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.
Wednesday, September 9, 2009
Tuesday, September 8, 2009
Residential sector 'first' to recover
The property market for foreign buyers and investors will continue falling the rest of this year, but demand for residential and other types of Property will improve next year, real estate agencies told a seminar yesterday.
Aliwassa Pathnadabutr, managing director for CB Richard Ellis (Thailand), said demand for grade A office space in the central business district slid 5.7 per cent in the second quarter from the same quarter last year.
Most multinational firms cut costs and suspended their expansion plans in Thailand when they faced the global recession, she said.
Longlom Bunnag, are executive at Jones Lang LaSalle (Thailand), said political uncertainty has crippled the economy and property market.
Demand for industrial estates has withered this year. Some manufacturers also shifted their plants from Thailand to other countries in the region, which promise lower labour costs and greater political stability than Thailand.
Phanom Kanjanathiemthao, managing director of Knight Frank Charter (Thailand), said villas and resorts for foreign buyers and investors have gone through a tough time this year, when most foreign buyers froze their investment plans.
If the government wants to stimulate this market, it has to revise the act that limits foreign holdings of land and property in thailand by extending the lease term from 30 years to 90 years, and allowing them to apply for a mostgage loan from a local bank, he said.
Patima Jirapath, managing director of Collier International Thailand, said the total supply of Bangkok retail space as of June 30 was 5.13 million square meters, of which 59 per cent was shopping malls, followed by hypermarkets with 13 per cent and community malls with 8 per cent.
When the global recession struck the local economy last year, retailers were left high and dry, as both local and foreign shoppers cut their spending.
But now the company sees a bright outlook for the retail market, when consumers regain their confidence in the last quarter of this year, he said.
Aliwassa Pathnadabutr, managing director for CB Richard Ellis (Thailand), said demand for grade A office space in the central business district slid 5.7 per cent in the second quarter from the same quarter last year.
Most multinational firms cut costs and suspended their expansion plans in Thailand when they faced the global recession, she said.
Longlom Bunnag, are executive at Jones Lang LaSalle (Thailand), said political uncertainty has crippled the economy and property market.
Demand for industrial estates has withered this year. Some manufacturers also shifted their plants from Thailand to other countries in the region, which promise lower labour costs and greater political stability than Thailand.
Phanom Kanjanathiemthao, managing director of Knight Frank Charter (Thailand), said villas and resorts for foreign buyers and investors have gone through a tough time this year, when most foreign buyers froze their investment plans.
If the government wants to stimulate this market, it has to revise the act that limits foreign holdings of land and property in thailand by extending the lease term from 30 years to 90 years, and allowing them to apply for a mostgage loan from a local bank, he said.
Patima Jirapath, managing director of Collier International Thailand, said the total supply of Bangkok retail space as of June 30 was 5.13 million square meters, of which 59 per cent was shopping malls, followed by hypermarkets with 13 per cent and community malls with 8 per cent.
When the global recession struck the local economy last year, retailers were left high and dry, as both local and foreign shoppers cut their spending.
But now the company sees a bright outlook for the retail market, when consumers regain their confidence in the last quarter of this year, he said.
Monday, September 7, 2009
WEALTHY US TOWN SUFFERING RECESSION
Cheryl MacCluskey broke ground on a five-bedroom luxury home in Greenwich, Connecticut, last year, hoping it would sell by that June. Then reality set in.
She cut the price 13 per cent to US$4.4 million (Bt150 million), but this till failed to lure buyers. So she rented it last week for $13,000 a month.
"I'd never have out it up for rent before," MacCluskey, president of M&M Development, said of the 725-square-metre house.
"In this down market you don't really have a choice."
Greenwich home-owners, saddled with the worst sales climate in 30 years, are turning to the rental market.
The number of single-family properties for rent in this suburb an hour outside of Manhattan climbed more than sixfold this year as sales fell by almost half.
