Channel 0115 Real Estate | Business Land

TRIS Rating Upgrades Company Rating of “SIRI” to “BBB+” from “BBB” And Issue Rating to “BBB” from “BBB-”with “Stable” Outlook

2010-02-07T05:44:00.000-08:00

TRIS Rating Co., Ltd. has upgraded the company rating of Sansiri PLC (SIRI) to “BBB+” from “BBB” and has also upgraded the rating of SIRI’s existing debentures to “BBB” from “BBB-”. The rating outlook is “stable”. The upgrades reflect SIRI’s improving financial profile. The ratings are based on SIRI’s leading position and strong presence in the condominium segment, and well-accepted brand names in the residential property market. The strengths are partially offset by the uncertain economy which may cause a downturn in the property industry, the cyclical nature of the industry, and commercial banks’ tight credit policies, which limit access to mortgage financing for homebuyers. TRIS Rating also takes into consideration the cyclical nature of the property development market and the relatively low level of consumer confidence, which is the result of economic conditions and the uncertain political situation.

The “stable” outlook reflects the expectation that SIRI will be able to manage construction of several condominium projects as planned. During the slowing economy, revenue will be partly secured by its large condominium backlog. Transfer risk of its condominiums is somewhat reduced by the recent government stimulus tax package and its cash-advance collection scheme, which voluntarily offers an upfront payment of the condominium price with attractive discounts. Profitability is expected to stay at the 2009 level, though the government tax incentives on special business tax and transfer fee will expire in March 2010. In the short term, leverage is expected to drop below 50% when some condominium projects are finished and transferred to customers during the period of tax incentives.

TRIS Rating reported that SIRI is one of the leading property developers in Thailand. As of November 2009, the company had more than 50 residential property projects in the portfolio, worth a total of around Bt70,000 million. The portfolio consists of condominium (50% of the total portfolio value), single-detached house (SDH) (35%) and townhouse (15%) projects. The average unit price across the portfolio fell to Bt4.3 million, reflecting a policy to expand its customer base to add the medium-priced segment in its portfolio. As of November 2009, the company’s total backlog was nearly Bt16,600 million, while the unsold value of the existing residential projects was around Bt17,000 million. SIRI’s main competitive edge stems from its well-accepted brand, strong marketing strategies and the good quality of its products, especially in the condominium segment.

TRIS Rating said, although overall economy slowed in 2009, SIRI reported increasing revenue due to its high backlog and greater market share gained from small developers. Revenue rose to Bt11,006 million in the first three quarters of 2009, from Bt10,067 million in the same period of 2008. SIRI slowed its pace of investment from late 2008 through early 2009 in response to economic uncertainty. The pace returned to normal after mid-2009 onwards. Land acquisition decreased to around Bt2,500 million for the fiscal year 2009, from around Bt4,000-Bt4,500 million in 2007 and 2008. However, the value of project openings increased to around Bt19,000 million in 2009 from around Bt12,000 million in 2008. As a result of more project openings, presales increased to Bt13,585 million in the first 11 months of 2009, from Bt10,258 million in the same period of 2008. New condominium projects worth more than Bt7,000 million were launched, while condominium presales were Bt6,300 million for the first 11 months of 2009. In 2009 the company enjoyed the full year benefit from the government’s tax incentives, introduced in late March 2008. Hence, operating margins in the first three quarters of 2009 strengthened further to 14.4% from 12.2% in 2008 and 10.2% in 2007. Earnings before interest, tax, depreciation and amortization (EBITDA) interest coverage has stayed at 2.8-3.3 times over the last three years. Funds from operations (FFO) to total debt dropped from 10% (non-annualized) in the first three quarters of 2008 to 8.4% in the same period of 2009, but is expected to improve from more condominium transfers in the fourth quarter of 2009. The debt to capitalization ratio increased from 47.5% in December 2007 to 53.4% in September 2009 due to additional capital outlays for condominium construction, and is expected to decrease in late 2009.

The residential property market was volatile over the past year, reflecting the national political instability and global financial crisis. Although it recovered in the second half of 2009, the market remained relatively slow and has become increasingly dominated by major developers. Government tax incentives that allowed homebuyers to get a personal income tax deduction of up to Bt300,000 for the purchase of a new residence expired in December 2009. Demand for residential property in 2010 will depend heavily on the pace of recovery in economy and consumer confidence. TRIS Rating said it expects the demand to be in line with that in 2009.

S.T. Thammaporn launches Nakornthon Plaza healthy lifestyle centre

2010-01-30T00:16:00.000-08:00

S.T. Thammaporn Company Limited is developing Nakornthon Plaza, an 18,000 square metre Holistic Lifestyle Center and Residence for customers seeking a high quality, healthy and active lifestyle. The 500 million baht project occupies a four-rai plot of land adjacent to Nakornthon Hospital on Rama II Road.

This unique lifestyle plaza offers a wide selection of health facilities on over 4,800 square metres of commercial space, and Jonathan Schwimmer, General Manager of S.T. Thammaporn, believes that it will be ideally suited to the health-conscious lifestyle of new generation.

“There is generous space available for a fitness centre, health spa, supermarket and shops for health products, as well as health restaurants, a tutoring zone and meeting facilities,” he said.

“There will also be 118 serviced apartment units and 90 standard apartment units for lease.”

Wisan Saipecth, Executive Director of Nakornthon Hospital, added that the Hospital welcomed Nakornthon Plaza as its new neighbour. He expressed the management team’s confidence that the new plaza would help to raise the quality of life in the community, and encourage people to strengthen their immune system by means of exercise and a nutritious diet.

Built on the strengths of Nakornthon Hospital, the new plaza is expected to extend the hospital’s customer base so that it may achieve its goal of being the Family Lifestyle Hub providing comprehensive medical services for patients of all ages.

S.T. Thammaporn Company Limited was established in 2004 and has registered capital of 97 million baht.

THE THAI PROPERTY MARKET TRENDS IN 2010

2010-01-24T06:47:00.001-08:00

2009 was a challenging year for the Thai property market, but CB Richard Ellis (CBRE) sees positive signs for 2010. Whilst 2009 has been a tough year, it was not as bad as many expected.

2010 has begun with a more positive market sentiment. The improving economic outlook globally and perception of Thailand’s political situation, together with low market prices compared to other mature property markets, have had a positive impact on consumer confidence in property investment in Thailand.

Following the economic crisis, the supply of new office, retail and industrial space is at an all-time low. These sectors are expected to improve this year, in line with the global and local economic recovery.

Thailand’s residential market in 2009 was primarily driven by local demand. This year, CBRE believes that local demand will continue to be strong and that individual foreign property investors will start to return to the market. Thai condominium prices remain attractive compared to other cities in the region, such as Shanghai, Hong Kong and Singapore where prices have risen sharply in the last six months.
Average Price of Luxury Residential Units in the Region (THB per sq.m.)
City 2008 2009 %Change
y-o-y
Shanghai THB 176,032 THB 189,659 7.7
Hong Kong THB 622,549 THB 722,376 16.3
Singapore THB 479,327 THB 555,481 12.8
Bangkok THB 117,875 THB 124,539 5.6
Source: CBRE Research

However, there are continuing concerns about Thailand’s political stability and the strength of the global economy. If Thailand’s economy and politics are stable in 2010, the residential sector will see consistent positive growth.
Government Policy

The Government stimulus package will expire in March 2010 and it remains uncertain whether it will be extended. CBRE believes the extension of this package will benefit buyers and developers of large condominium projects launched during the crisis which are due for completion and transfer within this year.

The initiative of this government to reform property and land taxation with a view to creating fairness sounds positive, but it will only be possible to determine the effect on the property market once the details of the proposed legislation have been finalised. “So long as the new tax legislation is on a fair basis and the tax rate not so excessively high as to discourage investment, CBRE sees this reform as beneficial for the market,“ Ms. Aliwassa Pathnadabutr, Managing Director of CBRE Thailand said. An additional measure that CBRE urges the government to consider is the extension of the long lease term from the current 30 years up to a maximum of 90 years. This will help improve the market mechanism and make large-scale commercial projects viable which would not be feasible if such developments were freehold due to the high land cost or if they were on a 30-year lease due to the limits on lease terms. The extension of the lease term will also have a direct benefit for resort destinations such as Phuket and Samui where the property markets are primarily driven by foreign demand.

Looking at 2010 and beyond, environmental issues are a key consideration for all industries including the property market. There will be more restrictions which may increase the cost for developers. The Environmental Impact Assessment (EIA) process is one of the key concerns and risks for developers as there are uncertainties in the details and timing required to obtain such a permit. This is one of the factors which are likely to delay the emergence of new supply.

Any additional incentives that would attract foreign direct investment in both manufacturing and the service industries would be welcomed, in order to enable Thailand to compete with rival destinations.
Office : The Market Should Improve in 2010
Bright future due to limited new supply

In 2010, there will be very limited new supply in the office sector. Only 78,380 sq.m. are due to be completed, including Sathorn Square (72,500 sq.m.) and Sivatel Wireless Road (5,880 sq.m.). CBRE sees the limited increase in new supply as a positive indicator for the office market because any increase in take-up will reduce vacancy rates and lead to rental increases. At the end of 2009 the vacancy rate stood at 12%.

Even though net demand in 2009 dropped by more than 50 % to only 52,000 sq.m., average grade A CBD office rents fell by 7.26% to THB 690 per sq.m while grade B CBD office rents fell by 12% to THB 509 per sq.m. This is considerably better than in other markets. Rents fell by 52.6% in Singapore and 49.9% in Hong Kong in 2009.
Average Grade A CBD Office Rents in the Region (THB per sq.m.)
City 2008 2009 % Change
Y-o-Y
Hong Kong THB 4,107 THB 2,255 -49.09%
Singapore THB 4,041 THB 1,913 -52.66%
Bangkok THB 744 THB 690 -7.26%
Source: CBRE Research

Following the recovery of the global economic, CBRE believes that companies will be less cost conscious and that 2010 will be a good time to take advantage of the low rents to relocate to newer buildings.

Sathorn Square – the only new grade A office building to be completed in 2010.
Condominium : The Most Exciting and the Most Competitive
Supply Outlook : More competitive market in 2010

The total supply of downtown condominiums increased to 61,522 units by the end of Q3 2009, up 14% year-on-year. In total, there are 17,664 units under construction in downtown Bangkok, of which 78% of which have been reportedly sold, leaving 3,879 units being marketed (completed and under construction).

In 2009, there were 3,912 units in 15 projects launched in the downtown area, with the majority being one-bedroom unit types. In 2010 CBRE expects a much more competitive market, with an increasing number of project launches as there is pent-up supply from developers who have delayed their projects since the onset of the economic crisis in late 2008 and also new supply from large developers who acquire plots of land for new developments.
Newly Launched Condominium Projects* Broken Down by Unit Type

Year Studio 1 B/R 2 B/R 3 B/R 4 B/R PH Total

2008 243 2,270 1,090 194 19 10 3,826

2009 54 1,284 694 10 0 0 2,042

Total 297 3,554 1,784 204 19 10 5,868
Source: CBRE Research

* Include 18 selected projects in 2008 and 11 selected projects in 2009 as of Q3 2009.
Demand Outlook : Demand continues to be strong

CBRE sees a growing demand for condominiums driven primarily by a change in lifestyle which has led to the need to own a first or second home in the CBD or near mass transit routes to reduce the need to commute. From an investment perspective, investors also increasingly recognise condominium purchases as an appreciating long-term investment asset. In the past, there were few Thai investors in the market. However, with lower interest rates and proven returns, investing in condominiums has become a popular investment choice for many Thais. It is also considered a safe and secure investment compared to the equities market which is much more volatile.
New Trends : Good locations, small furnished units with affordable prices

From the development side, developers need to ensure they are ahead of the game in trying to predict future location trends. The danger is that a popular location can quickly become saturated with new supply. The key to success is either to be the first to launch in an upcoming location, or to find a location with high barriers to entry.

New supply especially for the middle income market will focus on smaller units at affordable prices. In a competitive market with experienced buyers, products must offer quality as well as innovative and functional design in order to be successful. The reliability and reputation of the developer is another key consideration for buyers.
Luxury and Super Luxury Segments : Limited future supply

The luxury and super luxury condominium segment is expected to slowly recover and develop into a niche market. Prime downtown land is rarely available for sale and prices will remain high, CBRE, therefore, does not expect many new launches for luxury condominiums in prime downtown locations.

With a wave of new launches focusing on smaller one-bedroom units along mass transit routes with prices ranging from THB 3 to 8 million, the majority of unsold two to three-bedroom units priced at over THB 15 million and developed before the crisis should soon be absorbed. There will then be a shortage of two-bedroom units in the luxury market especially in prime locations. Short-term investors will speculate on one-bedroom units whereas long-term investors will focus on two and three bedroom units which are in demand among expatriates in the rental market, while smaller units are driven by local demand. With a limited supply of newly launched larger units CBRE believes the existing supply of such grade-A units in prime locations will continue to appreciate in value.
2010 Pricing Trends : Completed prime condo prices on the rise

In terms of price movement, CBRE sees no significant increase in prices per sq.m for mid-market condominiums as the economic recovery is still underway with the prevailing political problems which continue to concern buyers. The best selling segment is priced at THB 50,000 – 80,000 per sq.m in mid-town locations or within 15 kilometres of the CBD. Prices in this segment are unlikely to increase as the purchasing power of the target market is limited. The developers have to compete on cost control and pricing.

Prices for completed high-end and luxury downtown condominium have increased slightly by 5.6% from THB 117,875 per sq.m from Q4 2008 to THB 124,539 per sq.m in Q3 2009 and CBRE believes that the prices of completed buildings in prime locations will continue to rise in 2010.

Prices of the future supply of high-end and luxury downtown condominium in 2009 fell slightly by 6.3% from THB 142,133 per sq.m in Q4 2008 to THB 133,134 per sq.m in Q3, 2009 due to the slow market conditions. New launches in 2010 are likely to see an increase in price per sq.m due to the higher construction costs but, as unit sizes are smaller, total unit prices will be on par with current levels.
Retail : More Focus
Improvement expected following return of consumer confidence

In the first three quarters of 2009, the supply of retail space grew by 6.6% or 327,125 sq.m. Whilst occupancy was stable throughout the year, rents were flat and even fell in some cases during the earlier part of 2009. The fourth quarter showed signs of consumer confidence and spending returning.

The trend for new retail centres in Bangkok is evolving from one-stop mega shopping complexes to more focused community malls and medium-sized lifestyle and entertainment complexes such as Esplanade Rattanathibet.

The major players in the retail market are Central, The Mall, Siam Future and Major Cineplex. Retail developments to note this year are Terminal 21 which is currently under construction and located in Sukhumvit at the Asoke junction, Central Rama 9 and Mega Bangna which will house Thailand’s first IKEA store.
Serviced Apartments : Highly Competitive
Occupancy rates are likely to be flat and downward pressure on rents

The serviced apartment sector, which partially depends on tourists and business travellers as well as expatriates working in Bangkok, has suffered from growing supply which led to an overall drop in occupancy and rates in 2009.

Total supply increased to 12,392 units, up by 6.84% year-on-year, with a further 610 units expected to be completed by 2010 and approximately 2,000 units by 2013. Occupancy rates remained at 75% in Q3 2009. Occupancy was partly protected by a number of long-term contracts which are less volatile than the daily rate market. Average rates, however, fell by about 20% year-on-year.

The biggest challenge faced by this sector is the volume of new supply targeting both long-stay expatriates and short-stay businessmen and tourists.

Serviced apartments compete against apartments and particularly small condominium units for rent in the long-stay market and the rapidly growing supply of hotels in the short-stay market. The influx of new supply of both serviced apartments and hotels will continue to exert a downward pressure on both rates and occupancy.
Expatriate Rental Apartments

The total supply of expatriate-standard rental apartments in Bangkok increased to around 11,151 units, up by 4.5% year-on-year

Occupancy remained high at 91%. CBRE has not seen a dramatic drop in the number of expatriates in 2009 but, since companies are trying to maintain or reduce costs, so CBRE does not expect any increase in housing allowances.

Multinational companies continue to be cautious on their expansion plans given that the global economy is yet to fully recover. Thailand’s political problems are also an added factor which has restrained business expansion plans in Thailand.

CBRE does not expect that there will be a significant increase in the number of expatriates in 2010. There will be increased competition from individual “buy-to-rent” condominium owners seeking to lease out units in recently completed developments. There are about 620 apartment units under construction but there are also 17,664 condominium units under construction and CBRE expects that up to 50% of the new condominiums have been bought by purchasers who want to lease out their units on completion. This increase in supply combined with little or no growth in demand will dampen any potential for overall rental growth.

New well-designed condominium and apartment buildings will continue to perform better than older buildings that have not been refurbished or redecorated.
About CB Richard Ellis

CB Richard Ellis Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2008 revenue). The Company has approximately 30,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CB Richard Ellis has been named a BusinessWeek 50 “best in class” company for three years in a row.

CB Richard Ellis established an office in Bangkok in 1988, followed by Phuket office in 2004, and Samui office in 2007. CB Richard Ellis (Thailand) Co., Ltd. has grown to be a leading real estate services provider, offering strategic advice and execution for sales and leasing for all types of property, property and facilities management, valuation and advisory, and research and consulting.

The first time in Thailand, JARKEN launches the 4D “MINE” Series- the phenomenal super luxury in property industry - with expected revenue of 300 MB.

2010-01-24T05:41:00.000-08:00

JARKEN Group of Companies is taking a firmer and more solid step into the year 2010 by launching “MINE” Series in 4D form of perfection, targeting only at the elite and aiming at 300 MB revenue.

Kuldej Sinthawanarong PhD., Managing Director of JARKEN Group of Companies, the avant-garde architectural organization well trusted both locally and internationally, has disclosed that “After 9 years of fulfilling the needs of our clients in Thailand as well as international, JARKEN is now well versed for our unique style of minimalism blended perfectly well with modern elegancy. With client’s satisfaction in mind, JARKEN has achieved full trust from clients to design very high end residences, be it condominium or houses with space of 200-10,000 sqm. and budget of 15-20 or over 100 MB. Our clients are Thai and foreign developers as well as individuals”

“In 2010- we adopted a more aggressive marketing strategy especially in developing and creating new designs in order to answer to the need of broader scale of clients. We changed our logo from a green cross on white background to the solid black letters of JARKEN in combination with the 4 vertical lines of different sizes. It symbolized our professionalism in external and internal architectural designs,

Last but not least is our masterpiece of architectural design “MINE” Series by JARKEN. This new residential designs reflect well each individual characteristics, the inter-relation of spaces which allow each dweller to absorb in the ambience of every corner of his/her own “home”. The house is “MINE”. Pride one has in his/her house likens pride in the achievement along the passage of past unto present when he/she is at “home”.

There are 3 designs with 3 styles in “MINE” Series, ie, Quintessence, Extravaganza and Temptation with spaces of 2,000 sqm. up and budgets of 50-100 MB. The presentation of this “MINE” Series is in the perfect form of 4D.

In addition, the Company has created very unique Magazine Ads. We’ve got great honor from clients who worked mutually with us to create 5 masterpieces under the concept “Modeling JARKEN’s Role Models” which reflected the achievement, from extensive effort, in each and every aspect of designs for construction and services delivered to clients in the JARKEN’s way. Once the campaign is launched, it will be “talk of the town” especially and extensively in the property industry” anticipated Kuldej Sinthawanarong PhD.

JARKEN focuses only on high end and super luxury targets. And that covers 5-10% of the total market. The possibility is high since we have earned recognized international awards. And that put JARKEN on the path of never-ending development in order to create, to design and to deliver services that differ. We are confident that this will be another good year for JARKEN and we will achieve 300 MB revenue with our “MINE” Series.

The Home Builder Association has laid out 4 strategic policies to develop the home building market

2010-01-17T05:21:00.000-08:00

The Home Builder Association will aggressively move in 2010 with its 4 strategic policies including a policy to increase total home building market value to 12 billion Baht (a 10% growth YoY); consumer oriented policy; members’ capability development policy; and CSR related policy. The Association also reveals it will focus more on direct communication with the consumers; speed up its development of a sound database system; and innovate more appealing products and services for the consumers. With the said policy framework, the Association will start its 1Q with the staging of the Home Builder Focus 2010, whose on-site target is set at 500 million Baht.

Mr.Vibul Chantradilokrat , President of the Home Builder Association, discloses today that the Association has laid out 4 strategic policies in 2010 including a policy to increase total home building market value, consumer oriented policy, members’ capability development policy, and Corporate Social Responsibility (CSR) related policy. In details, the Association will attempt to grow total home building market value to hit 12 billion Baht in 2010 from 11 billion Baht in 2009 implying a 9 – 10% increase YoY. The increase is expected to come from 2 major catalysts. First is market growth through its promotion and PR activities, which are hoped to generate continuous consumer acceptance, especially the staging of its annual Home Builder and Home Builder Focus, which are its major tools used to get the consumers to know more about its members. Second is median price increase. Since consumer mode price was up from 4.2 million Baht in 2008 to 4.7 million Baht in 2009, it is expected that this upward trend would continue in 2010.

On the consumer side, the Association will set the consumers on a higher priority. In 2010, it will work closely with the Office of the Consumer Protection Board to draft out a standard contract in order to protect the consumers from unethical home building companies.In addition, the Association will directly communicate with the consumers. Emphasis will be given to the providing of useful news and home building related information. In this regard, the Association has a plan to further develop its official site (www.hba-th.org) to be a modern portal site so that the Association as well as its members could use the information gathered from the site to develop more appealing products and services for the consumers. To go with its electronic media, the Association will also initiate its first newsletter in mid February 2010 in order to publicize its activities as well as to educate the consumers. Last on this list, the Association has also been in talks with several financial institutions, whom are keen to provide special interest-rate loans to the Association’s members in order to make it easier for the consumers to own their homes.

