said his company's website would create a close relationship between the company and its customers, providing a channel through which the company could learn by direct contact what its customers wanted in order to suit their lifestyles.
Suparat Veerakul, vice president for communications at L&H, said her company's homepage was aimed at tapping customers aged 25-35 who were probably first-time home-buyers.
The page includes tips on how to buy houses. It also provides games to test people to see whether they are ready to own a home. Other content includes promotions and details of L&H products. LH Bank will also provide online consultation services to people on home financing, she said.
People who sign up as members of the homepage will receive a special loan rate from LH Bank when buying residences advertised on the site.
She said it should fit with the lifestyle of the "young adult" group.
"We think the Internet is the most effective way to reach them," she said.
Samatcha Promsiri, senior marketing manager at Sansiri, said after opening its digital-era marketing media earlier this year that integration between new media channels would help the company to respond faster and provide information directly to customers.
Research by the University of the Thai Chamber of Commerce shows demand for Internet access has become increasingly popular, especially among college students, who these days do their research and seek information on the Internet for their papers and careers.
The number of Internet users in Thailand reached nearly 13 million at the end of last year, according to a survey by TT&T.
Although they have not abandoned traditional marketing media, many firms are using integrated marketing with increasing emphasis on new online channels.
For example, Land & Houses (L&H) has launched an Internet homepage, www.my1sthome.in.th, aimed at attracting first-time homebuyers. The company is reaching out to a younger market, such as new members of the workforce, who expect to use the Internet to obtain information.
Sansiri has begun using the wildly popular social-networking power of YouTube, Facebook and Twitter as a means of attracting people to its main website www.homeandicom. It hopes to be able to create a social network between the company and its customers.
Meanwhile, LPN Development plans to bring an online social-net-working atmosphere to its new website, www.30happydays.com. The company has now developed more than 60 residential projects, and it hopes the website will become a centre for communication between the company and its customers.
Property Perfect launched its latest marketing tool via a social online network after 15 per cent of its customer were found to visit its projects through Facebook and Twitter, said project-planning director Thongchai Piyasantiwong.
The company also launched a miniseries that can be viewed at www.thehappylivingstory.com, to help drive its sales, he said.
LPN Development managing director Opas Sripayak said his company's website would create a close relationship between the company and its customers, providing a channel through which the company could learn by direct contact what its customers wanted in order to suit their lifestyles.
Suparat Veerakul, vice president for communications at L&H, said her company's homepage was aimed at tapping customers aged 25-35 who were probably first-time home-buyers.
The page includes tips on how to buy houses. It also provides games to test people to see whether they are ready to own a home. Other content includes promotions and details of L&H products. LH Bank will also provide online consultation services to people on home financing, she said.
People who sign up as members of the homepage will receive a special loan rate from LH Bank when buying residences advertised on the site.
She said it should fit with the lifestyle of the "young adult" group.
"We think the Internet is the most effective way to reach them," she said.
Samatcha Promsiri, senior marketing manager at Sansiri, said after opening its digital-era marketing media earlier this year that integration between new media channels would help the company to respond faster and provide information directly to customers.
Research by the University of the Thai Chamber of Commerce shows demand for Internet access has become increasingly popular, especially among college students, who these days do their research and seek information on the Internet for their papers and careers.
The number of Internet users in Thailand reached nearly 13 million at the end of last year, according to a survey by TT&T.
Wednesday, November 4, 2009
BAM property fair
Bangkok Asset Management (BAM) will open sales for around 2,500 plots of land worth below 10 million baht each at an investment fair to be held at CentralWorld from Nov 9-15.
Buyers need to deposit 10% of the value on the contract signing day and pay the remaining 30% of the downpayment in 10 installments. The remaining 60% will be due within one year after the contract has been signed. The campaign will run until the end of this year.
Buyers need to deposit 10% of the value on the contract signing day and pay the remaining 30% of the downpayment in 10 installments. The remaining 60% will be due within one year after the contract has been signed. The campaign will run until the end of this year.
SC ASSET EARMARKS BT2 BN FOR LAND
SC Asset Corp, the real-estate arm of the Shinawatra family, has budgeted Bt2 billion for building up its land bank next year to meet recovering residential demand in 2011.
Kree Dejchai, chief operating officer, said yesterday that this was up from the Bt1.5 billion spent to acquire undeveloped land this year. Next year will see six residential projects kicked off worth Bt4 billion to drive growth of at least 10 per cent.
This year, presales are expected to reach nearly Bt5 billion and revenue to grow 10 per cent to Bt4.6 billion. The company earned Bt282 million on sales of Bt1.7 billion in the first half.
"Our sales have been strong since the third quarter, so we revised our growth target from 5 per cent to 10 per cent this year," he said.
Demand for residences has picked up nicely since last quarter, he said. The developer's sales have exploded from Bt600 million in the first quarter to Bt1.2 billion in the second and Bt1.5 billion in the third.
As sales have been running about Bt200 million a week this quarter, SC Asset believes its presales will beat the 2009 target of Bt4.2 billion to reach nearly Bt5 billion, up nearly 10 per cent from last year.
To drive its sales over estimates, the company has launched three residential projects worth Bt1.3 billion.
Two projects under the Bangkok Boulevard brand are located in the Kaset-Navamintra area. One consists of luxury three-storey single-family homes and the other - Life Bangkok Boulevard Ratchavipha - features stylish two-storey single-family homes. The last project called Work Place Ratchada-Ramindra is a specially designed home-office development.
The company will hold the "SC Parade" privilege marketing campaign on Sunday, which is expected to generate sales of more than Bt300 million.
Kree Dejchai, chief operating officer, said yesterday that this was up from the Bt1.5 billion spent to acquire undeveloped land this year. Next year will see six residential projects kicked off worth Bt4 billion to drive growth of at least 10 per cent.
This year, presales are expected to reach nearly Bt5 billion and revenue to grow 10 per cent to Bt4.6 billion. The company earned Bt282 million on sales of Bt1.7 billion in the first half.
"Our sales have been strong since the third quarter, so we revised our growth target from 5 per cent to 10 per cent this year," he said.
Demand for residences has picked up nicely since last quarter, he said. The developer's sales have exploded from Bt600 million in the first quarter to Bt1.2 billion in the second and Bt1.5 billion in the third.
As sales have been running about Bt200 million a week this quarter, SC Asset believes its presales will beat the 2009 target of Bt4.2 billion to reach nearly Bt5 billion, up nearly 10 per cent from last year.
To drive its sales over estimates, the company has launched three residential projects worth Bt1.3 billion.
Two projects under the Bangkok Boulevard brand are located in the Kaset-Navamintra area. One consists of luxury three-storey single-family homes and the other - Life Bangkok Boulevard Ratchavipha - features stylish two-storey single-family homes. The last project called Work Place Ratchada-Ramindra is a specially designed home-office development.
The company will hold the "SC Parade" privilege marketing campaign on Sunday, which is expected to generate sales of more than Bt300 million.
Wednesday, October 28, 2009
BOON TURNS TO CHINA AFTER SELLING HOSPITAL STAKE
Property tycoon Boon Vanasin recently unloaded shares in Piyavate Hospital to Red Bull owner Chaleo Yoovidhya so he can focus more on hospital investment in China.
"China will be my latest country for investing in healthcare. I believe revenue from that industry in that country will exceed revenue from all of my businesses in Thailand, both healthcare and property, within five years," Boon said.
He said he spent much of his time in China now, overseeing construction of his hospitals. Despite the opportunities afforded by the world's most populous country, investment in China is quite difficult for foreigners, and so he finds he must be on hand there.
Boon's hospital arm, the Thonburi Hospital Group, sold its entire 40-per-cent stake in Piyavate Hospital, although he maintains his personal 5-per-cent holding and remains a director.
The group generates annual revenue of Bt3 billion from 17 hospitals, while Boon's property business generates about Bt2 billion per annum.
Boon's foreign-investment arm, WJ International Healthcare, is constructing three Chinese hospitals at a combined cost exceeding Bt1 billion, with a different Chinese partner for each one: the military, the Foreign Ministry and the Red Cross Society of China.
Boon plans to open three hospitals a year in China, serving mainly foreigners.
He said the Thonburi Hospital Group agreed to sell its shares in Piyavate Hospital roughly five months ago, obtaining Bt400 million from the deal. The money will go towards the Bt900-million expansion of Thonburi Hospital 1 and Thonburi Hospital 2.
The group will spend Bt400 million to build new outpatient and inpatient buildings at Thonburi Hospital 1, after which capacity will double in the outpatient building to serve 3,000 patients a day, while inpatient beds will increase 25 per cent to 500.
A budget of Bt500 million has been earmarked for a new outpatient building at Thonburi Hospital 2 that can serve 1,500 outpatients daily, up from 800 now.
Boon said another reason for selling the Piyavate shares were his and Chaleo's conflicting opinions on the business's direction. He wanted to embark upon a major Bt2-billion upgrade of Piyavate, in order to make it more competitive with other private hospitals, but Chaleo wants the 16-year-old hospital to grow more slowly.
Boon resigned as Piyavate's chairman but signed an agreement with Chaleo retaining the right to become Piyavate Hospital's major shareholder within three years. If he does return in that capacity, he may let his heirs hold the stake.
Piyavate CEO and president Nithi Mahanonda said Chaleo planned to bring in more doctors from several fields, cut unnecessary costs and make the most beneficial use of the hospital's facilities. After five years of losses, the hospital is expected to post a net profit next year, with revenue increasing 15 per cent.
Nithi expects revenue of Bt1 billion this year, up 25 per cent from last year. The company will book a net loss estimated at Bt60 million, an improvement from last year's Bt300-million loss.
Piyavate expects to take six years to clear its accumulated losses of Bt800 million.
Nithi said with the transaction, Chaleo's children and grandchild now hold 75 per cent of the hospital's registered capital of Bt2.1 billion, while 19 per cent is held physicians.
He said Piyavate had spent nearly Bt200 million on renovating its building and would increase the number of beds from 100 to 150 within six months. It is also adding more full- and part-time physicians to attract more patients, especially foreigners, who are higher margin.
Piyavate plans to become a top-five private hospital in the near future.
"China will be my latest country for investing in healthcare. I believe revenue from that industry in that country will exceed revenue from all of my businesses in Thailand, both healthcare and property, within five years," Boon said.
He said he spent much of his time in China now, overseeing construction of his hospitals. Despite the opportunities afforded by the world's most populous country, investment in China is quite difficult for foreigners, and so he finds he must be on hand there.