More than 525 house were rented or listed for lease through last month, said Eric Bjokr, vice president and sales director for Prudential Connecticut Realty in Greenwich, home to more than 100 hedge funds.
"Never in the market's history have I ever seen anything like this, where you have a whole group of normal buyers in Greenwich renting luxury homes instead of buying them," said Greenwich Fine Properties' broker Jeanne Howell.
That's a departure for a town synonymous with high finance. Last year, hedge funds occupied about 80 per cent of the commercial property in town, data from Los Angeles, California-based broker CB Richard Ellis Group showed. Billionaire Edward Lampert's ESL Investments is based there.
Home values and income in Greemwich leaped in the earlier part of this decade.
Median home prices climbed 32 per cent from 200
through 2004, then another 13 percent in 2005, said Shore & Country Properties broker and owner Russell Pruner.
The town's median household income was about $118,000 in 2007, more than twice the national average, according to the US Census Bureau.
Annual taxes on a home with a $4-million market value could be as high as $24,500, said Roland Gieger, Greenwich's budget director. Single-family sales in Greenwich declined 48 per cent to 167 this year through July, Shore & Country said.
That puts the town on course for its worst sales decline since records began in 1977.
The number of homes for sale climbed 24 per cent from a year ago to 692 as of August 31, and the median price dropped 21 per cent in the 12 months through July to $1.55 million, said John Cooke, a broker who compiles data for Prudential.
The house that MacCluskey built on 0.4 hectare near the town's central business district costs more than $15,000 each month to carry, including taxes and mortgage repayments.
It has four fireplaces, a library and six bathrooms. She plans to put it back on the market next March for $4.9 million.
About 50 single-family Greenwich homes were listed for rent of $15,000 or more last month. More than half were also available for sale.
Speculative homes, those built without a buyer lined up, accounted for 20 of the 50 high-end rentals, Howell said.
She cut the price 13 per cent to US$4.4 million (Bt150 million), but this till failed to lure buyers. So she rented it last week for $13,000 a month.
"I'd never have out it up for rent before," MacCluskey, president of M&M Development, said of the 725-square-metre house.
"In this down market you don't really have a choice."
Greenwich home-owners, saddled with the worst sales climate in 30 years, are turning to the rental market.
The number of single-family properties for rent in this suburb an hour outside of Manhattan climbed more than sixfold this year as sales fell by almost half.
More than 525 house were rented or listed for lease through last month, said Eric Bjokr, vice president and sales director for Prudential Connecticut Realty in Greenwich, home to more than 100 hedge funds.
"Never in the market's history have I ever seen anything like this, where you have a whole group of normal buyers in Greenwich renting luxury homes instead of buying them," said Greenwich Fine Properties' broker Jeanne Howell.
That's a departure for a town synonymous with high finance. Last year, hedge funds occupied about 80 per cent of the commercial property in town, data from Los Angeles, California-based broker CB Richard Ellis Group showed. Billionaire Edward Lampert's ESL Investments is based there.
Home values and income in Greemwich leaped in the earlier part of this decade.
Median home prices climbed 32 per cent from 200
through 2004, then another 13 percent in 2005, said Shore & Country Properties broker and owner Russell Pruner.
The town's median household income was about $118,000 in 2007, more than twice the national average, according to the US Census Bureau.
Annual taxes on a home with a $4-million market value could be as high as $24,500, said Roland Gieger, Greenwich's budget director. Single-family sales in Greenwich declined 48 per cent to 167 this year through July, Shore & Country said.
That puts the town on course for its worst sales decline since records began in 1977.
The number of homes for sale climbed 24 per cent from a year ago to 692 as of August 31, and the median price dropped 21 per cent in the 12 months through July to $1.55 million, said John Cooke, a broker who compiles data for Prudential.
The house that MacCluskey built on 0.4 hectare near the town's central business district costs more than $15,000 each month to carry, including taxes and mortgage repayments.
