With the results in for the recently concluded Thailand Property Awards, island awardees are as follows –
In the Best Condo Development is The Residences at Sheraton Grand Bay in Ao Po, which is developed by APEX Plc.
The Sheraton project which is currently under construction also was awarded Best Hotel Development in Thailand and tagged on another accolade for landscape design.
While for Best Villa Development topping the list was Botanica Luxury Villas in Layan.
Lastly winning the prestigious Best Boutique Developer accolade was Phuket-based Boat Pattana Co., Ltd.
To view all the award winners CLICK
C9 Hotelworks has released their new Niseko Property Market Update 2018, which highlights how current projects for sales are set to top USD1 billion in transaction value.
Unique attractions, ease of visa procedures, and emerging international flights have propelled Niseko’s tourism boom, as arrivals have continually grown since 2011. Foreign visitor arrivals impressively outperformed the domestic segment with year-on-year growth of 17% in 2017 and a 5-year CAGR of 16%. With an abundant choice of recreational activities, last summer season accounted for 48% of total yearly visitors. Notably, Asian visitors top 5 geographical source markets are Hong Kong, Mainland China, Korea, Taiwan, and Singapore.
Meanwhile, freehold ownership, a lower Japanese Yen, and high capital gains have boosted the real estate market in Niseko. The market-wide average selling price of condominiums grew 12.5% in 2017. Similarly, the average built-up price for condos in Niseko has soared 25% compared to last year. As of the end of the high season current property offerings are closing in to near the USD1 billion mark.
Asian real estate buyers have now supplanted the legacy Western source markets and Mainland China has been a leading cross-border property player. We expect Niseko to rise further in the development cycle in the coming year, led by a marked increase in hotel branded and managed projects.
To download the full report CLICK
Leading island developer Laguna has launched Dhawa Phuket branded residences at the main entrance of the integrated resort.
Featuring one and two-bedroom apartments, the entry level pricing starts from THB4.9 million.
Dhawa is a new brand of the Banyan Tree group that also operates Angsana and Cassia properties.
Buyers of the property will have access to beach facilities by Xana Beach Club.
Laguna is staging a Hong Kong sales event next weekend for the Dhawa apartments.
A new set of guidelines that quietly come into law late last year are set to alter the state of real estate and hotel development in Phuket.
The revised regulations were issued by Thailand’s Ministry of Natural Resources and Environment and apply to Phuket Province.
Perhaps the most significant amendment is that building is no longer allowed on slopes of 35% and above, wherein in the past the threshold was 50%.
For slopes of 25-35%, rules now require 70 per cent green area, limit cut and fill to one meter and requires that large boulders and trees (exceeding 500mm in girth) not be removed. This zone also limits building footprints to 90 square meters and for elevations below 40 meters restricts height to 40 meters and above 40 meters to six meters high.
Speaking to Phuket-based design and planning experts Original Vision (Thailand) the upside for the amended guidelines waves the IEE process for small hotel and property developments of 29 units/keys or less. Hence only a construction permit is required, but GFA cannot exceed 1,500 square meters.
An IEE (Initial Environmental Examination) is still required for property or hotel projects of 30 units/keys or those that fall within a development GFA of 1,500 to 4,000 square meters.
The more complex EIA (Environmental Impact Assessment) process is still required when exceeding 80 units or keys and an area above, 4,000 square meters in GFA.
What is important to understand is that the new regulations also must be referenced to the Phuket City Plan and Provincial set-back rules. Locations continue to have an overlay, and there are area specific regulations in Phuket City, some areas in Patong and nuances between the West and East coast.
It is clear in the new regulations is a more determined focus by the Thai government on slope control and green areas which looks to create a more challenging regime for property and hotels developers in land parcels that have significant terrain.
For any prospective developers out there, we strongly suggest obtaining a professional opinion on the revised regulations and how they may affect any prospective plans that have not been submitted for approvals.
As to who are the winners and losers for development? Hillside condominium projects certainly will become more difficult as will cliff hugging hotels. While smaller boutique projects now have an advantage of no IEE processes. End of the day, Phuket is a winner with greater focus on badly needed environmental protection.
Thailand’s flourishing love affair with Hokkaido Japan has been reinforced with the new entry of the Yu Kiroro luxury alpine condominium by Property Prefect.
Set in the integrated ski resort of Kiroro the property features 108 units with pricing starting at THB20 million. Unit sizes range from 62-267 square meters.
Kiroro is located near to the famed Niseko resorts area.
Featuring a ski-in, ski-out location, the project is valued at THB4 billion. Itogumi Constrution is the builder and project completion is set for the end of 2018.
Within Kiroro there are two hotels operated by Marriott International under the Sheraton and Tribute flags.
Direct airlift to Hokkaido’s gateway New Chitiose Airport is serviced by Thai International Airways and the resumption of service by Thai AirAsia X starting on April 10th.
Japan’s alpine real estate sector remains vibrant for Asian property buyers. For more on the sector read C9 Hotelworks Niseko Property Market Update CLICK
Japan’s famed ski destination Niseko is well on its way to becoming a world-class year-round holiday destination back of sustained growth in summer visitors over the past six years. Last year over 1.6 million visitors were recorded, with parity in numbers between the frenetic December to April ski season and May to November summer and shoulder season.
The changes in the marketplace are also seeing the entrance of new properties under development with hospitality brands ranging from Park Hyatt, The Pavilions to Ritz-Carlton according to the newly released Niseko Property Market Review by consulting group C9 Hotelworks.