Boon's hospital arm, the Thonburi Hospital Group, sold its entire 40-per-cent stake in Piyavate Hospital, although he maintains his personal 5-per-cent holding and remains a director.
The group generates annual revenue of Bt3 billion from 17 hospitals, while Boon's property business generates about Bt2 billion per annum.
Boon's foreign-investment arm, WJ International Healthcare, is constructing three Chinese hospitals at a combined cost exceeding Bt1 billion, with a different Chinese partner for each one: the military, the Foreign Ministry and the Red Cross Society of China.
Boon plans to open three hospitals a year in China, serving mainly foreigners.
He said the Thonburi Hospital Group agreed to sell its shares in Piyavate Hospital roughly five months ago, obtaining Bt400 million from the deal. The money will go towards the Bt900-million expansion of Thonburi Hospital 1 and Thonburi Hospital 2.
The group will spend Bt400 million to build new outpatient and inpatient buildings at Thonburi Hospital 1, after which capacity will double in the outpatient building to serve 3,000 patients a day, while inpatient beds will increase 25 per cent to 500.
A budget of Bt500 million has been earmarked for a new outpatient building at Thonburi Hospital 2 that can serve 1,500 outpatients daily, up from 800 now.
Boon said another reason for selling the Piyavate shares were his and Chaleo's conflicting opinions on the business's direction. He wanted to embark upon a major Bt2-billion upgrade of Piyavate, in order to make it more competitive with other private hospitals, but Chaleo wants the 16-year-old hospital to grow more slowly.
Boon resigned as Piyavate's chairman but signed an agreement with Chaleo retaining the right to become Piyavate Hospital's major shareholder within three years. If he does return in that capacity, he may let his heirs hold the stake.
Piyavate CEO and president Nithi Mahanonda said Chaleo planned to bring in more doctors from several fields, cut unnecessary costs and make the most beneficial use of the hospital's facilities. After five years of losses, the hospital is expected to post a net profit next year, with revenue increasing 15 per cent.
Nithi expects revenue of Bt1 billion this year, up 25 per cent from last year. The company will book a net loss estimated at Bt60 million, an improvement from last year's Bt300-million loss.
Piyavate expects to take six years to clear its accumulated losses of Bt800 million.
Nithi said with the transaction, Chaleo's children and grandchild now hold 75 per cent of the hospital's registered capital of Bt2.1 billion, while 19 per cent is held physicians.
He said Piyavate had spent nearly Bt200 million on renovating its building and would increase the number of beds from 100 to 150 within six months. It is also adding more full- and part-time physicians to attract more patients, especially foreigners, who are higher margin.
Piyavate plans to become a top-five private hospital in the near future.
Nominees will need to find "real" Thai partners, says JFCCT
Foreign firms using Thai nominees to hold property should restructure their holdings and seek Thai partners to legalise their investments, said Patima Jeerapaet, chairman of the property committee of the Joint Foreign Chambers of Commerce in Thailand (JFCCT).
The Thai partner should be a "real investor" that will withstand scrutiny by authorities, said Mr Patima, also the managing director of the property consultant Colliers International Thailand.
The Commerce Ministry will scrutinise the financial position of any Thai partner in an investigation, he warned.
"If the government takes serious action on nominee scrutiny, it should give the wrongdoers a grace period to adjust. It might take up to two years as six to 12 months is too short for thousands of [suspected] nominee firms," he said.
There are an estimated 10,000 nom-inee firms nationwide in all businesses.A number of nominee firms exist in the property market, said Mr Patima.
"Just imagine how many nominees there are for condominium projects where the foreign quota is full, or for villas, in which foreigners cannot hold land, in tourist destinations. Each unit has a shell company to hold it for a foreign buyer," he said.
The Department of Business Development (DBD) began checks on sus-pected nominee firms in 2008 but only at random in the first year to get an overview. Now it is preparing to do more in-depth checks, working with the Lands Department, the Department of Special Investigation (DSI), provincial governors and Commerce Ministry offices in 20 major provinces and tourist destinations.
Mr Patima said the checks would be a problem for current nominee firms,not new ones.
"If nominee firms holding a property cannot find a Thai investor, they need to sell that property. Forced selling might mean 30-40% lower prices. Therefore,the sooner the restructuring, the less risk of legal action. In the worst-case scenario, property will be seized by the Lands Department," he said.
"Foreigners now are really panicked.But they need to familiarise themselves with the changes. Everybody always resists change, so the beginning could be a struggle."
However, the government should facilitate foreign property investment by extending the leasehold period from 30 years to 30 plus 30 years during registration, he said. Penalties for nominee firms should be strengthened with a minimum fine of 20,000 baht and a jail termwithout probation, he added.
The JFCCT this week presented a paper to the government explaining why the leasehold period should be extended and how it would be easy to change.
The Thai partner should be a "real investor" that will withstand scrutiny by authorities, said Mr Patima, also the managing director of the property consultant Colliers International Thailand.
The Commerce Ministry will scrutinise the financial position of any Thai partner in an investigation, he warned.
"If the government takes serious action on nominee scrutiny, it should give the wrongdoers a grace period to adjust. It might take up to two years as six to 12 months is too short for thousands of [suspected] nominee firms," he said.
There are an estimated 10,000 nom-inee firms nationwide in all businesses.A number of nominee firms exist in the property market, said Mr Patima.
"Just imagine how many nominees there are for condominium projects where the foreign quota is full, or for villas, in which foreigners cannot hold land, in tourist destinations. Each unit has a shell company to hold it for a foreign buyer," he said.
The Department of Business Development (DBD) began checks on sus-pected nominee firms in 2008 but only at random in the first year to get an overview. Now it is preparing to do more in-depth checks, working with the Lands Department, the Department of Special Investigation (DSI), provincial governors and Commerce Ministry offices in 20 major provinces and tourist destinations.
Mr Patima said the checks would be a problem for current nominee firms,not new ones.
"If nominee firms holding a property cannot find a Thai investor, they need to sell that property. Forced selling might mean 30-40% lower prices. Therefore,the sooner the restructuring, the less risk of legal action. In the worst-case scenario, property will be seized by the Lands Department," he said.
"Foreigners now are really panicked.But they need to familiarise themselves with the changes. Everybody always resists change, so the beginning could be a struggle."
However, the government should facilitate foreign property investment by extending the leasehold period from 30 years to 30 plus 30 years during registration, he said. Penalties for nominee firms should be strengthened with a minimum fine of 20,000 baht and a jail termwithout probation, he added.
The JFCCT this week presented a paper to the government explaining why the leasehold period should be extended and how it would be easy to change.
NEW YEAR STARTING TO LOOK BRIGHT FOR DEVELOPERS
While Western investors are not looking at the Thai property market right now because they are still resolving their own serious economic problems, others have taken their place, such as Asian investors from Singapore, Hong Kong,China and India who have begun assessing opportunities here, according to Longlom Bunnag, chairman of Jones Lang LaSalle Thailand.
He said Singaporeans are becoming more active here because the island state managed to recover from the downturn last year much faster than most anticipated.
"We have started to see a few Singaporean investors looking to buy in Thailand, but their expected return on investment is higher than pre-2008," said Mr Longlom.
Also focussing on Thailand right now are investment funds based in Chian, Hong Kong and other Chinese territories. That Chinese investment is now flowing into Southeast Asia is clearly because the Asian giant is doing so well economically, said Mr Longlom.
He observed that while Chinese investors tend to expect lower yields than Singaporeans,for instance, this is mainly because they are short-term players who heavily focus on liquidity and exit strategies.
They are certainly not looking to hold their properties for seven to 10 years, as longer-term investors do.
His property agency has also seen Indians move into Thailand with an eye on investing in Phuket, although they are not much interested in Bangkok. However, he added, Middle Eastern investors who were previously active here have kept silent since the global economic crisis erupted.
Mr Longlom urged the public to continue watching the global economy closely, because in this day and age communication is instantaneous, and affects decision-making by all concerned parties, including property developers and lenders.
"React quickly, in the sense that if you think there might be a sign of a dip, then act accordingly. Likewise if you think there is a sign of a boom to come."
Within the property industry it is the hotel segment which has been hurt the most by the global economic crisis, with the volume this year expected to be around 50% of what was achieved in 2007.
Clearly this is so because hotels are closely linked to foreign income since the majority of their guests are from other countries. Even so, Mr Longlom does not expect the recovery to take five years, as was the experience after the 1997 Asian crash. One reason for his optimism is that many hotels built up a financial cushion during the many good years prior to the 2008 economic shake-up. Aside from this, the government is also helping the industry, with banks having been instructed to assist hotel borrowers as well as small and medium enterprises.
Mr Longlom fired a broadside at those who are spreading word that the hotel industry is going to collapse. He said this is totally irresponsible and creating unnecessary panic.
He particularly faulted a recent report that said 22 hotels in Bangkok are up for sale.
"It's very irresponsible to go around saying things like that. I think whoever gave that interview should issue a note of apology."
He is also worried about the impact of the recent injunction suspending 76 industrial projects at Map Ta Phut in Rayong.
"I am not very clear what exactly the problem is, but I was told that 50% is to do with pollution.
"However, these 76 projects did not create the pollution as they are not operational yet.It was caused by existing plants."
Regarding the overall performance of the property industry Mr Longlom expects the market to do quite well in the new year because of pent-up demand from early 2008 onward, with the first half of this year being particularly dreadful.
"If politics becomes more stable and there are no glitches on the political front, I think next year will be a good year for the residential market."
His agency is seeing encouraging activity in property development, with strong players now moving to buy land for new projects.Except for a few deals there is not much discount in land transactions in the built-up areas of the city and nearby zones such as Bang Yai.
Prices of plots near the skytrain and subway lines are expect to rise next year as bidding is anticipated to become more intense.
End-users will continue to benefit from a softer market from now until the end of March, when tax benefits end. However they are not getting huge discounts like the 40-50%witnessed in 1998 and 1999.
Where the investment market is concerned,Mr Longlom said all sectors, including office,retail, serviced apartments, apartments for rent and logistics and warehouse are seeing healthy occupancy rates.
His agency expects a good number of investors to look for opportunities to buy investment-grade properties from now until next year.
Turning to office buildings, Mr Longlom said these investors are looking for a return of 7-8% per annum for those classified as Aand 5.5-7% for those a notch up, in the A bracket.
Where condominiums are concerned the anticipated return is 5-7% depending on the building location and age, plus whether or not the units are fully furnished.
The desired yield for logistics and warehouses is higher, at 9-11%, because these are very specific properties that meet special needs and therefore more difficult to find tenants.