It has four fireplaces, a library and six bathrooms. She plans to put it back on the market next March for $4.9 million.
About 50 single-family Greenwich homes were listed for rent of $15,000 or more last month. More than half were also available for sale.
Speculative homes, those built without a buyer lined up, accounted for 20 of the 50 high-end rentals, Howell said.
Sunday, September 6, 2009
LANDMARK PLANS LUXURY HOTEL FOR BUSINESSMEN
The Landmark Group, after 16 years of success in running the Royal Lancaster and three other hotels in London, is returning home with plans to open a luxury hotel on New Phetchaburi Road in 2011.
Lancaster Bangkok, situated near the Asoke-Phetchaburi intersection and the Airport Rail Link's Makkasan complex, will cost Bt1.5 billion and will have 230 rooms.
"Due to the economic slowdown, it has become easier to cut deals with contractors. This saves on investment costs," said Landmark Group's president and managing director, Jatuporn Sihanatkathakul.
He said the group had pondered a resumption of investment in Thailand for a few years, but the decision had been accelerated by the economic slump in the United Kingdom. Alhough the group's four properties in London are "doing fine", this is the right time to be returning home, he said.
As well as the Royal Lancaster, which will be rebranded as the Lancaster London this week, the group owns and operates Landmark London, K West and Basil Street Apartments. The properties remain successful and have 70 to 85 per cent occupancy rates, although the room rates are 5-per-cent higher than those of international chains, he said.
The Lancaster Bangkok, although barely off the drawing board, will be positioned as a business hotel. As such, it will mainly target individual business travellers and upper-level tourists. With an average room rate of Bt4,500 to Bt5,000 per night, it will compete with other luxury hotels in Bangkok. However, it will be the only luxury hotel close to the Airport Rail Link.
"We expect a 50-per-cent occupancy rate in the first year of operation and 60 to 70 per cent in later years," Jatuporn said.
The new property is expected to appeal to visitors from the UK, France and other European countries who are familiar with the Lancaster and Landmark brands in London. The new property will complement the group's existing Landmark Hotel, on Sukhumvit Road, which also targets mostly businessmen.
Jatuporn's youngest son, Tosaporn Sihanatkathakul, will be a key executive driving establishment of the new hotel.
Lancaster Bangkok, situated near the Asoke-Phetchaburi intersection and the Airport Rail Link's Makkasan complex, will cost Bt1.5 billion and will have 230 rooms.
"Due to the economic slowdown, it has become easier to cut deals with contractors. This saves on investment costs," said Landmark Group's president and managing director, Jatuporn Sihanatkathakul.
He said the group had pondered a resumption of investment in Thailand for a few years, but the decision had been accelerated by the economic slump in the United Kingdom. Alhough the group's four properties in London are "doing fine", this is the right time to be returning home, he said.
As well as the Royal Lancaster, which will be rebranded as the Lancaster London this week, the group owns and operates Landmark London, K West and Basil Street Apartments. The properties remain successful and have 70 to 85 per cent occupancy rates, although the room rates are 5-per-cent higher than those of international chains, he said.
The Lancaster Bangkok, although barely off the drawing board, will be positioned as a business hotel. As such, it will mainly target individual business travellers and upper-level tourists. With an average room rate of Bt4,500 to Bt5,000 per night, it will compete with other luxury hotels in Bangkok. However, it will be the only luxury hotel close to the Airport Rail Link.
"We expect a 50-per-cent occupancy rate in the first year of operation and 60 to 70 per cent in later years," Jatuporn said.
The new property is expected to appeal to visitors from the UK, France and other European countries who are familiar with the Lancaster and Landmark brands in London. The new property will complement the group's existing Landmark Hotel, on Sukhumvit Road, which also targets mostly businessmen.
Jatuporn's youngest son, Tosaporn Sihanatkathakul, will be a key executive driving establishment of the new hotel.
