In this article, I would like to introduce you to a new upcoming launch by listed Thai developer Sansiri in a joint venture with Tokyu Corporation. This is not the first time they are working together. Taka HAUS Ekkamai 12 was a recent project launched by Sansiri and Tokyu jointly last year and Taka HAUS is already 95% sold.
This upcoming new project has generated a lot of interests even before the official global launch on 7th July 2018.
The name of the development is called XT Ekkamai. XT series is the first of it’s kind. The concept is created to target the Millenials.
While the HAUS series comes with a resort concept, XT will very much cater to the Millenials’ active lifestyle.
The Location
Located in the earlier parts of soi Ekkamai, staying in XT Ekkamai gives you access to a myriad of amenities. Shopping malls, schools, and hospitals are all easily accessible.
Some noteworthy landmarks are:
Entertainment and Restaurants
– Arena 10
– Health Land
– Ekkamai Shopping Mall
– Gateway Ekkamai
– Big C Ekkamai
– Major Cineplex
– J Avenue
International Schools
– Ekkamai International School
– The American School Of Bangkok
– Bangkok Prep International School
And that is really the reason why so many people love staying in Ekkamai.
The distance from XT Ekkamai to Ekkamai BTS is about 1.7km.
If you refer to the map above again, you will see not too far away from XT Ekkamai, there is a pin drop for Donki Mall. Yes, this is the famous Japan discount chain store.
We have 2 Donki outlets here in Singapore as well and it is super crowded every weekend.
The Donki mall is already under construction. It will be an impressive 6-storey retail mall in Ekkamai 5 when completed.
Project Highlights
Xt Ekkamai by Sansiri is a freehold development. Standing at 38 levels high, it will consist of a total of 537 residential units and 1 retail shop.
The units mix consist of 1 bedroom and 2 bedroom units.
For 1 bedroom, sizes range from 29.75sqm to 38sqm.
For 2 bedroom, sizes range from 45.50sqm to 57sqm.
XT Ekkamai is expected to be completed by December 2020.
270-degree sky pool. Enjoy the lovely Bangkok’s night scene.
Pushing the limitations with facilities that are truly out of the ordinary.
Sky lap pool with jacuzzi and poolside theatre. Awesomeness defined. No description required.
Courtyard Garden for you to have your moments of solitude.
This is no normal gym. It is equipped with Virtual Reality technology to enhance your workout sessions.
Look at that pool table.
Bar and Lounge on 38th. The perfect space for an after-party.
Conclusion
Proximity to social network and city resources, open floor plans, luxury kitchens, minimalist design, spa-like bathrooms, statement appliances, smart home technology, green building sustainability and bold use of colors. The Millenials have huge purchasing powers and the design world is taking notice of their preferences.
Sansiri and Tokyu have moved first to capture this market with their launch of XT Ekkamai.
XT Ekkamai Launch 7-8 July 2018 in Hong Kong, Singapore, Taiwan, Malaysia, China
In Bangkok, rental can be a bit confusing as there seems to be a lack of reliable online resources to guide landlords and tenants through the rental process. There are also no fix rules that apply, just standard practices. If your property is ready to let and this is your first time being a landlord in Bangkok, here’s 7 things you might want to take note of.
#1. Is it legal to Air BnB condos in Thailand?
The promise of high yields from short-term rentals would definitely attract any landlords. This is a grey area and it is an open secret that many landlords are doing short-term rentals. However, under the Hotel Act, you require a license in order to provide short-term accommodations. Recently, the authorities have punished a few owners in Hua Hin for contravening the act. We would urge you to err on the side of caution and not subject yourself to such unnecessary risks.
#2. Recently, there was a new Thai Rental Law enacted. Does it affect me?
The new law only applies to landlords who are classified as “business operators”.
The definition of “business operators” is as such: A business operator that leases at least five or more property units in one or more buildings for residential use. Property types include condominiums, apartments, houses and any other type of property used for residential leasing (Excluding Hotels).
So in other words, if you own less than 5 residential properties for lease in Thailand, the new changes do not apply.
#3 How long is a typical lease?
Mostly, you will see agents or landlords advertising for rental of 6 to 12 months. 12 months is a rather common arrangement. Anything lesser than 6 months, tenants would usually prefer apartments where there are concierge and room services provided.
#4 How much commission do I have to pay when engaging an agent?
In Bangkok, for 12 months lease, you as a landlord will have to pay the agent a commission equivalent to 1-month rent when the agent secures a tenant for you. This is market practice.
#5 How much security deposit do I collect?
Again, market practice is that the landlord collects 2 months equivalent of security deposit. This is to be returned to the tenant at the end of the lease. (less any chargeable damages caused by the tenant).
But if you are a landlord with more than 5 rental residential properties, the new law will dictate that you can only collect 1-month rent worth of security deposit.
#6 Should I furnish my property for ease of securing a tenant?