On its members, the Association would focus on its members’ capability development, while attempting to increase the numbers of its ordinary as well as extra ordinary members so that a wider standard could be set up. At the same time, it will support its members, whom voluntarily develop their organizations in accordance with ISO standard, as well as assist them to file copy right applications for their residential models to force more design developments in the market.

On corporate social responsibility front, the Association currently has two main activities. First is its support towards the Department of Skill Development’s activities and second is its joint scholarship with Donmuang Technical College granted to students in construction and architecture majors. In 2010, these two activities will continue, while the Association is studying the possibility of adding in one extra environmental activity.

In 1Q10, the Association will translate its market development and consumer related policies through the staging of its Home Builder Focus 2010 to be held during February 26-28, 2010 at the Bangkok Convention Center, Central Plaza Ladprao. The event, which is expected to generate an on-site sale of approximately 500 million Baht, will be excellent gatherings and showcases of leading home building companies as well as financial institutions ready to provide special interest-rate loans to the consumers.

LONDON (WEST END) AGAIN WORLD’S MOST EXPENSIVE OFFICE MARKET; TOKYO’S INNER CENTRAL MARKET RANKS SECOND

2009-12-15T05:23:00.001-08:00

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.

Moody's says newly listed Chinese property developers face challenges

2009-12-15T04:12:00.000-08:00

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.

SC Asset launched 3 new projects in Q4 Y2009 and its “SC Parade” the privilege campaign to be held on November 2009.

2009-11-19T06:28:00.000-08:00

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.

The wonders of Panatda's rooftop garden

2009-11-12T22:46:00.000-08:00

       "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."

PS keeps ambitious 30% growth target

2009-11-12T22:45:00.000-08:00

       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.

Murdoch outbids Crowe for mansion

2009-11-08T04:40:00.000-08:00

       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.

PHROM PHONG CONDO SELLS OUT IN ONE DAY

2009-11-08T04:38:00.000-08:00

       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.''

DEVELOPERS TURNING TO INTERNET

2009-11-08T04:35:00.000-08:00

       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.

BAM property fair

2009-11-04T05:56:00.000-08:00

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.

SC ASSET EARMARKS BT2 BN FOR LAND

2009-11-04T05:55:00.000-08:00

       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.

BOON TURNS TO CHINA AFTER SELLING HOSPITAL STAKE

2009-10-28T20:11:00.000-07:00

       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.

Nominees will need to find "real" Thai partners, says JFCCT

2009-10-28T20:10:00.000-07:00

       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.

NEW YEAR STARTING TO LOOK BRIGHT FOR DEVELOPERS

2009-10-28T20:09:00.000-07:00

       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.

US in new move to aid housing market

2009-10-20T20:58:00.001-07:00

       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.

NO RISE IN MORTGAGE RATES OVER REMAINDER OF THIS YEAR

2009-10-14T21:54:00.000-07:00

       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."

NEW PROJECTS UP FOR DELIBERATION

2009-10-13T05:28:00.000-07:00

       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.

German funds may invest as much as C12 billion

2009-10-11T23:15:00.000-07:00

       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.

GOVT TO RENEW TALKS WITH ASSEMBLY OF POOR, PM VOWS

2009-10-11T00:05:00.000-07:00

       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.

Developers pool around New Phetchaburi Road

2009-10-07T21:27:00.000-07:00

       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.

Thanapat taps into TV show

2009-10-06T19:50:00.001-07:00

       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.

Housing prices rise in United Kingdom

2009-10-06T19:49:00.001-07:00

       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.

REAL-ESTATE PRICES FALL, SALES LEAP IN NY

2009-10-06T19:47:00.000-07:00

       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.

DEVELOPERS SET TO OVERSHOOT PRESALES TARGETS

2009-10-06T19:46:00.001-07:00

       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.

ACADEMICS EMBRACE NEW PROPERTY-TAX LAW

2009-10-06T19:44:00.000-07:00

       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.

NEW PROPERTY FUNDS ON THE CARDS BY YEAR-END

2009-10-06T19:42:00.000-07:00

       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."

GOING GREEN IS THE NEW MANTRA FOR DESIGNERS

2009-10-06T19:40:00.000-07:00

       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.

Rolling stones band together in Chiang Mai

2009-10-06T19:38:00.000-07:00

       A group of homeless people in the northern province are finding new strengthin each other and taking steps to regain control of their lives By Supara Janchitfah
       Dee Pantapchai smiled broadly when he was presented with a set of gifts from a group of fellow homeless people in appreciation for his participation in the the group's savings plan, into which Mr Dee has made regular deposits. The gifts - used plastic bottles and some basic daily necessities such as a bar of soap - might seem valueless to most people, but for Mr Dee they were priceless as they provided a sense of pride and happiness that he has rarely known in his 69 years.
       He first came to Chiang Mai from Mae Sariang district of Mae Hong Song province to earn a better living, but the reality has been many years of sleeping on city streets.Since he has felt cheated and betrayed his whole life, it is hard for him to trust anyone.When the group gave him the award he was not sure he deserved it.
       "Really?" he asked with smiling eyes. All his homeless friends nodded their heads and returned their own sincere smiles. For some time now the group has been discussing the possibility of pooling their earnings from the sale of plastic, aluminum and other materials they collect so that they can one day lease a piece of land to construct a temporary shelter,and also to keep a central fund for daily needs and emergencies, such as when someone gets sick.
       "I want to have a place where we can call home and share our lives with other homeless people," said Mr Dee.
       At present his group is staying at a deserted hotel in downtown Chiang Mai. The place was first discovered by the homeless Mr Tom and a younger man. Later about 10 more homeless came to stay, and they set rules among themselves to avoid problems and assure harmony. One younger man was asked to leave because he did not respect the rules.
       Mr Tom is from Chiang Mai, but he worked as a tour operator in Phuket for many years.He returned to Chiang Mai after running into business problems in Phuket. Meanwhile,his family had also encountered hard times and he couldn't rely on them for support. He became a streetside fruit vendor and also took odd jobs in construction, but he was unable to keep a room on his meagre earnings and became homeless.
       His said his life turned around when he met a staff member from the Human Settlement Foundation (HSF), a Thai NGO working in slums and with homeless people. The NGO, a member of the Four Regions Slum Network (FRSN), was conducting a factfinding mission on the streets of different Thai cities which provided a forum for homeless people to share their experiences and problems and search for solutions.
       "I could see a ray of hope and I could see that my life could be more meaningful if I worked with homeless people," said Mr Tom,whose given name is Ekaluck Thongmak.
       He has now gone back to work as a tour operator, in Chiang Mai as well as Phuket.Some of his former customers resurfaced to support him. But even though he has a good is income at the moment, Mr Tom still prefers to stay with the homeless group.
       "I am happy to stay with my homeless friends. I can see them making changes in their behaviour, such as showing consideration for other people and paying attention to their concerns. Moreover, they need to have someone to turn to.
       "You will never understand the life of a homeless person if you have never been >>
       >>homeless yourself,"said Mr Tom.
       In the time he spent homeless and unemployed he learned lessons on how to survive on almost nothing. He learned how to collect recyclable garbage and where to sell it, and how the recycling businesses take advantage of the homeless.
       Mr Tom said that, for example, if they collected 2.2 kilogrammes of aluminum cans the business owner would invariably pay them for only 2kg.
       "That's not right. It takes a lot of effort to collect that extra 200g, but we have no say.That's why we need a place to store and separate items into different categories and weigh them ourselves, so that we can get a better price. If we do things collectively as a group we will have more say."
       The group has joined hands with FRSN to voice their concerns over housing rights, funding for housing and access to land (see story below.)
       WORKING TOGETHER
       The abandoned hotel in downtown Chiang Mai has become the site of a regular Sunday get-together for four groups of homeless from different parts of the city to socialise and share their joys and problems. Besides the home group, homeless people normally come from the areas around Tha Phare city gate,Chiang Mai railway station and Chang Phak bus station. These groups are also in the scheme to save money and lease a piece of land to construct a temporary shelter.
       After a number of meetings, the various groups have come to an agreement on how to operate their savings group and have also come up with a set of rules and regulations.
       But the plan is not yet perfected. It has been discussed, rejected and modified for more than a year.
       "We are not sure if we can save the money and how we can be sure that it will be there when we need it," said Mr Lop, a native of Chiang Rai who had family problems and left home to work in construction in Chiang Mai.Once a heavy drinker, he gave up alcohol after joining the group at the deserted hotel and began to practice self-discipline. Mr Lop said it is hard for him to trust anyone as he has been betrayed all of his life.
       At the abandoned hotel, Mr Tom and his friends have devised a list of house rules, one of which is sobriety. Others involve sharing work and other activities, such as distributing soybean milk to other homeless people. Every Thursday night at about 6pm they gather at the hotel and walk through Chiang Mai to find homeless people and distribute the milk until 11pm. Some of the funds for the soybean milk come from HSF.
       "Handing out the soybean milk gives us a means to meet and discuss things with other homeless people," said Sukanya Pinichwattanapan, a local volunteer from HSF who works with homeless and slum dwellers.
       I was with Ms Sukanya and seven homeless persons as they walked along the Chiang Mai moat and numerous city streets to pass out the soybean milk. Many of the homeless they encountered were drinking alcohol.
       Mr Tia, who stays at the hotel, said that he also used to drink "because I had no hope,and thought I had no future. I just wanted to end my day by forgetting my hard work and all the eyes that look down on me".
       But nowMr Tia has a sense of duty, and he is no longer without hope. He carries a small book in his hand to record the problems that homeless people confide to him, and also their needs.
       "I have some pain here," said a very thin man who looked as if he'd had a lot to drink,pointing to his back. He said he needs some medicine for the pain. Ms Sukanya advised him to bend his back properly when collecting items from garbage bins. She didn't try to preach to him that he should stop drinking, but she put a subtle message across in her cheerful voice:"Oh! After you try collecting things in the right position,you can start to drink a little less. It may be useful for your health, what do you think?"
       The homeless man smiled shyly.
       The discussions involve so many important issues,such as where they go to take a bath and where they sell their collected products to get the best price. One man showed off a radio he found at the dump site and was able to fix. Some of the homeless said they wanted to do some merit-making and discussed which temple would allow them to enter and so on.
       Mr Ti is another core member of the hotel group, and normally goes to buy the soybean milk from street vendors for distribution.
       As the group ventured farther into different corners of Chiang Mai, Mr Ti said that many of the homeless they encounter don't want to join them at the hotel because they wouldn't be able to adjust to the rules set by the group,especially the one about drinking.
       "They want to be our friends, but they want to continue living their lives as they are now. That is why they still sleep on the street,"said Mr Ti, who once lost his ID card to a pick-pocket. As a member of an ethnic tribe it was not easy to replace, and without it a job is very difficult to find.
       Many homeless people are stateless, but Mr Ti is more fortunate. HSF staff encouraged him to go back to his home in Chiang Dao,Chiang Mai province, to replace the ID card.Finally he has received the new card. Mr Ti is an active member of the group and is known for having a character to help others.
       Ms Sukanya said Mr Ti has helped many people, including a homeless woman who once worked as a street prostitute. He helped her to put her past behind her.
       As we walked along a homeless man named Mr Khaek pointed across the moat to a large shophouse and said:"There, I once spent the night in front of that house." He added that the owner of the house did not chase him away because he didn't make any mess and left early the next morning. Mr Khaek sometimes fishes in the moat.
       He stays at the hotel, and has now stopped
       drinking. In the past it was his habit to spend the money he got from collecting recyclables and doing odd jobs on alcohol,but he is determined to change.
       "I can quit drinking because I am aware that it is useless to drink," he said."Apart from that I have friends and we have many activities for ourselves and for others."
       Mr Khaek was once arrested with two other homeless people and they were taken to a government shelter in Chiang Mai where many facilities were provided.
       "I don't want to stay there because I don't want to be caged. I want freedom and real friends," he said. Even though Mr Khaek, Mr Ti, Mr Lop and the others want to have a place that they can call "home", they also want freedom, to live by rules they set themselves. They also want to encourage and give each other moral support.
       "When someone feels like drinking they have us to pull them back. If anyone wants to steal something they think about the group,because they know that behavior will bring troubles to us and it won't be accepted. They will have to go back on the street again," said Mr Tom."We want to tell society that even though we are scavengers, we are not garbage ourselves. We don't have houses like you do but we have dignity and we are human like you," he said.

BONUS CURBS LOWER LUXURY HOME SALES

2009-10-06T19:37:00.001-07:00

       Britain's curb on banking bonuses may stunt the recovery in London's luxury-housing market by wiping out the windfalls that let buyers afford big mortgages, according to property brokers Knight Frank and Savills.
       Bankers and financial-services executives are just starting to buy properties again after a year of price declines ended in March.
       They alredy account for a smaller proportion of buyers than at the peak of the market, said Liam Bailey, head of residential research at London-based Knight Frank.
       "If you take bonuses out of the equation, prices cannot rise as qukckly and they will take much longer to return to peak levels," Bailey said in an interview yesterday. Knight Frank and Savills are the biggesg brokers for London houses and apartments costing more than 1 million pounds (Bt53 million).
       The UK's five larges banks agreed three days ago to impose limits on bonuses, follwoing guidelines set by the Group of 20 nations at their summit in Pittsburgh last week.
       Financial companies have cut thousands of jobs in London in the global recession, contributing to a slump in luxury-home kprices in districts such as Mayfair and Chelsea.
       Since March, property values in the most expensive areas have fallen as slower annual pace, Knight Frank estimates. They started to increase on a monthly basis in April and gained 1.3 per cent last month. Prices are still 18 per cent below their padk and 8.9 per cent lower than a year ago.
       Property values returned to the level of a year earlier, the first time since March 2008 that they have not been lower on an annual basis.
       The improvement in the luxury homes market is being driven by a scarcity of properties, rather than more purchasers, according to Savills, which is also based in London.
       The number of homes for sale is about 25 per cent less than the average for the past five years, the broker estimates.
       Finance-industry workers accounted for 32 per cent of luxuryhome buyers during the past six months, up from less 30 per cent at the start of the year, Bailey said. That compared with about 40 per cent at the market's peak in 2007.

Homeless urban poor await genuine political will

2009-10-02T19:33:00.001-07:00

       The first Monday in October every year has been designated as World Habitat Day. It is a day on which the United Nations has called for reflection on the right of all people everywhere to adequate and secure housing.
       Yet the stark reality across Asia, as throughout almost the entire developing world, is that housing rights are still routinely violated, illegal forced evictions and demolitions are rampant, and security of tenure remains but a dream for the urban poor, who constitute the majority of the population in the cities of the global South.
       This situation of basic insecurity is exacerbated by the general trend of urbanisation without adequate provisions for housing the urban poor. Consequently the poor, who play a vital role in developing the cities - whether as construction workers, small-scale vendors or street cleaners - are denied a place in the very location they have helped create.
       Although exclusion from a secure place in the city is just one of the many indignities suffered by hundreds of millions of slum dwellers around Asia, having to live in constant fear of eviction has a far-reaching impact that adversely affects the ability of the urban poor to overcome poverty.
       Earlier this year, as the Anti-Eviction Coordinator of Leaders and Organisers of Community Organisations in Asia (LOCOA), a regional network of grassroots organisations working with the urban poor around Asia, I had the opportunity to travel to the Philippines, India, Cambodia, Indonesia and Bangladesh. In each of my destinations, I spent time visiting urban poor slum communities that had lived through actual evictions or the threat of evictions.
       In some instances, these communities had successfully stopped the bulldozers of the demolition crew on the doorstep to their communities. Yet in other cases,my visits were with people who had already been forcibly evicted and compelled to settle elsewhere, sometimes with no compensation whatsoever.
       While the details of the individual cases of forced eviction may have been different from place to place and country to country, the common denominator among all of them is that it is the urban poor, perhaps the most vulnerable segment of the population, who are affected.
       In fact, the actual reason behind almost all of these evictions was the same: the land used for settlement by the urban poor, sometimes for several generations, has been commoditised and drawn into the real estate market.
       The subsequent desire by landowners,whether private individuals or state agencies, to maximise profits by taking advantage of upward market pressure on land prices, combined with structurallyconditioned social discrimination against the urban poor, has worked to drive slum dwellers out of their homes and,in many cases, out of the city.
       Just as we understand the root causes of forced evictions, we also have a fairly good idea about what can be done to stop them. Years of experience suggest that strong, united communities in pos-session of knowledge about basic human rights stand the best chance of resisting evictions and eventually finding solutions to their problem of insecurity of tenure.
       Nevertheless, strong communities with knowledge about rights are not naturally occurring phenomena. Instead,both community solidarity and rights awareness are things that must be nurtured.
       Once again, experience indicates that this nurturing process may be most effectively accomplished through the intervention of skilled community organisers, who play a role in boosting the confidence and competence of urban poor community residents, empowering them to stand up collectively and demand their basic rights.
       It is consequently quite fitting that on the occasion of World Habitat Day 2009, LOCOA, together with its Thai member, the Four Regions Slum Network (FRSN), will hold a six-day workshop in Bangkok for young community organisers to share their experiences and hone the skills of their trade.
       As an independent grassroot people's organisation, FRSN has been instrumental in protecting urban poor communities from forced eviction. But beyond addressing these immediate concerns,FRSN has also been one of the main voices advocating for long-term solutions to the problems of urban land and housing insecurity in Thailand.
       Its current proposal to implement concretely the government's new community land title deed policy in three of its own member communities situated on public land alongside canals in Bangkok, is an idea well worth studying.
       The three communities in question have been organised and exercising responsible stewardship over the canals for more than 10 years already, but the Bangkok Metropolitan Administration has thus far been reluctant to legalise their status.
       If the government's policy on community land title deeds is able to overcome this obstacle and proves to be effective in establishing the security of tenure of these three FRSN communities,other LOCOA members will certainly take note of this innovative solution from Thailand for possible application in their own countries.
       This year, the UN's official theme for World Habitat Day is "Planning Our Urban Future."
       While the focus on urban planning may be well-intentioned, privileging a technical approach to solving the problem of urban poor housing insecurity overlooks the importance of first ensuring that the genuine political will exists to find a solution to this problem.
       This more important prior step is something that can best be achieved through the mobilisation of united, organised communities demanding government accountability for the provision of the fundamental right to adequate and secure housing.
       Jeff Wong was Coordinator of the LOCOA Anti-Eviction Programme and is currently an adviser to the Four Regions Slum Network for international affairs.

NACC strengthens Alpine case

2009-10-02T19:31:00.000-07:00

       An anti-graft subcommittee has found evidence which it believes could be used in filing charges against the leaders of the Pracharaj and Puea Thai parties in connection with the Alpine land ownership scandal.
       The National Anti-Corruption Commission subcommittee has prepared charges to be brought against Pracharaj's Sanoh Thienthong and Puea Thai's Yongyuth Wichaidit based on the evidence, according to Vicha Mahakhun,the NACC commissioner who heads the inquiry panel looking into the case.
       The investigation has been completed with the necessary information and evi-dence, he said. However, he did not give details of what charges would be brought.
       Mr Vicha said the subcommittee had advised Mr Sanoh of its findings by mail and he had answered by sending a letter to contest them. Mr Yongyuth sent his lawyer to acknowledge the findings on his behalf.
       The two have been given 15 days to appear before the subcommittee to defend themselves or to submit written testimony in their defence.
       The subcommittee will then begin witness hearings before forwarding its recommendations on what action to take against the two to the main NACC panel. Mr Vicha said he had signed documents approving the action against the two last week.
       The 924-rai Alpine golf course and housing development in Pathum Thani became the subject of an ownership dispute when, in 2001, the Council of State declared it was monastic land and urged that its ownership be revoked.
       The Land Department revoked the rights of the new owner, who then lodged an appeal against the decision with the Interior Ministry.
       Mr Yongyuth, as then acting interior permanent secretary, suspended the department's decision to revoke the ownership in 2002.
       Mr Yongyuth used an administrative law to overrule the department's decision after being advised the department would lose any appeal brought by the developers in court.
       Deputy Interior Minister Thaworn Senneam asked land officials in January this year to re-examine the case to determine if it was still possible to retake the land. The land was originally owned by Neum Chamnanchartsakda who donated it in her will to Wat Thammikaram in Prachuap Khiri Khan.
       The temple decided not to register the land as it could not afford the 10 million baht in land transfer fees. It transferred it to a foundation, which then sold it to a private company.
       It is alleged the transfer of the land proceeded under questionable circumstances.
       The land was transferred to the foundation which acted as an executor for Neum on Aug 21,1990, and then it was sold on the same day to the company which operates the Alpine Golf and Sports Club, Alpine Real Estate and Golf Co.
       The temple's request for permission to sell the land to the company was signed by Mr Sanoh, then deputy interior minister.
       The land was developed into a golf course and a housing estate.
       Mr Sanoh himself partly owned the golf course, which was later sold to Thaksin Shinawatra in 1997. Alpine Real Estate and Golf Co is now owned by Thaksin's former wife, Khunying Potjaman na Pombejra, and their two daughters.
       Back in 2002, the opposition Democrat Party launched a censure debate against the government of then prime minister Thaksin over the sale of the land from the temple to the company held by the family of Mr Sanoh for about 142 million baht. The same year Watchara Phetthong, a Democrat MP, also lodged a complaint with the NACC against the politicians accused of involvement.
       The issue lay moribund for years until Democrat MPs recently raised the controversy in what was seen as a move to pressure the Bhumjaithai Party, which is in charge of the Interior Ministry,over the nomination of a new police chief.