TAKING CARE IN TIMES OF RECOVERY
The jury is still out on the new rays of economic recovery, with some market movers being certain there is more pain to come before an upturn sets in despite what the bigwigs have been saying lately.
Among them is Trevor Keidan, director of Infinity Financial Solutions, a Bangkok-based financial advisory firm, who said that the world would see the Dow Jones, S&P, Nasdaq,MSCI and FTSE indices all potentially tumble below last year's lows before they recover because there is still a lot of grime in the system, similar to the Bernie Madoff scandal,that has to be washed away.
However, both US Federal Reserve chief Ben Bernanke and the IMF think that recovery is at hand with the latter expecting a global contraction of 1.4% this year followed by growth of 2.5% next year.
Mr Keidan bluntly said he does not buy this optimistic view because they would be reluctant to make negative projections.
"I think there is a lot of bad debt out there,there is a lot of credit card debt that people are going to struggle to pay and service, and I think we could see a 'sub-prime' in the credit card market."
He also pointed to the US government's popular "Cash for Clunkers" programme that led to car sales rising in August compared with last year. Although carmakers are celebrating this spike in sales, their performance is still below par and would not have improved at all but for US government intervention.
Mr Keidan warned that the US national debt is out of control, and this is causing the dollar to weaken, with this slide probably leading to some inflationary measures.
However, it is not just the US that is struggling economically - the UK also is in a difficult position. Sterling has been volatile,rising as high of US$2.60 a few months ago and falling back to $1.36, although it has now clawed back to about $1.62.
Also, while emerging markets such as China and Russia have done phenomenally well,recovering about 50% after falling 50-60%,one must bear in mind that this increase is from a lower base."If you had $100 and it falls 60% that leaves $40. You need 125%growth just to get back even."
While the situation is far from rosy, Mr Keidan agreed there is always money to be made because generally when someone loses someone else wins.
"I think people need to be well diversified.Personally I would be with good managers,good fund managers." He suggests adopting quality long and short strategies and opting for managed futures and very macroeconomically managed funds that look at obtaining returns wherever they might be made.
He is all for investing in gold because although it is now trading in the range of $940-$950 a troy ounce, its intraday peak this year was $1,035. This precious metal could potentially dip to $750 a troy ounce,and should this occur it would be a definite buying opportunity because it could rise to $1,250 by the end of this year.
That gold could soar this high is because several countries, among them China and Japan, have piled up a lot of dollars that they do not know what to do with and could be quietly acquiring this precious metal.
"I think they want to find something to do with their money, they have so much surplus dollars, but now all currencies are worthless because interest rates are on the floor and no one is getting any return on their cash."
Because oil and gold have such a close correlation, with Opec also to a large extent controlling the price, Mr Keidan expects the price per barrel to climb to about $90, although others believe it will hit $110.
"If the US keeps printing money they are going to put this immense inflationary pressure on everything, so that is going to have an impact."
Turning to property, Mr Keidan said there are interesting opportunities here but this does hinge on the banks freely and sensibly lending money to buyers again.
Although inflation does drive up the price of commodities, which in turn would push up the replacement cost of property as well as the cost of running it, we must remember that the value of a product is defined by the amount of money someone is willing to pay for it.
"If you're willing to pay 1,000 baht per square metre, and that is the best price they can get - that is the value because you can say the value is 2,000 baht per square metre but it's not the real value because you can't realise it.
"If we have a stranglehold on property because the banks won't lend or can't lend,or don't have the money to lend, then actually the prices of property will fall even in an inflationary environment."
Mr Keidan warns against buying property in Thailand because he believes the corrections have not been big enough yet.
"If you want to buy property in Florida where markets have corrected hugely, where you might be buying 40-50% below the highs,then maybe it is worth looking at to hold on to.
"But you need to have other assets because property at the moment is very illiquid."
While many expect China and India to emerge as economic powers from this global crisis, some doubt that India with its wide-spread poverty will make it. However Mr Keidan believes both Asian giants will soar economically mainly because of their huge populations. Despite India's poverty problem its one billion plus population does mean that there are that many people consuming food and drinking water every day.
