by kevinyeo | Nov 20, 2018 | News
American hotel chain The Standard plans to expand to Phuket, Hua Hin and Bangkok’s Thong Lor, with 150 rooms each, developing residences for sale at the two beach destinations after SET-listed developer Sansiri Plc invested US$58 million (1.9 billion baht) in the company last year.
Amar Lalvani, chief executive of parent firm Standard International, said the hotel in Phuket will be a renovation of an existing hotel with 50 rooms near Banana Beach, opening by 2020.
“Apart from the renovation, we plan to build 100 new rooms at the Phuket hotel and develop 50 units, including villas and condos for sale under The Standard Residence brand on remaining plots nearby owned by the existing hotel’s owner,” Mr. Lalvani said.
The second destination will be Hua Hin. Plans call for building 150 condo units for sale, to be operated as hotel rooms under The Standard Residence, opening in 2021.
Thong Lor will be the third location in Thailand with 150 rooms, all of which will be new and strictly for hotel operations, opening in 2021.
“Sansiri will seek investors to invest in each site,” Mr. Lalvani said. “The investment of $58 million with us last year can help us expand from the current five locations to 20 in the next five years.”
The Standard started with its first hotel in Hollywood in 1999 and expanded to downtown Los Angeles, Miami and two sites in New York with more than 900 rooms combined. Occupancy runs about 85%, 82%, 79%, 91% and 90%, respectively.
The first quarter of next year will see the opening of The Standard in King’s Cross, London with 262 rooms. This will be a renovation and the first location outside the US. The average daily rate is expected to be £305 (13,130 baht), with revenue per available room of £260.
Apichart Chutrakul, Sansiri’s chief executive, said The Standard was one of six companies in which it invested last year with total spending of $80 million. The investment of $58 million in the hotel company made Sansiri one of the major shareholders with a 35% stake.
Among the six firms, Sansiri invested in Singaporean co-working space operator JustCo, which got an investment of $177 million in May from Singapore-based Frasers Property, owned by the Sirivadhanabhakdi family, and Singaporean sovereign wealth fund GIC.
Both became major shareholders of JustCo with a 50% combined stake, while Sansiri, which injected $12 million last year, holds a 6.09% stake.
SIRI shares closed yesterday on the Stock Exchange of Thailand at 1.52 baht, down one satang, in trade worth 84 million baht.
source: https://property.bangkokpost.com/news/1571234/sansiri-standard-tie-up-to-yield-3-projects
by kevinyeo | Nov 19, 2018 | News
Mixed-use development is booming in one of the city’s prized neighborhoods.
The vibrant Ari-Phahon Yothin neighborhood in Bangkok is being transformed into the newest center for mixed-use developments that include office space and residences for people who are seeking a quality urban living experience.
Along the two-kilometer section from the Ari to the Saphan Khwai BTS stations, in particular, government premises, office buildings, and mixed-use developments have been going up, surrounded by abundant facilities for all lifestyle needs — community malls and department stores, hospitals, eateries, coffee shops and more. Easy to access by foot or skytrain with short time traveling in- or outbound, it’s become the desired location for everyone to move in, and it’s rare that the original residents decide to move out.
Nalinrat Chareonsuphong, managing director of Nexus Property Marketing, the real estate consultant, said the Ari-Phahon Yothin area has high potential to become one of the capital’s next major locations for office space.
It’s already home to some prominent public and private office buildings such as Exim Bank, the headquarters of Government Savings Bank, the NBTC, Kasikornbank’s head office and AIS Tower, but also three brand-new Grade A office buildings: the 25-storey Pearl Bangkok; Ari Hill, the 34-storey mixed-use centre consisting of office space, retail and residential accommodation; and the 24-storey SC Tower. The three buildings are expected to be workplaces for a combined 6,050 people in total.
Moreover, Mrs. Nalinrat said, there are under-construction projects scheduled to be completed in the next few years: The Rice, a 2-billion-baht 24-storey mixed-use development, and Pruksa’s Vimutti Hospital, a 5-billion-baht healthcare project, both expected to open in 2020; and Vanich Place by Laemthong Corporation, a 31-storey office building and community mall set for completion in 2021.
“The continual rise of high-end skyscrapers underlines the fact that this area remains one of Bangkok’s CBDs,” she said, referring to central business districts. “Blending with the charming contemporary lifestyle, it beckons the new generations to move in.”
With its outstanding strength in ongoing developments of office buildings and high-end skyscrapers, plus an easy-to-commute location, Ari-Phahon Yothin has an opportunity to become a city residential center with growth in demand, supply, and prices.
