Local firm Siam Real Estate have won the CNBC Asia Pacific Property Award for Best Real Estate Agency Website in Thailand. I spoke to Richard Lusted who heads the agency on how they are maximizing the internet during the current market challenges to produce leads and close deals:
"Currently the website receiving 500 unique visitors a day and 5000 page views per day. Our alexa.com traffic ranking is presently 188,468 which is the highest real estate ranking in Thailand. Our business is generated 85% from our web site."
As to what trends are happening today he commented "the market is very slow but plenty of enquiries and visitor viewings, however most people are reluctant to buy until market picks up. Our long term rental business is doing well and we are bullish about a substantial recovery by next high season."
Listed Thai real estate group Raimon Land's Director of Marketing Henri Young has decided to move on and pursue other career opportunities. He is the second key executive to depart after Executive Director and CEO Nigel Cornick resigned in March of this year.
thephuketinsider.com contracted Henri yesterday about his future plans and he has advised that he is looking to do private consulting for Bangkok developers who are aiming to target acquisitions. Henri during his tenure at Raimon was a high profile supporter of Phuket back of the King's Cup and Phang Nga Bay Regatta's as well as the publication 'Why Invest in Phuket.'
IFA Hotel and Resorts who are the group's largest shareholder has infused two short term loans into the company which has struggled during the recent economic and residential downturn. Here in Phuket rumors have persisted that the Amalfi development which is adjacent to Amanpuri has been put up for sale, though no public announcements have been forthcoming and this remains speculative.
Former CBRE resort sales head Charlotte 'Charlie' Filleul is headed to Malaiwana to head up sales and marketing. The luxury development of 19 estate villas in Nai Thon operates in the same space as Trisara and the upcoming Istana villas. There are plans to launch additional residences and a beach club in the future.
Malaiwana's developer is also the man behind the Phuket International Academy which is shaping up to be a serious competitor to the British International School and continues to be bullish about investment into Phuket.
A number of our readers have sent in emails regarding the Phuket Gazettes recent article on the property development group Lersuang; and many offered such varying opinions that surely the saga is going to be filed under 'a continuing story.' In my opinion the paper has done the right thing in bringing forward a matter to the publics attention which perhaps does not reflect positively on the real estate industry here, and has provided a balanced a view as is possible.
From our understanding of the complaints while many people cried foul over the limited representation of the buyers we know from mail received that some are already alleged to be involved in legal actions and cannot comment while others are hopeful of resolution so declined to speak to the paper. I'm hardly an investigative journalist but as a businessperson would say that due process will take its course and the outcome of all this remains yet to be seen.
I've seen Phuket move from a developing real estate market dominated by a mixture of first time developers, institutions such as Laguna and Land and Houses and a multitude of others with varying degrees of expertise and experience. Having lived here for nearly 8 years in my recollection there have only been a handful of defaults on resort grade property and the industry has grown in leaps and bound to a more sophisticated machine. We now see byproducts of this growth with secondary sales, rentals and other lifestyle investment. While not perfect by any means there is a pretty good track record here for completion of projects, though timeliness has not been a strong point.
For buyers coming into our offices one thing we always say is – make an informed decision. Obtain legal advice, do land title duel diligence, speak to the developers, ascertain their track record and ensure that financially you are paying for actual construction progress. All too often tourists on a holiday high arrive and jump into deals that they would not imagine transacting in their own countries without proper legal advice, perhaps building inspectors and even making there own research of the market.
Lessons learned here have perhaps been a hard example for some but it's important to see stories such as the Gazette's appear since in reinforces what reforms need to be done to land and consumer laws and also reminds potential buyers what can happen when things go slightly awry. It's a sober remainder for many that making an informed decision on any investment can avoid heartache later.
Phuket is continuing to look at new ways to reinvent its property market and certainly one way to tap into the huge supply of resort grade villas and condos on the island and start focusing on holiday rentals. thephuketinsider.com spoke to Alan Mossop Managing Director of Phuket Island Property Services (PIPS) about the trend.