"China and India are very interesting, China has probably got more chance from the nature of the beast, my only concern is the lack of transparency in doing business with them.
"India is much more transparent - it's an ex-colony and the legal system and everything is like the British system, whereas China,they are very closed and if you come in as a foreigner they will take your money and just close the door."
"If the US keeps printing money they are going to put this immense inflationary pressure on everything
Among them is Trevor Keidan, director of Infinity Financial Solutions, a Bangkok-based financial advisory firm, who said that the world would see the Dow Jones, S&P, Nasdaq,MSCI and FTSE indices all potentially tumble below last year's lows before they recover because there is still a lot of grime in the system, similar to the Bernie Madoff scandal,that has to be washed away.
However, both US Federal Reserve chief Ben Bernanke and the IMF think that recovery is at hand with the latter expecting a global contraction of 1.4% this year followed by growth of 2.5% next year.
Mr Keidan bluntly said he does not buy this optimistic view because they would be reluctant to make negative projections.
"I think there is a lot of bad debt out there,there is a lot of credit card debt that people are going to struggle to pay and service, and I think we could see a 'sub-prime' in the credit card market."
He also pointed to the US government's popular "Cash for Clunkers" programme that led to car sales rising in August compared with last year. Although carmakers are celebrating this spike in sales, their performance is still below par and would not have improved at all but for US government intervention.
Mr Keidan warned that the US national debt is out of control, and this is causing the dollar to weaken, with this slide probably leading to some inflationary measures.
However, it is not just the US that is struggling economically - the UK also is in a difficult position. Sterling has been volatile,rising as high of US$2.60 a few months ago and falling back to $1.36, although it has now clawed back to about $1.62.
Also, while emerging markets such as China and Russia have done phenomenally well,recovering about 50% after falling 50-60%,one must bear in mind that this increase is from a lower base."If you had $100 and it falls 60% that leaves $40. You need 125%growth just to get back even."
While the situation is far from rosy, Mr Keidan agreed there is always money to be made because generally when someone loses someone else wins.
"I think people need to be well diversified.Personally I would be with good managers,good fund managers." He suggests adopting quality long and short strategies and opting for managed futures and very macroeconomically managed funds that look at obtaining returns wherever they might be made.
He is all for investing in gold because although it is now trading in the range of $940-$950 a troy ounce, its intraday peak this year was $1,035. This precious metal could potentially dip to $750 a troy ounce,and should this occur it would be a definite buying opportunity because it could rise to $1,250 by the end of this year.
That gold could soar this high is because several countries, among them China and Japan, have piled up a lot of dollars that they do not know what to do with and could be quietly acquiring this precious metal.
"I think they want to find something to do with their money, they have so much surplus dollars, but now all currencies are worthless because interest rates are on the floor and no one is getting any return on their cash."
Because oil and gold have such a close correlation, with Opec also to a large extent controlling the price, Mr Keidan expects the price per barrel to climb to about $90, although others believe it will hit $110.
"If the US keeps printing money they are going to put this immense inflationary pressure on everything, so that is going to have an impact."
Turning to property, Mr Keidan said there are interesting opportunities here but this does hinge on the banks freely and sensibly lending money to buyers again.
Although inflation does drive up the price of commodities, which in turn would push up the replacement cost of property as well as the cost of running it, we must remember that the value of a product is defined by the amount of money someone is willing to pay for it.
"If you're willing to pay 1,000 baht per square metre, and that is the best price they can get - that is the value because you can say the value is 2,000 baht per square metre but it's not the real value because you can't realise it.
"If we have a stranglehold on property because the banks won't lend or can't lend,or don't have the money to lend, then actually the prices of property will fall even in an inflationary environment."
Mr Keidan warns against buying property in Thailand because he believes the corrections have not been big enough yet.