The yield investors would require for leasehold retail outlet is also 9-11%. Most retail buildings in Bangkok are located on leasehold plots, Mr Longlom said. These leases are generally for 30 years and this drives up development costs.
He said Singaporeans are becoming more active here because the island state managed to recover from the downturn last year much faster than most anticipated.
"We have started to see a few Singaporean investors looking to buy in Thailand, but their expected return on investment is higher than pre-2008," said Mr Longlom.
Also focussing on Thailand right now are investment funds based in Chian, Hong Kong and other Chinese territories. That Chinese investment is now flowing into Southeast Asia is clearly because the Asian giant is doing so well economically, said Mr Longlom.
He observed that while Chinese investors tend to expect lower yields than Singaporeans,for instance, this is mainly because they are short-term players who heavily focus on liquidity and exit strategies.
They are certainly not looking to hold their properties for seven to 10 years, as longer-term investors do.
His property agency has also seen Indians move into Thailand with an eye on investing in Phuket, although they are not much interested in Bangkok. However, he added, Middle Eastern investors who were previously active here have kept silent since the global economic crisis erupted.
Mr Longlom urged the public to continue watching the global economy closely, because in this day and age communication is instantaneous, and affects decision-making by all concerned parties, including property developers and lenders.
"React quickly, in the sense that if you think there might be a sign of a dip, then act accordingly. Likewise if you think there is a sign of a boom to come."
Within the property industry it is the hotel segment which has been hurt the most by the global economic crisis, with the volume this year expected to be around 50% of what was achieved in 2007.
Clearly this is so because hotels are closely linked to foreign income since the majority of their guests are from other countries. Even so, Mr Longlom does not expect the recovery to take five years, as was the experience after the 1997 Asian crash. One reason for his optimism is that many hotels built up a financial cushion during the many good years prior to the 2008 economic shake-up. Aside from this, the government is also helping the industry, with banks having been instructed to assist hotel borrowers as well as small and medium enterprises.
Mr Longlom fired a broadside at those who are spreading word that the hotel industry is going to collapse. He said this is totally irresponsible and creating unnecessary panic.
He particularly faulted a recent report that said 22 hotels in Bangkok are up for sale.
"It's very irresponsible to go around saying things like that. I think whoever gave that interview should issue a note of apology."
He is also worried about the impact of the recent injunction suspending 76 industrial projects at Map Ta Phut in Rayong.
"I am not very clear what exactly the problem is, but I was told that 50% is to do with pollution.
"However, these 76 projects did not create the pollution as they are not operational yet.It was caused by existing plants."
Regarding the overall performance of the property industry Mr Longlom expects the market to do quite well in the new year because of pent-up demand from early 2008 onward, with the first half of this year being particularly dreadful.
"If politics becomes more stable and there are no glitches on the political front, I think next year will be a good year for the residential market."
His agency is seeing encouraging activity in property development, with strong players now moving to buy land for new projects.Except for a few deals there is not much discount in land transactions in the built-up areas of the city and nearby zones such as Bang Yai.
Prices of plots near the skytrain and subway lines are expect to rise next year as bidding is anticipated to become more intense.
End-users will continue to benefit from a softer market from now until the end of March, when tax benefits end. However they are not getting huge discounts like the 40-50%witnessed in 1998 and 1999.
Where the investment market is concerned,Mr Longlom said all sectors, including office,retail, serviced apartments, apartments for rent and logistics and warehouse are seeing healthy occupancy rates.
His agency expects a good number of investors to look for opportunities to buy investment-grade properties from now until next year.
Turning to office buildings, Mr Longlom said these investors are looking for a return of 7-8% per annum for those classified as Aand 5.5-7% for those a notch up, in the A bracket.
Where condominiums are concerned the anticipated return is 5-7% depending on the building location and age, plus whether or not the units are fully furnished.
The desired yield for logistics and warehouses is higher, at 9-11%, because these are very specific properties that meet special needs and therefore more difficult to find tenants.
The yield investors would require for leasehold retail outlet is also 9-11%. Most retail buildings in Bangkok are located on leasehold plots, Mr Longlom said. These leases are generally for 30 years and this drives up development costs.
Tuesday, October 20, 2009
US in new move to aid housing market
The United States unveiled on Monday a new plan to boost the beleaguered housing market, helping support low mortgage rates and expanding resources for cash strapped borrowers to own or rent homes.
The two-pronged plan will involve a bond purchase programme to support new lending by housing finance agencies and a temporary credit and liquidity programme for the agencies to finance outstanding bonds.
"This initiative is critical to helping working families maintain access to affordable rental housing and home ownership in tough economic times," said Treasury Secretary Timothy Geithner.
"Through the years, many low and moderate income Americans have been well served by state and local HFAs (housing finance agencies), but the housing downturn has hit these organisations too," he said.
Through the new initiative, Geithner said, President Barack Obama's administration aimed to help the agencies "jumpstart new lending" to borrowers and better support financing costs of their current programs -"key components in stabilising the housing market overall."
The cost of the new initiative is not immediately available but the government said in a statement that the plan would provide "hundreds of thousands of affordable mortgages for working families and enable the development and rehabilitation of tens of thousands of affordable rental properties.
"It will do this at little or no cost to the taxpayer because it is paid for by the HFAs themselves and, as a temporary program, it incentivises HFAs to transition back to market sources of capital as quickly as possible," said the statement issued by the Treasury and two government housing-related agencies.
The new plan is expected to be launched next month, Treasury Deputy Secretary Michael Barr said.
The programme is an offshoot of legislation passed by lawmakers last year to cushion the collapse of the housing industry, epicentre of a financial crisis that dragged the United States into its worst recession in decades.
The government move on Monday to help the housing market came ahead of the expiration next month of a $8,000 tax credit for first-time home buyers,part of various programmes costing billions of dollars to rescue the troubled housing market.
Lawmakers from both Obama's Democratic party and the Republicans party are keen for an extension of the tax credit which if approved would further increase the ballooning federal government deficit.
Barr said that it was "still too early to say" when the authorities could begin unwinding the housing support programmes.
The two-pronged plan will involve a bond purchase programme to support new lending by housing finance agencies and a temporary credit and liquidity programme for the agencies to finance outstanding bonds.
"This initiative is critical to helping working families maintain access to affordable rental housing and home ownership in tough economic times," said Treasury Secretary Timothy Geithner.
"Through the years, many low and moderate income Americans have been well served by state and local HFAs (housing finance agencies), but the housing downturn has hit these organisations too," he said.
Through the new initiative, Geithner said, President Barack Obama's administration aimed to help the agencies "jumpstart new lending" to borrowers and better support financing costs of their current programs -"key components in stabilising the housing market overall."
The cost of the new initiative is not immediately available but the government said in a statement that the plan would provide "hundreds of thousands of affordable mortgages for working families and enable the development and rehabilitation of tens of thousands of affordable rental properties.
"It will do this at little or no cost to the taxpayer because it is paid for by the HFAs themselves and, as a temporary program, it incentivises HFAs to transition back to market sources of capital as quickly as possible," said the statement issued by the Treasury and two government housing-related agencies.
The new plan is expected to be launched next month, Treasury Deputy Secretary Michael Barr said.
The programme is an offshoot of legislation passed by lawmakers last year to cushion the collapse of the housing industry, epicentre of a financial crisis that dragged the United States into its worst recession in decades.
The government move on Monday to help the housing market came ahead of the expiration next month of a $8,000 tax credit for first-time home buyers,part of various programmes costing billions of dollars to rescue the troubled housing market.
Lawmakers from both Obama's Democratic party and the Republicans party are keen for an extension of the tax credit which if approved would further increase the ballooning federal government deficit.
Barr said that it was "still too early to say" when the authorities could begin unwinding the housing support programmes.
Wednesday, October 14, 2009
NO RISE IN MORTGAGE RATES OVER REMAINDER OF THIS YEAR
Home-loan rates would not rise at least for the rest of this year as banks could still able to source cheap funds, a banking chief said yesterday.
"Banks may raise deposit rates to draw more funds but overall funding costs are still low, so it would not affect lending rates," Khan Prachuabmoh, president of the Government Housing Bank, the country's largest mortgage lender.
While developers have more confidence in the real estate outlook for the next six months, house prices actually dropped last quarter for the second time in a row, he told a press conference.
Banks are also expected to lend more to homebuyers this quarter after they were cautious in the first half of the year.
GH Bank has targeted Bt100 billion in new loans and as of Tuesday, it was at Bt74 billion.
Developers are more optimistic now after their confidence in the fourth quarter of last year hit the lowest point since the fourth quarter of 2007, he said.
The Expectations Index rose to 69.9 in the third quarter from 62.2 in the previous quarter.
Listed firms had higher confidence, as their expectations index was at 75.9 while non-listed firms were at 64, according to 150 firms surveyed by the Real Estate Information Centre (REIC).
Looking six months ahead, the Expectation Index remains at 69.9.
Respondents reported high confidence for generating a profit, increasing sales volume, starting new investments, employing more workers and launching projects. They, however, are concerned about the rising cost of doing business.
New residential registrations in greater Bangkok in the first eight months of this year reached 54,029, increasing slightly by 2 per cent from the same period last year.
Condominiums accounted for 49 per cent of registrations followed by singlefamily homes at 36 per cent, townhouses at 9 per cent, commercial buildings at 4 per cent, and duplexes at 2 per cent.
Although interest rates are low, speculation was not a big concern.
"Prices of condos have not yet increased sharply, in the same way that happened before the 1997 crisis. Developers and homebuyers have learned their lesson," he said.
High fuel costs and the expansion of the mass transit system have led to a boom in vertical residences, he added.
Samma Kitsin, director of the REIC, said the survey found that land and housing prices in Bangkok, Patum Thani, Nonthaburi and Samut Prakan had dropped further last quarter.
Singlefamily homes in inner Bangkok have lost favour as their prices have continued to climb.
Homebuyers have turned to condos, townhouses and singlefamily homes in the suburbs, resulting in a lower average price for all resiฌdential units, he said.
The Housing Price Index (HPI) for singlefamily homes dropped by 6.2 per cent to 160.2 from the previous quarter and by 9 per cent year on year.
The HPI for townhouses dropped 2.3 per cent on quarter and 3 per cent on year, while the land price index was down by 3 per cent on quarter and 1.3 per cent on year.
Prices next year could go both up and down depending on the market segment. For the lower and middle-income groups, home prices would be about Bt1 million, Bt1.2 million or not more than Bt3 million.
Low-cost housing promoted by the Board of Investment would to some extent cause other developers to cut their prices, he added.
"Banks may raise deposit rates to draw more funds but overall fundign costs are still low, so it would not affect lending rates."