The company's core booking site has been www.phuketvillarentals.com for a number of years and there are now over 12 sites the management is operating with different tactics, segments and markets. These include 'Phuket Elite' and newly launched last minute (14 days or less to arrival site) 'Just in Time.'
To tap diverse markets overseas they have tapped into holidayrentals.com.uk, perfectplaces.com and vacationvalley.com who attract travelers looking at something more then a hotel can offer. Google plays well into an online strategy that focus's on AdWords and Adsense campaigns.
In a downturn every revenue center has is being addressed according to Alan, with 'Take Time' services, individual and estate management operations along with the affiliate 'Ikaya' who provide resort home furniture packages and fit outs. It's all a matter of maximizing opportunities and synergies for PIPS. It will be interesting to see with the currently flat demand in the property market how many other property firms start shifting focus on new emerging opportunities to sustain growth.
Speaking to Andrew Craig General Manager of Phuket Villas & Homes it is interesting to see how the non traditional villa and condo product is now becoming a keen competitor of hotels. Currently the group manages Jivana and The Natai just over the bridge in the up market Natai beach area, while on the island there is Kata Gardens, Coolwater and Lakewood Hills.
Interesting enough by November of this year the breach front Amatapura will open under their management as well. Grown from Koh Samui where Samui Villas& Homes has been a well established market leader, they have quickly expanded their internet booking sites with www.thesignaturecollection.com and www.theboutiquevillas.com
Certainly being able to reach out to a global marketplace for clients has been helpful in getting premium rental rates and even large overseas wholesalers and agents are now looking at offering their clients vacations utilizing private villas and resort style condos. In some coming stories we will be talking to other specialist agents on the island who are seeing the rental game grow and how they are reaching out to the world to bring visitors to Phuket.
thephuketinsider.com spoke to David Simister of CBRE today and learned that the Resort Property General Manager Charlotte Filleul was leaving CBRE in Phuket. David mentioned that Charlie was opting to stay in Phuket and would continue working in the property industry. He added that ' she has been a great team member and had been instrumental in CBRE's reputation and performance as a key industry leader."
David was in town to attend her farewell party and added that Khun Prakaipeth (Pet) Meechoosarn would be looking after the sales team and had already been working with CBRE in a senior role for a number of years.
CBRE continues to be a significant presence in the market and talking to staff they are seeing some high end transactions move during the past few weeks which indicates that there remains money out there looking for a home in the islands property market.
A new Ministerial Regulation has been issued by the Thai Ministry of Energy which will take come into law in June of this year. Amongst those affected include new hotel and condo projects who apply post June which cover new or renovated buildings with a total GFA (gross floor area of 2000 square meters. Standard are being set out to cover electrical power for lighting, air conditioning and water heating, thermal transfer and overall energy consumption.
Exemptions for renewable energy are being provided along with deductions on consumption. The legal firm of Meyer Brown in Bangkok has issued a circular on this and the Ministry of Energy is providing implementing guidelines. Currently the implementation is under consideration if this will fall into the construction permit process and co-exist with the Building Control Act which covers statutory construction permits.
Reducing property prices has been tabled as a possible strategy by the Chief Operating Officer of Raimon Land Kitti Tungsriwong according to quotes in the Bangkok media. The company is reportedly revising the master plan of the 43 rai Amalfi luxury project here in Phuket which is valued at THB 500-600 million and now villa pricing points would be well under the anticipated THB 250 million mark for the 15 luxury estate homes.
Lower construction prices are being referenced as the rationale for downward pricing. Raimon's largest shareholder IFA Hotels and Resorts had injected THB 356 million into the company recently on a short term high interest loan at 15%. They are now injecting a further THB 359 million with interest pegged at 10% and a revision to the rate on the initial loan to 10%.
Cash flow remains a significant issue for all of the large Thai listing property firms and with the continued downturn forecasted for a least the rest of 2009, firms are now taking the view that 'cash is king' which may put property prices in the larger markets such as Bangkok at risk. At the end of the day, "you can't take percentages to the bank, only cash" commented an industry analyst.
