Leading Thai Group Minor International is ramping up the launch of the shared ownership focused Anantara Vacation Club.
Initially focused in the Phuket and Koh Samui markets, expansion within Asia Pacific is planned.
Minor got their first taste of success in the vacation ownership (timeshare) sector when they partnered with global giant Marriott in Mai Khao at Marriott's Phuket Beach Club. This was later divested and many industry analysts had tapped the Thai group to entered the marketplace.
Given Anantara's expanding international footprint with hotels, and mixed used projects the move looks to be a natural opportunity.
In Phuket the playing field has been traditionally dominated by Laguna Holiday Club, Marriott Vacation Club International and the most recent growth spurred by Bryan Lunt's Absolute Group. This year has seen West Sands also roll out a Vacation Club with a number of executives from Marriott's Phuket operation.
As the US economy melted down two years ago, MVCI Asia which had been gearing up to expand was put on the back burner back of domestic issues at home. Wyndham Vacation ownership with its Asia Pacific operation headquartered out of Australia has seen that market saturated and has been unable to leapfrog into Asia.
ACCOR has had several starts and stops from its Australian forays.
With Minor's considerable cash reserves expect the Anantara to gain market traction fast, given their existing inventory of quality resorts.
EDITORS NOTE: It has come to our attention the email sent to our readers had incorrectly spelled Bill Heineckes name, and wish to thank your readers for swiftly bringing this to our attention. Indeed to error is…well you know, not good).
New shared ownership firm Clubvacasia is leveraging its association with a hotel group to enter the growing alternative segment.
As timeshare has evolved from week based or timed elements into vacation or holiday club which can be swapped into stays, or hotels at other destination and flights.
Thailand's Clubvacasia is using its platform at condohotel Bel Air Panwa, Manathai properties in Surin and Chiang Mai and two boutique hotels in Bangkok to target a base of customers.
Expect more small hotel management companies to get into this arena soon with a trend on conversions of condos or villas into hospitality project and also a way of generating incremental income for hotels in challenging markets.
More information at <link>http://www.clubvacasia.com*CLICK</link>
In what is seen as a key stimulator for hotel and property investment the Thai Securities and Exchange Commission (SEC) has vetted a regulatory process for the introduction of fully fledged REIT's (Real Estate Investment Trusts) in the country.
According to published news reports and an update issued by legal firm Baker & McKenzie in Bangkok the new REIT framework allows for a upgraded model of international standards versus the current restrictive Thailand Property Fund for Public Offering.
Key highlights of the REIT structure when compared to the existing Property Fund mechanism is the ability to leverage in debt up to 50% of net asset value (previously this was 10%); and a holding restriction of 50% within affiliated companies ( up from 33 1/3%).
Currently the Thai Revenue Department is looking at tax implications for the REIT's and has yet to issue formal documentation. It's expected that over time the current Property Fund model will be grandfathered out and that the more sophisticated REIT structure will take place.
A number of large Thai listed hospitality groups including Dusit Thani and Centara Hotel & Resorts have funds with considerable asset value.
From our analysis of the implications for hotels, there looks to be two possible scenarios. The first would be Thai groups would look to inject existing asset into REIT's taking advantage of favorable interest rates and gear these accordingly. Then using the proceeds to expand overseas into single and multiple assets.
For market watchers a key acquisition recently was Thai based Onyx (formerly Amari Hotels & Resorts) purchase of the Hong Kong based Shama Group.
Second is an attraction for overseas institutions to re-enter Thailand back of a more generally accepted structure which is a positive, but could also lead to a rise in highly speculative growth driven developments which could undermine existing fundamentals.
The developers of the mega mixed use destination resort The Cove Krabi have announced the project is being wound down and will be put up for sale. A price point of THB2.7 million a rai has been set, or total of THB1.242 billion.
CEO John Grice of Asian Tropical Homes Group points to global economic and Thailand's politic issues as key deciding factors by the shareholders.
Located south of Krabi in Haad Yao with 460 rai of land, a Colin Montgomerie golf course and multiple international hotels and residences, the project had gone to the property market with an initial offering prior to the US led crisis.
As Thailand's domestic economy continues to recover, a number of previously stalled resort projects in key areas are being marketed for sale or restructuring.
Reading recent research by leading Thai listed developer Raimon Land on the state of the condominium market points to some significant changes in buyer demographics.
While Thai domestic buyers still add fuel to the fire as the broader market continues to soar in Bangkok, overseas composition has slid away from Western purchasers. The new face of foreign demand for now looks to have an Asian address and passport.
