by kevinyeo | Dec 9, 2018 | News
As much as 300,000 rai is being prepared for development into industrial areas for the government’s flagship Eastern Economic Corridor (EEC)
The areas will be expanded from those owned by 21 existing industrial estates that span 82,000 rai. They also exclude 20,000 rai to be allocated for the development of the Eastern Economic Corridor of Digital (EECD) and Eastern Economic Corridor of Innovation (EECI).
Monton Sudprasert, director-general of the Department of Public Works and Town and Country Planning, said a draft of the EEC town plan that governs the new industrial areas is likely to be finalized in December before being submitted later for a public hearing.
“The EEC town plan will come into force by the middle of next year to conform with anticipated higher demand for the industrial development, especially for 12 targeted industries,” he said.
The new EEC town plan will cover transport and infrastructure, information technology for the EECD and EECI, education, new smart cities, housing areas, green areas for farming, and garbage and water management.
“The expansion of industrial areas will not affect agricultural areas,” Mr. Monton said, noting that the surrounding areas of existing industrial estates are not all farmland.
He said the new EEC town plan will also cover land use for commercial purpose around U-tapao airport and the planned stations of the high-speed railway linking three major airports.
The government should benefit from developing the areas, he said.
Pierre Jaffre, president of Airbus Asia-Pacific, which is partnering with Thai Airways International Plc in developing a maintenance, repair and overhaul (MRO) centre at U-tapao airport, said Thailand is in a good position to become an aviation hub in Asia-Pacific, which has 90 million passengers, accounting for 5.5% of global passengers.
Asia-Pacific has 7,000 aircraft, with the number projected to reach 16,000 over the next 20 years.
Mr. Jaffre said Airbus also plans to manufacture a satellite at the EEC that will be a cooperative effort of the company and the Geo-Informatics and Space Technology Development Agency.
He said Airbus is also interested in the defense industry, which has been recently included in the government-promoted targeted industries, as well as supplying helicopters for medical services.
Kanit Sangsubhan, secretary-general of the EEC, said the development will be a model for special development zones. The next corridor is expected to be the Southern Economic Corridor.
Prime Minister’s Office Minister Kobsak Pootrakool said the National Economic and Social Development Board is scheduled to propose that the cabinet approve the SEC master plan this month or early next month.
The SEC’s main development projects include the construction of the Chumphon-Ranong double-track rail, worth 10 billion baht, and an upgrade of Ranong port, worth 10 billion baht.
Development is expected to be implemented by the middle of next year.
The Southern Economic Corridor will span four provinces: Nakhon Sri Thammarat, Chumphon, Ranong and Surat Thani.
by kevinyeo | Nov 23, 2018 | News
BoT lowers 2nd housing loan bar to 10-20%, LTV unchanged for first-timers buying under B10m.
The Bank of Thailand will impose a more stringent required minimum down payment for third and subsequent mortgages of 30% of the home price, but it will ease the minimum requirement for a second housing loan to 10-20%, depending on how long a borrower has made payments on the first one.
The effective date has been pushed back four months to next April 1 after lobbying by property developers and lenders.
The central bank will require those who purchase a home at a price below 10 million baht and seek a second home loan to make at least a 10% down payment in the event that they have made payments on the first mortgage for three years or longer, said Jaturong Jantarangs, assistant governor in charge of the supervision group.
The minimum down payment requirement will be raised to 20% if borrowers have serviced the first mortgage for less than three years.
For those who seek a second mortgage to fund the purchase of a home priced at 10 million baht or higher, a minimum 20% down payment is required.
Those who apply for third and subsequent mortgages will be subject to a minimum 30% down payment, regardless of home price.
The loan-to-value (LTV) ratio of 90-100% remains unchanged for those who apply for a first mortgage to buy a home priced below 10 million baht, but the ratio will be lowered to 80% in cases where a borrower buys a residence valued at 10 million baht or higher.
Typically, a loan with a lower LTV ratio carries less risk for both lender and borrower, as less capital is being borrowed.
“The revised-mortgage loan regulation will impact homebuyers who have multiple mortgages at the same time, and those who purchase residential units priced from 10 million baht,” Mr. Jaturong said.