PROPERTY BODIES WANT REVISION OF BOI TAX BENEFITS

2009-10-02T19:30:00.001-07:00

       Three property associations have asked the Industry Ministry to revise Board of Investment tax privileges granted to low-cost residential projects, because it is bringing housing prices down 4-5 per cent.
       The proposal was made yesterday to Industry Minister Charnchai Chairungrueng as he presided over the opening of the 21st House & Condo Show, which runs until Sunday at the Queen Sirikit National Convention Centre in Bangkok.
       Thai Condominium Association president Atip Bijanonda said the Thai Real Estate Association, the Thai Condominium Association and the Business Housing Association (BHA) want the BOI to reconsider its revised tax privileges implemented on June 10.
       He said the BOI was encouraged to consider four points.
       First, the tax benefit should be extended to property developers nationwide instead of only those in the greater Bangkok area.
       Second, the per-unit price making developers eligible for the privilege should be revised.
       Under present regulations, condominium projects that receive the tax break should sell each unit - no smaller than 28 square metres in size - at no more than Bt1 million, and a project should feature at least 50 units.
       Low-rise residential projects receive a tax break if each unit is sold at no more than Bt1.2 million, up from Bt600,000 a unit previously, with total space of no less than 70 square metres a unit.
       The associations want the BOI to let condominium developers sell 28-square-metre units for Bt1.2 million and still receive a tax break.
       Third is the revision of the condition of a condo project having at least 50 units priced at Bt1 million each in order to be eligible. The associations want the BOI to allow them to have a section in the project that can be sold for more than Bt1 million per unit.
       Finally, the associations want condominium developers to be able to apply for tax benefits while the project is being constructed instead of having to wait until it has been completed.
       Charnchai said the government would consider the proposal, provided it helped low-income earners buy their own homes.
       BHA president Issara Boonyong said the associations would meet with the Secondary Mortgage Corp (SMC) next Tuesday to discuss how developers could help buyers get a mortgage from SMC.
       Meanwhile, there are quite a few deals being offered at the House & Condo Show.
       A quick survey by Nation reporters showed most commercial banks at the fair were offering attractive mortgage schemes, such as zero interest for three to seven months.
       Siam Commercial Bank offers the best deal with zero interest for the first seven months, and then a choice of the minimum retail rate of minus 0.75 per cent, minus 1 per cent or minus 0.5 per cent.
       Apart from this, property firms are also giving away special deals, such as Sansiri offering half off on the down payment and zero interest for the first year and Bangkok House Builder cutting prices by Bt350,000.

Industry Ministry vows to expand BoI Home programme

2009-10-02T19:29:00.001-07:00

       The Industry Ministry yesterday pledged to push forward a proposal by three real estate associations to expand Board of Investment privileges for developers that build affordable housing.
       Extending the BoI Home programme and amending existing regulations would increase sales in the affordable housing sector, said Industry Minister Charnchai Chairungruang.
       "We will consider it immediately,"he said, after receiving a proposal letter during the House & Condo Fair that began yesterday and runs until Sunday.
       "It's the government's policy to promote and support the private sector."
       The House & Condo Fair, being held at Queen Sirikit National Convention Center, showcases 600 housing projects worth more than 100 billion baht. The associations expect sales of 3 billion baht from the four-day event.
       Atip Bijanonda, president of the Thai Condominium Association, said that if the proposal was approved, the BoI Home programme would create new business and spur residential market growth.
       Three real estate associations have asked the BoI to allow condominiums to have units that meet its pricing conditions, as well as higher-priced units in the same building.
       Maximum BoI condo unit prices should be raised to 1.2 million baht from 1 million currently, on par with BoI townhouse and single house regulations, according to the proposal.
       The associations also asked the BoI to allow presales of condominiums. Currently, a condominium developer that wants to apply for BoI Home privileges must deliver completed units to buyers.
       Other proposals include an expansion of privileges now granted only to developers of BoI homes in Zone 1, covering six provinces: Bangkok, Nonthaburi, Na-khon Pathom, Pathum Thani, Samut Prakan and Samut Sakhon.
       Issara Boonyoung, president of the Housing Business Association, said the privileges should be extended to other zones, especially Zone 2, where living and construction costs are almost the same as in Zone 1.
       Zone 2 covers 12 provinces, five of which have high land costs. They are Phuket, Chon Buri, Chachoengsao,Rayong and Ayutthaya, as some are in-dustrial provinces and some are tourism destinations.
       "If what we proposed is approved,BoI Home units could number more than 20,000 next year from 2,000 to 3,000 a year now," he said."If it is not approved,only 10,000 units will be sold next year."
       Mr Issara said the recent meeting between the associations and BoI authorities led to an agreement to amend and adjust regulations that have obstructed more BoI Home development.

CPN FUND SETS PRICES OF UNIT TRUSTS AT BT8.90 FOR CENTRAL PINKLAO INVESTMENT

2009-09-30T22:30:00.000-07:00

       CPN Retail Growth Leasehold Rpoperty Fund (CPNRF) has priced 544.83 million new unit trusts at Bt8.90 per unit as part of its plan to invest Bt5.68 billion of fresh funds in Central Plaza Pinklao.
       "The offering price was based on the book-building process hile the investment in Central Plaza Pinklao seems to be appropriate with the asset quality," Jotika Savananada, president of SCB Asset Management, said yesterday.
       The offering price is below the peoperty fund's market price of Bt9.15.
       To raise Bt4.85 billion, at least a half of the new units will be sold to existing holders at the ratio of 0.2505 of a new unit to each existing unit, while the rest will be sold throuht private placement and public offering.
       Subscriptions, starting at 5,000 uints, will be acceptedfrom
       "The offering price was based on the book-building process while the investment in Central Plaza Pinklao seems to be apporopriate with the aset quality." October 16-27 at Siam Commercial Bank branches nationwide.
       SCB last week extended a Bt1 billion credit facility to the property fund to finance the investment in Central Plaza Pinklao by partially letting the shopping plaza, two office buildings, and in-building parking spaces totalling 58,303 square metres, for a term of 15 years.
       Following the fund-raising, CPNRF's assets will increase to as much as Bt17 billin from Bt10.92 billion, making it the largest property fund in the country.
       The investment in Central Pinklao allows CPNRF, which currently is invested in Central Plaza Rama II and Central Plaza Rama III, to diversify its income risk, she said.
       The property fund is expected to produce a return of 10.7-11.1 per cent next year.

Thanasiri prepares for MAI listing

2009-09-30T22:29:00.001-07:00

       The medium-sized property developer Thanasiri Group is preparing to float 50 million new shares through an initial public offering through the Market for Alternative Investment (MAI).
       The company is monitoring the market situation and waiting for a good time to list after its filing was approved by the Securities Exchange Committee in the third quarter, said managing director Sutthirak Sateanraphapayut.
       "We will be the first property developer listed on the MAI. We aim to grow at a steady pace and move to the Stock Exchange of Thailand in the future if our scale can reach the SET's requirements,"he said.
       With Asia Plus Securities as its financial adviser, prior to the IPO the company will increase its registered capital from the current 200 million baht to 250 million.
       Proceeds from the listing would go mainly to reduce debt and expand property projects, particularly in Phuket. The company's debt-to-equity ratio is currently relatively as high at four times.
       According to Mr Sutthirak, the company has some good assets including a 100-rai plot near Kamala Beach and Phuket FantaSea, which it wants to develop into residential and hotel projects over the next three to five years.
       The plots are currently held by its subsidiary Thanasiri Property Development which has registered capital of 50 million baht.
       The group acquired the 100 rai 20 years ago for only 700,000 to 800,000 baht per rai. The land is now worth around 8 million baht per rai. The company would be open to partnerships with firms with high-rise development or construction expertise."We've already talked with several foreign investors but have yet to make any final decision, as we are in no hurry," he said.
       Established 30 years ago under the former name Prasith Pin Klao, Thanasiri has developed shophouses and townhouses in the Rattanathibet and Bang Bua Thong areas of Nonthaburi.
       In the fourth quarter of 2009, it plans to launch two new housing projects on a 10-rai site on Ratchapreuk Road where it will develop 112 townhouses with starting prices at 2.49 million baht per unit.
       Another planned project will have 98 units of shophouses, townhouses, duplex and single houses on a 19-rai site in the Pa Klok area of Phuket, worth a combined 276 million baht.
       According to Mr Sutthirak, the luxury housing market in Phuket has slumped on shrinking demand from foreigners but medium-priced or affordable units for Thais show strong demand.
       The company also plans to develop a low-rise condominium with 79 units priced around 1.5 million baht each in the same area in Phuket next year.
       In the first half of this year, Thanasiri had 300 million baht in revenue and it aims to record around 520-560 million baht by the end of the year, up 30-40%from 400 million in 2008.

AUSTRALIAN HOUSE PRICES RISING "TOO QUICKLY"

2009-09-30T22:27:00.000-07:00

       Australian house prices may suge too rapidly, hurting low-income families seeking to buy or rent homes, says Anthony Richards, head of economic analysis at the Reserve Bank of Australia.
       "Looking forward, the risk is that we might move toward undesirably strong growth in Australian housing prices," Richards told a housing conference here.
       "This raises a number of concerns, which seem to be widely shared in the community."
       Australian house prices rose 4.2 per cent in the second quarter from the previous three months, the first increase in five quarters, helped by the lowest borrowing costs in half a century and government grants to firsttime buyers.
       Richards said it was "increasingly clear" that Australia had avoided the large drops in property prices seen in other countries.
       "This is a good thing, because of the macroeconomic difficulties that have accompanied those price falls in some countries," Richards said.
       Still. "when the price of housing rises, higher-income households tend to benefit at the expense of lowerincome households," he said. "As a nation, we are not really any richer when the price of housing rises, but the move vulnerable tend to be hurt.
       "We are in a situation where we would not want to see very strong growth in housing prices - that would be unhelpful from a social perspective."
       Eighty-four per cent of investors are now expecting reserve bank governor Glenn Stevens to boost the overnight cash rate target in November by a quarter point to 3.25 per cent, according to interbank futures on the Sydney Futures Exchange.
       While the affordability of housing has improved this year, it will deteriorate when the central bank begins raising the overnight cash rate target from its 49-year low of 3 per cent.
       "As the bank has noted on a number of occasions, it is not reasonable to expect that interest rates will stay at the current low levels indefinitely," Richards said. "When they do rise toward more normal levels, discussions on housing affordability will again focus more on the level of housing prices relative to income."

On the Auspicious Occasion of His Majesty the King Bhumibol Adulyadej

2009-09-30T22:26:00.000-07:00

       Having graciously designated His royal Highness Crown Prince Maha Vajiralongkorn as His Majesty's representative to preside over the Foundation Stone Laying Ceremony and the lnauguration Ceremony of the Administrative Court
       The President of the Supreme Administrative Court requests the honor of your attendance to be in Audience at the Ceremonial Site at the Administrative Court Building on Chaengwattana Road, Bangkok, on Thursday, 1st october 2009 at 14:00 hrs.
       Prior to being "The Administrative Court", the judicial organ handling administrative justice towards Thai society during 9 years has in fact laid its foundation and evolution on the establishment of the Administrative Court since 8 May 1874, when the establishment and the Act of The Council of State were promulgated by King Chulalongkorn (King Rama V). His Majesty the King enacted on 14th June 1874, the Act on the Council of State as an advisory organ on public administration, law drafting and hearing of the grievances of people aggrieved by actions of government officials at that time. Though this organ was changed into Legislative Council nd revoked afterwards, its power and duties have marked the first step of the Administrative Court's mission and its organization similar to an institution called Conseil d'Etat in civil law countries.
       Thus, King Chulalong korn was considered as the founder of the establishment of the Administrative Court in Thailand which developed continuously and its enactment was prescribed afterwards under the Constitution of the Kingdom of Thailand B.E.2540 (1997). When enacting the Act on Establishment of the administrative Court and Administrative Procedure B.E.2542 (1999), the Administrative Court was in operation under the reign of the present king on 9 March 2001 with a number of judges of the Administrative Court in charge of legal proceeding int he name of the king.
       Owing to the origin of establishment of the Administrative Court, the court system of Thailand was turned immediately into "dual court system", - The Court of Justice has the duty to deal with civil and criminal justice procedure whereas the Administrative Court is responsible for administrative justice procedure.
       Prof.Dr.Ackaratorn Chularat, President of the Supreme Administrative Court briefly stated that "As far back as 141 years ago, ascending to the throne on Thursday 1st October 1868, King Chula longkorn introduced the key concepts and the models of crucial organization to the nation in order to develop the State administration affairs, which made Thailand to be recognized by other civilized countries, especially in 1874, when His Majesty the King established a judicial organ being known amongst civil law countries as Conseil d'Etat or as Council of State and when "the Act on the Council of State - a Councilor of State" was enacted. Its mission was not only drafting laws and law advisor but also hearing grievance of people which is meant generally as administrative cases. After the Council of State was first established in Thailand, His Majesty the King played, 20 years later, an important role in the reforms of court affairs, the establishment of Ministry of Justice and the application of civil law system of European countries to Thai legal system until present days."
       After the revolution of 1932, the government at that time decided by Mr. Pridi Banomyong (Luang Praditmanutham) embraced the policy to reestablish an organ responsible for administrative cases and advisory role of government resembling the Council of State by enacting the Act on Council of State B.E. 2476 (1933). Despite the fact that the mission concerning the adjudication of administrative cases could not yet materialized until the enactment prescribing details on the administrative court procedure, the persistent effort to develop the establishment of the Administrative Court in any forms was still continued. The "Petition Committee" was then set up by a Petition Act B.E.2492 (1949) in order to adjudicate administrative cases. Indeed, the progress came into fruition when the Act on Council of State B.E.2522 (1979) was amended by another "Petition Committee" amongst the Council of State distinct from Legislation Committee, later becoming the Administrative Court. This progressive development brought finally the establishment of the Administrative Court under the Constitution of the Kingdom of Thailand B.E.(2540) 1997 and the Act on Establishment of Administrative Court and Administrative Court Procedure B.E.2542(1999).
       The first inauguration of the Administrative Court dated on 9 March 2001 - the Supreme Administrative Court, the Central Administrative Court with the Office of the administrative Courts, were located temporarity at the Empire Tower on South Sathorn Road, Bangkok whilst the permanent premises of the Administrative Court was under construction. During this period of time, Regional Administrative Courts in 7 provinces were also in operation, namely the Chiang Mai Administrative Court, the Songkhla Administrative Court, the Nakhon Rat chasima Administrative Court, the Khon Kaen Administrative Court, the Khon Kaen Administrative Court, the Phitsanulok Administrative Court, the Rayong Administrative Court as well as the Nakhon Si Thammarat Administrative Court. The Central Administrative Court including these 7 Regional Administrative Courts have their jurisdiction throughout the Kingdom. When the permanent premises of the Administrative Court were accomplished on 14th July 2008, the Supreme Administrative Court, the Central Administrative Court and the Office of the Administrative Courts were then relocated permanently at the new premises of the Administrative Court at No.120 Moo 3, Cheangwattana Road, Thungsonghong sub-district, Lak Si district, Bangkok 10210. Tel. 0 2141 1111 or Hotline: 1355.
       On the auspicious occasion, His Majesty the King Bhumibol Adulyadej has graciously designated His Royal Highness Crown Prince Maha Vajiralongkorn, along with Her Royal Highness Princess Srirasm, to represent Him at the ceremony of the laying of the foundation stone and inauguration of the premises of the Administrative Court on 1st October 2009 at 14:00 hrs. which is the significant day to commemorate the accession to the throne of King Chulalongkorn, the King who initiated an organ which is known as the Council of State, the origin of the Administrative Court today.
       Prof. Dr. Ackaratorn Chularat, the President of the Supreme Administrative court requests the honor of your attendance to be in audience at the premises of Administrative Court on Chaengwattana Road, Bangkok in order to express conjointly an eternal allegiance.

HOME & CONDO SHOW LAUNCHES DISCOUNT SEASON

2009-09-30T22:24:00.000-07:00

       October is the month when many property developers will begin a final push to boost their 2009 sales.
       The final three months of the year is traditionally a period of peak newhome sales, and a full range of marketing campaigns can be expected to begin with today's opening of the 21st Houwe & Condo Show at the Queen Sirikit National Convention Centre.
       The four-day show is organised by the Thai Real Estate Association, the Thai Condominium Association and the Housing Business Association.
       Taking part will be property developers with more than 500 projects valued at more than Bt100 billion. The show is expected to generate sales worth between Bt2 billion and Bt3 billion.
       Concurrently with the House & Condo Show, leading developer Sansiri will stage an event called "Sansiri Best Buy" in the Hall of Fame on the M floor of Siam Paragon.
       Later, real-estate agency Knight Frank Charter(Thailand) will hold "Test of Living", an event that will introduce a range of resort-destination properties. The 10-day event will open on October 15 in the Hall of Fame on the M floor of Siam Paragon.
       Most property developers taking part in the House&Condo Show plan to offer discount prices, free furniture, free home appliances, and other incentives to attract buyers.
       For example, LPN Development is offering discounts of up to Bt500,000, depending on the price of the residence being purchased, for home-buyers who buy from its residential projects at the show.
       It will also introduce two new residential projects at Bang Khae and Pinklao with special promotional campaigns.
       Tararom Enterprises is offering a discount of Bt1 million on single detached houses at five locations for buyers visiting its booth at the House & Condo Show or those visiting its project sites before October 25. The promotional campaign is named Last Call 2009.
       Those who buy from the company's five residential projects will also qualify for a lucky draw with also qualify for a lucky draw with prizes of gold totalling Bt1.82 million, managing director Wasan Kiengsiri said.
       The five projects are The Parkway Chalet Ramkhamhaeng, priced at Bt3.65 million per unit; Promenade Home Thon Buri at Rama II, priced at Bt4 million per unit; Neighbourhme Watcharapong, costing Bt3.08 million per unit; Parkway Home Ramkhamhaeng, priced at Bt7.20 million per unit; and Garden Suite Indi Home, costing Bt2.15 million per unit.
       Bangkok Commercial Asset Management (BAM) will launch a new campaign to sell condominium units at the House & Condo Show. Called Smart Condo, the campaign will give limited privileges to buyers in what it calls "the 2nd big BAM condominium grand sale 2009", running until the end of this month.
       BAM will offer special clearance discounts on more than 800 condominium units around the country. The privileges, aimed at easing its clients' financial burden during the economic downturn, will be offered on a first-come-first-served basis, the company's senior executive vice presidents Sumet Maneewattana said.Buyers will be able to pay easily with low interest rates set at the miniumum lending rate minus 3 per cent over a term of 10 years.
       Sumet said the buyers of the first 100 condominium units this month would also receive free Saijo Denki air-conditioning.
       Property developer Tanayong is offering a special promotion on two projects, Thana Place King Kaew and Nouvelle Condominium, where the starting price is Bt648,000 for a one-bedroom unit. The company is offering booking fees of only Bt10,000 and no contract or transfer fees.
       Commercial banks are also offering special interest deals for mortgages, many of them with no interest charges for the first year.
       Thai Condominium Association president Atip Bichanond said homebuyers would be able to buy at original prices that would rise in the coming year.
       "This is a good time to buy because buyers will get original prices and discount prices when they but at this event," he said.
       At the Sansiri Best Buy event at Siam Paragon, developer Sansiri will be offering special promotional deals on 29 residential projects with a total of 428 units.
       Offers will include discount prices for down payments up to 50 per cent, mortgages from Siam Commercial Bank with no interest charges for the first year, no transfer fees and discounts up to Bt300,000 depending on the price of the residence being bought.
       Sansiri expects sales from the event to reach Bt1 billion, taking it closer to its presales target of Bt 20 million this year, executive board chairman Apichart Chutrakul said.
       Knight Frank Charter (Thailand) will also launch its latest property event at Siam Paragon on October 15, called Taste of Living. Residences worth more than Bt10 billion will be on offer, in Bangkok as well as at holiday destinations such as Hua Hin, Pattaya, Cha-am and Rayong. The event was originally to be staged in April, but was delayed.
       Managing director Phanom Kanjanathiemthao said the company expected sales at the event to reach between Bt1 billion and Bt2 billion.
       "We see a significant likelihood of property market recovery in the last quarter of this year. As a result we are confident that this event will generate sales to achiever our target," he said.

SANSIRI HUA HIN PROJECT NEAR CAPACITY

2009-09-27T20:56:00.001-07:00

       Since launching presales in 2007, Sansiri has sold 148 units of its Baan Nub Kluen condominium project in Hua Hin, representing 82 per cent of the project's value of Bt1.19 billion.
       Executive vice president Uthai Uthaisangsuk said the company expected to close sales for the project in the first quarter of 2010.
       To meet this target, the company has redesigned some units, including the penthouse, under the theme Nautica Blue Villa.
       The blue design was selected to match the unit's natural raw materials, including wood and fabric.
       Sansiri senior manager for product development, Jariya Janjersak, said the use of natural materials created a textured look and feel. The design of the project is intended to convey a feeling of being close to nature.
       With floor space of 238 square metres, the penthouse has three bedrooms and three bathrooms - and a price tag of Bt25 million.
       One of the unit types - Coastal Rustic Beach - makes prominent use of earth tones, Jariya said, in a design intended to relax the resident. These two-bedroom, two-bathroom units have floor space of 101 square metres and sell for Bt10 million.
       There are six other types of units: Coral Green (89.47 square metres, Bt6.95 million), Modern Sand (144.01 square metres, Bt15 million), Sunny Sand (89.5 square metres, Bt6.04 million), Arctic Blue, (88.91 square metres, Bt6.16 million), Romantic Beach (91 square metres, Bt6.2 million) and Cozy Summer (88.98 square metres, Bt7 million).

