Tax season is upon us and back DFDL Mekong will be holding a free property tax seminar on March 18th 4:30 – 6:00pm at their offices in Kamala. The workshop is aimed at property developers covering tax implications for corporate, VAT, SBT (specific business tax) and personal income.
DFDL recently merged with leading name McEvily and Collins, creating a super-firm specializing in property and real estate in Thailand, Cambodia, Vietnam and Laos.
For those interested to attend, they can email reservations to [email protected] as space is limited.
According to an interview by Andrew Batt from Thailand Property Report with CEO Sorapoj Techakrasi of Pace development the recently launched Ritz-Carlton Residences Bangkok have hit THB 1.7 billion in sales. Pricing for the project has been set at THB 250,000 per square meter which is at the upper echelon of the capital's property market.
Located in the premier mixed use Mahanakorn project which is slated to be Thailand's tallest building with 77 stories. The complex will include a luxury boutique Edition hotel which is a joint venture between Ian Schrager and Marriott, as well as upscale retail.
Tracking industry trends thephuketinsider.com in Bangkok has learned the Sathorn located Banyan Tree Residences recently took two non refundable deposits from a recently trade show, which demonstrates an uplift over 2009 trading.
While at the nearby Sukhothai Residences adjacent to the iconic hotel 75% of the units have been sold with the developer holding the remaining 25% of stock to sell on completion at premium pricing.
Traditionally the luxury villa buying season does not coincide with peak tourism season but certainly there is a direct connect with these high flying investors and the financial bonus season. Back of a survey in the UK with nearly 700 banking and financial services executives concluded that bonuses increased on average by 40%.
Its key to note nearly 70% of these received cash versus stock options or other schemes. In a volatile investment climate many punters are now looking at property as a 'safe haven' to park excess cash, while forward horizons have been moved up considerably with longer term views prevailing for many.
Vaunted millionaires mile in Kamala is about to add to the growing number of mega villa estates on the island with the launch of Cape Sawan. With David Lloyd Asia aquiring the remaining land lots of the final phase of Jomchang, the new development has 26 plots ranging in size from 1,634 up to 3,223 square meters (ie approximetely 1-2 rai) . Two villa designs with different models are available with a 610 internal square meter units for the smaller plots, while a 1,100 square meter unit on larger pieces of land. Some add on components are on offer as well. Prices start at USD3.3 to USD7.1 million. A club house with tennis court rounds off the estate.
As supply and demand tipping favorable in the luxury villa market, and buyers forced to go tap the resale market given the limited nubmer of new product offering, this development looks to have perfect market timing.
Back of the current tuorism and luxury property boom in Phuket's destination competitor Bali; Limcharoen Hughes & Glanville have opened an office on the Island of the Gods. Managing Partner Ingo Muller is in charge of the operation.
LHG have recently been on an expansion drive with Bangkok, Ho Chi Minh City and Samui offices now spread across the region. A growing number of Phuket developers and owners of tourism or property firms have been eyeing Bali as a significant opportunity and ability to creates synergies between the two similar resort destinations.
Leading multinational tax advisory firm PWC (PriceWaterhouseCoopers) will be conducting an English language seminar updating developments in the Foreign Business Act on Friday March 12 at Royal Phuket City Hotel. Topics to be covered include the FBA, Ministry of Commerce's current investigations on possible violations, land code and an update on proposed changes to the Foreign Business Act and Civil and Commercial Code.
Venue will be the Bon Maiton Room on the 2nd floor from 8:30 am to 4:30 pm with a cost of THB 4,000. Registration online at:
<link>http://www.pwc.com/th/en/tax-seminar/index.jhtml*PWC SEMINAR REGISTRATION</link>
Another high rise (well relatively high by island standards) has hit the market The Light Suan Luang in Phuket town. Looking to attract a growing younger working set of Thai's and foreigners pricing points are from THB 1.3 million.
With 12 stories offering 186 condo units in configurations of studio, one and two bedroom units this is now the second large offering in the city back of the recently launched Supalai project. Expect Phuket to attract more Bangkok listed property companies in the near future who are looking to expand both high and low rise residential developments.
One of the Thai Government's leading economic stimulus packages, the property tax incentive will not be renewed according to the Cabinet. Expiring on March 28th SBT (specific business tax) will increase to 3.3% from 0.1%, transfer fees revert to 2% from 0.01% and mortgage fees also escalate to 1% from 0.01%.
Property developers and analysts continue to closely monitor the new land and building tax which is continued to be shrouded in controversy and despite grandfathering in such a large scale which will take a number of years to implement.
Industry insiders in Bangkok are speculating that Thailand's Finance Ministry will push forward for approval of the current property incentives before the March expiration date. While it appears doubtful the tax deduction for purchasers which expired last year will be reinstated, the key issue continues to be the significantly lower transfer tax regime.
While the looming deadline is continued to fuel transactions, the industry at a whole is still looking for broader liberalization for longer leasehold terms and changes in the Thai/foreign quotas on condominiums. While foreign freehold condos and some projects seeing high domestic ownership are fueling the market, the leasehold or Thai entitlement units pose concerns for developers looking to fully sell out projects.