The tighter rules are to comply with the central bank’s macroprudential policy to minimize risk in the property and mortgage lending industries. Thailand’s 1997 financial malaise originated in the real estate sector.
Mr. Jaturong has said repeatedly that there is no sign of a property bubble right now.
The central bank last month proposed requiring borrowers to make a down payment of at least 20% of homes priced at 10 million baht or higher, as well as for second and subsequent mortgages, in an effort to curb mortgage and property risks and improve housing loan quality.
Under the previous proposal, lenders would also have been required to limit mortgages together with top-up mortgages such as personal loans and loans for mortgage-reducing term assurances (MRTA) at 80% of home value for second mortgages and homes priced at least 10 million baht, and at 100% for first homes valued below 10 million.
Mr. Jaturong said loans for MRTA, small and medium-sized enterprises and fire insurance, under the new rules, will not be counted into a single amount with a mortgage, but other types of top-up mortgages must be bundled into the mortgage.
The new regulation will strengthen mortgage loans approved by financial institutions, while the unchanged down-payment requirement for the first mortgage to buy homes priced at less than 10 million baht will allow those who have a real demand to access housing loans at a reasonable interest rate.
Mr. Jaturong said the new requirement will not be applied to those with signed land sale contracts or those who made down payments before Oct 15 this year, to the refinancing of sole mortgages, or to housing loans for building homes on owned land that is free of debt.
source: https://property.bangkokpost.com/news/1573326/30-down-payment-for-3rd-mortgage
by kevinyeo | Nov 22, 2018 | News
The residential market in 2019 will slow down, with new condominiums in middle- to lower-end segments expected to delay launches if the Bank of Thailand’s new requirements on loan-to-value (LTV) limits, scheduled to be announced tomorrow, are unchanged, says an industry chief.
Prasert Taedullayasatit, formerly president of the Thai Condominium Association, said new residential supply next year will be flat at 430-440 billion baht, the same amount as this year if the new LTV requirements do not change.
“Developers planning to launch new condos in the middle- to the lower-end segment will likely delay the opening for 3-5 months to give customers time to prepare for a higher down payment of 20%, up from 10-15%,” he said.
The new requirements include LTV limits capped at 80% of home value for second or higher contracts, or for units priced 10 million baht or above. They will take effect on Jan 1, 2019.
Many developers commented that the new requirements should only apply to start from third contracts as many buyers want to buy a unit in the inner city as a second home for their children or a place to stay near work during the week.
The effective date should be extended to July 2019 so buyers who booked a unit prior to the central bank’s announcement last month on the new LTV have sufficient time to prepare for the higher payment during the transfer period, said Mr Prasert, also president of premium business at Pruksa Real Estate, a subsidiary of SET-listed Pruksa Holding Plc (PSH).
The central bank is reviewing developers’ comments and suggestions before finalizing and making an official announcement tomorrow.
“The new LTV limits will have no impact on the upscale condo segment,” he said.
“Condo buyers in the upper-end market for units priced 10 million baht or more are able to pay a higher down payment of up to 20% of the unit price.”
Half of the buyers in this segment use cash to buy said Mr. Prasert.
During the first 10 months this year, Pruksa’s premium business launched a four new condo projects worth a combined 7.3 billion baht and recorded 7 billion baht in presales, higher than its target of 6.8 billion for the whole year.
He said the upper-end condo market next year will have higher competition as demand in this segment has been absorbed, though a chunk of supply launched this year and last still remain.
“Upper-end condo developers should seek niche demand and position products accordingly,” said Mr. Prasert.
“Large units for a big or extended family are still in demand.”
This month the company will launch a new condo project worth 1.75 billion baht on Thong Lor Soi 25.
Pruksa also plans to launch a high-rise condo project by the Chao Phraya River on Charoen Nakhon Road in the fourth quarter next year to capitalize from the positive impact of the opening of Iconsiam.
PSH shares closed yesterday on the Stock Exchange of Thailand at 20.20 baht, a decrease of 10 satangs, in trade worth 6.49 million baht.
source: https://property.bangkokpost.com/news/1571930/condominium-market-picked-to-slow-in-2019
by kevinyeo | Nov 21, 2018 | News
The condo market in capital’s east end has the potential to evolve into another prime location in the upper tier.
