Back of the success of the two island dCondo projects, Bangkok-based developer Sansiri has sold 100 homes in the new 244 unit community Habita Phuket.
Located near to the British International School (BIS) in Koh Kaew, the project is situated on a site of 46 rai.
The master planned midscale development is split-level three bedroom with two bathroom semi-detached houses. Car parking is available for two vehicles.
Starting prices are from THB2.99 million.
Sansri will roll out a fourth Phuket project next month called Habitown, with a townhouse entry price of THB1.99 million.
Domestic led property development looks to again set the tone of the market in 2012 as more listed firms eye the island for expanding products.
My mind is reeling from an article in a recent Nation newspaper about more than THB50 billion or 8,000 condos coming to market in Hua Hin this year.
Of course the magic THB2 million market comes up in discussion, and pricing generally is at levels unheard of in the Phuket resort grade property sector.
Most of the developments are coming from Thai listed firms such as Sansiri, SC Asset Corporation, Quality Houses, Issara United (affiliate of Sri Panwa's Charn Issara), Major Development and Baan Ratchaprasong.
Much talk continues about Thai buyers being motivated by the flood for second homes outside Bangkok and certainly both Hua Hin and Pattaya are seeing a strong domestic surge in transaction activity.
All too often investors come to our office after having read that Thai corporate tax is high and they start looking at offshore vehicile and other exotic tax planning elements.
With an update to Thailand's tax code which is now very competitive, it makes doing business in the country less burdensome.
We've asked a leading Phuket based tax and legal advisory DK (Duensing Kippen) to explain –
"After the elections there was a lot of discussion about the new government's plan to reduce the corporate income tax rates ("CITR"). While mostly the potential negative impact of the minimum wage rate increase on businesses in Thailand where publicly debated, the government actually went ahead and reduced the CITR significantly. Surprisingly relatively few people seem to be aware of this. Accordingly, please find in the following a summary of the recently enacted revised CITR.
Pursuant to Title II, Chapter 3, Schedule 2(a) of the Revenue Code ("RC") the CITR on profit for Thai companies is 30%. However, pursuant to Title I, Section 3(1) of the RC, this rate may be reduced for some or all such companies by way of the Cabinet issuing a "Royal Decree" ("RD").
And, in fact, under RD 471 (2008) the CITR for "small to medium enterprises" ("SME"s) defined there as companies who's total capitalization was THB 5,000,0000 or less on the last day of the tax year, was exempted for income not exceeding THB 150,000 and further reduced to 15% for taxable income between THB 150,001 to THB 1,000,0000 and to 25% for taxable income from THB 1,000,001 to THB 3,000,000. Also under RD 467 (2007) the CITR for companies listed on the Stock Exchange of Thailand ("SET") on the "market for alternative investment" ("MAI") was reduced to 20%, while the CITR for all other companies listed on the SET was reduced to 25%.
However, on 14 December 2011 the Cabinet issued RD 530 which repealed and replaced RD 471 and repealed and replaced Section 3(2) of RD 467. Accordingly, the CITR for SMEs, which are now defined as any company with a capitalization of not more than THB 5,000,000 on the final day of the tax year and which company does not have income exceeding THB 30,000,000 in that same tax year, is now as follows:
(1) exempted on net profit up to THB 150,000 for all of the following tax years which begin on or after 1 January 2012;
(2) 15% on net profit from THB 150,001 up to THB 1,000,000 for all of the following tax years which begin on or after 1 January 2012;
(3) 23% on net profit of THB 1,000,0001 or more for the tax year which begins on or after 1 January 2012; and
(4) 20% on net profit of THB 1,000,0001 or more for all of the following tax years which begin on or after 1 January 2013.
The CITR for all companies including those that are listed on the SET except for those which listed on the MAI on the SET is now for three consecutive accounting periods only as follows:
(1) 23% on net profit for the tax year which begins on or after 1 January 2012; and
(2) 20% on net profit for the following two tax years which begin on or after 1 January 2013.
The CITR for the companies that are listed on the MAI on the SET remains 20% on net profit under the portion of RD 467 which remains in effect.
In conclusion, these CITR reductions are clearly welcomed by those investing and doing business in Thailand. However, it should be noted that although as provided for under RD 530 the CITR reductions for SMEs are "permanent", they are not so for all other (non-MAI listed) companies. It is unclear, if it is "planned" to extend or even increase these reductions after the expiration of the reductions in three years.
