While much of the southern part of the island was decidedly quiet a few years ago for larger scale projects, the past year has seen new launches in the Rawai and Chalong areas. Add in The Quays condominium to this which is 42 one and two bedroom low rise units including premium penthouses with small plunge pools. Pricing ranges from THB 7 – 23 million.
For this development it's all about the views on the view and great year round living conditions. Recently another nearby project Eva Beach had a high profile launch so the southern market is seeing a bit of a renaissance for resort grade estates. Jones Lang LaSalle (JLL) have been contracted for property management at The Quays.
One of last year's high profile launches the celebrity designed yooPhuket development in Kathu has been shortlisted for the globally recognized 2010 Fractional Life Awards. Competing against prestigious projects including 47 Park Street London shared ownership continues to make inroads in the broader property market.
Those wishing to vote for the awards can click on:
<link>http://www.surveymonkey.com/s/F8WRC9X*Fractional Life Survey</link>
A new project in Patong near to Jungceyon The White House Condominiums looks to tap into the value market. With 215 units in one and two bedroom configurations, ranging from 44 square meters in size up to 111 square meters, prices start at THB 3.8 million to THB 11.5 million. Resort management and facilities have been created as the expectation is for many purchasers to look for rental returns.
Well known property agent Tropical Properties have been appointed for sales and marketing. A limited time launch has a value add promotion of free furniture packages for buyers. Located just behind Patong's largest shopping area, a formal launch is expected over the next 1-2 months.
Leading global firm Jones Lang LaSalle (JLL) back of its Thailand branch is reportedly actively pursuing a growth strategy back of estate management and resort rental operations. While broad real estate transactions have flattened out the past 24 months on the island the group appears to be making a tactical move similar to that of other international brands CBRE and Knight Frank who need recurring income to manage cash flows.
As the property market remains challenged both larger and smaller firms are tapping into management of villa estates, condominiums, free standing units which are now just entering the supply steam back of projects sold off plan during the island real estate boom. Currently JLL's estate management contracts are in double digits and include high profile Cape Yamu (now called The Cape, and The Bay) along with a variety of other development.
Vacation and long term rentals are another target of brokers now aggressively seeking new business models. Non-traditional accommodation is sky rocking and becoming a key competitor to Phuket's hotels with its substantial critical mass of resort grade property.
Back of the petro dollar boom of a few years ago the much publicized venture between the Indonesian Government and Dubai's Emmar Properties has turned the venture into a casuality back of the Middle East financial purge. The once ambitious project covering 1,200 hectares on Bali's neighbor Lombok island was planned as a US$600 millon investment including four hotels with Ritz Carlton and Armani as leading brands, a marina, along with upscale residences.
As a destination resort the key selling point was over 7 kimometers of oceanfront property. Recently the Indonesian Government though its Investment Coordinating Board announced it was seeking a new parter for the project as Emaar had been unable to meet its funding and development commitments to the project. The Government is now sourcing new parties to move the project ahead.
While Emaar has considerable shareholding that includes the Dubai Government, it suffered hard hits by the bankrupcy of a US subsidary residential development company and a high profile issue on alleged insider trading which plunged share prices.
Long time Thailand based property veteran Nigel Cornick is back on the scene as Chief Executive Office of Binswanger Brooker in Bangkok. The group is a multinational brokerage and advisory services firm with offices around the globe. The group is actively targeting investment and financial services consulting with well known executive Chan Bulakul on board as the Chairman.
First we had Wall Street, then the Middle East Petro Plunge and now many financial analysts are on Euro Watch as global financial markets reacted negatively last week to debt concerns in Europe. Asia experienced a sudden impact late in the week as concerns are mounting over the possibility that the European Union's lesser members could fall into a default situation.
Speaking to potential overseas investors during the past few weeks comments seem to converge while the easy road has been to view Thai politics as a key detriments which is sidelining new deals, it would appear that more focus is on a possible larger contagion. Many fund managers have been viewing the first quarter of the year as an opportunity to calibrate recovery and also calm nerves over potential risk. Needless to say there is now a fraying at the edges and many eyes are looking to the coming weeks performance for the worlds stock and currency bourses
Buckle up as 2010 could be a wild bumpy ride.
Thailand's recent revision to the existing legislation under Land Code Amendment Act (No. 11)B.E. 2551 covers updates with perhaps the most significant being Sor Kor 1 titles.
I spoke to property legal specialist Michael Greth of International Law Office who clarified that “From our understanding, the only real issue for most is the upgrade from Sor. Kor. 1 certificates to Chanote Titles or utilization certificates Nor. Sor. 3 or Nor. Sor. 3 Khor which has to be applied with the land office before 6th of February, 2010; if applied later, such application must be made through verification of the competent court.”
As with all things if you find yourself needed advise we suggest talking to a qualified legal representative.
As to the synopsis of the changes they are:
The reasons of the promulgation of this Act are as follows: It is considered expedient to amend the following provisions:- first, the provisions that provides for the determination and the levy of remuneration by the Provincial Administrative Organizations under Section 9 bis; second, the provisions prescribing the rules and procedures of the issuance of the Title Deed or the Utilization Certificate under the Land Code; and, third, the provisions in relation to the person with powers and duties to order the revocation or correction of the Title Deed or the Utilization Certificate, or the registration of rights and juristic acts related to the immovable property, or the record of the registered immovable properties that is made inaccurately or unlawfully. It is, in addition, expedient to add the provisions conferring powers in determining and levying the remuneration to the Municipalities, the Sub-District Administrative Organization, the Bangkok Metropolitan Administration, the City of Pattaya, or other Local Government Organizations that are governed by the law on land allocation under Section 9 in order to distribute income to the local government units. The rules and procedures of issuance of the Title Deed or the Utilization Certificate shall be revised and improved by developing a measure to encourage any person with evidence of his/her claim for land possession to apply for the issuance of the Title Deed or the Utilization Certificate. There shall be, furthermore, an amendment to vest power to order the revocation or correction under Section 61 in the Director-General of the Department of Lands or either Deputy Director-General or the Inspector of the Department of Lands authorized thereby so as to accelerate the issuance thereof and to conform to the principle of the government system reform which focuses on the devolution of responsibilities and powers in making decisions. It is therefore necessary to enact this Act.
Important one for the upgrade of land:
In different terms, if not applied to upgrade your pocessory right to utilization certificate (Nor. sor 3 or Nor. sor. 3 Khor) or Land title (Chanot = Nor. Sor. 4 Jor) within the given time period (have to inquire) it would have to go through courts and the one who utilizes the property is the one can apply.
PHUKET REAL ESTATE Rampaging Thai Baht Adds to Woes
A strengthening Thai Baht is creating a negative factor for foreign property buyers of resort grade real estate in Phuket. As the currency has appreciated against the US dollar and broken the exchange rate barrier of THB 32 other key buy currencies such as the UK pound sterling continue to flounder on sluggish economic recovery concerns.
Added into the mix is that a skyrocketing secondary market in terms of listings and supply is now cutting heavily into developers off plan or partially completed unit sales. For many earlier buyers, there is now an added incentive to sell based on Thai Baht prices as they look to capitalize on not only property valuation but currency as well.