Since 2013, more and more condominium projects have opened, both high-rise and low-rise. Out of 16 projects, 3,318 units were sold, or about 81%, Mrs. Nalinrat said.
Projects newly launched in the two years mainly had a sales rate exceeding 70%. High-end condos (110,000 to 190,000 baht per square meter) hold the biggest market share at 74% or 2,544 units of both high- and low-rise condos. The best-sellers of this cluster are projects with a selling price of 110,000 to 120,000 baht per sqm, mostly in the Inthamara neighborhood, while there is nothing with this selling price developed in Ari-Phahon Yothin. Thus the area is a potential marketing opportunity for the property industry.
“The market demand for low-rise condos in this zone is continually seen, as the price for a residence located in the heart of Bangkok, near the sky train stations, sounds reasonable and affordable,” Mrs. Nalinrat said. “Meanwhile, the selling price of high-rise condos is more expensive, due to the price of the land plot and its availability. Additionally, the advantage of a low-rise one is fewer units in each project, which could bring a vibe of privacy that exactly meets the demands of the modern urban life.”
She said that in the current fast-paced world, one of the most important matters is to have a home in town in a bid to reduce traveling hours and gain more leisure time in style.
Living in Ari-Phahon Yothin could bring homebuyers closer to that goal.
source: https://property.bangkokpost.com/news/1568314/ari-phahon-yothin-an-area-on-the-rise
by kevinyeo | Nov 14, 2018 | Questions and Answers
Question: What is the difference between mass market and investment grade condo?
Answer:
There are 4 aspects to this question.
Location
There are very specific locations where good quality tenants will want to stay. It is imperative that you know where these locations are. Buying into wrong locations without proper tenant catchment area will cause you much headache. Naturally, to be considered an investment grade condo, the property has to be in the right locations. For example, Thonglor, Ekkamai, Chidlom, Sathorn, etc.
Density Of The Development
Most of the time, the better grades of condos typically have a lower density. This is also because of the greater exclusivity and larger sized units that are synonymous with luxury living. On the other hand, the mass market condo can be found having a high number of units squeezed into a small plot of land.
Quality Of Finishing
The quality of finishing between investment grade and mass market condo can be very distinct. From flooring to kitchen cabinets, the material used for investment grade condos is likely to be far superior. And it is rather common for investment grade condo to come fully furnished as it appeals to international buyers.
Condo Facilities
A lot of investment grade condos now come with fantastic facilities. This is important as the facilities are sometimes a deciding factor in your ability to attract good tenants or perhaps command a slightly higher asking rent. The mass-market condo is mostly sold to locals and the most important thing is affordability. Facilities may not be as comprehensive.
Not getting an investment grade condo may result in a lot of difficulties in renting or selling in the future.
Got a question? Reach us at [email protected]
by kevinyeo | Nov 7, 2018 | Questions and Answers
Question: Should I Invest In Bangkok Property With Personal Name or Company?
Answer:
This is another question we get asked often. Other than under special circumstances, we would always advise that clients do so under the personal name. The process is a lot more streamlined and of less hassle.
In fact, if you understand how the Thai tax structure works, it can be less costly to sell the property under a personal name rather than a company.
The selling taxes and withholding taxes as a personal name is lower.
There is no significant advantage of holding property under a company unless there are specific reasons to do so.
Got a question for us? You can reach us at the following:
[email protected]
[email protected]
by kevinyeo | Oct 31, 2018 | Questions and Answers
Question: Is there an oversupply of condominiums in Bangkok?
We get this question very often and this is a topic that can get investors concerned. Every weekend, you can flip the newspapers and you will see several new launches in Bangkok happening.
So is there really an oncoming glut of condos in Bangkok?
Answer:
It depends on what you buy.
It will be wrong put all the condominiums in Bangkok together and see them as one. There are the mass market ones, and then you have the investment grade condos.
We are always advocating that you should only be looking at the investment grade condos. These are condos located in the core central region of Bangkok.
In downtown Bangkok, the land is limited. It is difficult for you to spot an empty land. For developers such as Sansiri and Ananda to launch a brand new condo, they will first have to buy over existing land or old buildings.
This increasing land price and relatively short supply of prime properties have to lead to price growth over the years. These will also be the exact same properties which the expatriates favor due to the superior location and quality.
A lot of investors are attracted to the lower priced condos on offer in the outskirts of the city but those condos are many in supply. There is no public housing scheme in Bangkok. Thus, the developers are the one coming up with affordable housing for the local Thais. It will be rather difficult for such properties to attract expatriate tenants.
Got a question for us? Reach us at [email protected] or [email protected]
