by kevinyeo | Apr 22, 2018 | News
Thailand has entered into a strategic partnership with Alibaba to drive the development of Thailand’s digital economy and the Eastern Economic Corridor under the Thailand 4.0 policy.
Under this partnership, agencies of the Thai government and business units of Alibaba will work closely in a number of areas, including e-commerce, digital logistics, tourism, and training.
The partnership represents the strengthening of collaboration between the Alibaba Group and the Thai government following the signing of a letter of intent in 2016, a move that kick-started a series of joint efforts to bolster the capacity of Thai entrepreneurs in gaining access to new markets and taking advantage of digital innovations.
Deputy Prime Minister Somkid Jatusripitak said that the strategic cooperation with Alibaba would bring benefits to Thai small and medium enterprises and farmers as well as to the tourism industry while pushing forward digital economic development in Thailand.
Jack Ma, executive chairman and co-founder of Alibaba Group, said that China is on its way to becoming the world’s largest consumer market, driven by rising income and a growing middle class that now numbers 300 million.
There is no better time than now for trade-oriented countries to seize the opportunity to export to China, as the country continues to open its doors wider to global trade, Ma said. Quality Thai agricultural products such as fragrant rice, durian, and other tropical fruit are particularly sought after by the Chinese consumer.
Key initiatives:
First, the establishment of a Smart Digital Hub in the Easter Economic Corridor (EEC) to support cross-border trade with China and other markets.
Alibaba’s smart digital logistics business, Cainiao Network, will establish a Smart Digital Hub in the EEC. The hub will utilize Alibaba and Cainiao’s data and logistics technologies and processes to optimize the cross-border flow of goods between Thailand and China, as well as with other markets. Cainiao will also work closely with the EEC Office and Thailand Customs to promote the digitization of customs processes through technologies such as “big data” and artificial intelligence, as well as sharing global best practices. The Smart Digital Hub will be an open platform enabled to provide services to all players in Thailand’s digital economy.
The Smart Digital Hub is expected to be built starting this year, with operations expected to commence in 2019.
Second, equipping SMEs with e-commerce skills.
Alibaba Group said it would continue its efforts to connect Thai SMEs to Alibaba’s 500 million active users in the Chinese e-commerce market. Other global e-commerce opportunities will roll out through a partnership between the Thai Ministry of Industry’s Department of Industrial Promotion (DIP), the Thai Commerce Ministry’s Department of International Trade Promotion (DITP) and the Alibaba Business School – an accredited university founded by Alibaba Group and Hangzhou Normal University.
Under this training collaboration, SMEs across Thailand, including SMEs in rural areas and individual entrepreneurs, would have the opportunity to gain e-commerce knowledge and skills to start e-businesses and leverage the Internet to develop their business online.
Third, training Thai digital talent.
Under the collaboration with DIP and DITP, the Alibaba Group also plans to develop Thai talent for the digital economy era.
The Alibaba Business School would work with both government departments to develop and update effective strategies for talent development in Thailand, while also providing students and academics from this country with opportunities to take part in various academic exchanges and courses offered by the business school in Hangzhou, China. Resources and expertise from the Alibaba Business School would also be made available to the DIP and DITP for localization and further use in Thailand.
Fourth, cooperating in developing “smart” and digital tourism.
The Tourism Authority of Thailand will expand cooperation with Alibaba’s online travel business, Fliggy, which is one of China’s leading online travel service providers.
The cooperation will focus on support for smart and digital tourism in Thailand.
As an official strategic partner of TAT, Fliggy will work with the body to offer smart technological experiences at multiple facilities and tourist attractions across Thailand for the convenience of visitors – ranging from online tour guides to electronic ticketing systems.
Fliggy and Ant Financial, Alibaba Group’s affiliate and operator of Alipay, are also in active discussions with various related government agencies to drive a digital transformation of Thai tourism. The holistic change would start from applications for pre-departure visas and “visas on arrival”, through to payment of post-travel digital services and the tourist tax refund via the Alipay system. It is expected that the strong collaboration between Alibaba Group and Thai government will help attract more Chinese travelers to Thailand and increase the nation’s tourism income.
Fifth, creating an official Thai rice flagship store on Tmall.
Alibaba and the Thai Commerce Ministry have together launched the first official Thai rice flagship store on Tmall, the world’s largest third-party platform for brands and retailers.
Alibaba will also help drive the sale of popular Thai fruit, such as durian, into China. Alibaba and the ministry will work together to drive the growth of Thai rice and other agricultural product exports to build an area of strength in the Thai economy and position Thailand globally. Alibaba will also assist Thai agricultural businesses to harness the power of Alibaba’s unique insights into the Chinese consumer market.
source: http://www.nationmultimedia.com/detail/Startup_and_IT/30343690
by kevinyeo | Mar 25, 2018 | News
By 2025, nearly bt700 bn would be invested in projects close to the CBD
The changing lifestyle of city folk is making them buy residential property close to their place of work, which has inspired property developers to invest more in mixed-use projects in Bangkok’s central business district (CBD).