Generally speaking, you should. More than likely, you would have invested in a studio or 1 bedroom condo. Thus, your tenant would also most likely be a single or at best a couple. It is highly unlikely these tenants will bring along their big pieces of furniture when they relocate to Bangkok.
Dolling up your condo in Bangkok would not cost you much but it will go a long way to attracting a good tenant.
In fact, for some developers such as Sansiri, they will fully furnish the properties that they sell to foreigners.
#7 Who bears for other costs such as maintenance and utilities?
The landlord is responsible for all the applicable property taxes and maintenance payable to the condo management. The tenant will have to bear their own cost for utilities, cable, and internet.
Last words: It is advisable to engage a responsible and pro-active agent/agency to assist you with your property. Most of the time, for a fee. the agency also provides property management services.
CITIES in Thailand have risen in rankings for the cost of living, with Bangkok entering the global top 100 for the first time, according to a survey by ECA International, a provider of knowledge, information and software for the management firms.
Elsewhere in the region, Singapore is now the 20th most expensive location in the world, as Hong Kong drops from second to 11th in the Cost of Living global rankings.
Tokyo is the most expensive Asian city on the global list in seventh place.
Alongside rising trend for Thai cities, Malaysian cities have also moved up the index.
Commenting on Thailand’s and Malaysia’s rise in the rankings, Lee Quane, regional director – Asia, ECA International, said that once again prices increased at a relatively low rate, in both countries. In the case of Malaysia, especially in Kuala Lumpur, this shows that the inflationary impact of the imposition of a goods and services tax seems to have been brought under control. “Rather, it is the relative appreciation of each country’s currency that saw Bangkok and Kuala Lumpur rise in our rankings to 99 and 182 respectively,” Quane said.
Chiang Mai also saw a rise and is up to 169 in the global rankings.
“The price of goods and services included in our basket of goods has only seen a modest increase in Singapore over the past 12 months, in line with other similar economies in Asia,” said Quane.
“However, the rise in the rankings has been due to the relative strength of the Singapore dollar versus the US greenback in the past year.”
ECA International has been conducting research into the cost of living for over 45 years. It carries out two main cost of living surveys per year to help companies calculate the cost of living allowances so that their employees’ spending power is not compromised while on international assignment.
The surveys compare a basket of like-for-like consumer goods and services commonly purchased by assignees in 475 locations worldwide. Certain living costs, such as accommodation rental, utilities, car purchases and school fees are usually covered by separate allowances. Data for these costs are collected separately and are not included in ECA’s cost of the living basket.
Quane said that Hong Kong has seen a significant drop in our cost of living rankings for overseas workers, falling behind locations such as Tokyo, Seoul, and Shanghai. The main reason behind the drop is the fall in the value of the US dollar against which the Hong Kong dollar is pegged, over the last year.
Exchange rates have been the main cause of movements in the rankings in the past 12 months. “Rates of price increases throughout most of the major locations in Asia researched has been quite low,” said Quane. “Currency movements, on the other hand, have been quite volatile with several emerging market currencies strengthening against the US dollar in the last year.”
Every one of the Chinese cities included in the survey has seen a rise in the global rankings from last year. Shanghai was the highest placed Chinese city on the list in 10th place overall.
Tokyo is now the most expensive location in Asia to live in, despite staying in seventh place in the global rankings.
“Tokyo’s global ranking has remained relatively static over the past few years,” Quane said. “It is only the yen’s relative strength against the US dollar that has seen the Japanese capital become the most expensive place in Asia for foreigners to live and work, at Hong Kong’s expense. It has been a similar theme in Seoul, which is also now above Hong Kong in the rankings, despite remaining in eighth place globally.”
In Europe, rankings have largely gone up, with locations such as Rome, Paris, and Dublin rising by over 40 places each.
Quane said that the euro has performed significantly better over the past twelve months compared to the previous year, so we have seen living costs increase in a number of European nations. Cities such as Rome and Brussels have risen by over 50 places.
Swiss cities continue to dominate the top of the rankings – with four locations remaining in the global top 10.
HUA HIN, Prachuap Khiri Khan: The Hua Hin Provincial Court has ordered owners of two luxury condominiums in Hua Hin resort district to pay fines worth nearly 30,000 baht for leasing their residential units on an illegal short-term basis to Thai and foreign tourists.
Under the 2004 Hotel Act, violators can be jailed for one year and/or subject to a fine of up to 20,000 baht and a daily fine with a maximum value of 10,000 baht.
However, because the plaintiffs, whose names were withheld, confessed, the court agreed to reduce their penalties, Rutprathip Thamraphiphat, chief of Hua Hin district told the media on Saturday.
The ruling followed an inspection of three units in a Wan Wela Hua Hin Khao Tao condominium in Hua Hin last December which found their owners illegally leasing them out on a temporary basis.