"Banks may raise deposit rates to draw more funds but overall funding costs are still low, so it would not affect lending rates," Khan Prachuabmoh, president of the Government Housing Bank, the country's largest mortgage lender.
While developers have more confidence in the real estate outlook for the next six months, house prices actually dropped last quarter for the second time in a row, he told a press conference.
Banks are also expected to lend more to homebuyers this quarter after they were cautious in the first half of the year.
GH Bank has targeted Bt100 billion in new loans and as of Tuesday, it was at Bt74 billion.
Developers are more optimistic now after their confidence in the fourth quarter of last year hit the lowest point since the fourth quarter of 2007, he said.
The Expectations Index rose to 69.9 in the third quarter from 62.2 in the previous quarter.
Listed firms had higher confidence, as their expectations index was at 75.9 while non-listed firms were at 64, according to 150 firms surveyed by the Real Estate Information Centre (REIC).
Looking six months ahead, the Expectation Index remains at 69.9.
Respondents reported high confidence for generating a profit, increasing sales volume, starting new investments, employing more workers and launching projects. They, however, are concerned about the rising cost of doing business.
New residential registrations in greater Bangkok in the first eight months of this year reached 54,029, increasing slightly by 2 per cent from the same period last year.
Condominiums accounted for 49 per cent of registrations followed by singlefamily homes at 36 per cent, townhouses at 9 per cent, commercial buildings at 4 per cent, and duplexes at 2 per cent.
Although interest rates are low, speculation was not a big concern.
"Prices of condos have not yet increased sharply, in the same way that happened before the 1997 crisis. Developers and homebuyers have learned their lesson," he said.
High fuel costs and the expansion of the mass transit system have led to a boom in vertical residences, he added.
Samma Kitsin, director of the REIC, said the survey found that land and housing prices in Bangkok, Patum Thani, Nonthaburi and Samut Prakan had dropped further last quarter.
Singlefamily homes in inner Bangkok have lost favour as their prices have continued to climb.
Homebuyers have turned to condos, townhouses and singlefamily homes in the suburbs, resulting in a lower average price for all resiฌdential units, he said.
The Housing Price Index (HPI) for singlefamily homes dropped by 6.2 per cent to 160.2 from the previous quarter and by 9 per cent year on year.
The HPI for townhouses dropped 2.3 per cent on quarter and 3 per cent on year, while the land price index was down by 3 per cent on quarter and 1.3 per cent on year.
Prices next year could go both up and down depending on the market segment. For the lower and middle-income groups, home prices would be about Bt1 million, Bt1.2 million or not more than Bt3 million.
Low-cost housing promoted by the Board of Investment would to some extent cause other developers to cut their prices, he added.
"Banks may raise deposit rates to draw more funds but overall fundign costs are still low, so it would not affect lending rates."
Tuesday, October 13, 2009
NEW PROJECTS UP FOR DELIBERATION
Another batch of projects worth Bt240 billion will be submitted for Cabinet approval today amid new reports of graft involving the government's second stimulus package.
Finance Minister Korn Chatikavanij yesterday said he would today propose the Cabinet expand the second stimulus package from Bt1.06 trillion approved earlier to about Bt1.3 trillion, to be implemented over three years.
The ministry will also ask the Cabinet to increase investment projects under an emergency borrowing fund by more Bt50 billion, leading to planned total spending next year of up to Bt350 billion, he said.
An improvement in government revenue in recent months leaves more money available for investment, he said.
The ministry plans to disburse the first tranche of funds for at least 85 per cent of the projects, he said.
New projects ecpected to be included in today's proposal are the Bt40 billion farm price-guarantee scheme, Bt23 billion supplementary budget to support local governments and Bt3 billion housing fund know as Baan Mankhong for people living in slums.
The projects under Thai Khemakhaeng already approved by the Cabinet worth Bt200 billion would be implemented during this and next year, he said.
In response to complaints about corruption, the ministry has opened a website at www.tkk2555.com to reveal details of all projects to the public. People can also report irregularities in the investment projects via publicwatch@tkk2555.com.
Korn yesterday met with senior officials to discuss the transparency of the public investment projects.
The next phase of investment will focus on economic restructuring. The bill to finance it with Bt400 billion loans is in Parliament.
The next phase will be put into rail projects to improve the logistics system, aimed at lowering logistics costs from 20 per cent of gross domestic product to about 15 per cent.
The ministry will soon ask the Cabinet to consider another package to develop the capital market, which includes tax incentives, Korn added.
In response to alleged corruption, the ministry has opened a wedsite at www.tkk2555.com to reveal details of all projects to the public. People can also report irregularities inthe investment projects via publicwatch@tkk2555.com.
Finance Minister Korn Chatikavanij yesterday said he would today propose the Cabinet expand the second stimulus package from Bt1.06 trillion approved earlier to about Bt1.3 trillion, to be implemented over three years.
The ministry will also ask the Cabinet to increase investment projects under an emergency borrowing fund by more Bt50 billion, leading to planned total spending next year of up to Bt350 billion, he said.
An improvement in government revenue in recent months leaves more money available for investment, he said.
The ministry plans to disburse the first tranche of funds for at least 85 per cent of the projects, he said.
New projects ecpected to be included in today's proposal are the Bt40 billion farm price-guarantee scheme, Bt23 billion supplementary budget to support local governments and Bt3 billion housing fund know as Baan Mankhong for people living in slums.
The projects under Thai Khemakhaeng already approved by the Cabinet worth Bt200 billion would be implemented during this and next year, he said.
In response to complaints about corruption, the ministry has opened a website at www.tkk2555.com to reveal details of all projects to the public. People can also report irregularities in the investment projects via publicwatch@tkk2555.com.
Korn yesterday met with senior officials to discuss the transparency of the public investment projects.
The next phase of investment will focus on economic restructuring. The bill to finance it with Bt400 billion loans is in Parliament.
The next phase will be put into rail projects to improve the logistics system, aimed at lowering logistics costs from 20 per cent of gross domestic product to about 15 per cent.
The ministry will soon ask the Cabinet to consider another package to develop the capital market, which includes tax incentives, Korn added.
In response to alleged corruption, the ministry has opened a wedsite at www.tkk2555.com to reveal details of all projects to the public. People can also report irregularities inthe investment projects via publicwatch@tkk2555.com.
Sunday, October 11, 2009
German funds may invest as much as C12 billion
German real-estate mutual funds may invest as much as Euro12 billion (Bt590 billion) in the next two years as cash levels rise and falling prices make properties more affordable, CB Richard Ellis Group said.
The 47 open-ended funds available to German savers have about Euro7.5 billion of cash or equivalent assets available to spend immediately on real estate, according to a report published by the Los Angeles-based property broker's London research team. That may rise by Euro4.5 billion if debt is included and cash keeps coming in at current levels, it said.
German savers, attracted by an average annual return of 5 to 6 per cent, poured Euro3.04 billion into the funds in the first eight months of the year, according to the nation's asset-management body, BVI. The funds made about Euro1.65 billion of acquisitions in Europe during the first nine months, taking advantage of two years of falling property values, CB Richard Ellis estimated.
"Many funds see this as an opportunity to re-enter the markets from which they ahve recently been priced out," Iryna Pylypchuk, an analyst at CB Richard Ellis, said in the report. "Paris can be singled out as one of the markets to attract particularly high levels of interest at the moment."
Union Investment Real Estate, owned by the country's cooperative banks, said on September 25 that it had bought French investment bank Natixis's headquarters building in Paris for Euro177 million. Two days earlier, Commerz Real said it had paid Euro72 million for the base of PPR SA's books and music retail unit. FNAC.
Those two asset managers, along with DEKA Immobilien Investment, are the most active, with about Euro6 billion between them to spend, CB Richard Ellis estimates.
The dunds favour hotels and shopping centres and are also increasing the size of their investments in properties to about Euro100 million in the third quarter from Euro65 million in the first half, the property adviser said.
The 47 open-ended funds available to German savers have about Euro7.5 billion of cash or equivalent assets available to spend immediately on real estate, according to a report published by the Los Angeles-based property broker's London research team. That may rise by Euro4.5 billion if debt is included and cash keeps coming in at current levels, it said.
German savers, attracted by an average annual return of 5 to 6 per cent, poured Euro3.04 billion into the funds in the first eight months of the year, according to the nation's asset-management body, BVI. The funds made about Euro1.65 billion of acquisitions in Europe during the first nine months, taking advantage of two years of falling property values, CB Richard Ellis estimated.
"Many funds see this as an opportunity to re-enter the markets from which they ahve recently been priced out," Iryna Pylypchuk, an analyst at CB Richard Ellis, said in the report. "Paris can be singled out as one of the markets to attract particularly high levels of interest at the moment."
Union Investment Real Estate, owned by the country's cooperative banks, said on September 25 that it had bought French investment bank Natixis's headquarters building in Paris for Euro177 million. Two days earlier, Commerz Real said it had paid Euro72 million for the base of PPR SA's books and music retail unit. FNAC.
Those two asset managers, along with DEKA Immobilien Investment, are the most active, with about Euro6 billion between them to spend, CB Richard Ellis estimates.
The dunds favour hotels and shopping centres and are also increasing the size of their investments in properties to about Euro100 million in the third quarter from Euro65 million in the first half, the property adviser said.
GOVT TO RENEW TALKS WITH ASSEMBLY OF POOR, PM VOWS
Prime Minister Abhisit Vejjajiva will renew talks with the Assembly of the Poor in the next two weeks to solve their problems, he said yesterday.
Members of the assembly met the prime minister at a learning centre in Phibun Mangsahan district, also the assembly's headquarters in the Northeast. He handed over a 1.2 million baht cheque to farmer Grandma Hai Khanjantha for the loss of opportunity she suffered over 32 years, after her land was submerged by the Huay La Ha reservoir, built as part of a new dam.
"I will hold talks with you [the Assembly of the Poor] in the next two weeks.
PM's Office Minister Sathit Wongnongtoey accompanied the prime minister to the province.
Mr Abhisit said he had asked Mr Sathit to oversee the assembly's problems.
The government was drafting a regulation on community land title deeds,allowing communal use of state land,he said.
To solve the plight of farmers generally, the government and assembly met for talks three times in June and July.
"The government has succeeded in solving only the case of Grandma Hai.Other problems have yet to be solved,"said Sawat Uppahat, a member of the assembly.
The problems include a drastic drop in the number of fish in the Moon River caused by construction of the Pak Moon Dam in Khong Chiam district,and land disputes between villagers and state agencies. Sompong Viengchan, a villager hit by construction of the dam, said the government should order the Electricity Generating Authority of Thailand to open the dam's sluice gates permanently to let fish from the Mekong River come in.