SANSIRI EYES MASS-TRANSIT AREAS

2009-09-27T20:54:00.000-07:00

       Property firm Sansiri plans to construct condominium projects in the corridors between Bangkok's inner-city and suburban areas to cater changes in the market brought about by the planned expansion of the city's mass-transit system over the coming year.
       Executive vice president for business and project development (high rise) Uthai Uthaisangsuk said the company plans to launch 10 new condominium project worth nearly Bt11 billion next year.
       Those located close to the planned new and extension routes for the Skytrain will be sold for between Bt50,000 and Bt80,000 per square metre.
       "This is the customer group we are targeting no - thanks to the new mass-transit routes," he said.
       According to Uthai, the government's policy to expand the Skytrain system has brought about a change in Bangkok's property market, with demand increasing in areas located between the inner city and the suburbs.
       The company's plan to launch new projects in these areas is a direct result of this shift, he said.
       Sansiri is in negotiations to buy undeveloped land along the extension routes from Sathron Station to Wongwian Yai Station and from On Nut Station to Baring Station. Residences along the routes will fetch between Bt700,000 and Bt80,000 per square metre, targeting the middle-income market. Sansiri plans to launch a new brand to market these projects, Uthai said.
       The company has several brands of city condominiums, each targeting a different customer group.
       The brands include Prive, about 76 percent of whose units have been sold; Preen (92 per cent); Hive Taksin (80 per cent); Hive Sukhumvit Soi 65 (80 per cent); Quattro by Sansiri (70 per cent); and Blocs 77 (61 per cent).
       Uthai said demand for condominiums with convenient access to the mass-transit system has continued to grow, but is largely limited to locations between 100 metres and 200 metres from the transport network.
       Sanrisi is limiting projects located more than one kilometre from the extended rail network to low-rise residential structures such as townhouses and detached houses.
       Between 60 and 70 per cent of Sansiri's customers buy condominium units as a primay residence, with the remainder buying in order to rent the residence out, or for other investment purposes, Uthai said.
       According to a survey conducted by the company, customers who buy units to live in see and average return on investment of 6 per cent. Those who rent out their units see an average return of 10 per cent.
       Some customers who sell their units after two or three years have seen returns exceeding 100 per cent, Uthai said.
       Sansiri is interested in launching new condominium projects in Pattaya, Phuket and Hua Hin next year, forecasting strong demand in these locations, he said.
       The company already has two condominium projects in Hua Hin: Baan Bub Kluen (82 per cent of its 180 units have been sold) and Baan Sansuk (81 percent of 229 units sold).
       Most customers buying residences in Hua Hin are Thai, Uthai said, so the projects are unlikely to be adversely affected by any sudden loss of interest in the Thai market on the part of foreigners.

OP GARDEN TARGETS THAI CUSTOM

2009-09-27T20:53:00.001-07:00

       OP Place shopping centre operator Bhandhamitri, a subsidiary of TCC Group, has opened a sister shopping centre, OP Garden.
       The new centre was built at a cost of Bt300 milliion with the goal of expanding the firm's customer base to welcome more Thai shoppers.
       Titapar Tepakhun, managing director of Bhandhamitri, said the company decided to open the new shopping centre after experiencing a more than 50-per-cent drop in foreign customer traffic in the wake of the political turmoil of the past two years, with last year's blockade of Suvarnabhumi Airport doing particular damage.
       "OP Place has always relied heavily on foreign shoppers, whose numbers are ,pre semsotive to political troubles.This is a major reason we decided to open a new shopping mall - as a way to reduce such risks," Titapar said.
       Despite the emergence of signs that the economy is recovering, the number of the centre's foreign customers has seen only a modest rebound, she said.
       The company is confident that customer levels will be fully restored by the fourth quarter, which is high tourist season, however.
       Despite the drop in traffic, shopowners at OP Place have staved on due to the strength of the OP brand, Titapar said. "Our owners recognise the value of the OP brand, which accompanies only exclusivge products. They want to move to OP Garden, but we want to create a distinct segment [at OP Garden] in terms of products and target customers. For that reason, the brands at OP Garden are unlike those at OP Place. The product grade at OP Garden is premium, but the prices are lower than those at OP Place."
       OP Place's clientele generally comprises foreigners and consumers with extraordinarily high purchasing power, Titapar said, while the main target group at OP Garden is Thais. Half of the shop-owners at OP Garden will be Thais, while OP Place has only 30 Thai vendors.
       Most shop-owners at OP Garden sell the bulk of their products through the International Gift Fair & Bangkok International Houseware Fair (BIG&BIH). Their premium products are attractive but have few selling venues, she said.
       Bhandhamitri also plans for OP Garden to host events to generate revenue. Such activities cannot be held at OP Place, where shop-owners and customers prefer privacy.
       OP Garden opened for business two months ago, but the grand opening will take place in November. The mall is located on Charoenkrung Road, near its sibling. OP Garden will have a more contemporary look than OP Place, which features an "Asian heritage" style.
       Titapar said the high land price was the main reason for OP Garden's hefty cost. The Bt300-million investment covers the cost of the land, renovation of existing structures and the installation of facilities.
       The substantial investment led the company to set the mall's rental fee at Bt1,500 per square metre per month, compared to Bt1,000 at OP Place. OP Garden is 75 per cent occupied and is expected to be full by April, Titapar said.

SEA SAMUI REVIVING ISLAND'S PROPERTY MARKET

2009-09-27T20:51:00.000-07:00

       Lifting some of the gloom that has enveloped the Samui property market over the past year is a high-end villa and condominium project in the sought-after northern part of the island that a Thai developer has just completed.
       The Sea Samui on Mae Nam beach has been developed by Sinthoranee Property Company and will be operated by Astudo Hotel and Resort Group under its vacation residence brand Le Bayaburi.
       In a market dominated by foreign players,the local developer is following in the footsteps of another Thai developer, Bangkok-based Aquarius Estate Company, which earlier made its mark with the successful Casavela condominium, now operated as the luxury Shasa Hotel.
       Wuttichai Phaoenchoke, Sinthoranee's managing director, said the total investment in The Sea was 550 million baht. His company self-financed the entire development without taking out any bank loans. The three-rai plot on Mae Nam beach which abuts the island's ring road was purchased two years ago, and construction was completed in only 10 months. The project has just six villas of three different styles and 15 one-, two- and three-bedroom duplex condominiums housed in a three-storey building. This structure is to the front of the development and has a lobby and both open-air and airconditioned restaurants on the ground floor.The villas follow on from this building, flanking a flight of stairs that leads to the large swimming pool by the beach.
       From the pool area and the beach one can clearly see Koh Phangan, where the infamous full moon parties are held regularly. An attendant said one could reach the neighbouring island in 15 minutes by speedboat from this point, but usually people take the regular ferries across in a longer 45-minute trip.
       The project's strong point is indeed its location, only 10 kilometres away from Samui's airport, privately owned by Bangkok Airways. Three kilometres farther down from the project is the Four Seasons Hotel, and the shopping and entertainment beach Chaweng - is also close by.
       C9 Hotelworks managing director Bill Barnett said in a recent research paper that the availability of prime land in traditional areas continues to shrink, and this is pushing property development on Samui southward along the western coast.
       Increasingly, limitations in sizeable parcels of land will restrict the number of large projects on the island in the coming years, with bids for the last remaining large coastal parcels going up in price, Mr Barnett added.
       Mr Wuttichai said Sinthoranee had not as yet aggressively marketed the The Sea Samui,doing so only through its website and advertisements in inflight magazines. However,there are plans to participate in a property exhibition in Singapore soon.
       "Right now we have sold 40%, and we would like to stress that we did not stall during the economic slowdown. Although there have been project delays in many places,we completed ours," he said.
       The focus is on foreign buyers, although foreigners cannot hold more than 49% of the space in a condominium on freehold basis according to Thai laws. The prices for the villas range from 36 million to 55 million baht.
       Condominiums are priced from 13.2 million to 31 million baht.
       Realising that property buyers are determined to obtain good rental income right from the start in these economically challenging times, Mr Wuttichai is following other developers both in Bangkok and Hua Hin in offering guaranteed returns of 6% for the first two years.
       To help ensure that buyers continue to get a return on their investment, Mr Wuttichai shrewdly brought in Astudo, a Bangkok-based company operated by a group of Thai and international development professionals, to manage the estate and handle the vacation rentals.
       Anthony McDonald, Astudo's CEO, said rental income would be calculated the same as it is for hotels, with prices varying according to the season and the view from the unit or villa.
       Returns will be divided 60-40%, with the owners getting the larger share, and Astudo's portion covering the cost of operating the project and handling the sales and marketing.
       "We take care of everything, including the cleaning. The buyers don't have to think about anything at all and are able to relax worry-free.
       "It is similar to managing our own hotels,with a small difference being that we share the profit."
       Astudo is currently managing 10 hotels in Thailand, four of its own and six belonging to other parties.
       It also has plans to manage one in the Philippines which is not yet open.
       Aside from Le Bayaburi, Astudo's other three hotel brands are the five-star X2, fourstar Away and three- to four-star city business hotels known as The Base.
       Mr Wuttichai has come up with a novel approach to resort villa and condominium rentals - renting out a large villa or condominium to two separate parties. He gave the villa in which he held a press briefing last week as an example. The villa is actually a cluster of three small buildings. One with two bedrooms can be rented out separately,as can another which has one bedroom and its own mini-bar.
       "Some types of two-bedroom condominiums can be divided and rented out separately. Going in there is a door to the left and one to the right. This is so that the owners can make a profit, which is important right now."
       Mr McDonald said that as Samui is mainly a foreign tourist market he expects as many as 80% of The Sea's visitors to be from overseas.
       "Samui is trying to draw Thai visitors, as some months are low occupancy for foreigners but not Thais," he added.

GRANDMA HAI'S LONG BATTLE FOR JUSTICE

2009-09-27T20:49:00.000-07:00

       Hai Khanjanta's rice paddy may not yield a good harvest this year because the plants are being attacked by aphids. But this is not a big deal for the 80-yearold grandmother as long as she has land to grow rice again.
       After a 30-year battle to reclaim her land after the construction of a dam,last week she was awarded 1.2 million baht in compensation.
       But the story of "Grandma Hai", as she is popularly known, a resident of Na Tan village in Ubon Ratchathani province, would not be known if she had not dug a hole in the crest of Huay La Ha dam in 2004 to reclaim her submerged paddy.
       Not only did she breach the dam wall, she also brought to public attention the plight of struggling farmers trying to protect their land from poor water-management planning.
       Mrs Hai is a subsistence farmer,and the paddy is her livelihood. As far back as she can remember, her family relied on the paddy as its main source of income. Since she was a child, Mrs Hai helped her mother grow rice and as she was the favourite daughter she eventually inherited the best plot of the family paddy located near a stream.
       But by the late 1970s a reservoir with a storage capacity of 240,000 cubic metres was built in her village by the now defunct Rural Development Department under the Interior Ministry.In 1977, water started to fill the reservoir,gradually submerging rice paddies in the area.
       Even though it's a relatively small reservoir, the consent of local residents was needed in principle before the project started. But the planners failed to get the approval of Mrs Hai, her husband Fong and her brother-in-law.Both men died a few years ago, having never given their consent for the project.
       "This paddy was my mother's land.My mother and my father left their footprints everywhere. How could I let it go?" said Mrs Hai, sitting next to her paddy which is now sprouting lush green shoots.
       She is a small, white-haired woman with the tough skin of someone who has spent their life working under the sun. But there is a flash of defiance in her eyes when she recalls her battle with authorities.
       After construction of the reservoir started, Mrs Hai and the two men travelled many times to various government agencies, sometimes by train, more often by foot, to put their case. They even made the trek to Government House to be given different promises by different administrations, none of which offered a solution.
       To finance their fight to reclaim the 14-rai plot of land, Mrs Hai and her husband sold other property including an orchard and buffalos. This plunged the family deeper into poverty to the point where they could not take care of all their 10 children, who were forced to find their own livelihoods. Their youngest child, Phetch, moved to Bangkok to work as a nanny at the age of 11."That reservoir has tortured me so much. But it's my land, it's my right,and I had to take it back," said Mrs Hai, her voice rising with emotion.
       Mrs Hai joined regional rights groups, including the Assembly of the Poor, which helped her fight her case.
       But in March 2004, after 27 years of frustration, Mrs Hai's patience ran out.
       On the night of March 11 amidst thunder and rain she built a shack on an edge of the reservoir and offered up a song to the heavens seeking guidance.
       "The sky rumbles humbly. I've wandered all these long years in my thoughts but can't find the way out. I have waited, waited, but still haven't seen the way out," she sang that night in her local dialect.
       One month later, Mrs Hai, her husband and children, armed with a hammer and a spade, started to knock a hole in the dam wall to release the water. Five days later, a half-metre hole appeared and water streamed out.
       "The neighbours came to us to ask us to stop being so stubborn. But I just couldn't stop by then. I no longer had a fear of anything - the neighbours,the village head and kamnan, or the police, because by then I was already old," said Mrs Hai.
       She took her paddy back that year without being arrested. The then Thaksin government intervened and demanded the relevant agencies investigate her case. They examined documents and came to the conclusion that the three had never given approval for the dam and should be compensated.
       But a government panel on poverty recommended the case be suspended as it would set a precedent for other claims.
       It was not until last week that the Abhisit government agreed to pay com-pensation to Mrs Hai of 1.2 million baht. In that five-year waiting period Mrs Hai has not been idle. She began growing rice again with the help of her children, but admits that in the past few years she can no longer do the work.
       "When I got my land back, I also got my life back," she said."Is it worth doing this and seeing myself losing almost everything? It may not have been, but I had to do it because it's my right, it's my land, my family's land."
       Somparn Kuendee, an academic with the Assembly of the Poor, said Grandma Hai's case reflected how poorly the state thought about development projects. She said the reservoir was relatively small, but had caused enormous hardship to the people involved.
       She said the Abhisit government's review of the case can be regarded as a positive sign for solving poverty problems as it was an admission the state had made a mistake and then corrected it.
       She said Mrs Hai deserved the compensation as she had not only lost her livelihood, but other opportunities. This not only penalised her, but also her children, like Phetch, who should have had a better education and future.
       BACK ON HER FARM: Grandma Hai takes a walk on the farm she fought so hard to keep, and inset, neighbours gather for a ceremony to bring her luck in her battle with authorities.
       DAM BUSTER:Grandma Hai Khanjanta looks at the dam that drowned her family's rice fields.

HIGH-END RETAIL PROPERTIES FACE POOR DEMAND

2009-09-27T20:47:00.000-07:00

       The global downturn has sent retail rents plunging on some of the world's most famous shopping streets, a study by global real estate group Cushman and Wakefield released recently showed.
       Prime rents on more than half of 274big-name streets have fallen in the past 12 montjhs, said the report, which surveyed such storied venuses as Fifth Avenue in New York, the Champs-Elysees in Paris and Hong Kong's Causeway Bay. The agency said the decline in rents was the largest ever recorded in the study's 24-year-old history.
       "The last 12 months have been one of the most difficult periods ever for the retail sector, with consumer spending and retail sales down in many markets," said John Strachan, global head of retail at Cushman. "In the previous 12-monjths period global retail markets appeared to be fairly resilient, but more significants as the full impact of the downturn has been realised."
       But he added that "the worst is almost certainly now behind us."
       Fifth Avenue retained its number one rating as the world's most expensive street, where retailers pay US$1,700 (Bt57,000) per square foot a year, a decline of 8.1 [er cent from 2008. Causeway Bay was the second most expensive steet land the Champs Elysees the third.
       Sao Paulo's Alameda Lorena saw the largest gain in retail rents, up 111 per cent from 2008. The sharpest fall was on Colaba Causeway in Mumbai, where retail rents declined 63.5 per cent.

       The decline in rents was the largest ever recorded in the study's 24-year history.

MANY LUXURY HOTELS FACE DEFAULT

2009-09-27T20:45:00.000-07:00

       Luxury hotel owners risk defaulting on their debt as the recession cuts occupanies and the credit crunch constrains refinancing.
       Loans secured by more than 1,500 hotels with a total outstanding balance of US$24.5 billion (Bt822 billion) may be in danger of default, according to Realpoint, a credit rating compay that tracks commercial mortgage-backed securities.
       Some of the biggest loans, put on the company's watch list because of late payments, decreasing occupancies or cash flow, were made to luxury properties where rooms can cost more than $850 a night.
       "All segments are showing signs of distress but the luxury segments carried much higher loan balances and is more clearly affected," Frank Innaurato, managing director of CMBS analytical services at Horsham, Pennsylvania-based Realpoint, said in an interview.
       Loging owners are struggling after adding rooms and properties at the peak of the CMBS market from 2004 to 2007, when $83.4 billion in hotel-backed securities was issued.
       Occupancy among chains with the costliest rooms fell to 60 per cent in the first half from 70 per cent a year earlier, according to Smith Travel Research. The decline was the industry's largest for that period.
       "Luxury hotels have been agressively financed during the peak CMBS issuance years," David Loeb, an analyst at Robert W.Baird, said. "That's why luxury hotel loans crowd these watch lists."
       A $90-million loan secured by the Four Seasons San Francisco, a 277-room, five-star property, is 90 days delinquent and foreclosure proceedings have begun, according to Realpoint. A notice of default has been filed.
       The borrower was Millennium Partners, a real estate firm founded in 1990 by Christopher Jeffries. The company controls 1,860 residential units, more than 2,000 hotel rooms and 93,000 square metres of office space.
       Nicola Blazier, a spokeswoman for Four Seasons San Francisco, did not respond to e-mails and phone calls for comment. Millennium principal Jeffries did not return a call.
       The Dream Hotel, a 220-room hotel on West 55th Street in New York City that features 300-thread count Egyptian bed linens and iPods, is collateral for a $100-million loan taken by Surrey Hotel Associates that's at risk of default, Realpoint said.
       The borrower is trying to restructure the debt and defer payments, said Riyaz Akhtar, vice president at Surrey.
       "What's happening to us right now is happening, and will continue to happen, to many hotel properties given the current market," Akhtar said in a telephone interview. The US hotel loan-delinquency rate may climb to 8.2 per cent by year-end, Morgan Stanley analysts led by Andy Day said in a June-23 report. That would match the peak from the last recession in 2001.
       Upscale hotels are suffering from "a heightened focus on prudent corporate travel expenditures", as well as the pullback in vacation travel, Day said.
       Microsoft, coping with its first annual sales decline, said in July it would slash $3 billion in operating expenses, including travel.
       The number of luxury-brand rooms in the US as of yhe end of July rose 9.1 per cent from a year earlier to 100,000, Loeb said.
       A $190-million loan secured by the 640-room Arizona Grand Resort is 90 days delinquent, according to Realpoint.
       If the loan is liquidated it may lead to a $111.9-million loss, the credit rating company said.
       The property's occupancy rate fell to 64 per cent as of December 2008 from 70 per cent a year earlier, Realpoint said.
       The borrowe was Points South Mountain Resort, a Grossman Company Properties affiliate, Pamela Kerner, a spokeswoman for Phoenix-based Grossman, declined to comment.
       Realpoint also is monitoring a $1-billion loan taken by CNL Hotels $ Resorts, a company acquired by a Morgan Stanley real estate fund.
       The loan is secured by five properties with 14 golf courses, including the Arizona Biltmore in Phoenix and the Grand Wailea Resort Hotel and Spa in Maui, Hawaii.
       Falling cash flow and weakening economic conditions put those properties on the watch list, Realpoint said. Revenue is sufficient to meet interest payments, and the assessed collateral value of $1.4 billion lowered the loan's risk, Realpoint said. Alyson Barnes, a Morgan Stanley spokeswoman, declined to comment on the analysis.
       Properties whose loans have been sent to a special servicer include Belfonti Capital-owned Westin Aruba Resort&Spa, which is collateral for a $230-million loan, according to Realpoint. The property is managed by Starwood Hoetels & Resorts Worldwide.
       The property's occupancy rate dropped to 41 per cent in May from an average of 63 per cent in 2008, the report said. Servicers are used when a loan is in or near default and needs to be reviewed or modified, according to Innaurato.
       The Westin Aruba has been hurt by competition from a 450-room luxury resort built next door, Realpoint said. Belfonti Capital in New York did not respond to a voicemail seeking comment.
       Another property on Realpoint's watch list is the Four Seasons New York, where a standard room with a king-sized bed starts at $855 a night. The hotel is among four used as collateral for a $344.6 million loan, Realpont said.
       The properties' occupancy rate fell to 57 per cent in the 12 months through June. At the end of 2007 and 2008 it was 73 per cent and 69 per cent, respectively, it said. Four Seasons New York's net cash flow " is well beloe historical trends", the credit rating company said, without being more specific.
       While the property's revenue per available room and net cash flow have jumped since bottoming in 2003, the hotel "is more recently showing signs of New York's weakening economy", Realpoint said.
       The property is owned by Ty Warner Hotels and Resorts.
       "We consider this loan a moderate default risk based on declining performance along with the lower expectation on the lodging-resort industry given the current economic conditions," it said.

       Occupancy among chains with the costliest rooms fell to 60% in the first half from 70% last year.
       A $90-million loan secured by Four Seasons San Franciso is 90 days delinqyent and foreclosure proceedings have begun.

ENCROACHERS STAND FIRM

2009-09-27T20:43:00.000-07:00

       The Phangnga naval base has asked provincial authorities to survey communities which encroach on its land and pose a danger to the navy's security.
       Rear Admiral Tharathorn Khachitsuwan, the base commander, said the survey was needed as communities which have settled illegally on the navy's land have refused to move.
       The areas which communities have taken over overlook the port. Residents could see howmany warships had docked.
       Attempts at eviction have been met with resistance.
       Rear Admiral Tharathorn said people have occupied parts of the base covering the districts of Thai Muang, Takua Pa and Thap Put in Phangnga.
       He said the areas around the base are security buffer zones which should be unoccupied.
       Rear Admiral Tharathorn said the base had not been able to keep the residents out.
       They had rallied against the navy's attempt to lay down the rules. The communities had now turned hostile toward the navy.
       Rear Admiral Tharathorn said the least the base could do now was to impose controls on the communities which have encroached on its land.