The perhaps most commonly stated rationales for the CITR reductions is to make Thailand's business environment more competitive with its neighbors and further to "compensate" Thai companies for the coming minimum wage increases. But the reductions are not "permanent" for most "normal" companies under RD 530. Even if the "plan" is to extend or even increase them three years from now, it will take the political will of and action by the then current Cabinet. Thus, any such extension can only be seen as uncertain. Such can hardly be encouraging for those considering doing business and investing in Thailand beyond the next three years. Therefore, although the business community is welcoming the CITR reductions under RD 530, it is unfortunate that they were not made "permanent" for all Thai companies."
For more on Duensing Kippen <link>http://www.duensingkippen.com*CLICK</link>
Starting in March a new regime that requires property developers and brokers in Bali to report on all transactions over USD55,000 could hit the industry hard.
Reported by Balidiscovery.com the regulation is aimed at money laundering and is targeting luxury property and goods.
While the legal ramifications have yet to be fully understood or implemented, the law is intended to counter the growing number of individuals sheltering assets or funds obtains through illegal activity.
Property experts say they have yet to see the act in motion but certainly nominee structures will be put to the test.
An add on to the reporting could be the linkage of reported transactions and a tail by taxation authorities for the collection of luxury tax.
I'm currently in Bali and speaking to local real estate developers and agents, there remains a good amount of anxiety over the new regulation.
According to government statistics 14% of Thai's are over 60 years old and the percentage is spiraling upwards.
The Siam Cement Group (SGC) conglomerate has created a Care Home prototype designed for seniors.
Use of 2D glasses that are converted into 3D, the model is meant to recreate what an older person actually sees in a home.
At the recent BOI Fair in Bangkok the project was available for viewing and was widely regarded for its innovative approach to the growth market.
Here is a niche product that specializes in design inspired holiday and villa rentals – Living Architecture.
Based in the UK the caveat is that a focus is on modern design and is trying to change perceptions about the end product.
One of the key offerings is the Dune House in Suffolk which is located next to the ocean and offers a contemporary masterpiece amidst rolling sand dunes.
To see more <link>http://www.living-architecture.co.uk*CLICK</link>
Global real estate circles are buzzing over the sale of a New York City penthouse for a stunning price of USD88 million.
The sale which was reported by Forbes is by the daughter of Russian billionaire Dmitry Rybolovlev is the largest reported transaction of a condo in Manhattan ever.
Situated across from Central Park the condominium boasts ten bedrooms and large outdoor terraces.
Russian property buyers around the world are becoming the object of desire for high end brokerage houses.
Phuket remains the birthplace of the tropical island villa getaway.
Follow the amazing journey that started at the Amanpuri and Banyan Tree, moving on to Sri Panwa, Andara, Cape Yamu, and Malaiwana; and now sees the island dotted with Asia's finest collection of individually unique ultra villas and estates.
Millionaires, billionaires and high profile global personalities continue to covet these objects of desire. Why are they choosing Phuket?
In this lively workshop titled Design Evolution, two leading international designers – Hong Kong based Adrian McCarroll of Original Vision and Clint Nagata of Bangkok's Blink Design Group – will make visual presentations and discuss their favorite projects.
Follow the pathway of the islands past, present and future trends in this panel discussion moderated by Leisure Design Group's Scott Gorsuch.
This is a rare opportunity to debate which architectural styles are most appropriate, functional, and aesthetically appealing in our locale. Question whether Phuket has developed its own style – and what are the leading examples of this?
An open forum will close out the session with an opportunity to ask these creative talents about their work, or provide an opinion on the design direction in which Phuketshould be headed.
Whether you are working in the property or resort sectors, or just interested in the
creative process of villa and hotel design, the event is a great place to learn more
and contribute your ideas.
Organized by AMCHAM – The American Chamber of Commerce (Phuket Chapter),Design Evolution will be held on Friday March 9th at Royal Phuket Marina – function room.
Registration will start at 4:00pm and the workshop will run from 5:00 to 6:20 pm. Networking event will follow. The event is open to the public and cost is THB100 including drinks.
To sign up for the event, please visit the website www.amchamthailand.com, contact Sheree Tanpensuk by email – [email protected] or telephone 02-254-1041 ext 212.
Donald Trump has given his name and brand to luxury residential project the Trump Tower in Manila.
The UDS150 million dollar project is being developed in Century Properties Group.
Century have done previous name brands projects with Versace and Paris Hilton.
Branding is a key element of the groups real estate foray. While for Trump the deal is a licensing so fee income is substantial and there is no development risk.