The residential condominium market in Bang Na has the potential to grow and expand at a healthy pace, according to Phanom Kanjanathiemthao, managing director of the real estate services firm Knight Frank Thailand.
The location on the east side of Bangkok has evolved with a full range of facilities to meet the needs of working professionals not only in Bang Na but also Bang Phli, Bang Bo and beyond, including Chon Buri. Many public- and private-sector developments are taking place that will increase the potential and value of assets in the future, Mr. Phanom said. They include:
– Bangkok Mall, a large, regional shopping center occupying 100 rai, with an investment value of 20 billion baht. The 650,000 square meters of space will comprise a shopping center, cinema, product exhibition center, amusement park, water park, condominium, residential units for rent or as serviced apartments, and office space for rent. Once fully open in five years, Bangkok Mall will be the largest shopping center in Thailand and Southeast Asia. Poised to become a major regional magnet, the complex will also benefit from the development nearby of the new Eastern Bus Terminal, which will move from its current site at Ekamai on Sukhumvit Road.
– Mega City Bangna is raising its profile with a Phase 2 mixed-use development boasting a total investment of 67 billion baht. Adding to Mega Bangna, the second phase consists of shopping and office space, two hotels and residential condominiums with green spaces and public parks on a total area of 400 rai.
– The Forestias is a 90-billion-baht mixed-use lifestyle property project on more than 300 rai. The construction site spans some 600,000 sqm and includes a commercial area with a community mall, six-star medical complex for rent, six-star boutique hotel, four-star hotel, learning center, kindergarten, and an innovation building. Construction began this year, with completion scheduled for 2022.
– The Bang Na-Suvarnabhumi train line is part of the MRT Master Plan Phase 2, which is currently under study, with private investment partners being sought. The light rail train will connect to the Green Line (Sukhumvit Line) at Bang Na station. Running along Bang Na-Trat Road for 18.3km with 14 stations, it is expected to accommodate 40,000 passengers per day from Bang Na to South Suvarnabhumi station. Sri Iam station will serve as an interchange connected to the Yellow Line (Srinakarin Road). Additionally, Thana City station will house a parking and maintenance facility on 29 rai of land.
– The area between Bang Na-Trat Km 19 and 23 is expected to become an important logistics hub, housing the distribution centres of many large companies. The total warehouse area is about 1.2 million square metres. It also contains a large number of industrial plants, making it a major employment source in Samut Prakan province. The location offers the potential to be linked to the production centres of the Eastern Seaboard, which is currently being transformed into the broader Eastern Economic Corridor (EEC). In addition, plans for a site at Km 32.5 call for a full-scale industrial estate on an area of 4,300 rai.
– Bang Na encompasses a large residential area. Many detached housing and townhouse developments already command relatively high prices, among them Lakeside Villa, Krisada Nakorn, Nuntawan, Baan Issara, Blue Lagoon and Baan Klang Muang. Bang Na-Trat itself links Sukhumvit and Srinakarin roads, so the city is easily accessible via the Chalerm Mahanakorn Special Expressway, or via the Green Line and the Yellow Line under construction, which will further enhance travel convenience.
– Bang Na is also home to many international schools, such as Bangkok Patana School, Thai-Singapore International School, Berkeley International School, St Andrews International School, Concordia International School, Didyasarin International Preparatory School, Thai-Chinese International School, and St Joseph Bang Na School, among others.
A total of 7,836 residential units have been developed in Bang Na since 2009, with a 94% sales rate and a focus largely on condos in the Grade C segment. The average selling price for new Grade B high-rise condominiums launched in 2017-18 in Bang Na-Sukhumvit is approximately 120,000 baht per sqm.
source: https://property.bangkokpost.com/news/1571350/bang-na-area-showing-growth-promise
by Daryl Lum | Nov 21, 2018 | News
Mention Phrom Phong and the usual thing that comes to mind is the EMQuartier and Emporium shopping mall. However, Phrom Phong is an extremely diverse and cosmopolitan neighbourhood with a good mix of affluent Thais and expatriates frequenting this area in Bangkok. You will find many Japanese and Korean expatriates in this area and consequently, there are many Japanese and Korean restaurants, supermarkets and bars in the area. The EMQuartier is just about the most upmarket mall you can find in central Bangkok. It is filled with high-end brands like Fendi, Emporio Armani and Rolex to name a few and also features a state of the art cinema and, my personal favourite part of the mall, the Helix Dining area. This is a part of the mall where you can walk along in a spiral lined with food outlets.
