by Daryl Lum | Aug 17, 2023 | News
So if you have not already heard, on the 27th of July 2023, the Thai Supreme Administrative Court revoked the construction permit for Ashton Asoke. The already completed 6.481 billion baht project in Bangkok had about 87% or 668 of its units already transferred to property owners.
Where does this leave the development and its owners?
The short answer to this is that the development does NOT need to be demolished due to the revocation of the construction permit.
A bit of background to the case…
The court’s decision was founded on the premise that the access to and from the condominium complex, positioned on Asoke Road, was constructed on land acquired through expropriation by the Mass Rapid Transit Authority of Thailand (MRTA) specifically for the Blue Line train project. As a result, this access cannot be repurposed for other uses. Deputy Governor of Bangkok, Wisanu Subsompon, clarified that the permit’s revocation does not involve the demolition of the condominium. Instead, it necessitates that Ananda Development obtains a new construction permit from City Hall. To achieve this, the company must identify a parcel of land with a minimum width of 12 meters, dedicated to providing access to Asoke Road. It is reported that the company is offering attractive incentives to acquire adjacent land in order to meet this requirement.
Bangkok Governor, Chadchart Sittipunt, has convened a special ad hoc working committee to manage this situation. A press conference has been scheduled to provide further updates on this matter. In the interim, CEO of Ananda Development, Prasert Taedullayasatit, expressed his intention to hold separate discussions with the governors of Bangkok and MRTA. The aim is to explore ways to mitigate the impact on the condominium project and its residents.
Additionally, the company has duly informed the Stock Exchange of Thailand about these recent developments. This demonstrates the company’s commitment to keeping stakeholders informed regarding the steps taken in response to the court’s verdict. (NNT)
We will keep you updated with regard to any new development. If you are an owner of a unit at Ashton Asoke, you should already be in contact with the developer and their legal team.
by Daryl Lum | Jun 30, 2023 | News
According to real estate appraisal and consultancy agencies, the growth in Thailand’s property market during the second half of this year will be driven by foreign buyers, while domestic buyers have not fully regained their purchasing power due to unfavorable factors. The country’s economy has shown signs of improvement, thanks to foreign purchasing power, especially since the reopening of China and the resurgence of the tourism sector and selected businesses. The Ministry of Finance’s Fiscal Policy Office predicts that Thailand will welcome 29.5 million tourists in 2023, generating 1.3 trillion baht in revenue. However, growth in the property sector is hindered by rising interest rates, inflation, and political uncertainties.
According to the Real Estate Information Center (REIC) of the Government Housing Bank, the number of condominium transfers by foreigners across the country increased by 79.2% to 3,775 units, and the value of these transfers rose by 67.6% in the first quarter of 2023 compared to the same period last year. Total transfers at the end of the first quarter amounted to 17.1 billion baht. This indicates a positive recovery trend in the real estate market following the reopening of the country, allowing foreigners to travel and engage in property transactions and transfers as before.
Artitaya Kasemlawan, head of resident sales for real estate service and investment firm CBRE (Thailand), stated that 89% of customers from last year until the beginning of this year were Thai, while the remaining 11% were foreigners, mostly from China, Hong Kong, Taiwan, Myanmar, Singapore, and Japan. The agency has observed a healthy growth in foreign buyers since the beginning of this year.
She further mentioned that foreign buyers in the condominium sector typically have higher budgets compared to Thai buyers, ranging from 15 to 30 million baht per unit. In Bangkok, they prefer to reside in main business districts such as Sathorn, Lumpini, and Sukhumvit, as well as along the banks of the Chao Phraya River.
Sopon Pornchockchai, president of the Agency for Real Estate Affairs (AREA), predicts that foreign buyers will account for 15% of the total property value or approximately 10% of total units transferred, and these numbers will increase to about 18% of total units sold in the next two years.
AREA forecasts that 111,273 property units will enter the market this year, representing a 5.3% increase compared to last year. The value of property units in 2023 will amount to 478.61 billion baht, a 6% increase from 2022.
Sopon also highlighted that only 60% of total purchases are for actual residential purposes, while 22% are speculative investments by Thai investors, and the remaining 18% are purchases made by foreigners for both residential and investment purposes.
He cautioned that if speculative investments continue to rise and the proportion of genuine buyers decreases, it may eventually lead to market problems and a decline in property prices.
by Daryl Lum | Jun 24, 2022 | News
The Thai government has lifted its mask-wearing mandate with immediate effect. This is in line with the improving Covid-19 situation in the country as the country moves towards living with the virus.
On Thursday 23rd June 2022, it was announced in the Royal Gazette that the wearing of masks would be voluntary. This applies to both indoor and outdoor spaces. However, the Thai Public Health Ministry still advised people to wear masks in crowded places or areas where social distancing is not possible and when ventilation is poor. For those who are at high risk of severe Covid-19 symptoms or death, they are still advised to keep wearing masks properly whenever there are other people around.