Raimon's findings on the resort market of Pattaya highlight trends toward emerging Indian and Chinese buyer and greater velocity on lower priced products under THB5 million located within interior areas. As seen widely across the country the small economical Mickey Mouse flats are seeing the greatest transaction activity.
As the Thai baht continues its steroid appreciation Kasikornbank's Head of Financial Markets has been quoted in the press as saying the USD Rate could hit $29.5 in 2011.
This is fresh on the heels of the current breaching into the THB30 level which is the strongest the currency has been in 13 years.
For Phuket which has high exposure to both the tourism and property markets there is a resulting link also to a large expat retirement market.
Many of these who are not US nationals have USD savings, investments or recurring pension payment.
For any of these high inflation and weakening spending power create a negative which could impinge on new arrivals looking to stay and buy real estate.
While trends are impossible to forecast with certainty, all across Asia, regional currencies which were slammed in 1997 including Singapore, Philippines, Malaysia and of course Thailand could see a return back to the heyday of 15 years ago.
At this point from a layperson's view could a USD25 point be possible; most would not rule out the idea.
Leading luxury estate Malaiwana in Nai Thon has started construction on an upscale beach club called appropriately enough the 'Malaiwana Beach Club'. The offering of an exclusive bar, restaurant and sun loungers will be open to the public and estate residents alike.
Set to open in the first quarter of next year, the dining lounge has a premium ocean front location and is located on a site of approximately 1 rai.
Speaking to Stephen Paine who is a partner and co-developer of the project, he also confirmed the launch of the Malaiwana Residences. The project is 12 luxury apartments with 600 square metres per unit, and private 18 metre swimming pools.
There will be 8 duplex's and 4 penthouses. Pricing has been set at THB85 million for the former and THB95 million on the later configurations. While a public launch will take place in mid November, 4 units have already been reserved on private placements.
Work will start at the end of rainy season in January and take approximately 24 months. The residences all have ocean views and are located across the road from the beach club.
Nai Thon is undergoing a vast development process with a new ACCOR branded 'Pullman' hotel in the works at the north end of the beach and a second internationally branded property reported to be announced shortly nearby.
While Phuket's Catch Beachclub and Baba at Sri Panwa have garnered high marks for beach clubs, Koh Samui continues to get rave reviews for their Beach Republic and Nikki Beach trend setting outlets . Hi-so leader Bed Supperclub is rumored to have an ocean front location in the works in Chaweng which will add gloss to the island.
Phuket's luxury real estate market has caught a USD76 million tailwind in trading with 14 “UltraVilla” properties sold in the first eight months of the year.
According to market research released today by consulting firm C9 Hotelworks, resales highlighted the sector, bolstered by Asian wealth which is leading the global storyboard.
A growing appetite by the rich and famous to “supersize” saw Natai's Beyond Villa trade for a reported USD24 million.
The profound 'failure to launch' during the past 24 months by developers has resulted in a reduced inventory of 77 new properties with a market value of USD329 million.
A switch effect into the secondary market has seen resales eclipse 83% of total volume.
C9's mid-year Luxury Villa Market Update reports that the upscale segment registered an average property value of USD5.4 million which had soared due to the rising impact of premium villa sizes.
Viewing broader trends in supply and demand, take up rates for off plan units remains soft with the possibility of product fatigue setting in. A lack of new entrants and fresh products which could induce demand are presently absent from the mix.
Growing investor confidence in hospitality projects was spilling over to the residential market and the stage is set for some “marquee” suspended projects to be restructured and re-enter the supply stream.
Research data indicates the geographic source of buyers is pragmatically shifting with the changing fortunes of the world's economies. A lead indicator has Chinese and Indian investors showing early signs of sales activity in Phuket.
Looking forward new planning restrictions are becoming a third party force for development, and the adoption of the recent Phuket Environmental Regulation and upcoming revision for land use to existing legislation is fast and furious.
A delicate balancing act between environmental impact, over development concerns and foreign investment remained challenging, but lower density luxury villas look to be well suited for the market conditions ahead.
To view the full report <link>https://c9hotelworks.com/downloads/Phuket-Luxury-Villa-Market-Update-September-2010.pdf*CLICK</link>
The Singapore Government is staging an intervention to slow down speculation amid growing concerns of a property bubble.
At the heart of the matter are concerns in the residential second home or investment sector. One of the key growth markets has been overseas buyers from mainland China which matches the trend felt in Hong Kong for the past few years.
Key moves are limitations on debt leveraging ratio's and a stamp duty penalty on property 'flippers' who only hold for one or two years before selling on and taking profit.
With interest rates remaining in a comatose state, anxious investors have been searching far and wide where to actually park money with a view to high returns.
Bangkok has also seen early warning signs of rampant speculation but for now the Government has been sidelined in domestic matters
