Here is an update for businesses and individuals having Thai bank accounts, the Bank of Thailand (BoT) has announced a new system requiring document submission by December 30, 2009. Under BoT reference 'ForRocChor (12) Wor. 123/2553 the use of seals and embossing will be replaced by a Check Cashing and Archive System (ICAS).
Customers need to contact and cancel their company seal as a condition for issuance of checks and withdrawals. The use of signatures remains the same. Companies will need to submit Director's Board Meeting Minutes. Company Registration issued within the 30 days and a copy of the ID or passport of the authorized signatories.
It's recommend to visit your bank as early as possible to confirm the process as there is a December deadline and the new ICAS system will be formally implemented in February 2010.
Back of Dubai World's current USD$59 billion dollar debt crises, real estate arm Nakheel has reportedly lost US$3.65 billion in the first half of the year, mainly on asset value write downs. As covered in the financial press the company has suspended debt repayments on it's Islamic Bond Issue and a workout situation continues to be unclear.
Thailand continues to have some exposure in term of property and hotel grade assets with Nakheel being a joint venture partner in the W. Koh Samui Retreat and Residences and W Bangkok. Though both projects are at various stages of development hence capital and debt formation are in place so it's doubtful there will be issues. Another Dubai World spin off Istithmar who had been a shareholder in publically listed Raimon Land and has disposed of shares, still retains an ownership interest in Bumrungrad PLC.
Here is one property launch which has caught our eye back of Dharma Land's White Village 450 rai Buddhist retreat development in Nakhon Ratchasima. Targeting purchasers who are either practicing Buddhist's or look to meditation or alternative lifestyle facilities including a meditation center, hotel and vegetarian restaurant.
On offer are 99 lots from one up to fifteen rai with land prices of THB 800,000 per rai. Houses range from THB 2 to 10 million. There will also be a 40 room boutique resort.
Here in Phuket Klaus Hebben's Mind Center which is currently under development with international expert B. Alan Wallace located adjacent to Phuket International Academy in Thalang is aiming to be a world class meditation retreat.
One of the contributing factors to the renewed performance in Thailand's broader property market has been the current tax incentives put in place to spur growth. The Government's current reduction of Specific Business Tax (SPT) which came down from 3.3% to 0.11% and transfer tax down to 0.01% from the previous 2.0% are set to expire on March 28 of next year. An allowance for property sales also saw higher thresholds from THB 100,000 up to 200,000.
At the same time development and commodity prices have continued to rise with the market hence there may be a double blow to buyers who will ultimately have to shoulder the tax burden passed on by developers and also price increases as costs go upward. It's expected that transaction activity in the lead up to the tax expiration date will continue to trade at high levels.
Reading the New York Times yesterday I was reminded of the sheer mention of the boom year anthem 'Dubai, Shanghai, Mumbai or Goodbye', how the petro dollar deluge had driven what became the icon of the new world order from a rising star to a falling meteor. It never ceases to amaze me how many financial types never even realized that Dubai didn't have any oil and was built on the foundations of commerce, property and mega growth.
In the eye of the storm remains Dubai World with its Nakeel, Isthimar and Dubai Port's business units, though for many what is now clouding the issue remains internal political struggles, bail outs by its wealthy neighbors and talk of liquidating assets in order to meet its debt servicing obligations. Property and real estate figure large into the equation where in many cases of existing investments have seen valuations shredded and new developments are yet completed in order to produce cash flow and yields. It's a classic Catch 22 and something has to give.
What's unclear for the moment is will a bail out resolve the issue or else could there be a great Dubai World asset sale that could creating a feeding frenzy with the substantial global portfolio of property? With close to US$60 billion in debt, and no real clarity on proper valuation of assets due to fluctuations in value, this looks to be a captivating story that is no going to go away any time soon.
Master franchise holder of the Thailand Engel and Volkers network Double 8 Realty Co., Ltd have announced the opening of a new headquarters in Bangkok as of December. The new office will be housed in the prestigious Thong Lor Soi 3 district of Sukhumvit.
First opening in Hua Hin in 2007 and then 2009 in Phuket there is a strategic target for 15 branches in the country. Previously in Kamala there was an E & V office which is now Philips Luxury Real Estate.
In the here today, gone tomorrow world of breaking news the current Dubai credit crises is without a doubt stirring up the worlds financial markets. With many Middle Eastern powerful SWF (sovereign wealth funds) not intervening such as Abu Dhabi, Qater or the Emirates there remains much nervousness in Asia which has considerable exposure both in trade with Dubai and investments.
Property prices in Dubai has taken a serious hit and in many cases devaluations seen in the region of 40-50%. It's unclear if the crunch will be seen in isolation or create ripples abroad. Interestingly Spain which has an oversupply of 1 million residential units with many of these being holiday or vacation homes yet the impact was not seen on these shores.
Perhaps the most non tangible effect will be in pushing luxury and resort grade property purchasers to the sidelines who worry about not the property markets themselves but a lack of clarity on the impact to the global financial area. As seen from the GFC (global financial crises) sentiment can play often play a larger factor then reality and a small whisper on the continent next door can create a lion's roar on your very own doorstep.
One of Greater Phuket's modern day mysteries as to how Krabi was bypassed during the decade long property boom on this island looks to be coming on the radar of developers. Speaking to the longest serving expert across the bay Robert Reynold's of Krabi Consultants there has been a recent resurgence in new projects and a wave of optimism is now in the air.
Traditionally while hotels and tourism have been long established in the area, only the Amatapura beachfront development in Ao Namao and branded hotel managed pool villas at Koh Lanta's Pimalai Bay were the most noteworthy names in an undersupplied marketplace.
Many still remember what had been touted as one of Thailand's mega projects 1,000 plus rai master planned estate The Cove failed to materialize with its multiple hotels, golf course and residential product; and since the financial downturn not much was heard from the pipeline.
Leading area Klong Muang which plays host to brands such as Sofitel, Sheraton, Amari and soon Ritz-Carlton the new Krabi Garden Resort with ocean view villas and apartments priced from THB 3 to 12 million. Nearby is the AT SEA condominium with entry level units under THB 2 million.
Over in Koh Lanta there have been some mainly Scandinavian targeting housing projects over the year but now Thai Island Dram Estate with 140 units on land sized at 43 rai and affordable beachfront villas priced in the region of THB 25 million.
As we move further into the economic recovery there remains little doubt that Krabi property has no where to go but up in the very near future.
Head of Sales and Marketing for the integrated resort West Sands Phuket Barry King has left the organization. Barry had been a long-term driver of residential sales for the project and is currently taking a break while looking at new opportunities. The development's Water World attraction is set to open in December of this year and currently the project has shelved plans for an Outrigger branded hotel and are pursing operating the existing product on a rental pool basis.