Two critical feeders of tourists to Niseko are the New Chitose Airport near Sapporo which has experienced an impressive 10-year compound growth rate of 13.9% and the introduction of Shinkansen bullet train service form Hokkaido from Tokyo in 2016. Key overseas flight growth from Seoul, Hong Kong, Bangkok and Singapore are stimulating regional demand and pushing the destination higher in the growth cycle.
Foreign investment into the hospitality and real estate sector can be seen by such groups at Malaysia’s YTL and Hong Kong tycoon Richard Li who is in the process of launching branded hotel residences which will be managed as part of a Park Hyatt mixed use project at the base of Niseko United’s Hanazono ski field.
Noting the trend in investment real estate with hotel managed programs. C9 Hotelworks report notes that recent condominium projects such as Skye and The Maples are eclipsing record setting pricing levels of USD17,000 a square meter. With soaring sales there is also a dynamic shift in the predominant international buying segment with the top 5 source markets being Singapore, Hong Kong, Taiwan, Thailand and fast moving Mainland China.
Looking at the property market metric C9’s report highlights that appreciation growth is ramping up, when comparing sold-out projects and those currently for sale pricing has escalated by 52% and the absorption rate more than doubled. Two bedroom condominiums continue to be the most popular property play but a new project The Ginto Residences by Hong Kong entrepreneur Gordon Oldham is seeing strong interest for their land plots and custom home offering.
Like many other global legacy ski destinations such as Whister, Aspen or Andermatt which over the years evolved, Niseko is now seeing the opportunity to become a leading year-around proposition. Sitting on Asia’s doorstep the strong natural appeal is seeing the numbers game mount by Southeast Asia travelers and a strong wave of Mainland Chinese tourists who are drawn by the clean air, diversity in culinary offerings and outdoor activities. Niseko in many ways has similar traits to iconic New Zealand and has a key advantage of being a uniquely Asian alpine experience.
Looking towards the future prospects, the connection between tourism and real estate in Niseko is similar to many other mountain resort areas around the world. Managing rental properties are typically early market movers but once the hotel brands come into play, that’s when things get interesting.
To read and download the full report CLICK
Property developers across Thailand are experiencing a magnetic attraction for hotel branded residences in order to spur price premium points and buyer demand. Currently there are 29 new hotel residence projects countrywide with nearly 90% of these located in resort areas.
New research by consulting group C9 Hotelworks has pinpointed that the top 3 locations for completed and pipeline projects in their Southeast Asia Hotel Residences Market Trends report are Phuket (26 properties), Pattaya (10 properties) and Bangkok (9 properties).
Viewing how Thailand ranks in terms of competitiveness in the sector, with 41 completed projects to date, this accounts for 41% of the regions supply that stands at over 21,000 hotel residence units. The country ranks first in Southeast Asia as an urban trend is shifting back to resort areas. Indonesia follows, whilst the rising star is Vietnam with Danang featured as a favored developer’s marketplace.
In Thailand, Phuket with 13 completed projects and another 13 in the works has a longstanding legacy of hospitality-led residences in such well-known ultra-luxury resorts as Amanpuri, Banyan Tree and Sri Panwa. Though over the past few years Bangkok’s Chao Phraya River with marquee branded projects affiliated to the likes of global icons Four Seasons and Mandarin Oriental have pushed prices though the glass ceiling to an average of more than THB315,000 per square meter, while the national average selling price in the sector is just over THB101,000.
Linking the connection to brands and pricing premiums, C9 research across all the markets in the country show a demonstrated brand premium between 15-20%. Taking a close look at existing supply 92% of the supply are brand affiliated and we expect this preference by developers and property buyers to continue.
Branding and its relationship to real estate is not solely in the hotel domain. Thai-based Onxy Hospitality recent entered into a operating agreement with the international design group Yoo which was founded by Philippe Starck and John Hitchcox to run their branded properties.
And another move in the design brand space Bangkok’s BLINK Design Group who work extensively in hotels, resorts and residences bought over noted creative firm Jaya. The latter subsequently formed a venture with boutique hotel management group Two Roads Hospitality for Jaya branded hotels and residences.
Despite the presence of legacy global hotel brands that appear in C9’s data throughout Southeast Asia a number of Thai brands and hotel management groups are well placed such as BHM Asia, Dusit Thani, Minor and Onyx. C9 concludes that an increasing number of mixed-use projects that feature both hospitality and residential elements and hotel operators who want to drive expansion can’t ignore the strategic benefit of offering developers a holistic management and brand solution.
The Phuket branch of international real estate brokerage house Engel and Voelkers in Cherngtalay is set to close at the end of October.
Operated under a franchise by DWK Reality Co, Ltd. The closure notice cites growing competition from online and social media models that are challenging brick and mortar businesses.
DWK has said they will be looking into other business opportunities in Hua Hin and Phuket in the retirement property sector in the future.
As online models have increasingly grown to take on traditional real estate brokerage the same can be said for Thailand’s retail segment and we expect similar right sizing in the years ahead for the country’s massive mall industry.
In an on ‘again, off again’ love affair, the Indonesian government is again evaluating foreign ownership for HGB apartments.
As reported in the Jakarta Post any possible liberalization would apply to HGB licensed projects only.
To date, the reform is only at the review stage and has yet to make it to legislation.
Currently the main option for broad ownership of property to foreigners is either through leasehold or via a PMA entity.