At the moment it opens four months a year.
"We want our lives back. The dam has ruined our livelihoods for over a decade," said Mrs Sompong.
Farmers wanted the government to provide 15 rai of land for each family and grant them compensation.
Thongcharoen Srihatham, another member of the assembly, warned the prime minister not to use the people's problems as a political tool to seek votes. Shortly after the prime minister left, about 1,000 red shirt protesters rallied at the centre. They swore, burned a coffin, and threw a bag of fermented fish at his poster.
Members of the assembly met the prime minister at a learning centre in Phibun Mangsahan district, also the assembly's headquarters in the Northeast. He handed over a 1.2 million baht cheque to farmer Grandma Hai Khanjantha for the loss of opportunity she suffered over 32 years, after her land was submerged by the Huay La Ha reservoir, built as part of a new dam.
"I will hold talks with you [the Assembly of the Poor] in the next two weeks.
PM's Office Minister Sathit Wongnongtoey accompanied the prime minister to the province.
Mr Abhisit said he had asked Mr Sathit to oversee the assembly's problems.
The government was drafting a regulation on community land title deeds,allowing communal use of state land,he said.
To solve the plight of farmers generally, the government and assembly met for talks three times in June and July.
"The government has succeeded in solving only the case of Grandma Hai.Other problems have yet to be solved,"said Sawat Uppahat, a member of the assembly.
The problems include a drastic drop in the number of fish in the Moon River caused by construction of the Pak Moon Dam in Khong Chiam district,and land disputes between villagers and state agencies. Sompong Viengchan, a villager hit by construction of the dam, said the government should order the Electricity Generating Authority of Thailand to open the dam's sluice gates permanently to let fish from the Mekong River come in.
At the moment it opens four months a year.
"We want our lives back. The dam has ruined our livelihoods for over a decade," said Mrs Sompong.
Farmers wanted the government to provide 15 rai of land for each family and grant them compensation.
Thongcharoen Srihatham, another member of the assembly, warned the prime minister not to use the people's problems as a political tool to seek votes. Shortly after the prime minister left, about 1,000 red shirt protesters rallied at the centre. They swore, burned a coffin, and threw a bag of fermented fish at his poster.
Wednesday, October 7, 2009
Developers pool around New Phetchaburi Road
The new developer Pool Assets Co plans a 1.8-billion-baht condominium on New Phetchaburi Road. Thru Thonglor will join projects worth an estimated 10 billion baht at the popular location.
"Our brand is new but the location,product, design and reliability of the project is sellable," said managing director Kitimet Kittiakkarapat.
"Our price is competitive and we expect to have sales of 60% by the end of the year. Then, we will raise the prices by at least 5%."
Thru Thonglor will be located an a three-rai plot near the Thong LorPhetchaburi junction which the developer acquired for 360 million baht.
The 35-storey building will feature 515 condo units and 18 commercial units priced between 59,000 to 100,000 baht per square metre.
Ocean Life Insurance will extend a 600-million-baht credit line to Pool Assets. Construction is scheduled to start in March 2010 and be completed by June 2012, he said.
Kitisak Jampathipphong, chief executive of the property broker Century 21 Realty Affiliates Thailand, the project's marketing and sales consultant, said New Phetchaburi Road from Makkasan to Thong Lor was becoming popular due to the upcoming Airport Link.
Land prices near Soi Asok are about 330,000 to 380,000 baht per square wah and 280,000 baht per sq wah near Thong Lor junction. Within two years, property developments worth a combined 10 billion baht will be built. New developments would include four-star hotels, B-grade office buildings and mid-priced condominiums, said Mr Kitisak.
Pool Assets was established in September 2008 with registered capital of 500 million baht. It is equally held by Mr Kitimet and Sombat Sangratkanjanasin,managing director of the small developer Srichai International Co and owner of the ice-cube producer Asia Ice Group.
Mr Sombat had co-invested with Thamrong Panyasakulwong, owner of the budget-condo developer Nirun Group, in Station Land Co Ltd. They launched The Station Sathorn-Bang Rak condominium on Charoen Krung Road a few years ago.
"Our brand is new but the location,product, design and reliability of the project is sellable," said managing director Kitimet Kittiakkarapat.
"Our price is competitive and we expect to have sales of 60% by the end of the year. Then, we will raise the prices by at least 5%."
Thru Thonglor will be located an a three-rai plot near the Thong LorPhetchaburi junction which the developer acquired for 360 million baht.
The 35-storey building will feature 515 condo units and 18 commercial units priced between 59,000 to 100,000 baht per square metre.
Ocean Life Insurance will extend a 600-million-baht credit line to Pool Assets. Construction is scheduled to start in March 2010 and be completed by June 2012, he said.
Kitisak Jampathipphong, chief executive of the property broker Century 21 Realty Affiliates Thailand, the project's marketing and sales consultant, said New Phetchaburi Road from Makkasan to Thong Lor was becoming popular due to the upcoming Airport Link.
Land prices near Soi Asok are about 330,000 to 380,000 baht per square wah and 280,000 baht per sq wah near Thong Lor junction. Within two years, property developments worth a combined 10 billion baht will be built. New developments would include four-star hotels, B-grade office buildings and mid-priced condominiums, said Mr Kitisak.
Pool Assets was established in September 2008 with registered capital of 500 million baht. It is equally held by Mr Kitimet and Sombat Sangratkanjanasin,managing director of the small developer Srichai International Co and owner of the ice-cube producer Asia Ice Group.
Mr Sombat had co-invested with Thamrong Panyasakulwong, owner of the budget-condo developer Nirun Group, in Station Land Co Ltd. They launched The Station Sathorn-Bang Rak condominium on Charoen Krung Road a few years ago.
Tuesday, October 6, 2009
Thanapat taps into TV show
Thanapat Property Development is using the Superstar reality TV programme to build brand awareness and close sales of its housing project on Rama III Road by the end of the year.
Deputy managing director Piyaporn Yothaprasert said the company would spend 10 million baht for the event to promote its Thanapat Haus brand to fans of the popular show after focusing earlier on direct sales at the site.
The 30-rai site on Rama III Road has 245 townhouses on lots from 17-60 square wah and priced from 5.49 million to 20 million baht with a total sales value of 1.7 billion baht. Currently, it has 30 units left for sale.
She said that by the end of the year,the company expected to realise 2 billion baht in revenue from sales of 500 units.
Deputy managing director Piyaporn Yothaprasert said the company would spend 10 million baht for the event to promote its Thanapat Haus brand to fans of the popular show after focusing earlier on direct sales at the site.
The 30-rai site on Rama III Road has 245 townhouses on lots from 17-60 square wah and priced from 5.49 million to 20 million baht with a total sales value of 1.7 billion baht. Currently, it has 30 units left for sale.
She said that by the end of the year,the company expected to realise 2 billion baht in revenue from sales of 500 units.
Housing prices rise in United Kingdom
House prices in the United Kingdom rose for a fifth month in September as a lack of homes for sale helped the property market to erase its losses of the past year, Nationawide Building Society said.
The average cost of a home increased by 0.9 per clent to 161,816 pound (Bt8.63 million), the mortgage lender said. Prices have noe fallen 13 per clent since a peak in October 2007, and they are at a level last seen at the time of Lehman Brothers Holdings's collapse last year.
The report adds to signs that Britain is pulling out of its worst economic slump in at least a generation as consumer confidence improves and mortgage approvals pick up. The International Monetary Fund (IMF) last week raised its forecast for economic growth in the UK next year, saying the housing lmarket is now stabilising.
"The most intense phase of the recession and financial crisis has probably passed." Nationwide's chief economist Martin Gahbauer said. "The further increase in house prices is very much consistent with improvements in a broad range of economic and financial indicators,"
Prices were unchanged from a year earlier in September, the first time they haven't shown an annual drop since March 2008, Nationwide said.
The number of houses being sold is still below normal and will probably take another 18 months to return to the level before the financial crisis. Rising unemployment and banks' reluctance to lend money are still "headwinds", Nationawide said.
"It would be surprising to see house prices continuing to increase at the very strong rate seen in recent months," Gahbauer said.
Prices in all the 13 regions of the UK rose in the third quarter, led by the southwest and Northern Ireland. Home values in greater London increased 3.8 per cent from the second quarter.
Consumers added 7 billion pound of equity to their homes in the three months through June, the fifth consecutive quarter when new investment in housing exceeded borrowings extended on mortgages, the Bank of England said. This suggests that consumer spending may be slow to recover from the recession.
The average cost of a home increased by 0.9 per clent to 161,816 pound (Bt8.63 million), the mortgage lender said. Prices have noe fallen 13 per clent since a peak in October 2007, and they are at a level last seen at the time of Lehman Brothers Holdings's collapse last year.
The report adds to signs that Britain is pulling out of its worst economic slump in at least a generation as consumer confidence improves and mortgage approvals pick up. The International Monetary Fund (IMF) last week raised its forecast for economic growth in the UK next year, saying the housing lmarket is now stabilising.
"The most intense phase of the recession and financial crisis has probably passed." Nationwide's chief economist Martin Gahbauer said. "The further increase in house prices is very much consistent with improvements in a broad range of economic and financial indicators,"
Prices were unchanged from a year earlier in September, the first time they haven't shown an annual drop since March 2008, Nationwide said.
The number of houses being sold is still below normal and will probably take another 18 months to return to the level before the financial crisis. Rising unemployment and banks' reluctance to lend money are still "headwinds", Nationawide said.
"It would be surprising to see house prices continuing to increase at the very strong rate seen in recent months," Gahbauer said.
Prices in all the 13 regions of the UK rose in the third quarter, led by the southwest and Northern Ireland. Home values in greater London increased 3.8 per cent from the second quarter.
Consumers added 7 billion pound of equity to their homes in the three months through June, the fifth consecutive quarter when new investment in housing exceeded borrowings extended on mortgages, the Bank of England said. This suggests that consumer spending may be slow to recover from the recession.
REAL-ESTATE PRICES FALL, SALES LEAP IN NY
Apartment prices in New York's Manhattan fell for a second consecutive quarter, helping to drive the biggest gain in sales in more than 13 years as buyers seized on discounts.
The median price slid 8.4 per clent to US$850,000 (Bt28.43 million) in the third quarter year on year, New York appraiser Miller Samuel and broker Prudential Douglas Elliman Real Esrare said. The number of sales jumped 46 per cent from the second quarter, the biggest third-quarter increase since 1996.