A measure of justice at last

2009-09-24T22:25:00.000-07:00

       After almost three decades of lonely struggle and much to the chagrin of her hostile neighbours, Grandma Hai Khanjanta has finally won compensation from the state for the damage rendered to her farmland in Ubon Ratchathani from a poorly thought out irrigation dam project.
       The Cabinet on Tuesday decided to award the 80-yearold woman - who in 2004 was named "the great fighter mum" by Mahidol University -1.2 million baht in compensation. Two other villagers affected by the project were also compensated.
       The promised 1.2 million baht is a very modest amount and cannot be regarded as fair, given the hardships from deprivation of a normal livelihood which Mrs Hai's family has had to endure throughout the past several years since her farmland was flooded.Even though the land was reclaimed following the dam's demolition on the orders of the Thaksin administration, it remains useless for cultivation. Still, Mrs Hai had the grace and decency to offer her heartfelt thanks to the Democrat-led government for paying attention to the plight of poor people like herself. She said she would not press for further demands.
       However, this "happy ending" story of Mrs Hai and her two neighbours represents just a fraction of many other similar cases of rural people being deprived of a livelihood, robbed of their traditional farmland or forced into hardship by so-called development projects which often were decided from the top down and implemented without prior consultation with the local communities.These include the villagers affected by the construction of the Rasi Salai dam in Si Sa Ket and the Pak Moon fishermen whose livelihood has been completely wrecked by the Pak Moon dam.
       Negligence on the part of state agencies and their disregard for the public's right to participate in the decision-making process in the management of natural resources by the state, have been blamed for many of the top-down development projects which were later proven to have been badly thought-out, falling short of their objectives or simply not worthy of the cost. For example, the Rasi Salai dam which was supposed to irrigate the dry northeastern farmland, has instead caused widespread salination of the soil, on top of some 30,000 rai of wetlands being wiped out during construction, not to mention the human suffering of hundreds who are still demanding justice.
       The case of Ms Usa Rotpongkasem, a victim of the Klong Toey chemical fire in 1991, is another glaring example of the lack of compassion from state agencies,in this particular case the Port Authority of Thailand,for the victims of its gross negligence and its lack of accountability. The former Ramkhamhaeng University student who is steadily losing her eyesight and is suffering from cancer as a result of her exposure to chemical posioning, had to take her case to the Civil Court to seek compensation from the PAT. It was through sheer tenacity and determination that she endured the lengthy legal hurdles and won the case, with the court faulting the PAT for gross negligence and ordering it to pay her about 4 million baht in compensation. The PAT wanted to appeal the verdict but dropped the idea only because of the personal intervention of then deputy transport minister Pracha Maleenont.
       The plight of Grandma Hai, Ms Usa and many other poor villagers could have been avoided or considerably mitigated, if only the state agencies involved had been more receptive to their views before deciding on projects which seriously disrupted their livelihoods.

STOCKS "CLOSE TO SERIOUS OVERVALUATION"

2009-09-24T22:24:00.000-07:00

       Stocks will be seriously overvalued if the SET Index reaches 760 points, the Securities Analysts Association warned yesterday, while the market got a downฌgrade from overweight to neutral by MFC Asset Management.
       The SET Index has rallied about 90 per cent from the year's trough at about 380 points and it would have doubled at 760, SAA secretarygenฌeral Sombat Narawuttichai said.
       At that point, it would risk a steep correction from profittaking, he said.
       Even at 700 the SET exceeds its fundamental value based on pricetoearnings (P/E) and discounted cashflow analyses.
       The economy can support the SET at only 630-650, some analysts have said.
       About 40 per cent of all market securities are overvalued, 50 per cent are undervalued and 10 per cent are in line with their fundamentals.
       Thai shares have jumped 61 per cent so far this year, underperforming the Asian region.
       Vietnam's Ho Chi Minh Stock Index has gained 84 per cent, Jakarta Composite Index 81 per cent and India's Sensex 74 per cent.
       Even though the SAA and MFC Asset Management said the SET Index over 700 points is overvalued, Asia Plus Securities CEO Kongkiat Opaswongkarn and ING Funds (Thailand) managing director Maris Tarab recently estimated that shares would reach 800 within this year.
       Sombat said 91 per cent of analysts responding to the SAA's survey were moderately confident in the government's Strong Thailand economic stimulus package, and 9 per cent were highly confident.
       Altogether 23 securities analysts answered the questionnaire after the SAA and analysts met Finance Minister Korn Chatikavanich on September 11.
       About threefourths of the respondents have medium confidence and the others have high confidence.
       Four per cent of the respondents are not confident that the government's investment scheme can go on until 2012 as planned regardless of political changes, 43 per cent have low confidence, 48 per cent have medium confidence and the rest have high confidence.
       The analysts agreed unanimously that construction and building material companies would benefit from the scheme but some stocks were overvalued.
       After meeting with Korn, some analysts started preparing to upgrade the country's 2010 gross domestic product forecast by about 1 percentage point from the SAA's current consensus of 3 per cent.
       Supakorn Soontornkit, senior executive vice president of MFC, told reporters that his company downgraded the stock market as it exceeds his company's base and bestcase scenario for 2009 at 675 and 720 points, respectively.
       "I expect that funds flow will continue and shortterm investors can still pile up on stocks but they must be prudent. The SET Index will not reach the 800 level. However, it will not fall below 700 points," he said.
       MFC forecasts the SET at 680 in the worstcase, 750 in the basecase and 820 in the bestcase scenarios for next year.
       His company recommends investing in three to four-year debt instruments offering coupon rates of 3.54 per cent but avoiding putting money in shorter debt instruฌments as yields are going up.
       It is also slightly overweight on commodities and real estate investment trusts.
       Pichit Akrathit, president of MFC Asset Management, said his company is marketing the I-Emerging 10 Fund until Monday.
       The fund's policy is to invest in equities, debt instruments and deposits in emerging countries worldwide, depending on market conditions.
       MFC plans to launch a property fund investing in an office building in Bangkok as well as the Thailand Creativity Fund, investing in innoฌvative businesses.

ENDURING SYMBOL OF ARCHITECTURE

2009-09-24T22:22:00.000-07:00

       The main feature of the mixed-use MahaNakhon projecty will be a 77-storey tower that will be one of the tallest structures in Bangkok's central business district (CBD).
       It is the creation of internationally acclaimed architect Ole Scheeren, one of the principal architects in the Dutch firm Office for Metropolitan Architecture and widely recognised for his work on the pioneering CCTV Building in Beijing.
       With its distinctive sculptural appearance, MahaNakhon will have a three-dimensional ribbon of architectural "pixels" circling the tower's full height, as if excavating portions of the elegant glass curtain wall to reveal the inner life of the building, said Pace Development CEO Sorapoj Techakraisri.
       MahaNakhon's profile will generating a set of special features - projecting glass skyboxes with sweeping views and generous indorrr/outdoor spaces well suited to Bangkok's tropical climate. Residences without pixels will exjoy innovations never seen before: double-height living spaces and duplexes with full-height folding balcony windows that fold inwards to open up homes and allow living areas to become indoor/outdoor environments.
       MahaNakhon's stacked surfaces, terraces and protrusions have been' conceived to convey the energy, intensity and inclusiveness of Thai society and celebrate Bangkok's emergence as a true global capital, fitting the Thai meaning of the name MahaNakhon (great metropolis).
       The complex will stand in the CBD on more than 9 rai directly adjacent to Chong Nonsi Skytrain Station on Narathiwat Road, between Silom and Sathorn roads.
       Its components will include MahaNakhon Square, a landscaped outdoor public plaza intended as a new public destination within the city; MahaNakhon Terraces, 10,000 square metres of lifestyle retail space with gardens and terraces on multiple levels for restaurants, cafes and a 24-hour marketplace; The Ritz-Carlton Residences, Bangkok, with 200 highly-customised single-level and duplex homes, managed by The Ritz-Carlton with five-star amenities for all residents and interior-designed by David Collins Studio; and The Bangkok Edition, a boutique hotel with 150 rooms that will be a collaboration between Marriott International and renowned hotelier Ian Schrager. The complex will be topped by a multilevel rooftop Sky Bar and Restaurant, 310 metres above the street.
       Sorapoj said the project was the result of strongly held wish to do something for Thailand that would be both an enduring architectural symbol and proof of the company's commitment and confidence in Thailand's long term economic prosperity and cultural diversity.
       Architect Ole Scheeren said MahaNakhon would not be an inert isolated skyscraper, but rather a building that would actively engage the city and connect to its urban fabric.
       The three-dimensional pixels that spiral up the tower will offer differentiated indoor and outdoor spaces of an energetically public and exclusively private nature. The building will absorb Bangkok's intensely vibrant energy and simultaneously give it back to the city.
       The project has passed an environment-impact assessment, and application has been made for a construction licence, so building can start around the end of this year, for completion in 2012, Sorapoj said.

US commercial property to tumble

2009-09-24T22:21:00.001-07:00

       Commercial-property prices in the US will fall in the next 18 months as distressed mortgages are sole and banks rework problem loans, says New York real-estate-investment adviser Howard Michaels.
       More than US$1.3 billion (Bt43.62 billion) of real-estate debt on offices, malls and apartments comes due in the next four years, "and most of that is overleverage", said Michels, who is chairman of New Services.
       Mortgages investors are preparing to buy, he said.
       "The general feeling s things are a little more positive, whereas before the market was paralysed," Michaels said.
       The Moody's/Real Commercial Property Property Price index fell 5.1 per cent month on month in July, Moody's Investors Service said this week. It is down almost 39 per cent from its peak in October 2007. Commercial-property sales this year may fall to an 18-year low, the ratings company said.
       Property buyers will need to put down about two-thirds of the purchase price in equity to borrow at interest rates of 8-10 per cent, up from 4-6 per cent during the realestate boom, Michaels said.
       Carlton Advisory Services is starting an online exchange that will list loans and seized property on a website called the Carlton Exchange.
       The firm assisted developer Harry Macklowe in the 2004 refinancing of the General Motors Building on Manhattan's Fifth Avenue and arranged the financing for property investor Haim Revah's purchase of the Lipstick Building in Manhattan in 2007. It has also worked on financing for Chicago, lllinois's Sears Tower, now known as the Willis Tower, and the Bank of America Tower in San Francisco, California.

PACE TURNS FROM INNER CITY TO HUA HIN

2009-09-24T22:19:00.000-07:00

       Property firm Pace Development is planning to launch a new residential project in Hua Hin worth between Bt3 billion and Bt4 billion next year-if its present large project, MahaNkhon, on Narathiwat Road, comes close to beingg 50-per-cent presold before the middle of next year.
       CEO Sorapoj Techakraisri said his company received positive market feedback after unveiling plans for the giant Bt18-billion MahaNakhon project earlier this year. It involves a boutique hotel, luxury residences and retail space.
       Rather than developing the project in phases, presaler for the entire project. The companyis building a Bt200-million showroom to provide finished sample rooms, so that customrs cna have a precise feel for what they can expect from the project.
       Sorapoj said the company expected to book 15 per cent of the project after opening presales and believed presales would reach 50 per cent of the project's value by the middle of next year.
       When this target is reached, the company will launch a new project's in Hua Hin.
       Sorapoj said the company's business policy was investing project by project. It launched Saladaeng Residences, with a market value of Bt2.4 billion, last year. This project succeeded in attracting presales amounting to half of its value, so Pace Development decided to go ahead with MahaNakhon.
       It has set up a joint venture with Israel's largest real-estate developer, Industrial Buildings, to develop the Bt18-billion MahaNakhon project on a longlease land plot on Narathiwat Road, next to Chong Nonsi Skytrain Station.
       The project is separated into three parts, with a different firm managing each part. They are Pace Project I, involving the construction of a high-end boutique hotel called The Edition Bangkok. It will have 150 rooms.
       Pace Project II will cover a 200-unit luxury residential development, while Pace Projects III will develop retail space covering 10,000 square metres.
       When half of the MahaNakhon project is prsold, that will be a green light for the company's next project, in Hua Hin. It is now collecting undeveloped land for next year's rsidential project, with a budget between Bt500 million and Bt1 billion.
       Sorapoj said the next project would focus on the luxury market, offering residences priced above Bt10 million.
       In its planning for both Saladaeng Residences and MahaNakhon, Pace Development targeted local buyers rather than foreigners, because it believed the lifestyle behaviour of local home-buyers had changed to condominium living.
       "We were wrong," Sorapoj said. "When home-buyers have more than Bt10 million to buy a rsidence, they look for a detached house at a location somewhere between the innercity and the suburbs," he said.
       For example, local customers targeted to buy units at MahaNakhon for Bt34 million were more likely to buy a single detached house on Ratchapruek Road. As a result, most of its customers would be foreign buyers, he said.
       The MahaNakhon project's website has been visited by 700 Internet users interested in buying a residence, about 60 per cent of them local buyers and most of those asking about homes costing less than Bt30 million. the remaining 40 per cent are foreign buyers who want residences costing more than Bt30 million.
       Foreign buyers who now have purchasing power come from Hong Kong, Singapore, Russia and the United Kingdom.
       "If the global economyy recovers, we believe sales from our residential projects will achieve our targets next year,' Sorapoj said.

Big firms gain from improved sentiment

2009-09-24T22:18:00.001-07:00

       Property markets in Bangkok and some holiday destinations have shown signs of recovery and will see better prospects in the remaining months of the year due to improved economic sentiment,says real estate agency Knight Frank Chartered (Thailand).
       A number of new projects were launched by large developers such as Asian Property Development, Noble Development and CMC Group. But small developers have delayed launches and held on to their land plots as banks were reluctant to lend to small firms, said managing director Phanom Kanjanathiemthao.
       "Without the upward trend in the economy, big firms wouldn't dare to push out their projects," he said."Midpriced condos in Bangkok are still in demand although the sales might not be that extravagant."
       Sentiment in holiday markets such as Hua Hin, Cha-am and Rayong has also picked up as those markets mainly rely on local buyers who are less sensitive about domestic political uncertainties.
       Mr Phanom said foreign buyers seeking second homes in Thailand were still delaying their decisions as the global economy has just started to pick up.They also remain concerned about Thai politics, but sentiment would continue to improve if politics remains stable.
       Despite better prospects for Phuket with site visits increasing by two to three times from the beginning of the year,Mr Phanom said many projects there would achieve no sales this year. In normal times, each project can sell around 12 units a year but managing just one or two sales this year is hard enough.
       However, the villa market is still doing well in Phuket as buyers must pay according to the construction process rather than making the usual down payments.
       Pattaya remains a hard market to sell condominiums to foreigners due to foreign ownership restrictions, while local people prefer to buy houses.
       Knight Frank has one Bangkok project under its management that is awaiting a possible launch. The 2-billion-baht mixed development will feature a hotel and a condo worth one billion baht each. Another project worth 5-6 billion baht is expected to be introduced late next year.
       The company will stage its Taste of Living property fair, featuring nine projects from Oct 15-25 at Siam Paragon,aiming to generate sales of 300-400 million baht.
       Discounts ranging from 5% to 18%will be offered to buyers at the fair.
       Besides new developments, Bangkok Commercial Asset Management Co is offering discounts until the end of October for some 800 second-hand condominiums on its books.
       The Thai Condominium Association,meanwhile, is joining the brokerage Century 21 Realty Affiliates (Thailand) Co to stage a Thailand Condo Expo 2009 from Oct 23-25 at Suntec Centre in Singapore,featuring units from about 30 projects in Bangkok and tourist destinations.
       Century 21 plans to join with a partner to open an office in Singapore to provide consultation and sales management to Thailand-based developers who want to tap the city-state's market.

Police charged dead man, minister reveals

2009-09-24T22:16:00.000-07:00

       An investigation into a massive illegal land-grabbing scheme in Chiang Rai has hit another hurdle with the discovery that local police have filed charges against a suspected land encroacher six years after he died, Natural Resources and Environment Minister Suwit Khunkitti said yesterday. Suwit cited a ministry report on progress in the case, saying Khamron Khammool was charged by Mae Chan police for encroaching on Mae Salong forest in 2004, when the scheme was first investigated, but he had died years before.
       Suwit did not explain whether Mae Chan police deliberately took action against a "non-existent wrongdoer" in order to undermine or derail their investigation. But the case was dismissed in a documentation process, based on the reason "the suspect had died".
       Suwit said three relevant agencies still did not know exactly how much forest had been encroached on. Despite a number of joint surveys, "the three agencies - the Department of National Parks, Wildlife and Plant Conservation, the Royal Forest Department, and the Forest Industry Organisation - still cannot tell in detail the condition of forest in the forests under their supervision," he said.
       Suwit said he would query the Royal Thai Police to seek clarification about Mae Chan police charging a dead person as a suspected encroacher on state forest.
       A high-ranking source at a provincial authority said all relevant agencies, including the provincial land offices, acted to avoid a legal process that would lead to revocation of illegally-issued land title deeds - the most practical solution to end the problem and trace wrongdoers.
       That was because "a large number of state officials involved in the overall process would be identified" if title deeds were revoked.
       Meanwhile, deputy permanent secretary Damrong Phidej revealed that title deeds he said he signed in 1997-1998 to grant land ownership to seven farmers, covering a total area of 200 rai, on the forestation, were later leased to a company.
       Damrong said he signed the documents legally, and if the deeds were issued illegally, all officials involved in the entire documentation process would be held responsible.
       Asked if he was aware title deeds could have been illegally approved, Damrong said that, as a forestry official, he was not aware. "The responsibility to verify the legality of documents and transfer process belongs to land officials, not a forestry official."
       Damrong said he was part of a National Anti-Corruption Commission panel that recently endorsed revocation of ownership documents issued on illegally-obtained areas in the Mae Salong forest and in mountainous areas. "But in practice, I have not seen any land plots whose ownership was revoked and repossessed by the state," he said.

Sound familiar?

2009-09-23T23:26:00.000-07:00

       Your TOT crossed its heart and hoped to die if it fails to have actual third-generation mobile phone service in a little corner of Bangkok before New Year's Eve; Vichien Narkseenuan, the firm's senior executive president for vice, said he expects to sign a deal Real Soon Now with a socalled mobile virtual network operator (MVNO) that will carry the TOT service,although no names, please; Mr Vichien promised "about" 500,000 numbers would be available; real yuppiephone networks scoffed at the TOT offer to let them in on the deal, because they fear that if they rent a network now, the National Telecommunications Commission won't let them bid for a licence to run their own 3G services.
       Vichien Narkseenuan, the senior executive president of vice for your TOT ,said that the state monopoly plans to open a third-generation (3G) phone service with 100,000 numbers, and serving the entire country; TOT has no intention of building its own base stations,though, and will rent them from real phone companies; Mr Vichien forgot to mention when this nationwide 3G service might start for the lucky 100,000.
       The National Telecommunications Commission announced it will open public hearings on third generation phones next Monday; Prasert Aphipunya, secretary in charge of vice for the NTC, said you should bring along a large truck load of money if you want to start the bidding for licences, say,oh, somewhere around 10 billion-witha-"b" baht; after next weeks' hearing,there will be a notice in the Royal Gazette ,and actual bidding for four (and only four) available licences may open as early as December; rules on all of this should be up on the NTC's website by now at www.ntc.co.th.
       For the third time in a row, the strug-gling TT&T company won a multibillion-baht lawsuit against your TOT and for the third time in a row your TOT told them to pound sand; this time,an agree-upon arbitrator decided that TOT owed the up-country phone provider 2.3 billion baht in misguided revenue sharing for long distance calls;but TOT president Varut Suvakorn rejected the arbitration and told TT&T,"See ya in court, boys"; in case the Administrative Court rules against TOT yet again, Mr Varut said he was pretty sure the state firm didn't have that kind of money to pay off anyhow; TT&T explained that lawsuit number four is about to be filed.
       No 2 yuppiephone firm DTAC of Norway opened its new headquarters in new Chamchuri Square , bragging that it spent one billion baht on the 19-floor (!) digs; all 3,200 DTAC employees relocated from the Chai Building to the new location at the Sam Yan intersection,overlooking Chulalongkorn University;CEO Tore Johnsen signed a 10-year lease for the 61,160-square-metre office,which includes the firm's main call centre; Mr Johnsen said new staff will work harder to pay the extra rent money; the kicker is that DTAC is asking the following price for the Chai Building one billion baht; Mr Johnsen said that DTAC was pressing ahead aggressively on its 3G trials and so on and etc and zzzzzzz.
       Energy Minister Wannarat Channukul, apparently unaware that you can't spell "Thaksin" without "hub", said that Asean should become the energy exporting hub of the world; no, really,his reasoning is that Southeast Asia has so much food that it can make biofuels galore and sell it to the world at Arabesque profits; not only does Southeast Asia (sic) have a lot of extra food to feed the world's cars, it's, well, better "higher yields and more commercially viable for biofuel than corn and beetroot" from the US and Europe; to coin a phrase, in the klongs there are fish and in the fields there are biofuels.
       Energy Minister Wannarat Channukul called in state firms and phuyai of the private sector for a heart-to-heart joint statement that everyone would cooperate on saving energy; this year's spin is that the programme will "save"100 billion baht, and Mr Wannarat got away unchallenged with a claim that a similar project last year saved 30 billion baht; the deal is that the Federation of Thai Industries (FTI) and the Thai Chamber of Commerce (TCC) and so on - 30,000 firms altogether - will work on conservation, purchase green technology and so on, and in return they will get some tax breaks and subsidies on loans taken through the energy services company fund (Esco); the minister is looking for one billion baht to fund Esco this year.