The EMQuartier is just one of three malls planned for the “EM District”. The EM District will also feature the existing Emporium and the EMSphere. Emporium is on the other side of Phrom Phong BTS Station, opposite the EMQuartier. It too features high-end luxury brands and is frequented by wealthy Thais and expatriates.
Phrom Phong BTS Map
The Phrom Phong does throw up a lot of opportunities for property investment. Understanding the nature of the tenants who will be renting the area is important. The typical tenant would most probably be a foreign expatriate. There is a large number of Japanese tenants living in this area. A useful point to note would be that the Japanese do like large bathrooms with a bathtub. This could be something to take note of when buying a property in the area. Also, loft units are preferred by many tenants as the high ceiling of loft units makes the apartment unit feel larger and more inviting.
Here are some projects which you may want to consider:
1. Noble State 39
Noble Development is one of my favourite developers in Bangkok. Their projects are usually located very close to the train station (Noble Ploenchit, Noble Around Ari and Noble Remix. These are right next to the train station!) Their design can be rather unflattering though and their workmanship is not bad but not the best in Bangkok. However, if you are looking for developments with good location qualities, Noble Development is one developer which you should be looking at. It just seems that they have properties in really prime locations in central Bangkok. Noble State 39 is located just behind The EMQuartier. It is a high-rise, 36 level condominium with 352 units sitting on a plot of land approximately 3,026 square meters in size. For more details, you can visit the Noble State 39 website here.
You can take a look at the walk to the BTS Station and a review of the development at this link:
investbangkokproperty.com/noble-state-39/
Here is a review of Noble State 39
2. EYSE Sukhumvit 43
EYSE Sukhumvit 43 is developed by Singha Estate. It is located about 5 minutes away from Phrom Phong BTS Station. It is located 2 sois away from Phrom Phong BTS and there are amenities like supermarkets and schools in this vicinity.
For more information about EYSE Sukhumvit 43:
investbangkokproperty.com/eyse-sukhumvit-43/
3. Noble BE 33
While it may seem a bit weird to have 2 out of 3 developments from Noble Development, I do think that their developments do warrant a mention. Phrom Phong prices are not cheap. In fact, they are extremely expensive and if you are looking at anything along the main Sukhumvit Road, do be prepared to pay an arm and a leg and perhaps a kidney to afford one. MARQUE Sukhumvit by Major Development is a prime example of this. Prices at MARQUE Sukhumvit start from THB350,000 per square meter and absolute quantum start at about 42 million THB. Noble BE 33 is located two sois away from The EMQuartier and is priced more affordable at just above THB200,000 per square meter. It is still a high rise development with full condominium facilities and is within the soi which is quieter.
If I were to pick one of the three, I would go for Noble State 39. In my opinion, the properties on the same side of the BTS track as The EMQuartier are more popular. My take would be to be as close to The EMQuartier as possible. Sukhumvit Soi 39 is wider and neater than the other two developments. I would not consider properties like MARQUE Sukhumvit or The Address Sukhumvit 28 if I were looking to rent these properties out. These properties are extremely high end and their rental yield is very low. In general, properties around Phrom Phong BTS Station are extremely easy to rent and is one of the best location for property investment.
Yours Sincerely,
Daryl Lum
Here are some articles that we hope will aid you in your search for an investment property in Bangkok:
The good locations for property investment in Bangkok
Where are the up and coming property investment locations in Bangkok?
A compelling case to invest in Bangkok
Guide to buying a property in Thailand
Thailand Property: Legal and Tax Issues
Recognising the different property title deeds in Thailand
Can a foreigner take a property loan in Thailand?
Buying property in Bangkok: Payment procedures
A guide to the top property developers in Thailand
Thailand Property Market Outlook for 2018
Thailand as a retirement destination
How to get a Retirement Visa in Thailand
My personal experience purchasing a property in Bangkok
Things to take note when investing in an overseas property
Factors that determine the property price in Bangkok
Looking to buy a Bangkok condo? Things to take note of.
Thailand property inheritance laws: taxes, succession and wills
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