Values fell for cooperatives and condominiums of every size and price as New York City's unemployment rate jumped to 10.3 per clent in August. While the declines weren't as deep as those in the second quarter, Manhattan is far from recovering from a recession and global credit crisis that have led to the loss of more than 183,000 banking and securities jobs in the Americas. Year on year, thid-quarter sales declined by 16 per cent.
"We're turning the corner, but we are not at a bottom," Miller Samuel president Jonathan Miller said. 'We still have very tight credit, elevated unemployment and we have shadown inventory."
There are about 6,000 apartinents in new developments that haven't been listed for sale, he said.
Five reports issued last week showed overall price declines in Manhattan. The Corcoran Group, which conducts its survey with research company PropertyShark.com, said the median dropped 18 per cent from a year earlier. Brown harris Stevens and Halstead Property put the decline at 14 per clent and StreetEasy.com said the drop was 12 per cent.
Studio apartment prices fell 6 per cent from a year earlier to a median of $399,000, Miller Samuel said. One-bedrooms dropped 11 per cent to $645,000; two-bedrooms fell 23 per cent to $1.18 million and three-bedrooms dropped 41 per cent to $2.25 million.
Four bedroom apartments plunged 49 per cent to a median of $5.18 million, reflecting, in part, a decline in luxury sales, Millar said. Those sales declined 16 per cent. The luxury segment is defined as the top 10 per cent of co-op and condo sales.
"There were many meaningful price reductions which clearly drove buyers back in to the market," said Corcoran Group chief executive Pamela Liebman.
James Kennedy, 53, was among the beneficiaries. Kennedy, an attorney at the Wall Street law firm of Kennedy Johnson Gallagher, started an apartment search in the middle of 2008, hoping to move into Manhattan from Staten Island when his daughter left for college last month.
His year-long search got him more apartment for his money, he said. In August Kennedy bought a 201-square-metre condo in the Financial District. The price was reduced by 16 per cent.
"I wanted to take advantage of the softening in the market and, for $1.6 million, I came away with an apartment that two years ago would have cost substantially more," Kennedy said. The Rector Street apartment has views of Governor's Island and the Statue of Liberty and is within walking distance of his office.
"My friends have apartment envy," he said.
About 36 per cent of third-quarter listings included discounts from the original asking price, according to StreetEasy.com, a service that complies listings from brokers.
About 2,900 cooperative apartments were listed with price cuts, a 77-per-cent increase from a year earlier. There were also 2,400 condo listings with price cuts, 72-per-cent more than last year, StreetEasy said.
In midtown, condo owners pared an average of 8.3 per cent off their asking prices, while downtown owners trimmed 8.4 per cent.
The median price slid 8.4 per clent to US$850,000 (Bt28.43 million) in the third quarter year on year, New York appraiser Miller Samuel and broker Prudential Douglas Elliman Real Esrare said. The number of sales jumped 46 per cent from the second quarter, the biggest third-quarter increase since 1996.
Values fell for cooperatives and condominiums of every size and price as New York City's unemployment rate jumped to 10.3 per clent in August. While the declines weren't as deep as those in the second quarter, Manhattan is far from recovering from a recession and global credit crisis that have led to the loss of more than 183,000 banking and securities jobs in the Americas. Year on year, thid-quarter sales declined by 16 per cent.
"We're turning the corner, but we are not at a bottom," Miller Samuel president Jonathan Miller said. 'We still have very tight credit, elevated unemployment and we have shadown inventory."
There are about 6,000 apartinents in new developments that haven't been listed for sale, he said.
Five reports issued last week showed overall price declines in Manhattan. The Corcoran Group, which conducts its survey with research company PropertyShark.com, said the median dropped 18 per cent from a year earlier. Brown harris Stevens and Halstead Property put the decline at 14 per clent and StreetEasy.com said the drop was 12 per cent.
Studio apartment prices fell 6 per cent from a year earlier to a median of $399,000, Miller Samuel said. One-bedrooms dropped 11 per cent to $645,000; two-bedrooms fell 23 per cent to $1.18 million and three-bedrooms dropped 41 per cent to $2.25 million.
Four bedroom apartments plunged 49 per cent to a median of $5.18 million, reflecting, in part, a decline in luxury sales, Millar said. Those sales declined 16 per cent. The luxury segment is defined as the top 10 per cent of co-op and condo sales.
"There were many meaningful price reductions which clearly drove buyers back in to the market," said Corcoran Group chief executive Pamela Liebman.
James Kennedy, 53, was among the beneficiaries. Kennedy, an attorney at the Wall Street law firm of Kennedy Johnson Gallagher, started an apartment search in the middle of 2008, hoping to move into Manhattan from Staten Island when his daughter left for college last month.
His year-long search got him more apartment for his money, he said. In August Kennedy bought a 201-square-metre condo in the Financial District. The price was reduced by 16 per cent.
"I wanted to take advantage of the softening in the market and, for $1.6 million, I came away with an apartment that two years ago would have cost substantially more," Kennedy said. The Rector Street apartment has views of Governor's Island and the Statue of Liberty and is within walking distance of his office.
"My friends have apartment envy," he said.
About 36 per cent of third-quarter listings included discounts from the original asking price, according to StreetEasy.com, a service that complies listings from brokers.
About 2,900 cooperative apartments were listed with price cuts, a 77-per-cent increase from a year earlier. There were also 2,400 condo listings with price cuts, 72-per-cent more than last year, StreetEasy said.
In midtown, condo owners pared an average of 8.3 per cent off their asking prices, while downtown owners trimmed 8.4 per cent.
DEVELOPERS SET TO OVERSHOOT PRESALES TARGETS
Many of Thailand's leading property firms believe they may exceed their presales targets for 2009, following a high rate of presales in the third quarter. Some are planning to revise their presales targets upwards.
Preuksa Real Estate director and chief operating officer Prasert Taedullyasatit said his company's presales might exceed its target of Bt18 billion before the end of this year, after presales of Bt15.1 billion in the first nine months.
However, Preuksa is maintaining its targets of presales worth Bt18 billion and revenue of Bt17 billion in 2009, he said.
Although demand for residential projects has begun to recover, it continues to focus on projects developed by the top-10-listed companies, rather than those of small and medium-sized property firms.
"The property markets has now changed to one for leading firms, rather than small and medium-sized firms.
As a result, we cannot say that market recovery is strong, when a number of small and medium-sized firms continue to face hardship," he said.
Supalai director and deputy managing director Atip Bijanonda said his company recorded presales of Bt7 billion in the first nine months of 2009. Of this, Bt3 billion came from the third quarter.
"We cannot say whether our presales will exceed our estimate of Bt10 billion or not," he said.
However, Supalai plans to launch three new residential projects in the last quarter of this year, and this may drive its presales beyond the target, he said.
Atip said demand for lowrise residences, including single detached houses, twin houses and townhouses had shown significant recovery, while demand for condominium projects was much the same as it was last year.
Residences priced lower than an average of Bt5 million continued to be popular, he said. LPN Development managing director Opas Sripayak said his company had recorded presales worth Bt6.7 billion in the first nine months of this year. Of this, Bt2.2 billion came from presales in the third quarter.
Opas said LPN planned to launch three or four condominium projects worth between Bt3 billion and Bt4 billion in the final quarter of the year, and these could drive its presales over the target of Bt10 billion.
However, the company continues to focus on its existing targets of Bt10 billion in presales and JBt8 billion in revenue in 2009. It believes its revenue will reach Bt10 billion next year.
Opas said the number of sales this year had averaged 140 units per week, and that was better than 110 units per week last year, showing stronger recovery for residential projects in 2009 than last year.
Sansiri president Srettha Thavisin earlier said his company had recorded presales of Bt14 billion in the first nine months of 2009. Of this, Bt5 billion came from presales in the third quarter.
As a result, the company believes its presales for the whole year will reach its target of Bt20 billion. This target was set after adjusting the company's original presales target of Bt18 billion for 2009.
Demand for low-rise residences has shown significant recovery, while demand for condominium projects is much the same as it was last year.
Preuksa Real Estate director and chief operating officer Prasert Taedullyasatit said his company's presales might exceed its target of Bt18 billion before the end of this year, after presales of Bt15.1 billion in the first nine months.
However, Preuksa is maintaining its targets of presales worth Bt18 billion and revenue of Bt17 billion in 2009, he said.
Although demand for residential projects has begun to recover, it continues to focus on projects developed by the top-10-listed companies, rather than those of small and medium-sized property firms.
"The property markets has now changed to one for leading firms, rather than small and medium-sized firms.
As a result, we cannot say that market recovery is strong, when a number of small and medium-sized firms continue to face hardship," he said.
Supalai director and deputy managing director Atip Bijanonda said his company recorded presales of Bt7 billion in the first nine months of 2009. Of this, Bt3 billion came from the third quarter.
"We cannot say whether our presales will exceed our estimate of Bt10 billion or not," he said.
However, Supalai plans to launch three new residential projects in the last quarter of this year, and this may drive its presales beyond the target, he said.
Atip said demand for lowrise residences, including single detached houses, twin houses and townhouses had shown significant recovery, while demand for condominium projects was much the same as it was last year.
Residences priced lower than an average of Bt5 million continued to be popular, he said. LPN Development managing director Opas Sripayak said his company had recorded presales worth Bt6.7 billion in the first nine months of this year. Of this, Bt2.2 billion came from presales in the third quarter.
Opas said LPN planned to launch three or four condominium projects worth between Bt3 billion and Bt4 billion in the final quarter of the year, and these could drive its presales over the target of Bt10 billion.
However, the company continues to focus on its existing targets of Bt10 billion in presales and JBt8 billion in revenue in 2009. It believes its revenue will reach Bt10 billion next year.
Opas said the number of sales this year had averaged 140 units per week, and that was better than 110 units per week last year, showing stronger recovery for residential projects in 2009 than last year.
Sansiri president Srettha Thavisin earlier said his company had recorded presales of Bt14 billion in the first nine months of 2009. Of this, Bt5 billion came from presales in the third quarter.
As a result, the company believes its presales for the whole year will reach its target of Bt20 billion. This target was set after adjusting the company's original presales target of Bt18 billion for 2009.
Demand for low-rise residences has shown significant recovery, while demand for condominium projects is much the same as it was last year.
ACADEMICS EMBRACE NEW PROPERTY-TAX LAW
Lecturers from Thammasat University's "Policy Watch" group back a proposed property-tax structure and urged the government to show its sincerity by enacting the new law to enhance efficiency in land use and increase in the incomes of local administrative organisations.
Policy Watch is made up of a group of lecturers who assess the government's economic policies.