Yours sincerely,
The Invest Bangkok Property editorial team
by Daryl Lum | Jun 21, 2022 | News
The number of condominium transfers made by foreigners in the first quarter of 2022 continued to fall. The main reason for this is the draconian measures put in place by China to control the movement of its people because of its zero covid policy. In Q1 2022, the number of transfers attributed to the Chinese was 949 units. This is a 38.1 per cent drop compared to Q1 2021 when 1,532 units were transferred to Chinese buyers. Considering the Chinese made up the bulk of the transfers, approximately 45 per cent of all transfers, this is a rather significant statistic.
It is vital to note that the reason for the lower number of condominium transfers is that China restricting the movement of its citizens as it continues to be isolated from the rest of the world due to its zero covid strategy. Hence, it would be likely to be the case that when the Chinese government relaxes its zero-covid stance if it ever does, or when covid-19 is kept under control in China, the number of transfers attributed to Chinese buyers is likely to go up.
Coincidentally, the number of condominium units transferred to Russians shot up by 100 per cent when compared to Q1 2021. This is perhaps reflective of the ever-increasing number of Russians considering life abroad as their country is growing ever more isolated from the rest of the world due to the war in Ukraine.
Overall, the number of transfers that were made to 8 out of the top 10 nationalities receiving condominium transfers rose.
Top 10 nationalities receiving condo transfers nationwide (by unit)
Looking at the numbers, if the Chinese were to maintain their rate of condominium transfers in Q1 2021, the number of units transferred in Q1 2022 by foreigners would be higher when compared to the number of units transferred in Q1 2021.
Globally, there is a flight to assets and one of these assets is property. The reason for this is that property is still seen as a good hedge against inflation. As inflation is stubbornly high just about in every corner of the world, property buyers are hedging against inflation by placing their monies in assets like property. So long as inflation remains stubbornly high, property buyers across the globe will continue to look to property as a “flight to safety”.
Yours sincerely,
The Invest Bangkok Property editorial team
Source article: https://www.bangkokpost.com/business/2330288/zero-covid-policy-hitting-condo-transfers
by Daryl Lum | Feb 18, 2022 | News
The official name for Thailand’s capital is in the process of being changed from Bangkok to Krung Thep Maha Nakhon. The Thai cabinet has approved the Royal Society’s proposal for the change of name in principle but this change has still to be vetted by the relevant government officials.
For those who do not know, the full ceremonial name of the Thai Capital is actually…
Krung Thep Mahanakhon Amon Rattanakosin Mahinthara Ayuthaya Mahadilok Phop Noppharat Ratchathani Burirom Udomratchaniwet Mahasathan Amon Piman Awatan Sathit Sakkathattiya Witsanukam Prasit
or
กรุงเทพมหานคร อมรรัตนโกสินทร์ มหินทรายุธยามหาดิลก ภพนพรัตน์ ราชธานีบุรีรมย์ อุดมราชนิเวศน์ มหาสถาน อมรพิมาน อวตารสถิต สักกะทัตติยะ วิษณุกรรมประสิทธิ์
in Thai.
Which translates to
The city of angels, the great city, the residence of the Emerald Buddha, the impregnable city (of Ayutthaya) of God Indra, the grand capital of the world endowed with nine precious gems, the happy city, abounding in an enormous Royal Palace that resembles the heavenly abode where reigns the reincarnated god, a city given by Indra and built by Vishnukarn.
However, don’t worry, for the English speaking general public as well as all of you who just cannot come to terms with the change in name, the common name Bangkok will still be recognised.
Here’s proof:
In essence, it just says that you can still say Bangkok and the rest of Thailand will still know what you mean.
Phew, we actually thought that we have to change our website and YouTube channel to Invest Krung Thep Maha Nakhon Property.
Yours sincerely,
The editorial team at Invest Bangkok Property
by Daryl Lum | Jun 10, 2021 | News
According to data gathered by Juwai IQI, a pan-Asian real estate sales and media group based in Kuala Lumpur, Chinese residential buying interest rebounded over the past two quarters. This is after four quarters of double-digit declines. Chinese buyer inquiries for Thai property increased by about 38% in the first quarter of 2021.
“The long-term outlook is this: Bargain-hunters are buying now. The boom starts when travel reopens,” said Georg Chmiel, co-founder and executive chairman of Juwai IQI Group.
“For Chinese buyers, Thailand right now represents an opportunity. Not everyone is brave enough to purchase in such uncertain times, but there are many forward-looking Chinese property buyers who are. They are buying investments, second homes and even future primary residences in Thailand.”
Total sales to Chinese buyers dropped by half in 2020 when compared to 2019. The main reason was because of the restrictions on travel. As the Chinese could not come over to Thailand, the interest in Bangkok properties slumped accordingly. As foreign buyers of Thai properties tend to focus on luxury properties, few buyers are willing to make a decision for such large purchases without coming to visit the property.
However, with the anticipated easing of restrictions on international travel, the interest in Bangkok properties should return. This is especially so when you consider that the Chinese economy is recovering very quickly. The Chinese consumers will have excess savings and they are expected to invest in real estate. The resumption of international travel would depend heavily on the pace of vaccination in Thailand and the quarantine arrangements. There is already much talk of easing some of these measures once a large proportion of the country has been vaccinated.