"If you want to buy property in Florida where markets have corrected hugely, where you might be buying 40-50% below the highs,then maybe it is worth looking at to hold on to.
"But you need to have other assets because property at the moment is very illiquid."
While many expect China and India to emerge as economic powers from this global crisis, some doubt that India with its wide-spread poverty will make it. However Mr Keidan believes both Asian giants will soar economically mainly because of their huge populations. Despite India's poverty problem its one billion plus population does mean that there are that many people consuming food and drinking water every day.
"China and India are very interesting, China has probably got more chance from the nature of the beast, my only concern is the lack of transparency in doing business with them.
"India is much more transparent - it's an ex-colony and the legal system and everything is like the British system, whereas China,they are very closed and if you come in as a foreigner they will take your money and just close the door."
"If the US keeps printing money they are going to put this immense inflationary pressure on everything
Thursday, September 3, 2009
Mass-transit system lifts land prices
The value of land surrounding Bangkok's mass transport systems has risen faster than in other areas of the city to about 400 billion baht, says an independent real estate consultant.
The Agency for Real Estate Affairs (AREA) recently conducted a survey of land prices in 300 areas in Greater Bangkok. The results show overall land prices appreciated in the past decade but those surrounding the current 41 BTS and MRT stations at almost twice the rate.
It compared prices of land in 1999 and 2009 in four specific locations with and without mass transit - Huai Khwang with Chokchai 4; Ekamai with Rama IV;Sukhumvit 21 with New Phetchaburi Road; and South Sathon with Chan Road.
The price of land in locations close to mass transit rose by 239% over the decade while comparable areas rose by 151%.
The average price of land plots this year was 438,438 baht per square wah,up from 205,338 baht in 1999. The price per rai increased by 82.16 million baht in the same period, according to AREA.
Land within 400 metres of a masstransit station was considered "near"to the transport system by AREA.
"Therefore, the appreciation of value of land in the current 41 stations -23 BTS and 18 MRT - is 404.105 billion baht. With this amount, we can build a new line of the mass transit route so the construction of the system is really a worthwhile investment," it said.
The Agency for Real Estate Affairs (AREA) recently conducted a survey of land prices in 300 areas in Greater Bangkok. The results show overall land prices appreciated in the past decade but those surrounding the current 41 BTS and MRT stations at almost twice the rate.
It compared prices of land in 1999 and 2009 in four specific locations with and without mass transit - Huai Khwang with Chokchai 4; Ekamai with Rama IV;Sukhumvit 21 with New Phetchaburi Road; and South Sathon with Chan Road.
The price of land in locations close to mass transit rose by 239% over the decade while comparable areas rose by 151%.
The average price of land plots this year was 438,438 baht per square wah,up from 205,338 baht in 1999. The price per rai increased by 82.16 million baht in the same period, according to AREA.
Land within 400 metres of a masstransit station was considered "near"to the transport system by AREA.
"Therefore, the appreciation of value of land in the current 41 stations -23 BTS and 18 MRT - is 404.105 billion baht. With this amount, we can build a new line of the mass transit route so the construction of the system is really a worthwhile investment," it said.
Tuesday, September 1, 2009
CP merging property arms
CP Group plans to merge its two real estate firms, CP Land and CP Plaza, and list the new company on the stock market in order to triple its revenue, said group vice-president Sunthorn Arunanondchai.
He said listing on the stock market would bring a new dimension to the group's real estate arm and attract funds as well as outside executives to help the business grow more quickly.
"We have studied Hong Kong Land and some Singaporean real estate firms as they have plenty of properties like ours," said Mr Sunthorn, a founder who established CP Land 22 years ago.
"We're more than 50% ready to enter the stock market [and] our financial adviser, Asset Plus, has worked on preparing us for some time," he said.
The two companies share a core group of 20 shareholders. More than half of the shares are held by CP Group and the rest by executives. It has asked the shareholders to raise around one billion baht,300 million of which was raised in the past few weeks.