Duangmanee Laovakul, a lecturer in the Economics Faculty at Thammasat University and a member of Policy Watch, said the property tax, which would be collected from land and building owners on the basis of property value, had been discussed for years, but it had not been enacted so far. The government should urgently push the property tax draft for the Cabinet's and Parliament's consideration.
If the law could be enacted, it would be a landmark in Thai history, she said.
"Society will benefit from the new property tax, which is calculated on property value basis not income basis. Tax collection will increase because of the clear criteria for property-tax collection. Tax exemption in the present law had caused inequality and problems in collection. Besides, the present property tax is at a regressive rate and quite high at 12.5 per cent, therefore it encourages many people to avoid paying tax," said Duangmanee.
The new property tax is not collected at a progressive rate on the property value which would disperse land possession more efficiently. But it is a good start as the tax rate for wasteland, which is higher than used land, is at no less than 0.5 per cent in the first three years, after that it will be doubled but not exceed a maximum of 2 per cent.
In the case of land used for commercial purpose, tax will be collected not exceeding 0.5 per cent of the property value, for land used as residence at not exceeding 0.1 per cent, and for land used for agricultural purpose at not more than 0.05 per cent.
"Thus, the tax burden will be shouldered more by the higher class people than the lower ones. It will also enhance efficiency of land utilisation. During 2007-2008, there were 71,302 rai of wastelands in Bangkok representing 7.69 per cent of the city area, which have no economic value," said Duangmanee.
However, the new property tax will not prevent land speculation, because annual land prices have increased more rapidly than tax rates.
A land price assessment by the Treasury Department for 2008-2011, showed the land price in 75 provinces, excluding Bangkok, had increased by 6.5 per cent each year and land prices in Bangkok increased by 1.5 per cent annually. But the maximum annual property tax rate according to the draft was only 2 per cent.
She said the new property-tax law would increase tax revenue of local administrative organisations from Bt20 billion to Bt40 billion to Bt50 billion, depending on the tax rate. Besides the local people and administrators would be encouraged to participate in democracy as they had to be responsible in management and examination in order to prevent corruption.
"However it depends on the legislator whether they are more concerned in public interest than their own ones," said Duangmanee.
She also presented case studies of 10 Thai politicians, who owned land and building worth Bt5.37 billion. If the new property tax is enforced, they would be collecting tax of Bt5.37 million per year with a tax rate of 0.1 per cent and Bt16.11 million per year with a tax rate of 0.3 per cent.
Policy Watch is made up of a group of lecturers who assess the government's economic policies.
Duangmanee Laovakul, a lecturer in the Economics Faculty at Thammasat University and a member of Policy Watch, said the property tax, which would be collected from land and building owners on the basis of property value, had been discussed for years, but it had not been enacted so far. The government should urgently push the property tax draft for the Cabinet's and Parliament's consideration.
If the law could be enacted, it would be a landmark in Thai history, she said.
"Society will benefit from the new property tax, which is calculated on property value basis not income basis. Tax collection will increase because of the clear criteria for property-tax collection. Tax exemption in the present law had caused inequality and problems in collection. Besides, the present property tax is at a regressive rate and quite high at 12.5 per cent, therefore it encourages many people to avoid paying tax," said Duangmanee.
The new property tax is not collected at a progressive rate on the property value which would disperse land possession more efficiently. But it is a good start as the tax rate for wasteland, which is higher than used land, is at no less than 0.5 per cent in the first three years, after that it will be doubled but not exceed a maximum of 2 per cent.
In the case of land used for commercial purpose, tax will be collected not exceeding 0.5 per cent of the property value, for land used as residence at not exceeding 0.1 per cent, and for land used for agricultural purpose at not more than 0.05 per cent.
"Thus, the tax burden will be shouldered more by the higher class people than the lower ones. It will also enhance efficiency of land utilisation. During 2007-2008, there were 71,302 rai of wastelands in Bangkok representing 7.69 per cent of the city area, which have no economic value," said Duangmanee.
However, the new property tax will not prevent land speculation, because annual land prices have increased more rapidly than tax rates.
A land price assessment by the Treasury Department for 2008-2011, showed the land price in 75 provinces, excluding Bangkok, had increased by 6.5 per cent each year and land prices in Bangkok increased by 1.5 per cent annually. But the maximum annual property tax rate according to the draft was only 2 per cent.
She said the new property-tax law would increase tax revenue of local administrative organisations from Bt20 billion to Bt40 billion to Bt50 billion, depending on the tax rate. Besides the local people and administrators would be encouraged to participate in democracy as they had to be responsible in management and examination in order to prevent corruption.
"However it depends on the legislator whether they are more concerned in public interest than their own ones," said Duangmanee.
She also presented case studies of 10 Thai politicians, who owned land and building worth Bt5.37 billion. If the new property tax is enforced, they would be collecting tax of Bt5.37 million per year with a tax rate of 0.1 per cent and Bt16.11 million per year with a tax rate of 0.3 per cent.
NEW PROPERTY FUNDS ON THE CARDS BY YEAR-END
Assetmanagement companies are gearing up to launch several new property funds during the rest of this year, as their returns of 7-13 per cent, higher than deposit rates, have proved popular.
The higher returns from property funds also generally beat inflation and have become an attractive alternative for longterm investors. However, experts recommend retail investors consider asset quality, level of professional management and liquidity in unit trust trading before deciding to invest.
MFC Asset Management will introduce two new property funds worth a combined Bt3 billion. One will invest in office buildings and the other in goodsdistribution centres.
BT Asset Management will launch a new "freehold" property fund by investing in hotels, which means investors have certain rights to the assets.
Krung Thai Asset Management will also offer a new property fund investing in hotels and is now negotiating with a hotel operator in Phuket.
SCB Asset Management (SCBAM) president Jotika Savanananda believes the combined size of property funds will continuously expand, because they are a longterm investment tool offering regular returns to investors.
SCBAM is now proposing a plan to set up a new property fund of its own. Jotika said the plan consisted of four elements: management of the property assets must be in the bluechip league; the management structure must be free from conflicts of interest; property projects must have high liquidity; and the potential for longterm growth must be high and rentalpricing adjustment flexible in terms of inflation. Thus, management and asset quality are key.
"We're focusing on good brand when we choose to invest in any asset. The management must be professional, and the return on investment should be inflationproof," Jotika said.
Moreover, fund managers in general must give advice about which funds are suitable for investors of specific risk profiles.
For example, a freehold property fund would provide less return per annum but offer an opportunity to gain from the sale of assets at the fund's maturity. But with leasehold property funds, investors would receive higher annual returns but not be able to gain from an asset sale.
So far, annual returns on freehold property funds listed on the Stock Exchange of Thailand (SET) have been running at 78 per cent and that on leasehold property funds 10-13 per cent.
Meanwhile, Siam Commercial Bank's Research Department predicts the policy rate will be stable until next year, when it will rise in the second half. Bankdeposit and lending rates will also increase in next year's second quarter after bank lending expands significantly in line with the economic recovery.
BBL Asset Management senior executive Wasin Wattanaworakijkul said the trend of rising interest rates would not affect propertyfund growth. He believes investors will continue to place a high priority on property funds as a source of assets that provide longterm returns that surpass deposit and inflation rates.
In November, BBL Asset Management will introduce a Bt1.5billion freehold property fund that invests in rental warehouses, with and expected annual return of 8 per cent.
Wasin said the warehouse business was expected to expand in line with economic growth, because logisticsrelated industries would pick up.
The Kingdom has a shortage of warehouses that operate at a high standard, and so the firm has chosen to invest in this kind of asset in the belief this type of business has good potential.
Siam City Asset Management managing director Teeraphan Jittalarn said his company would soon launch a new property fund that invested in listed property funds or fund of funds. The company is now discussing with the Securities and Exchange Commission whether it is possible to set up such a fund. If so, it would help solve liquidity problems regarding listed property funds.
Experts suggest considering different factors before investing in different types of property funds.
For example, for property funds that invest in department stores, investors should consider details of rental areas and the rental contracts of each department store, along with economic conditions, locations and management capabilities.
For property funds that invest in airports, investors are advised carefully to consider the tourism situation, airport traffic and even airport passenger fees.
For property funds that invest in hotels, tourism, locations, reputation and management ability should be considered the most.
For property funds that invest in factories, focus on rental fees, rental contracts, tenants, customer diversity and the overall investment situation.
For property funds investing in office and residential buildings, apartments and dormitories, take a good look at rental fees, rental contracts and tenant turnover.
Property funds listing on the SET so far this year include a Bt1.16-billion mutualfund project from the Sala@Sathorn Property Fund (SSPF) from Primavest Asset Management; mutual funds by the MFCStrategic Storage Fund, issued by MFC Asset Management and worth Bt608 million; and the Bt603million 101 Montri Storage Property Fund from BT Asset Management.
"We're focusing on good brand when we choose to invest in any asset. The management must be professional, and the return on investment should be inflation-proof."
The higher returns from property funds also generally beat inflation and have become an attractive alternative for longterm investors. However, experts recommend retail investors consider asset quality, level of professional management and liquidity in unit trust trading before deciding to invest.
MFC Asset Management will introduce two new property funds worth a combined Bt3 billion. One will invest in office buildings and the other in goodsdistribution centres.
BT Asset Management will launch a new "freehold" property fund by investing in hotels, which means investors have certain rights to the assets.
Krung Thai Asset Management will also offer a new property fund investing in hotels and is now negotiating with a hotel operator in Phuket.
SCB Asset Management (SCBAM) president Jotika Savanananda believes the combined size of property funds will continuously expand, because they are a longterm investment tool offering regular returns to investors.
SCBAM is now proposing a plan to set up a new property fund of its own. Jotika said the plan consisted of four elements: management of the property assets must be in the bluechip league; the management structure must be free from conflicts of interest; property projects must have high liquidity; and the potential for longterm growth must be high and rentalpricing adjustment flexible in terms of inflation. Thus, management and asset quality are key.
"We're focusing on good brand when we choose to invest in any asset. The management must be professional, and the return on investment should be inflationproof," Jotika said.
Moreover, fund managers in general must give advice about which funds are suitable for investors of specific risk profiles.
For example, a freehold property fund would provide less return per annum but offer an opportunity to gain from the sale of assets at the fund's maturity. But with leasehold property funds, investors would receive higher annual returns but not be able to gain from an asset sale.
So far, annual returns on freehold property funds listed on the Stock Exchange of Thailand (SET) have been running at 78 per cent and that on leasehold property funds 10-13 per cent.