Sansiri teams up with SCB to introduce credit card

2009-09-23T23:24:00.000-07:00

       Sansiri Plc (SIRI) has joined Siam Commercial Bank (SCB) in launching a credit card as a customer relationship management (CRM) activity and a channel to build brand awareness of its propertymanagement subsidiary Touch Property.
       Samatcha Promsiri, assistant vicepresident for marketing, said the developer aimed to increase the number of residents at its housing projects who use Touch services to 2,600 from 500-600 now, or to 20% from 4% of the total of 13,000 housing units it has sold since its establishment.
       "Revenue for our subsidiary may not be that much but we aim to attract our existing customers to try services from the subsidiary as most of our customers do not know about Touch and its services," he said.
       SCB Sansiri Platinum, the first housing credit card, allows cardholders to use reward points plus additional cash to redeem for services including laundry,cleaning and gardening services provided by Touch. The card aims to draw not only existing Sansiri customers but also new ones, with a target of 50,000 cards in the first year.
       "This is one of our CRM activities in which we have joined with SCB. The bank also plans to offer more products to customers, for example, insurance,"said Mr Samatcha."The spending behaviour of credit cardholders will also tell us which new products should be offered to them."
       The minimummonthly salary for applicants will be 35,000 baht, the rate which Sansiri is confident all its cus-tomers are eligible, even buyers of its lower-priced housing brands such as My Condo. New card applicants who also buy Sansiri units will get a 5% discount on down payments paid through the card.
       Currently, SCB has more than one million credit-card holders, with each carrying 1.8 cards on average.
       Sansiri also plans to hold a housing fair from Oct 1-4, offering 428 units from 29 projects worth a combined 2 billion baht. The fair will offer a 50% discount on down payment. It targets sales of one billion baht at the fair and 4.8 billion baht in the fourth quarter of the year.
       To date, it has a sales backlog of 16.55 billion baht to be realised in the next three years, with 8.38 billion baht to be booked in 2010 and 5.3 billion baht in 2011. About 74% of the sales are condominiums,14% single houses and 12%townhouses. Total revenue this year was estimated at 17 billion baht.
       SIRI shares closed yesterday on the Stock Exchange of Thailand at 4.50 baht,down two satang, in trade worth 120.17 million baht.

BASF BUILDS CENTRE TO HELP KARENS

2009-09-23T23:22:00.000-07:00

       BASF, a global chemical company, will provide Bt3.7 million to the Karen Kids Society to construct a youth centre for young adults in Ban Pa Deng, Petchaburi province.
       The contribution, provided via the BASF Social Foundation, is aimed at improving the standard of living of local residents.
       The Karen Kids Youth Centre will provide educational opportunities for young adults from the ethnic minority along with Thai residents, focusing on income generating activities such as handicraft skills.
       The centre will also provide separate living and sanitation facilities. The construction of the 390-square-metre centre began last month and should be completed by the middle of next year.
       Karen Kids Society president and founder Juergen Strafe said: "When we first discovered the children, they were living in a rat- and insect-infested hovel with a leaking roof.
       "The dirt and smell were unimaginable. Today, they enjoy clean, healthy accommodation, with proper sanitation, freshly laundered bedding and a hygienic kitchen.
       "The next step is to build a youth centre where older kids can learn a trade. Within a few years, they will be able to leave the camp and make a life for themselves using these new skills."
       To Pracha Chivaporntip, chairman and managing director of the BASF Group in Thailand, the project in Ban Pa Deng is one of many the company has sponsored over the years as part of its sustainable development efforts.
       With its existing education centre, Karen Kids provides shelter, education, clothing and food to more than 80 children aged 10 months to 14 years now living as displaced persons.
       With a three-pronged plan focusing on education, health and self-reliance, the centre provides a place to meet, play, and study.
       It also provides "child safe" Internet access. Each Saturday, the camp offers Thai-and English-language classes for children and adults.
       A vaccination schedule is maintained, and children will be taught ways to improve their immune system.
       A weaving programme, vegetable garden and a fishpond.
       The first phase of the construction, together with a sleeping area for volunteers and camp managers, was completed last year.
       Its second phase, with a two storey centre, will include training facilities for sewing, weaving and carpentry.

Grandma Hai wins B1.2m in damages

2009-09-23T23:20:00.000-07:00

       Eighty-year-old grandmother Hai Khanjanta is being awarded 1.2 million baht in compensation after having fought for 30 years to reclaim her land after the construction of a dam.
       The cabinet has agreed to pay Mrs Hai, Sua Khamphan and Fong Khanjanta a combined 4.9 million baht for their opportunities lost during the dam construction.
       Mr Sua will receive 2.4 million baht and Mr Fong 1.3 million baht.
       Mrs Hai opposed the building of Huay Ra Ha dyke from the very start of the project in 1977. The dam, built to provide drinking water to Na Tan district of Ubon Ratchathani, flooded her farm at Ban Non Tan.
       She and other villagers had their land returned after former prime minister Thaksin Shinawatra ordered the demolition of the dam in 2004. However, no compensation was paid to affected residents to rehabilitate their paddy fields.
       Yesterday's cabinet approval for the financial compensation did not come easily.
       PM's Office Minister Sathit Wongnongtoey said some state agencies argued that the payments would set a precedent for other groups to claim compensation.
       "Some state agencies said this case would set a precedent for other affected groups [to claim compensation from the state]," Mr Sathit said."But we don't think so because there will be no other dams that will be ordered demolished by the state."
       Mrs Hai praised the Democrat-led government for paying attention to the plight of the poor.
       She was glad the government had addressed the problems raised by the Assembly of the Poor.
       The woman, who joined the assembly to fight for her land, said past governments had ignored the problems of rural poor.
       Asked whether the amount was enough for her family, she said it was not huge as she had fought for 32 years to receive justice.
       But she insisted she would not make further demands.
       She said she would give the money to her children.

RANGSIT PLAZA FREEZES COMMUNITY MALL PROJECT

2009-09-23T23:19:00.001-07:00

       Rangsit Plaza, operator of Future Park shopping complex in Rangsit, yesterday announced a freeze on new development projects, including a community mall to be built on a nearby 700-rai plot of undeveloped land.
       The company will instead seek potential investors able to develop their own projects, including sports and entertainment complexes, to occupy the land based on a long lease or joint investment contract.
       "Developing a community mall requires a huge budget of more than Bt1 billion, but it is not a good time amid the economic recession to pursue such an investment," said Jittinan Wanglee, vice president - sales of Rangsit Plaza.
       She said the development of a community mall required major tenants able to fill the retail space and act as magnets to build up consumer traffic.
       "We also cannot find appropriate tenants for our new community mall project at this moment," said Jittinan, adding that the company would not make any decision on developing such a mall until it could find the right tenants and anchors for the complex.
       She said the company was not confident about the success of community malls during this time of economic difficulty.
       "Though the community mall is now a popular model developed in the market, there are investors who have been successful and others that have been failures," she said.
       Owned by Pipatanasin, the land-owning company founded by the Wanglee family, the entire land plot - the so-called Future City - occupies 800 rai. About 108 rai have already been developed as the Future Park shopping mall and 150 rai have been occupied by other retail anchors, including Index Living Mall, HomePro and Major Cineplex.
       The remaining land surrounding the Future Park complex is still to be developed.
       Jittinan said Future Park had completed its major Bt1-billion renovation in the first half of this year. The process took almost three years.
       "We will next year focus on pushing our efforts to build up convenience for our shoppers. The company will next year invest Bt300 million as a marketing budget to attract a higher number of people to our shopping mall," she said.
       She added that Future Park planned to spend Bt20 million on its "Future Park 14th Anniversary Grand Splendour" campaign. The campaign, including "Super Shows Super Stars" concerts and special discounts of between 10 and 30 per cent offered by Central and Robinson department stores, will be held from Friday to October 4.
       The company expects the campaign will increase the number of visitors to its shopping complex by 10 per cent, as well as lift sales at tenant stores by an average of 20 per cent.

JUSTICE AT LAST FOR GRANDMA HAI OVER DAM

2009-09-23T23:17:00.000-07:00

       After three decades of calling for a fair deal, grandma Hai Khanjanthra has been compensated for land expropriated for a dam project in Ubon Ratchathani.
       The Cabinet yesterday decided to pay Bt1,208,153 to the 79-year-old resident of Na Tal district, along with Bt2,389,142 to Sua Phankham and Bt1,350,922 to Fong Khanjanthra, who were also affected by the construction of the Huay Laha Dam project.
       The money came from an emergency budget, paid at the request of the Interior Ministry.
       Hai said she was thankful for the government's payment, although the amount was not enough compared to the damage done - the loss of 61 rai of farmland, both to water inundation and lack of fertilisers to grow rice since 1977. Hai also expressed thanks to members of the Forum of the Poor who urged previous governments to resolve her case.
       "The money is not enough ... but I am not going to demand more. I am glad that this government listens to poor people's grievances, the past governments did not care about poor people," she said.
       Hai said she would give some money to her children and grandchildren for their career projects,"so that their careers and their ways of life are better," she said.
       Phet, Hai's daughter, said the payment was a good sign for all poor people, and urged the government to compensate the many people affected by dam projects, including those living near Pak Mool and Rasi Salai districts, in Ubon Ratchathani and Si Sa Ket provinces.

BKK GROUP TO SPREAD ITS WINGS

2009-09-23T23:15:00.000-07:00

       The BKK Group, parent company of the Benz BKK Group, will branch out into high-rise real-estate development by constructing a Bt1-billion apartment complex at the Bang Na intersection in Bangkok.
       "We see very positive growth in the Thai market in the years to come. We'll launch our real-estate project by the end of this year. It will be our first high-rise building, and the company will be called BKK Grand Estate," said Anupon Likitpurkpaisan, BKK's executive director.
       The company has previously been involved in real estate but has only constructed low-rise buildings outside of Bangkok. The new building will be 34 storeys high and most likely be accessible from the upcoming Bang Na Skytrain Station.
       The company has rebranded itself using the slogan "For Today's Better Living". The rebranding was undertaken to bring the real-estate and automotive sectors under one corporate umbrella.
       "With more than 17 years of experience in the luxury-car retail business, we've consistently developed products and services to ensure customer satisfaction. We'll ensure everything we do is focused on total quality-management strategies," said Anupon.
       The automotive division of the company saw growth of 5 per cent in the first seven months of the year. The company expects to achieve revenues of Bt3 billion this year, up 7.14 per cent from last year's Bt2.8 billion.
       More than 80 per cent of revenue is generated through sales of Mercedes-Benz and Nissan vehicles, while the rest is created through services.
       The company's rebranding activities have seen investment of Bt30 |million, which included changes to hardware, showroom design and software.
       The BKK Group previously focused mainly in the automotive sector by being the authorised dealer for Mercedes-Benz and Nissan. The company has two Mercedes-Benz showrooms: one in Bang Na district and the other on Vibhavadi-Rangsit Road, along with one Nissan dealership in Bang Na. The company also has one ID1 centre, an authorised Mercedes-Benz used-car dealership.
       In the past, the company sold the Chrysler and Jeep brands, which it now services.
       Anupon added that the company would most likely expand with a new Bt100-million Mercedes-Benz showroom.

Grim outlook for Dubai housing market

2009-09-23T23:13:00.000-07:00

       House jprices in Dubai, which fell the most during the global economic crisis, will suffer another "meaningful" slump in about three months because of increased supply and restrictions on mortgages,says an analyst at Zurich, Switzerland-based bank UBS.
       Prices wil drop an additioal 33 per cent to 6,458 dirhams (Bt59,400) per square metre, said UBS's analyst in Dubai, Saud Masud. Prices sank 47 per cent in the second quarter from a year earlier, real-estate firm Knight Frank said earlier this month.
       Dubai landlords have created "a temporary respite" int eh market by keeping apartments empty rather than adding to a glut of homes available for rent, Landmark Advisory said last month. Starting in the second half of 2008, the sheikhdm went from being the best performer out of 46 markets monitored in the Knight Frank global house-price index to the worst. A construction boom had creted thousands of homes just as demand began to evaporate.
       "[People]feel the market is coming back and they are trying to hold off for a bit," Masud said. "But that is not going to last because when more inventory hits the market and some one's apartment sits vacant for six to nine months, they are going to cave in, and that's when we'll see the repricing of assets."
       Global real-estate firm Jones Lang LaSalle last month said there were "signs of stabilisation" in Dubai's property market, with the decline in home prices slowing in the second quarter from the previous three months. However, the number of transactions fell 58 per cent during the quarter from a year earlier, it said.
       The market is currently in a "numbphase," and optimism is based on "few transactions," Masud said.
       Prices wil rech a bottom in 12-18 months. "[Next year] is going to be tough, and I would be shocked if we started talking about a recovery in 2010," Masud said. "Issuesof excess inventory,litigation, financing and payment delays are still unrfesolved and clogging up the pipeline."

LAND-PRICE TUMBLE SLOWING IN JAPAN

2009-09-23T23:11:00.000-07:00

       Land prices in Japan have fallen their most in five years as the recession has discouraged buyers and tighter credit markets have choked off funding to developers.
       Average prices declined 4.4 per cent in the 12 months to the end of June. It was the 18th consecutive annual decline, said the Land, Infrastructure, Transport and Tourism Ministry. Values fell in all but three of the 22,435 locations surveyed.
       Land value are now about half of what they were at the hight of Japan's bubble economy of the 1980s. However, the decline may slow as the nation emerges from its deepest postwar recession. An 18-month climb in Tokyo office vacancies ended last month and the number of unsold condominiums on the market is down 43 per cent since last December.
       "There are signs the deline in land prices in Tokyo and other big cities is coming to a halt," said Mizuho Financial Group real-estate analyst Takashi Ishizawa, in Tokyo.
       "It's possible Tokyo prices could even rise next year, but the regional districts will continue to see declimes."
       Price declines in Japan have been less severe than those in other markets that have rallied in recent years.
       The value of ocmmercial property in Japan dropped 5.9 per cent year on year in the 12 months to the end of June. In the United States, commercial real-estate values fell 27 per cent in the same period.
       Prices in residential and commercial districts fell in all of Japan's 47 prefectures for the first time since the ministry began compiling the data in 1975.
       Values in Tokyo, Osaka and Nagoya, the three major metropolitan areas, declined 6.1 per cent, breaking a three-year gaining streak. Prices in rural districts dropped 3.8 per cent.
       Property developers and managers accounted for eight of the 10 biggest bankruptcies of listed Japanese companies this year, stoking consumer concern about job security and deterring banks from refinancing loans to the industry.
       KK daVinci Holdings, which manages property assets worth more than Yen1 trillion (Bt365 billion), said last week it might not be able to reach and agreement with creditors to extend a loan secured by its Pacific Century Place building in central Tokyo because of the market slump.
       The most expensive piece of commercial property remains Tokyo's Ginza shopping district, where land can cost as much as Yen25 million a square metre. The value has declined 17 per cent year on year.
       The capital's Chiyoda ward, where the Imperial Palace is located, has the most expensive residential land, even after values have fallen 11 per cent to about Yen3 million a square metre.
       Average prices in Tokyo's commercial districts dropped 8.9 per cent, reversing a4-per-cent gain the previous year, as companies relocated or negotiated lower rents.
       The ministry said in June that commercial property prices in the Tokyo metropolitan area were still at the same level they were 35 years ago, after the collapse of the real estate bubble of the 1980s erased what had been a four-fold increase.
       Office vacancy rates rose for 18 straight months to the end of July, said office-brokerage company Miki Shoji. The rate was unchanged at 7.57 per cent last month.

AIRPORT RAIL LINK CREATES NEW CONDOMINIUM CLUSTER

2009-09-23T23:09:00.000-07:00

       The route of the Airport Rail Link, between Makkasan and Suvarnabhumi, is rapidly becoming a focal area for the development of new residential projects in Bangkok.
       A survey by The Nation last week found projects worth nearly Bt10 billion under construction or on drawing boards. Popular locations include Asoke, Phetchaburi, Rajprarop and Makkasan, at the city end of the link.
       Property developers began launching residential projects around the Airport Link when its construction began two years ago. Among the early projects were The Complete Rajprarop by Prinsiri, which is worth Bt1 billion and offers 547 units; Ideo Verb Rajprarop by Ananda Development, which offers 447 units and has a market value of Bt1.5 billion; and Chiwathai Rajprarop, which has 329 units and a value of Bt1.3 billion.
       The Fragrant Property Group launched a condominium project, The Circle, last year. With a market value of Bt4 billion, 90 per cent of its 901 units have already been sold.
       Last year's starters also included My Resort by Equity Residential, offering more than 200 units on Phetchaburi Road, and a 400-unit condominium called True Thonglor, developed by Pool Asset.
       Meanwhile, test runs are expected to start on the completed Airport Link in December. As the rail link builds up to full services, two more major projects worth a combined Bt6.3 billion will be gaining momentum.
       Asian Property Development introduced its latest luxury condominium, the Address Asoke-Phetchaburi, last week. With a market value of Bt3.3 billion, it offers 574 units at a starting price of Bt5.23 million per unit.
       TCC Capital Land, a joint venture between Singaporean-based CapitaLand and TCC Land, which is owned by beverage tycoon Charoen Sirivadhanabhakdi, will launch Villa Asoke, with a market value of Bt3 billion, this weekend. It will offer 525 units at a starting price of Bt2.99 million per unit.
       Alan Lin, CEO of real-estate firm Harrison, said the area around the Airport Rail Link was a new focal destination for property developers because of the convenient transportation offered by the rail service.
       The company is currently negotiating management deals with developers who own four land plots near the Airport Link and plan to launch residential projects worth nearly Bt5 billion next year, he said.
       "We believe that this location will continue to be popular through 2010. More than five projects are currently being planned that will offer a total of 4,400 units between now and 2011," he said.
       Condominium units in the area have starting prices between Bt75,000 and Bt150,000 a square metre.
       Asian Property Development's managing director Pichet Vipavasuphakorn said his company had launched The Address Asoke-Phetchaburi because the location would become a new destination for home-buyers when the Airport Link was complete and there was easy transportation in the area.
       Land prices in the area also remain lower than those in the Sukhumvit, Sathorn and Silom areas. Home-buyers around the Airport Link will be offered new condominium units at lower prices than those in the inner central business district, although the inner CBD will be within easy reach, he said.
       Bookings for The Address Asoke-Phetchaburi have now reached about 60 per cent of its units, following the opening of presales last week, Pichet said.
       TCC Capital Land chief executive Soammaphat Traisorat said that after introducing Villa Asoke to the market earlier this month, a number of customers had shown enough interest to visit the project. As a result, the company believes that when bookings open this weekend, there will be positive feedback from customers.
       "We believe that this area will be the new destination for residential development after the Airport Link starts operations," he said.
       Agency For Real Estate Affairs managing director Wasan Kongchan said demand for residences around mass transit systems continued to grow despite the economic downturn. The behaviour of many home-buyers has changed away from single detached houses to condominiums because of last year's spike in fuel prices.
       The popular Sukhumvit, Silom and Sathorn areas now have less land available for residential development, and some projects are demanding prices above Bt100,000 per square metre. Property developers have therefore moved to new locations, especially around the Airport Link because it is close to a new mass-transit system and land prices continue to be lower than those in the central business district, he said.
       "We believe this is a good time to buy a residence around the Airport Rail Link, before land and condominium prices in the area begin to rise," he said.
       Wasan said when the Airport Rail Link began full operations, nearby land and residential prices would rise 10-20 per cent, depending on supply in the market.

HIGHLAND RESORT DEVELOPER LOOKS FOR PARTNER

2009-09-23T23:07:00.000-07:00

       Property developer Khaokor Highland City is seeking a strategic partner to purchase a big portion of its vacant land in Phetchabun province for the joint development of a new luxury-resort project.
       Deputy managing director Yongyoot Fupongsiripant yesterday said the company was developing the second phase of its high-end resort project called Khaokor Highland Resort II.
       The project covers 1,500 rai. Of that, only 300 rai will be developed by the company itself, with the rest offered for sale to an investor interested in co-developing the Khaokor Highland project.
       The company purchased the land this year from other property developers in Phetchabun that planned to develop land banks on the highland plateau but faced financial problems such that they were unable to proceed with their projects.
       Yongyoot declined to reveal the value of the 1,500 rai that Khaokor Highland City purchased this year. The company is currently assessing the value of Khaokor Highland Resort II.
       The 1,500-rai plot is the largest land bank waiting for resort development in Phetchabun, he said.
       "Khaokor is a tourist destination for both Thais and foreigners. We believe it to be a worthwhile investment at this time, one that will enjoy a good response once the economy recovers," Yongyoot said.
       Of the 300 rai to be developed by Khaokor Highland City itself, a high-end resort of about 50 units and other facilities such as a clubhouse, restaurant and swimming pool will be built on 100 rai. Construction will begin early next year. The remaining 200 rai is being sold to people wanting to build their own resort houses in Phetchabun. About 60 per cent of this land has already been sold.
       One resort house, requiring 1 rai of land, costs about Bt20 million, including the cost of land and construction, he said.
       Khaokor Highland City has operated the Khaokor Highland Resort for a decade. The project is divided into eight phases. In the first phase, the company constructed 30 resort houses.

Villa Asoke condo draws hot response show units unveiled Fri. 25, booking open Sat. 26 Sep.