The group expected to float 30% of its new registered capital in the market. It will be called CP Land Group.
"The CP Group always builds new staff and should have new executives to carry on my job," said Mr Sunthorn,66.
CP Land is a property developer and has registered capital of 2.5 billion baht.CP Plaza, capitalised at and 1.1 billion baht for, holds plaza and hotel assets generating annual income of around one billion baht. The properties of both firms have a combined value of more than 10 billion baht.
"Despite a slowdown in the property market, the group is set to acquire more assets, looking at income-producing properties like office buildings and hotels with a target payback period of not longer than eight years," he said.
The company earlier bought the former headquarters of TMB Bank in Phaya Thai and plans to spend 100 million baht renovating it. The building, to be named CP Plaza 3, will start generating income next year.
"Sometimes we have to accept failure," said Mr Sunthorn, mentioning for-mer plans to develop a condominium in North Park and an industrial estate on 3,000 rai in Rayong. Both projects have been frozen since last year due to unfavourable market conditions.
He said developing a project from the very start was very costly and took a long time. In Rayong, it has invested billions of baht to prepare for investments in the petrochemical business.
The group also recently bought back all shares from its partner, Magnolia Quality Development Corporation, in the joint venture CP Magnolia Corporation and stopped sales of The Chur condominium in Pattaya.
"It was unfortunate that Pattaya faced a bad situation like the [Songkran political] riots," he said."We needed to freeze the project and return the money to buyers."
The project was formerly planned for a 29-rai site near Lotus Pattaya with more than 700 units,10% of which were booked.
By year-end, the group expects to have 1.5 billion baht in revenue with a before-tax profit of 400-500 million.
He said listing on the stock market would bring a new dimension to the group's real estate arm and attract funds as well as outside executives to help the business grow more quickly.
"We have studied Hong Kong Land and some Singaporean real estate firms as they have plenty of properties like ours," said Mr Sunthorn, a founder who established CP Land 22 years ago.
"We're more than 50% ready to enter the stock market [and] our financial adviser, Asset Plus, has worked on preparing us for some time," he said.
The two companies share a core group of 20 shareholders. More than half of the shares are held by CP Group and the rest by executives. It has asked the shareholders to raise around one billion baht,300 million of which was raised in the past few weeks.
The group expected to float 30% of its new registered capital in the market. It will be called CP Land Group.
"The CP Group always builds new staff and should have new executives to carry on my job," said Mr Sunthorn,66.
CP Land is a property developer and has registered capital of 2.5 billion baht.CP Plaza, capitalised at and 1.1 billion baht for, holds plaza and hotel assets generating annual income of around one billion baht. The properties of both firms have a combined value of more than 10 billion baht.
"Despite a slowdown in the property market, the group is set to acquire more assets, looking at income-producing properties like office buildings and hotels with a target payback period of not longer than eight years," he said.
The company earlier bought the former headquarters of TMB Bank in Phaya Thai and plans to spend 100 million baht renovating it. The building, to be named CP Plaza 3, will start generating income next year.
"Sometimes we have to accept failure," said Mr Sunthorn, mentioning for-mer plans to develop a condominium in North Park and an industrial estate on 3,000 rai in Rayong. Both projects have been frozen since last year due to unfavourable market conditions.
He said developing a project from the very start was very costly and took a long time. In Rayong, it has invested billions of baht to prepare for investments in the petrochemical business.
The group also recently bought back all shares from its partner, Magnolia Quality Development Corporation, in the joint venture CP Magnolia Corporation and stopped sales of The Chur condominium in Pattaya.
"It was unfortunate that Pattaya faced a bad situation like the [Songkran political] riots," he said."We needed to freeze the project and return the money to buyers."
The project was formerly planned for a 29-rai site near Lotus Pattaya with more than 700 units,10% of which were booked.
By year-end, the group expects to have 1.5 billion baht in revenue with a before-tax profit of 400-500 million.
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