Meanwhile, Siam Commercial Bank's Research Department predicts the policy rate will be stable until next year, when it will rise in the second half. Bankdeposit and lending rates will also increase in next year's second quarter after bank lending expands significantly in line with the economic recovery.
BBL Asset Management senior executive Wasin Wattanaworakijkul said the trend of rising interest rates would not affect propertyfund growth. He believes investors will continue to place a high priority on property funds as a source of assets that provide longterm returns that surpass deposit and inflation rates.
In November, BBL Asset Management will introduce a Bt1.5billion freehold property fund that invests in rental warehouses, with and expected annual return of 8 per cent.
Wasin said the warehouse business was expected to expand in line with economic growth, because logisticsrelated industries would pick up.
The Kingdom has a shortage of warehouses that operate at a high standard, and so the firm has chosen to invest in this kind of asset in the belief this type of business has good potential.
Siam City Asset Management managing director Teeraphan Jittalarn said his company would soon launch a new property fund that invested in listed property funds or fund of funds. The company is now discussing with the Securities and Exchange Commission whether it is possible to set up such a fund. If so, it would help solve liquidity problems regarding listed property funds.
Experts suggest considering different factors before investing in different types of property funds.
For example, for property funds that invest in department stores, investors should consider details of rental areas and the rental contracts of each department store, along with economic conditions, locations and management capabilities.
For property funds that invest in airports, investors are advised carefully to consider the tourism situation, airport traffic and even airport passenger fees.
For property funds that invest in hotels, tourism, locations, reputation and management ability should be considered the most.
For property funds that invest in factories, focus on rental fees, rental contracts, tenants, customer diversity and the overall investment situation.
For property funds investing in office and residential buildings, apartments and dormitories, take a good look at rental fees, rental contracts and tenant turnover.
Property funds listing on the SET so far this year include a Bt1.16-billion mutualfund project from the Sala@Sathorn Property Fund (SSPF) from Primavest Asset Management; mutual funds by the MFCStrategic Storage Fund, issued by MFC Asset Management and worth Bt608 million; and the Bt603million 101 Montri Storage Property Fund from BT Asset Management.
"We're focusing on good brand when we choose to invest in any asset. The management must be professional, and the return on investment should be inflation-proof."
GOING GREEN IS THE NEW MANTRA FOR DESIGNERS
In a bid to curb global warming, design trends in residnetial and office buildings are in creasingly espousing the green concept.
Property developers as well as construction materials manufacturers are laying greater emphasis on green enviroment.
A survey by The Nation on design trends showed that residential and commercial building owners are most concerned about environmental safety. As a result, architects and interior designers are creating buildings that ensure energy savings, wiht the construction desigh matching interior design to reduce energy consumption.
Supalai's palai's president, Prateep Tangmatitham, said the company takes concerns about the environment into account when designing both low-rise and high-rise residences. While designing, the direction of the building is given special emphasis,taking into account wind a d light.
The company also selects the consturction raw materials that help to reduce energy consumption such as green glass, double wall and roftile syste,.
LPN Development managing director Opas Sripayak said that most of the company's residential projects are now designed environ mentally friendly and int eh process it helps its customers save money on electricity.
"Our buildings will cut the electirc bills of our customers on an average by 10 to 20 per cent when compared with the residents tha use the normal system"he said
SCG Building Materials, a subsidiary of SCG Group, teamed up with Japanese company Sekisui Chemical to launch an innovative Modular home Technology.
SCG Building Materials president Pichit Maipoom said the company's continuous study of cliential projects are now designed environmentally friendly and int eh process it helps its customers save money on electricity.
"Our buildings will cut the electirc bills of our customers on an average by 10 to 20 per cent when compared with the residents that use the normal system," he said.
SCG Building Materials, a subsidiary of SCG Grooup, teamed up with Japanese company Sekisui chemical to launch an innovative Modular Home Technology.
SCG Building Materials president Pichit Maipoom said the company's continuous study of cliental behaviour and house-related needs found that customers wanted quality both in construction materials and construction as well as good quality of life. "A good house should be convenient, clean, safe, and worthy of the life cycle cost."
In responding to these needs,pichit said the company would provide a comprehensive house service system through its collaboration with Sekisui Chemical, the leading Japanese company specialising in the housing business for more than 30 years and the laargest manufecturer of modular Home.
Sekisui will introduce a distinctive and advanced Modular Home
technology for the first time in Thailand.
"Combined with SCG's good qualtity building materials, it will produce a good quality house that genuiely meets and understands cistp,ers
de,amds" he said.
The innovative Modular Home Technology will be called "SCGHEIM".
Unlike other house-building technologies, the Modular Home offers an innovative creation in which more than 80 per cent of house components are produced in the factory and assembled into modules ready to be installed on site in a couple of days.
Besides, the house is designed for energy-efficiency with life cycle cost for a period of 30 years.
Following the energy-saving concept, SCG-HEIM houses install insulation around the house and air tightness to fill in spaces between joints of the house to keep the room temperature between 25 and 29 degrees Celsius. Air Factory is installed to ensure indoor air purification and consistent flow of air,which in turn will help save power from the use of air-conditioners.
Most home-owners these days have the energy-saving concept in mind when spending on renovation.
Home-owner Wichart, 40, has saved 10.38 per cent on energy consumption, or 863 units of electricity per year, after the building was renovated for energy efficiency.
The refurbishment not only saves money (about Bt3,020 per year based on a cost of Bt3.50 per unit), nut also creates better living conditions and a healthier environment by reducing greenhouse-gas emissions.
One principle that must be accepted in such conversions, how wever, is that upfront investm4nt is often steep but offers generous returns over time. The core ideas are stopping the incursion of hot air into living spaces, changing habits and using energy-saving electrical appliances.
Installing aluminium foil and fibreglass insulatijon is the most efficient way to cut electricity bills,because this can prevent a build-up of heat. Where the insulation should be installed depends on the home owner's budget.
Those on a very tight budget should perhaps limit the installation of fibreglass insulation to the attic,because that is directly heated by the sun. Those who can afford it, should install insulation not only in the attic,nut also in ceilings and walls, particularly in rooms with air-conditioning, because it can prevent heat flow and reduce cooling costs.
Importantly,insulation at least3 inches thick is recommended for hot countries like Thailand. Layers of lesser thickness are ot as energy efficient.
The latest innovation in construction raw materials helps home owners to save costs although they have to pay a higher price for energy-saving raw materials. But in the long term, they can cut their cost of living than by using normal products. As a result, companies have to develop innovative products to sefrve the change in customer demand, Pichit said.
Property developers as well as construction materials manufacturers are laying greater emphasis on green enviroment.
A survey by The Nation on design trends showed that residential and commercial building owners are most concerned about environmental safety. As a result, architects and interior designers are creating buildings that ensure energy savings, wiht the construction desigh matching interior design to reduce energy consumption.
Supalai's palai's president, Prateep Tangmatitham, said the company takes concerns about the environment into account when designing both low-rise and high-rise residences. While designing, the direction of the building is given special emphasis,taking into account wind a d light.
The company also selects the consturction raw materials that help to reduce energy consumption such as green glass, double wall and roftile syste,.
LPN Development managing director Opas Sripayak said that most of the company's residential projects are now designed environ mentally friendly and int eh process it helps its customers save money on electricity.
"Our buildings will cut the electirc bills of our customers on an average by 10 to 20 per cent when compared with the residents tha use the normal system"he said
SCG Building Materials, a subsidiary of SCG Group, teamed up with Japanese company Sekisui Chemical to launch an innovative Modular home Technology.
SCG Building Materials president Pichit Maipoom said the company's continuous study of cliential projects are now designed environmentally friendly and int eh process it helps its customers save money on electricity.
"Our buildings will cut the electirc bills of our customers on an average by 10 to 20 per cent when compared with the residents that use the normal system," he said.
SCG Building Materials, a subsidiary of SCG Grooup, teamed up with Japanese company Sekisui chemical to launch an innovative Modular Home Technology.
SCG Building Materials president Pichit Maipoom said the company's continuous study of cliental behaviour and house-related needs found that customers wanted quality both in construction materials and construction as well as good quality of life. "A good house should be convenient, clean, safe, and worthy of the life cycle cost."
In responding to these needs,pichit said the company would provide a comprehensive house service system through its collaboration with Sekisui Chemical, the leading Japanese company specialising in the housing business for more than 30 years and the laargest manufecturer of modular Home.
Sekisui will introduce a distinctive and advanced Modular Home
technology for the first time in Thailand.
"Combined with SCG's good qualtity building materials, it will produce a good quality house that genuiely meets and understands cistp,ers
de,amds" he said.
The innovative Modular Home Technology will be called "SCGHEIM".
Unlike other house-building technologies, the Modular Home offers an innovative creation in which more than 80 per cent of house components are produced in the factory and assembled into modules ready to be installed on site in a couple of days.
Besides, the house is designed for energy-efficiency with life cycle cost for a period of 30 years.
Following the energy-saving concept, SCG-HEIM houses install insulation around the house and air tightness to fill in spaces between joints of the house to keep the room temperature between 25 and 29 degrees Celsius. Air Factory is installed to ensure indoor air purification and consistent flow of air,which in turn will help save power from the use of air-conditioners.
Most home-owners these days have the energy-saving concept in mind when spending on renovation.
Home-owner Wichart, 40, has saved 10.38 per cent on energy consumption, or 863 units of electricity per year, after the building was renovated for energy efficiency.
The refurbishment not only saves money (about Bt3,020 per year based on a cost of Bt3.50 per unit), nut also creates better living conditions and a healthier environment by reducing greenhouse-gas emissions.
One principle that must be accepted in such conversions, how wever, is that upfront investm4nt is often steep but offers generous returns over time. The core ideas are stopping the incursion of hot air into living spaces, changing habits and using energy-saving electrical appliances.
Installing aluminium foil and fibreglass insulatijon is the most efficient way to cut electricity bills,because this can prevent a build-up of heat. Where the insulation should be installed depends on the home owner's budget.
Those on a very tight budget should perhaps limit the installation of fibreglass insulation to the attic,because that is directly heated by the sun. Those who can afford it, should install insulation not only in the attic,nut also in ceilings and walls, particularly in rooms with air-conditioning, because it can prevent heat flow and reduce cooling costs.
Importantly,insulation at least3 inches thick is recommended for hot countries like Thailand. Layers of lesser thickness are ot as energy efficient.
The latest innovation in construction raw materials helps home owners to save costs although they have to pay a higher price for energy-saving raw materials. But in the long term, they can cut their cost of living than by using normal products. As a result, companies have to develop innovative products to sefrve the change in customer demand, Pichit said.
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