2009-09-21T23:45:00.000-07:00

       TCC Capital Land reveals customers favour Villa Asoke of its 2.99 MB starting price and location

       TCC Capital Land is unveiling Villa Asoke's show units on 25 Sep.; with various unit types: 1 bedroom, 2 bedroom, and 1 bedroom duplex confirming the starting price is really 2.99 MB. It also reveals a lot of customers have registered for the presales as booking will be open on Saturday 26 Sep. 09 and queue draw will start at 9 a.m. Mr.Soammaphat Traisorat, CEO and MD of TCC Capital Land, said that "The selling-points of Villa Asoke cover every aspect, including its modern design, premium materials, prime location right next to the MRT (Petchaburi Station), plus the ARL (Makkasan City Air Terminal), the very attractive starting price of approximately 75,000 Baht per square meter and additional special discounts for customers. Villa Asoke, therefore, offers buyers the best value for money and satisfies the market need for a city condo at reasonable price." For more information, please visit www.tccapitalland.co.th/villa_asoke or Te;. 02-255-5555.
       Project Name: Villa Asoke
       Location: Asoke - Petchaburi Jct.
       Nearby Mass Transit: MRT Petchaburi Station (150 m.) ARL Makkasan Station (400 m.)
       Show Unit Open: 25 Sep. 09
       Presale Starts: 26 Sep. 09 (receive drawing ticket 9 a.m.)
       Register at: www.tcccapitalland.co.th_asoke Tel. 02 255 5555

SPENDING SPREE TO CONTINUE

2009-09-21T23:44:00.000-07:00

       Despite fears of bubbles in China's property and stock markets, Beijing will maintain its stimulus policies and pump more money into the economy until its manufacturing sector recovers, analysts say.
       With weak exports dragging the economy down, Beijing was relying on buoyant apartment and share prices to help it meet its target of 8-per-cent growth-and does not want to wind back its stimulus measures just yet, they say.
       "Public and private statements by Chinese officials signal clearly that they are not worried about asset bubble prices of overheating, and they are instead concerned about the sustainability of the economic recovery now under way,' Andy Rothman and Julia Zhu, economists at CLSA, said in a report.
       China's economy expanded 7.9 per cent in the second quarter after a 6.1-per-cent expansion in the first three months of 2009.
       That growth was largely underpinned by a four-trillion-yuan(Bt19.5 trillion) stimulus package unveiled in late 2008 and 7.4 trillion yuan in bank lending in the first half of this year.
       But soaring property and stock prices this year raised fears that much of the money was being funnelled into asset markets for quick profit rather than the real economy as intended.
       Property sales soared by more than 60 per cent in the first seven months of this year and share prices piled on more than 90 per cent in the same period - triggering fears of emerging asset bubbles.
       "Asset prices are the very object of policy in China," Michael Kurtz, an analyst at Macquarie Equities in Shanghai, said.
       "China is walking a fine line where they need asset prices to remain well-supported while at the same time discouraging dynamics that create bubbles."
       While policy-makers have acknowledged concerns about bubble build-up they have said there are no immediate plans to change tactics.
       Premier Wen Jiabao said earlier this month that China's recovery remained fragile and that it was too soon for Beijing to reconsider its current stimulus policy.
       And central bank vice governor Su Ning was quoted as saying last week that monetary policy would remain loose until the end of 2010.
       Nee data in August suggested the government-funded spending spree was paying off fixed asset investment was steady, retail sales accelerated and new lending rebounded after a sharp fall in July.
       Yet exports, China's main growth engine, continued to fall in the first eight months of the year.
       Kurta said the government was now relying on the property market to drive the economy.
       "Until the export sector picks up, the domestic property story is going to be the main driver of Chinese growth," said Kurtz.
       "China needs construction to resume and remain robust next year and that won't happen unless China leaves in place policies that sustain confidence in property prices and sustain relatively high transction volumes in the residential property market."
       Kurtz said policy-makers knew their actions could cause asset bubbles to build up and were trying to "stage manage" investment in property and stocks to keep things moving at a "more measured pace".
       Andy Xie, an independent economist based in Shanghai, warned the government's measures had already created a "gigantic bubble" in the property market.
       "Whenever you see prices much higher than the normal range, it is a bubble," Xie said.
       "The average urban property price per square metre is the same as in the US while the US per capity income is seven times of China's urban per capita income."
       Xie said the government had taken the easy option of boosting asset prices to create a "sense of well-being" rather than resolve deep structural imbalances in the economy.
       He warned: "Anyone who still hopes for the good old days [of US consumer spending] will be sorely disappointed."

MORE DEMAND FOR OLDER CONDOS IN CBD

2009-09-21T23:43:00.000-07:00

       Since the price of luxury condominiums in Bangkok's central business district (CBD) have been increasing dramatically over the past six years, buyers are now opting more for afforable units in older buildings.
       However, according to Jones Lang LaSalle, a professional services firm specialising in real estate, there are several factors that buyers need to consider when purchasing units under the current market conditions, where both old and new condo units are in huge supply.
       The firm's chief of the residential division, Daonum Lilavivat, said Jones Lang LaSalle has seen increased interest in used luxury condominium units that are being offered at relatively attractive prices, particularly those in well-managed buildings. In fact, some of these used units are even being sold at half the price being commanded by brand new or under-construction projects.
       Findings from Jones Lang LaSalle's recent market survey indicate that newly completed or under-construction projects in Bangkok's CBD are now priced at between Bt110,000 and Bt200,000 per square metre, while units in older buildings (aged a decade or more) in the same area are going for between Bt55,000 and Bt90,000 per sqm.
       "Customers who purchased units in older buildings say that apart from them being cheaper, most older buildings in the luxury segment offer relatively larger common spaces and full recreational facilities. These amenities include large swimming pools, fitness/sauna rooms and tennis courts, which are not typically provided in many new projects. In addition, some buyers prefer the more 'cosy' environment offered by older buildings instead of the 'hotel-like' atmosphere in new buildings," Daonum said.
       She also says that purchasing used luxury condominium units in the CBD for own occupation now is a sound decision. "Strong competition in the leasing market due to the rapid growth of new condominiums has put downward pressure on rents. Many owners who boughtj condominiums for investment purposes many years ago may now find it difficult to get their units rented as most tenants prefer newer buildings. For this reason, these investors are keen to divest their holdings," she explained.
       Daonum's views are supported by Jones Lang LaSalle's latest market study, which provided an analysis of gross and net yields in the high-end market.
       Dan Tantisunthorn, head of research at the firm, said: "In a study to be published shortly, we found that the average resale price and current borrowing rates have adjusted to a level resulting in a gross yield that would attract end-user buyers. At these same price levels and assuming there is no vacancy, investors can earn a net yield above long-term 'risk-free' rates, despite the yield on some of these, such as the recent government bond issue, rising."
       Doanum also belives buyers can expect capital appreciation in the long term because there are less sites/land plots available for new developments, while development costs of future projects are likely to rise. Nonetheless, investors looking to buy used units to let at this time should be very cautious, Daonum said. "Apart from the downward pressue on rents because of strong competition and tenants' preference for newer buildings, an investor may also have to make a big cash outlay to renovate the unit prior kto putting it up for rent."

OISHI MD TAN MAKES A SPLASH IN REAL ESTATE

2009-09-21T23:42:00.001-07:00

       Tan Passakornnatee, Oishi Group managing director, plans several major investments in property and hospitality projects in the coming year.
       A condominium projects on Sukhumvit Road worth Bt2.5 billion will be his first investment next year, following an investment of Bt450 million to develop a luxury hotel, Villa Maroc, in Pranburi district of Prachuab Khiri Khan province three years ago. Villa Maroc will have its grand opening on Jan 1.
       Tan said he began investing his own money in property three years ago, spending between Bt2 billion and Bt3 billion to collect undeveloped land in Bangkok, Chiang Mai, Lopburi land Pranburi district.
       He said that after collecting more land, he plans to developed residences and hospitality projects from next year until 2012.
       The first project will be a condominium block worth Bt2.5 billion. Tan is in negotiations with strategic partners to develop this project.
       He has also joined with Siam Future Development to develop unused land in Chang Mai as a community mall. Investment will begin next year. Among other plans are the development of land in Lopburi province as a weekend market.
       Meanwhile, land owned by Tan on Ploenchit Road, which currently houses a Caltex petrol station, will be developed into a hotel when the petrol station's lease expires in three or four years.
       Tan also has 12 rai of land on Soi Thong Lor. Currently it is being used as a soccer field but Tan thinks it has potential for development.
       "When we decided to invest in the property business, we saw a business opportunity that was different from the kind that lures others investors, who are often drawn to in stocks or gold, or deposit their money in the bank," he said. While the returns on bank deposits are currently lower than inflation, he said, investment in land makems sense in the long term.
       "We aren't concerned solely about high return on investment. Our priorities are that our investments," he said.
       When he started to develop Villa Maroc in Pranburi, Tan spent Bt450 million on just 15 rooms. That is not a recipe for a high return on investment. But he believed in taking the long-term view that the more important goal was creating an attractive tourist destination in Pranburi district. "When tourists visit Pranburi, they have to visit Villa Maroc," was the goal.
       For his condominium project on Sukhumvit, Than is nekgotiating with a strategic partner.
       His future projects will also find require strategic partners, due to Tan's philosophyj that when it comes to business, he does not know everything.
       Tan built the Oishi Group, which manages Japanese restaurants and produces and distributes green tea under the Oishi brand, then sold a stake to beverage tycoon Charoen Siriwattanabhakdi. He still holds a stake in Oishi and remains its managing director.

ING to clarify TU case to investors

2009-09-21T23:41:00.000-07:00

       ING Funds plans to call a meeting of investors in the TU Dome Residential Complex Property Fund (TU-PF) next month to clarify the recent sanctions imposed against it by securities regulators.
       The Securities and Exchange Commission fined ING Funds 1.9 million baht and placed its president, Maris Tarab, on probation for three years for fiduciary violations related to ING's management of the TU-PF fund.
       Mr Maris, who was also personally fined 231,750 baht, said he wanted to clarify events openly.
       "I have received many questions. I want to clarify the situation for unitholders, both regarding my own actions,as well as the fund itself," he said.
       Mr Maris acknowledged that the case would make him more "cautious" in the future, as well as more meticulous in detailing what actions must receive regulatory or investor approval to avoid potential conflicts.
       "In the past, we see that the alleged wrongdoing that supposedly occurred really is a matter for interpretation," he said.
       The TU-PF fund was launched in 2006 to invest in dormitories and serviced apartments to be built on land owned by Thammasat University's Rangsit campus. The fund would lease the property from Thammasat for 30 years after construction of the facilities was complete.
       The SEC faulted Mr Maris and ING for authorising payments to the lessor and building contractor without seeking approval from unitholders, as well as for approving payments to the contractor prior to the registration of the lease or completion of the buildings.
       Mr Maris said the serviced apartments and dormitory were expected to be completed in November.
       He added that for ING, future property funds would be established only for fully completed projects, rather than launched as pre-financing for construction.
       For the TU-PF Fund, Mr Maris insisted that the basic investment remained sound, as demand for living quarters at the Thammasat campus would increase steadily.
       Rents in the area now stand at 10,000 baht per unit, compared with projections of 7,500 baht when the fund was established. ING estimates that the TU-PF fund should generate annual returns of upwards of 12% over the 30-year lease.
       The fund's lease area covers more than 12 rai near the Thammasat Rangsit campus and includes a 12-storey serviced apartment building, parking facilities and three 10-storey dormitory buildings already opened for use. The area also includes a "lifestyle shopping centre"with 15,000 square metres of retail space and parking for more than 400 vehicles.
       Nitima Kiatwateeratana, managing director of CIEN Co, the marketing manager of the shopping complex, projected occupancy of 60% by 2010, with 10%growth per year afterwards.
       Rental rates at the shopping centre range from 400 to 600 baht per square metre per month, with rates projected to rise by 5% per year.
       TU-PF units last traded on the SET on Aug 25, when they closed at 9.40 baht.

DEVELOPERS ASSURED ON REVAMP

2009-09-21T23:40:00.000-07:00

       The Finance Ministry has assured land developers they will not face an unreasonably high tax burden under a planned property tax revamp.
       The ministry is revamping the property-tax structure in an effort to plug legal loopholes that allow owners of some lands and buildings to escape paying taxes.
       An informed source at the Finance Ministry involved in drawing up the new property-tax rules said provisions in the latest draft reflected advice from parties likely to be affected by the new measures.
       One is that the ministry will offer a tax grace period, probably of two to five years, to land developers who accumulate plots for development. This land would be subjected to a tax rate of up to 0.5 percent of the land price and would double every three years if the land is left undeveloped.
       Also, newly built homes awaiting buyers would be taxed at the same rate as residential units; no more than 0.1 percent per year.
       Moreover, land and buildings used for many purposes - business, farming and residential, for example - would see each portion taxed accordingly, leading to payment of several tax rates by one landowner. Land used solely for farming would be taxed at no more than 0.05 per cent, the source said.
       In addition, residential units worth less than Bt500,000 may be tax-exempt altogether.
       Land developers have raised concerns that the revised property taxes would increase their business costs and adversely affect the property industry as a whole.
       Some local governments may need to set up funds to buy land or provide loans or other financial support to those who can't afford to pay the newly required taxes, the source said. The central government is unlikely to set up such a fund, since property tax will be collected and managed by the local governments. However, this issue has not been finalised.
       Finance Ministry officials expect to finalise drafting the new property tax rules by the end of this month, before submitting them to Finance Minister Korn Chatikavanij and the Cabinet, according to the source. If approved by the Cabinet, the bill will be considered by Parliament. If Parliament approves the bill, the ministry plans to enforce the new tax laws within two years.
       Under the new tax rules, residence owners would pay up to 0.1 percent of the land price. Rates could vary depending on the local administration's rules. Land used for agricultural purposes would be taxed at no more than 0.05 percent. Undeveloped land would be subject to a high tax rate of 0.5 per cent, to be doubled every three years.
       Also on the horizon are a 2-percent transfer fee on property changing hands; progressive rates of income tax; a 1.5-percent stamp duty; and a 3.3-percent specific business tax that are currently exempted under the government's economic stimulus package. Homebuyers and land developers have expressed fears that the tax-code revisions would add to an already-high tax burden.

A&J tightens focus on rental apartments

2009-09-19T21:20:00.001-07:00

       Tough competition in imported cosmetics and fashion products has prompted A&J Land Co, owned by Araya Apisitamornkul, better known as Jae Leng, to invest more in developing apartments for rent.
       The owner of Jae Leng Plaza in Don Muang is constructing two apartment buildings on Chalong Krung Road near Suvarnabhumi Airport. The completion of 90 rooms early next year will increase the company's available apartments to almost 600, mostly near the new airport.
       A&J first invested in rental apartments 15 years ago with a 90-unit building in Don Muang that has always been fully occupied, said Ms Araya. The company has also had total occupancy with more than 400 apartments near Suvarnabhumi Airport, which have space to develop about 300 apartments or condominiums.
       She plans to rent out new furnished units at 4,500 to 8,000 baht a month and will showcase imported furniture from China to assist an expansion into the furniture import business.
       "There will be different pieces of furniture in all new rooms. I will order only one piece for each room. After opening the new buildings, we will sell mid-priced furniture imported from China as well,"said Ms Araya, who has invested only her own capital for the development.
       Managing rental apartments requires planning and computerised systems to do the paperwork, she said.
       "I don't have to check on m y apartments very often as the computerised system helps to ease my management. Renting apartments is a good business with regular income so the company can reach break-even in a few years,"she said.
       A&J Land is seeking permission to develop condominiums at its land plot near Suvarnabhumi Airport, where only four-storey buildings are permitted.
       Ms Araya plans to import construction materials from China to reduce costs.The development is likely to launch mid-2010 on a phased basis to meet demand from people working in the area.

For sale at $38.5m

2009-09-19T21:19:00.001-07:00

       Two penthouses in Hong Kong were each put on sale for a record US$38.5 million, a developer said yesterday, as demand from wealthy Chinese buyers has sent prices in the city soaring.
       Sun Hung Kai, the world's largest developer by market value, said it raised the asking price by 20% for the 4,000 square feet penthouses on top of the Cullinan twin towers, Hong Kong's tallest residential development.
       The properties will be the city's most expensive apartments if they are sold at the HK$300 million asking price, which translates into $75,000 per square foot.
       The penthouses, on the 91st to 93rd floor of the 270-metre (886-feet) towers,have their own outdoor garden and swimming pool.

DUBAI PROPERTY PRICES TO FALL FURTHER

2009-09-19T21:18:00.000-07:00

       Dubai house prices, which fell the most during the global recession, will undergo another "meaningful" slump in about three months because of increased supply and restrictions on mortgages, UBS said.
       Prices will drop an additional 33 per cent to about US$163 (Bt5,500) a square foot, said Saud Masud, an analyst in Dubai for the Zurich-based bank.
       They sank 47 per cent in the second quarter from a year earlier, Knight Frank said in September-10 report.
       Dubai landlords have created " temporary respite" in the market by keeping apartments empty rather than adding to a glut of homes available for rent, Landmark Advisorry said last month.
       Starting in the second half of 2008, the skeikhdom went from being the best performer out of 46 markets monitored in the Knight Frank global house-price index to the worst.
       A construction boom had created thousands of homes just as demand began to evaporate.
       People "feel the market is coming back and they are trying to hold off for a bit", Masud said.
       "But that is not going to last because when more inventory hits the market and someones apartment sits vacant for six to nine months, they are going to cave in, and that's when we'll see the re-pricing of assets."
       Jones Lang La Salle had said on August 16 that there were "signs of stabilistion" in Dubai's property market, with the decline in home prices having slowed i n the second quarter from the previous three months.
       However, the number of transactions fell 58 per cent during the quarter from a year earlier, it said.
       The market is currently in a numbphase, and optimism is based on few transactions, Masud said. Prices will reach a bottom in about 12 months to 18 months.
       Next year "is going to be tough, and I would be shocked if we started talking about a recovery in 2010", Masud said.
       "Issues of excess inventory, litigation, financing and payment delays are still unresolved and clogging up the pipeline."

SINGAPORE CURBS SPECULATION

2009-09-19T21:17:00.000-07:00

       After two warnings that it was keeping a close eye on heating up in the private housing sector, the Singapore government this week announced cooling measures to "temper the exuberance in the market and pre-empt any speculative bubble from forming".
       The Confirmed List land sales will be reintroduced from the first half of next year. The interest absorption scheme (IAS) that helped revive home sales earlier this year after the global financial crash has been scrapped with immediate effect.
       While some of the measures had already been anticipated by major developers, property veterans were still a bit taken aback by the speed of the response.In particular, the demand-side measures - disallowing the IAS and the similar interest-only housing loans (IOL) with immediate effect - were expected only later. The property business has visibly quietened down at show homes over the past two weekends - indicating that buyer fatigue was setting in.
       The Ministry of National Development (MND) said the government had introduced the measures now "because there are signs of increased speculative activity and private housing prices have also increased significantly since June 2009".
       It said a sample survey of recently launched projects showed that the takeup rate of the IAS was about 20-25%.
       Announcing the measures in Parliament, National Development Minister Mah Bow Tan warned that the government would continue to monitor the property market closely and would introduce additional measures if required.
       The government will also do away with five assistance measures extended to developers in Budget 2009 earlier this year when they expire, mainly in January 2010. The measures include allowing developers more time to complete their housing projects, permitting reassignment of government sale sites and giving up to two years of property tax deferral for land under development.
       Collectively, the measures are expected to reduce home sales and dampen prices.Mr Mah noted that developers sold about 10,000 private homes in the first seven months of this year - more than double the 4,300 units sold in the whole of 2008.
"The measures will generally bring more supply quickly to the market and that will dampen the buying frenzy,"said David Lawrence, CEO of Wheelock Properties (Singapore)."It will be slightly depressing on home prices."
       Market-watchers also expect the measures to help weed out speculators.
       "People will pause and review their home-buying decisions," said Ho Bee executive director Ong Chong Hua."It will also provide a reality check for d-
       velopers that have raised prices too aggressively."
       Mr Mah said:"We are currently seeing signs of heightened speculative activity, although the level of speculation is not yet extreme."Mah: Steady His ministry will supply ensured resume selling land under the confirmed list in the first half of 2010.Such sales, which were suspended in October last year, mean selling parcels on scheduled dates, which could translate to more residential property launches.
       Mr Mah said the government would also offer sites for executive condos (a hybrid between public and private housing) in the first half of the 2010 confirmed list to provide more choices.
       The government will also increase supply on the reserve list - where sites are launched only upon successful ap-plication - for the first half of 2010 to meet possible increase in demand.
       "With reinstatement of the confirmed list and more sites on the reserve list,the public can be assured that there will continue to be a steady supply of private housing," said Mr Mah.
       Ho Bee's Mr Ong said:"To some extent, developers will look forward to government releasing land as it will relieve pressure on high land prices seen lately at tenders for reserve list sites."
       The IAS and IOL are being disallowed as "these schemes could encourage property speculation in a buoyant market where prices are rising rapidly, as they are forms of housing loans that entirely eliminate or substantially lower regular instalment payments for property purchasers in the first few years before the properties are completed," said a government statement.
       The exception is for uncompleted private residential projects where units had already been offered for sale under IAS before this week.
       The Real Estate Developers Association of Singapore (Redas) said that the need for IAS and IOL has diminished given the relatively firmer market now. IAS was offered when the market was facing challenging economic conditions during the global financial meltdown.
       "This change is unlikely to have any significant impact on developers' future launches," Redas said.BUSINESS TIMES plication - for the first half of 2010 to meet possible increase in demand.
       "With reinstatement of the confirmed list and more sites on the reserve list,the public can be assured that there will continue to be a steady supply of private housing," said Mr Mah.
       Ho Bee's Mr Ong said:"To some extent, developers will look forward to government releasing land as it will relieve pressure on high land prices seen lately at tenders for reserve list sites."
       The IAS and IOL are being disallowed as "these schemes could encourage property speculation in a buoyant market where prices are rising rapidly, as they are forms of housing loans that entirely eliminate or substantially lower regular instalment payments for property purchasers in the first few years before the properties are completed," said a government statement.
       The exception is for uncompleted private residential projects where units had already been offered for sale under IAS before this week.
       The Real Estate Developers Association of Singapore (Redas) said that the need for IAS and IOL has diminished given the relatively firmer market now. IAS was offered when the market was facing challenging economic conditions during the global financial meltdown.
       "This change is unlikely to have any significant impact on developers' future launches," Redas said.