The owners were divided into three cases. Two of them were settled on Saturday while the other is still being investigated, according to Mr Rutprathip.
In the first case, the defendant was fined 5,000 baht and has to pay another 500-baht daily fine for 20 days, which is equal to 10,000 baht in total.
The 5,000-baht fine was also imposed in the other case, together with a 100-baht daily fine for 81 days, which amounted to 8,100 baht.
“The wrongdoers leased the units to Thai and foreign tourists, charging them at both daily and weekly rates, without licenses,” Mr Rutprathip said.
He led the search of the three rooms amid reports some owners were advertising their units on social network sites.
The condominium is located on a 20 rai of land in Soi Hua Hin 101 in an area of tambon Nong Kae.
Citing an initial investigation, Mr Rutprathip said he believed “up to 90%” of owners had bought their units in order to offer lucrative short-term rentals to tourists.
The issue came to light following a dispute between the condominium operator and unit owners, in which the operator insisted that all rentals must be for a period greater than 30 days.
Condominium prices on Sukhumvit Soi 39 and the Thong Lor area have surged by 40% over the past five years.
Thong Lor also takes the cake for the highest rental costs in Bangkok at 1,000 baht per square meter per month, reported property consultant Nexus Property Marketing Co.
Managing director Nalinrat Chareonsuphong said the company, after compiling data on newly-launched condominiums in central locations in the capital, had found that property prices have risen continuously due to an insufficiency of land for development and high demand both from Thai and foreign investors. Hence, new projects tend to pull high returns from either sales or rent.
Price
The Nexus survey found property prices on Sukhumvit Soi 39 and in the Thong Lor area had posted the highest increase over the past five years, rising 40% from 183,000 baht per sqm to 255,000 baht per sqm. Meanwhile, prices in the Rachada-Rama IX area and Ekamai surged 34% and 30%, respectively.
Condominium prices near the city center, such as the beginning of Phahon Yothin Road, Phaya Thai, and Thon Buri have also increased by 13-26% over the last five years.
In the first quarter of 2018, the average price of newly-launched high-end and luxury condominiums in inner Bangkok and its environs was 208,600 baht per sqm. The Sukhumvit 39-Thong Lor location registered the highest price at 315,000 baht per sqm, followed by Chidlom and Langsuan at 262,000 baht per sqm and Sathon (243,000 baht per sqm).
Rental costs
The average cost to rent high-end condominiums in inner Bangkok and surrounding areas is 754 baht per sq m per month. The rental rates in Sukhumvit Soi 39-Thong Lor, Langsuan and Sathon are 1,000, 955 and 823 baht per sqm per month, respectively. Most tenants are Japanese, European and Americans who work in the Bangkok’s central business district.
Meanwhile, the rental rates of high-end condominiums in inner Bangkok and surrounding areas range between 526-800 baht per square meter per month. The highest rental cost goes to the Ekamai and Phaya Thai areas, respectively. The rental rates in Rachada–Rama 9 and Thonburi are lower than other areas because most tenants are Thai and other Asian nationalities, except Japanese, who also work in Bangkok.
Rental rates per sqm for one-bedroom and two-bedroom units in the city center are more or less the same, with prices for the latter only 1-2% higher.
For central locations like Thonglor, Langsuan, and Sathorn, rent ranges from 43,000-52,000 baht per month for a one-bedroom unit and 65,000-82,000 for a two-bedroom unit. For central locations, the rental rate ranges from 19,700-33,000 baht per month for a one-bedroom unit and 33,500-54,600 baht per month for a two-bedroom unit.
Return on Investment
When comparing the return on investment in condominiums over the past five years, the survey found that when it came to buying a condominium in 2013 and renting it out, an investor would get a 6.1% return per annum. Ekamai retained the highest yield at 7.7%, followed by Phahon Yothin (7.2%), Thong Lor (6.6%) and Langsuan as well as Phaya Thai (5.6%), respectively.
Investing in condominiums not only gives investors an annual return from renting, but also generates capital gains from sales, as the prices regularly climb. The return on investment for the overall luxury market has been relatively high over the past five years. Thong Lor gives the highest total return on investment at 66% from rent and sales, followed by Ekamai (61%) and Rachada-Rama IX (58%). The average return on investment has been 50% over the last five years.
Although condominium prices have continued to increase, the location that gives the highest return per year for condominium investment is Thon Buri at 5.4%, followed by Ekamai (5.2%) and Phahon Yothin (4.9%).
Trend
The overall condominium price is forecast to increase 8-10% per year over the next three years. Condominium prices in the city center are projected to rise 12-15%. For areas surrounding inner Bangkok, the annual yield will be higher in the short term, while investing in a condominium in inner Bangkok itself may provide higher capital gain from sales.
Therefore, the total return on investment from condominiums both in inner Bangkok and surrounding areas will more or less be the same.
The key factors that buyers should consider before purchasing a condominium are good management and building maintenance.
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