Giant foreign retailers taking over a lot of land, seminar hears from concerned Thais

2009-09-19T21:16:00.002-07:00

       Thais have lost their land ownership for expanding businesses and farm areas to foreign investors due to vast expansion by giant retailers, representatives at a seminar on the Retail and Wholesale Business Act (RBA) said.
       Speaking at the seminar yesterday on 'Retail Act: the Regulations in Capitalism and the Globalisation', organised by the Internal Trade Department, panelists voiced concern that foreign modern traders have occupied plenty of land to boost their business nationwide.
       They said that foreign retailers now have ownership over larger amounts of land through their outlets nationwide. They have the ownership right due to the lack of a specific law to block their expansion.
       Wichian Tangtumsatid, president of the Association for the Protection of Thai Occupation, said the expansion of large superstore chains have not only harmed small retailers, but also led to Thais losing their land for doing business and farming.
       "People are not aware that they have lost tens of thousands of rai to modern retailers. Farmers now have lower plantation areas due to wide expansion of modern retailers into small communities," he said.
       According to the commercial commission, there are about 680,000 small retailers and 125,000 fresh markets currently in Thailand. So far, some 20.7 million people are involved in the retail business, including owners, suppliers, employees, and family members of traditional retail businesses.
       Retail and wholesale business is currently worth Bt1.4 trillion. The sector accounts for 15 per cent of Gross Domestic Product. Of these, foreign investors, or the top five modern retail operators have enjoyed more than 50 per cent market share of the business.
       The association said giant retail businesses have expanded 90 to 100 per cent in the past 10 years, while the retail business has generally expanded by only 70 per cent during the same period.
       The association plans to propose its own draft for effectively controlling giant retailers' expansion in the country.
       Under the new draft from the people's side, it will specify that each retail or wholesale firm must not have a combined land of over 100,000 square metres. The draft law is expected to be completed in November this year for the government's consideration in line with the Commerce Ministry's draft.
       In addition, Thai retailers have called for the government to enact the Ministry Regulation for halting expansion of modern stores ahead of the retail act.
       Somchai Pornratanacharoen, president of the Association of Thai Wholesaling and Retailing, said the government must urgently announce temporary measures to stop large retailers from establishing new stores as they already have too many stores.
       "Thai small retailers have long suffered from the vast expansion of modern retailers. The government must ensure that during the vacuum period, small retailers will survive," Somchai said.
       Commerce Minister Porntiva Nakasai said that she could not assure when the retail act will be implemented. However, the current government has a clear policy to support the act's implementation to ensure a level playing field in the industry.

ING renounces pre-financing after TU-PF fine debacle

2009-09-19T21:16:00.001-07:00

       ING Funds will not set up any property funds to provide pre-financing following its experience with the T.U. Dome fund,said managing director Maris Tarab.
       ING plans to launch at least one property fund this year, a leasehold fund investing in an agricultural distribution centre expected to be finished in October.The fund will offer no guarantees on returns, but projects an annual yield of 9% and an internal rate of return of 10%over the 30-year lease.
       The company has several other funds in the pipeline, including infrastructure funds, biomass and biogas funds, said Mr Maris.
       A fund worth 2-3 billion baht will be set up to invest in six biomass projects set to be completed within one year,with an internal rate of return of 12%.
       A larger,10-billion-baht biomass fund will be established within three years, a project launched in co-operation with the Industry Ministry to invest in alternative energy power plants.
       "Alternative energy power plants are quite popular among foreign investors right now," he said.
       ING Fund took a public beating last month after the Securities and Exchange Commission fined the company 1.9 million baht and put Mr Maris on probation for three years due to fiduciary violations regarding the management of the T.U.Dome Residential Complex Property Fund.
       The TU-PF fund was launched in 2006 to invest in dormitories and serviced apartments on land owned by Thammasat University's Rangsit campus. After the buildings were complete, the fund was to lease the property from Thammasat for 30 years.
       But the SEC said in a statement that the land to be leased to the fund had other owners as well, and that Mr Maris,as the fund manager, authorised payments to the contractor before the lease was registered or the buildings completed. Mr Maris has denied any wrongdoing.
       ING Funds currently has assets under management of 180 billion baht, with a target of 200 billion by the year-end and 240 billion by the end of 2010, driven largely by the establishment of new property funds. Assets under management at the end of 2008 were 170 billion baht.

Want to live next door to the Obamas?

2009-09-16T08:11:00.000-07:00

       Want to live next door to US President Barack Obama? The colonial mansion next to his Chicago home is now available - for the right price.
       So far, the real estate broker handling the sale won't even guess at what that price might be.
       "We don't know what premium the Obama factor will have," said Matt Garrison of Coldwell Banker."If it was a block away it would be somewhere in the [neighbourhood] average of $1.2 to $2 million."
       Mr Garrison's phones have been ringing off the hook since the house was put on the market on Friday.
       They've had at least a handful of serious inquiries - one from as far away as London - and expect more to pour in as word gets out.
       But those hoping for an invite from Mr Obama or the chance to swap recipes with the First Lady might be setting themselves up for disappointment.
       Despite vowing to come home to Chicago as often as possible, the Obamas spend most of their time in Washington and have chosen Camp David and Martha's Vineyard for recent vacations.
       The new owners will also have to contend with roadblocks and screening by the Secret Service, what Mr Garrison calls living in "the ultimate gated community".
       Viewings of the brick home will be scheduled only after potential buyers show they are financially capable of closing the deal.
       Built in 1906, the brick colonial mansion has eight bedrooms, a coach house on its ample grounds and has maintained many of its original details and stained glass windows.
       It is just a few blocks away from the University of Chicago and the proposed site of the 2016 summer Olympics in the prestigious Kenwood neighbourhood on Chicago's south side.

Singapore out to cool market

2009-09-14T20:20:00.000-07:00

       Singapore yesterday announced measures to curb speculation in the red-hot property market after warnings that a new housing bubble might be forming.
       The Ministry of National Development signalled it was ready to sell more state land for property projects, and announced an end to bank loan schemes that let buyers put down just 10 or 20%of a home's assessed value.
       "Demand for uncompleted private housing units has picked up strongly since February 2009," the ministry said in a statement.
       The 10,017 units sold by developers in the first seven months of 2009 had already exceeded the 4,260 units sold for the whole of 2008, the statement said.
       Singapore's economy is officially forecast to shrink by 4 to 6% in 2009, but the city-state is now technically out of recession and back on a growth path.
       Analysts say the current property frenzy is largely driven by people who were unable to buy homes when prices spiralled in 2007 and then again in 2008 when a global banking crisis exploded.
       From now on, the Monetary Authority of Singapore "will no longer allow developers to offer cut-price mortgages such as interest-only loans for uncompleted residential projects," the government statement said.
       "These schemes could encourage property speculation in a buoyant market where prices are rising rapidly," it said.
       Under the schemes, a deposit of only 10 to 20% of the value is needed to buy a house or apartment.
       The removal of the easy financing schemes "will also encourage prospective home-buyers to consider carefully their ability to afford the properties over the long term and not rush into any purchases."
       "This will promote a more healthy and sustainable property market in the long run," the ministry added.
       In addition, some market-stabilising measures that were announced in January, when the property market was at rock bottom, will be phased out starting January 2010.
       These measures include allowing developers to seek extensions of project completion deadlines and rent out unsold units for up to four years.
       Li Hiaw Ho, executive director of property advisers CB Richard Ellis in Singapore, said curbs on lending were key to keeping the property market from bubbling over.
       "This would remove much of the speculative element from the burgeoning sales volume," Li said."Despite these measures, residential home prices and sales volume will continue to improve,only now the pace of increase would be moderated to more sustainable levels with less volatility."

Land-grabbing being probed

2009-09-13T20:13:00.001-07:00

       An investigation into an illegal land-grabbing scheme in Chiang Rai province is underway following a recent discovery that more than 80 per cent of forest reserves and national parks have either been developed into resorts and plantations, or belonged to private owners.
       A source with the Natural Resources and Environment Ministry said the issuance of fake land ownership in prohibited areas in Mae Salong forest reserve had begun when it was under the control of the National Park, Wildlife and Plant Conservation Department (DNP), then the Royal Forest Department (RFD), and currently the Forest Industrial Organisation (FIO).
       "No one has [tried to control] this practice nor [taken] any action against anybody behind it. The entire forest reserve is under the influence [of powerful interests]," the source said.
       RFD director-general Somchai Phiensathaphorn said yesterday he had received a written request querying progress of an internal investigation into encroachment and resorts being built in the forest reserve.
       "We are in the process of verifying the request and relevant facts," he said.
       The request was submitted last week by the DNP and Mae Chan police based in Chiang Rai. Asked how long the investigation would take, as the matter had dragged on for a long time, Somchai said: "I cannot give a time frame for the scrutiny now, but I will hasten the learning about the encroachment for a long time," he added.
       The Mae Salong forest reserve is located in mountainous and hillside areas and, as required by forestry laws, cannot be transferred to private ownership. The encroachment and illegal transfer of land ownership to private owners began late in 1994 and has continued since. The ministry claims it once launched an inquiry into the practice, but received no answers.
       In the latest discovery, the source said FIO surveyors "were stunned" after finding out that about 20 per cent of areas, or around 700 rai, were being cultivated, while 80 per cent were owned, or had became resorts and tourist accommodation. He said these owners were influential people and at times threatened forestry or FIO officials with gunshots when they entered their areas.
       In an RFD finding, 5,481 rai of areas are now owned, have been sold or have had their ownership transferred. Some 746 rai are being cultivated and are regarded by authorities as being owned.

Solve Cambodia's land crisis in courts, not with bullets

2009-09-12T17:21:00.000-07:00

       WHEN POLICE opened fire on unarmed farmers protesting confiscation of their land in Siem Reap on March 22 this year, four villagers were seriously wounded. Luon Meng - shot in both thighs - will probably be disabled for life.
       Almost six months later, Meng's uncle is still pressing officials to explain why not a single charge has been filed against the police who fired on the farmers or those who ordered them to shoot.
       "Soldiers and police should use their guns to protect people, not shoot them," Meng's uncle - a Buddhist monk named Venerable Luon Savath - told me recently.
       Photographs and video footage that Savath and others compiled on the incident appear to show dazed and stunned farmers - some with gashes and gaping wounds - tied to poles after the shooting, which took place in the presence of provincial officials.
       According to eyewitnesses, the police immediately said that it was legal to shoot the farmers as long as they aimed below the waist.
       Instead of investigating the officers who shot the protesters, authorities arrested and jailed eleven of the farmers, who now await trial on robbery charges. This week the provincial court summoned for questioning three of the farmers who were shot - including one still in hospital, who had to be transported to court.
The wounded men now face possible defamation charges, for daring to file a complaint about the incident with the Justice Ministry. Such is the nature of "justice" in Cambodia.
       Lawsuits against government critics are the latest in a series of well-worn - and abused - "legal" tactics used by officials and powerful people in Cambodia to silence dissent. Violence is the other tool.
       While the crackdown in Siem Reap was one of the most violent confrontations in a land dispute in Cambodia so far this year, it is no isolated incident.
       Cambodians across the country are increasingly losing their homes, land and natural resources on which their livelihoods depend to make way for commercial development, agri-business plantations, hydro-electricity dams and mining concessions. In Phnom Penh alone, at least 30,000 urban poor have been forced from their homes in recent years. More than 150,000 people nationwide are at risk of losing their land and their homes.
       When communities seek information about land confiscations and peaceful resolution of disputes, they are increasingly met with harassment, intimidation, arrest and violent evictions.
       Government officials often deploy heavily armed police and soldiers to force people off their land without court orders or any form of fair hearing for the owners or occupiers of the land.
       Authorities have arrested or jailed dozens of activists, often on spurious charges, for defending their land rights.
       Most of the Siem Reap farmers driven from their land in March had farmed those fields since the late-1980s. Under Cambodian law, this entitles them to the right to continue farming and eventually obtain title to the land.
       Most farmers in Cambodia, however, have yet to obtain formal titles, which often require bribes or political connections. The people now claiming legal "ownership" are well-connected businessmen with the means to call on virtually every state mechanism for support - courts, district and provincial officials, and finally, police and soldiers.
       Despite the government issuing more than one million land titles since 2002 in a World Bank-supported project, the vast majority of Cambodia's urban and rural poor have been excluded. A World Bank review of the US$24 million (Bt819 million) programme released this week called on the government to remedy the fact that "some land areas have been excluded from titling without clear criteria or explanation provided to the local communities".
       The urgency of Cambodia's land crisis prompted a rare public appeal recently from development partners. In July, the World Bank, the UN, the Asian Development Bank, the European Commission, the Swedish International Development Agency and several embassies called on the government to stop forced evictions until fair and transparent land dispute and resettlement mechanisms are in place.
       The Cambodian government has not only ignored such appeals, but rebuffed them.
       On Monday, Prime Minister Hun Sen announced the termination of the World Bank's land-titling project. The reason, he said, was that the partnership with the World Bank was "difficult and complicated" and "had too many conditions".
       The government has become as impervious to the humanitarian appeals of its international donors as it is to the plight of its poorest citizens. But there is growing awareness among the poor of their rights under local and international law.
       On Thursday [Sept 10], farmers representing tens of thousands of people nationwide gathered in Phnom Penh, seeking responses to land rights complaints they submitted a month ago. Many of these people will now face threats to their personal security, as well as spurious legal battles that could land them in prison.
       Rather than filing lawsuits against or opening fire on land-rights activists, the government should resolve these complaints.
       Land disputes should be settled in an independent court, not by armed police and soldiers. Ownership should be determined by Cambodia's Land Law, rather than wealth and political connections. Until authorities can properly implement and respect Cambodia's Land Law, the government should enact a moratorium on forced evictions.
       The government should also ensure the safety of peaceful land-rights advocates such as Sovath, whose calls for justice have been met by threats and intimidation. Soldiers threatened to storm his temple to confiscate the video he compiled of the shooting and its aftermath.
       The Siem Reap crackdown caused villagers to go into hiding, fearful of being shot or arrested.
       "Many farmers fled, leaving their cooking pots behind," Savath told me. All they had was fear, frustration and empty stomachs. They struggled to hide from local authorities, police and soldiers, who neither respect nor fear the law or human rights because they have power."
       Unarmed farmers being shot and city dwellers being forced from their homes at gunpoint are grim reminders of the country's past under the Khmer Rouge regime of the 1970s. This is not what international donors have in mind when they make annual pledges to cover more than half of Cambodia's national budget.
       Savath laments the difficulties faced by landless villages throughout Cambodia: "Now when farmers raise their voices about loss of their land, they are threatened, jailed, or brought to court and sued."
       In his home province of Siem Reap, the situation has turned grim.
       "The farmers' paddy fields used to be busy," he said. "The sound was sweet and joyful with farmers singing, laughing and dancing to deal with the hard work. Now the fields are for weeping. They are grief-stricken places. This is because the rich have collaborated with the powerful to take the land."

WANGTHONG SEEKS LAND FOR 2010 PLANS

2009-09-11T06:25:00.000-07:00

       Property firm Wangthong Group has set aside Bt500 million to buy undeveloped land in three locations for residential development in the next year.
       The company recorded total sales of Bt1 billion in the first eight months of this year. Managing director Pramote Jesadawarangkul said at a press conference yesterday that the Bt1 billion amounted to growth of 10 per cent over the same period last year.
       The company also plans to launch its latest condominium project, The Centre, located close to Zeer Rangsit and worth nearly Bt300 million, this month.
       Pramote said the 10-per-cent gain was due to home-buyers renewed confidence and the government's tax incentives for property development.
       "The number of customers who are visiting our residential projects is up over last year, and most of them have already made a decision to buy," he said.
       Given the results for the first eight months of the year, the company now believes that total sales for the year will meet the target of Bt1.5 billion.
       "If Thailand's economy recovers, we are ready to apply to be a listed company on the Stock Exchange of Thailand, after delaying the plan over the last two or three years," Pramote said.
       The company will focus on the townhouse market rather than single detached houses in the next year. It estimates sales of townhouses will account for 60 per cent of the total, with the rest coming from single detached houses.
       The Wangthong group is one of several property firms developing residential property in the Rangsit area.
       The company now has eight projects worth Bt9 billion, most of them in the area.

RECREATING A HAPPY HOME

2009-09-09T23:50:00.000-07:00

       As the tsunami hit the south of Thailand in 2004, it indiscriminately and harrowingly claimed thousands of lives, including four members of the tight-knit Sthapitanonda family on holiday at the time, leaving the sole survivor, Assoc Prof Dr Parichart, suffering heart-wrenching trauma for several years having to cope with such an unexpected loss.
       The once loving and affectionate family home back in Bangkok turned bleak and lifeless. Happy laughs were deafened by silent sobbing of the only dweller. Each day ended with an anguished memory.
       "I felt so desperate and lonely," revealed Dr Parichart."At the time, it seemed that my life was over too. I missed my parents and two closest sisters. The entire house turned gloomy and cheerless."
       The situation was exasperated when a group of burglars broke into her "melancholic sanctuary" and took away her loved ones' belongings. It seemed like the entire world was collapsing in front of her eyes.
       "I felt this city was no longer safe, even right in my own house. I kept asking myself why those things had to happen to me.Suddenly, I felt that my home was no longer liveable and I really wanted to move out and sell it to others," she said.
       "But when I came to my senses, I carefully explored my inner feelings. Eventually, I knew what I had to do with my parents'house."
       No place like home
       Five years later the once "dying house"is now restored to its glory days, vividly reflecting the true identity of the owner who wants to keep parts of her memorable and happy experiences with her loved ones alive in every nook and cranny.
       "I redecorated some corners and rooms to bring a new dimension of happiness to my life. But the genuine spirit of this home is still maintained. To me, a true home is a place where I can live happily, both physically and mentally," she said.
       Though Dr Parichart is an authentic travel aficionado, she finds that no place is like her home. When she wants to relax her body and soul, she simply moves to different areas of the house.
       Cool therapy
       Whenever Dr Parichart feels physically and mentally weary, she knows right away where to go to recharge her batteries. She merely heads back home and then immerses herself in her cozy jacuzzi, enjoyably slipping into her resting privacy. And the best time to keep her body and mind fresh and cool is at night.
       "While listening to the water sounds and soaking in the whirlpool bathtub, I feel overwhelmingly relaxed. It seems like I can escape from the chaotic city," she said."More impressively, when I look up into the sky, I can see the glamorous Moon and the glistening stars. That makes my relaxation time more impressive and natural."
       A rainy bathroom
       Dr Parichart always yearns for nature and is happy to bring it into her home, even the most private area.
       A semi open-air bathroom is designed to satisfy her need to have a shower amidst the natural environment. And her happiness is doubly increased when the rainy season comes since it means that she can take a real cool shower pouring down from the sky.
       The entire bathroom is in yellow tones with no roof. Its rough cement walls reflect rawness and simplicity. The floor is lined with wood and pebbles, rendering a unique ambiance.
       "At night, I can hear the crickets chirping while in the mornings many birds also sing their tuneful songs. It's like I'm taking a bath in a natural setting," she said.
       A happy hammock
       At weekends, Dr Parichart always happily ends her days in a hammock tied under big trees where she can expose her soul directly to her small green world.
       "This area is nestled in a small forest where several kinds of trees that bear fragrant flowers are thriving well and providing cool shade.In the evening, I enjoy taking a rest beneath the canopy of these trees to smell their scented blooms," she elaborated.
       This corner was once also the most favourite place of her two dead sisters who always had a cup of coffee and practised yoga in the morning.
       "My two younger sisters really liked a garden. If they were still alive, they would frequently spend their time here," said Parichart.
       A doll's world
       To Dr Parichart, a doll's room is so meaningful since it keeps all the good memories of when members of her family spent their time altogether in other countries. Upon returning home, they always brought back with them a wide variety of adorable dolls vividly reflecting various cultures and identities of the countries they visited. And each family member also had their own favourite dolls. So far, several hundreds dolls from all over the world are kept in glass cabinets.
       "We shared the same interest in collecting dolls. It was first started by my mother and then the others followed suit. Each doll we collected also mirrors our character. These collectible showcases also fascinate my guests,too," said Dr Parichart.
       "Whenever I feel bored,I will go to this room and rearrange the dolls. Those at the back are moved to the front and vice versa.It's pleasurable doing this."
       Apart from serving as a private doll museum,this room is also set aside as an informal living room where Dr Parichart can welcome her close friends to attend any get-together party and they all will be treated with about 500 songs played automatically by the ancient piano bought from Japan, regarded as a family heirloom.
       "This piano was bought when I was 10. I will play it when I have guests. There is also a space where they can dance along with the songs. But while relaxing myself in the jacuzzi,I will listen to the songs played by this piano.It's so relaxing," she said.
       An Indian ingress
       And when the meeting is more formal, Dr Parichart will lead her guests to the multifunction room, once the family's living room.
       In order to connect the interior area with the outside green zone, Dr Parichart prefers glass walls rather than opaque ones that seem to trap all people inside with no way out. And to be compatible with the theme of a multi-function room, there is a whiteboard which can be used on various occasions.
       "Sometimes when I have a meeting or teach my students at home, this whiteboard is so useful. This room is so versatile. It can be used to hold a personal party and small meeting. Very, often, I also work in this room,"she said.
       At the front of the room stands a majestic thousand-year-old Indian-style door, regarded as the house's extraordinary showcase. It took Dr Parichart several years to "hunt down"her favourite door.
       "I once saw an Indian door at Siam Discovery and I really liked it. I told my interior designer to find one for me while I studied abroad but he couldn't. When I returned home, I was still looking for an Indian door until I found one in Chiang Mai," she recalled.
       At the centre of the room stands the dining table where her family once enjoyed happy meals together. Now this remnant of the old days still serves its original function whenever
       a small party is held at home.
       "My mother bought this table several years ago. It was imported from Italy and now it is not available in Thailand because its price is so exorbitant due to the stone used to design the whole piece, which is taken from the deep sea. At first, it was put in the garden but I just moved it into the room to accommodate my guests," she explained.
       An endless mission
       According to Dr Parichart, the fun part of decorating her house happens when everything can be moved from place to place to render a novel atmosphere and to be in harmony with the different moods of the different times of the year.
       To her, finding the right piece of furniture or any decorative item is also challenging and exciting.
       "I can't finish decorating my house. It takes years to find the favourite pieces. Decorative work is endless," she said.
       Dr Parichart believes that it's not necessary to pay for expensive decorative items when it comes to interior design. There are other factors that can make the entire house more magnificent and liveable including light-andshadow arrangements and, more importantly,continual care and maintenance.
       "The beauty of a house can vanish within the blink of an eye if the house is neglected.It demands great care and continuous attention to keep all details in good shape.What I am trying to do is to make my house become my retreat centre, where I can happily rest my body and soul," she said.