Developers are investing more than Bt581.5 billion from this year until 2025.
Mixed-use projects combine residential, hospitality, office and retail space in the same area.
According to a survey by The Nation, the TCC Group owned by tycoon Charoen Sirivadhanabhakdi is investing Bt153.5 billion over the next seven years in developing three mixed-use projects in Bangkok’s CBD area.
The first project is One Bangkok, located on Rama IV, Wireless Road over 104 rai of land. The project will have an office block with combined office space of 500,000 square meters, 1,000 rooms in a luxury hotel, retail space, and three ultraluxury condominium buildings. Planners expect 60,000 people to use the entire complex.
The next project is PARQ, worth Bt20 billion and located on 24 rai, close to the Queen Sirikit National Convention Centre on Rama IV Ratchadaphisek Road, opposite the FYI Centre, which is also owned by TCC Group. This project will have offices, retail and hotel buildings in a total development of 320,000 square meters.
The third TCC project is the Samyan Mitrtown complex, worth Bt8.5 billion, which is being developed by its subsidiary Golden Land Property Development Plc.
This project is located on 13 rai on Phya Thai Rama IV Road. The project will have offices, serviced apartments, and condominiums in a total area of 220,000 square meters.
Magnolia Quality Development Corporation (MQDC), in which the Chearavanot family that owns CP Group, are major stakeholders, is another property firm going for mixed-use projects in Bangkok – on its own and as a joint venture. Its three projects are worth a combined Bt170 million.
The first project is Forestias, over 300 rai at Bang NaTrad Road KM7.
The Bt90billion project will have residential, retail, office, health center, innovative building center and a green area.
Another project is IconSiam over 50 rai on Charoen Nakhon Road. This project, being develฌoped as a joint venture with Siam Piwat and CP Group, has retail, office, residential, and hotel buildings.
MQDC is also coming up with Whizdom 101, worth Bt30 billion, located on Sukhumvit Soi 101. The project over 43 rai combines a condominium, community mall, offices and a sports club.
Other property developers have also announced plans to develop mixed-use projects on land near the CBD in keeping with changing customer preferences.
For instance, Supalai Plc plans to develop on land where the Australian Embassy was previousฌly situated on Sathon Road, a mixed-use project. The Supalai Icon, worth Bt20 billion, will combine condominium, office, and retail complex.
Origin Property Plc also plans to develop three mixed-use projects worth a combined Bt70 billion at three locations –Phya Thai, Thonglor, and Phrom Phong.
“When you drive a car on Rama IV towards Sathon Road, you will see more construction of mixed-use projects, with more than half of them being owned by beverage tycoon Charoen Sirivadhanabhakdi.
This change in business model over the next decade in Bangkok’s CBD for mixed-use projects is due to change in customer behavior change and the rising price of land, which makes it difficult for develฌopers to only build condominium projects,” said Thai Condominium Association president Prasert Taedullayasatit. Prasert is also the chief executive officer of Pruksa Real Estate Plc.
He added that a number of mixed-use projects would be developed in Bangkok until 2025, worth more than Bt700 billion. Their location close to the CBD area will result in people moving from outer areas to live close to their place of work. Property developers are developing small size residential units close to the mass transit system.
Origin Property Plc’s chief executive officer Peerapong Jaroon-Ek said the company had decided to develop three mixed-use projects from this year until 2025 to cater to the needs of customers, who are seeking one space for all their activities. The mixed-use concept will answer all their lifestyle needs, he said.
However, he said the location most suited for mixed-use projects are located in the CBD, challenging the customers to buy them, he said.
BTS Group Holdings Plc is also interested in developing a mixed-use project over 7 rai on Phya Thai Road, located close to BTS Phya Thai station.
The office and hotel project worth Bt10 billion will be announced this year. The project will be developed by its subsidiary U City Plc, the company’s chairman Keeree Kanjanapas said recently.
U City also plans to develop the Roi chak Sam building over 5 rai on Charoen Krung Road, a mixed use project which includes a hotel, food court, and retail. Details will be finalized in 2019, he said.
“When all mixed-use projects in Bangkok are completed in 2025, it will change Bangkok’s CBD landscape into a work and lifestyle destination,” Prasert said.
source: http://www.nationmultimedia.com/detail/Real_Estate/30341200
by kevinyeo | Mar 13, 2018 | News
CENTRAL Pattana Plc (CPN), the largest retail real estate developer in Thailand and operator of CentralPlaza WestGate, has announced that ‘CentralPlaza WestGate, ’ the super regional mall in Southeast Asia, has formed a partnership with IKEA, the world’s top furniture brand.
The largest IKEA store, with a new design, will open on March 15 in Watergate. CPN is investing over Bt120 million in marketing budget to create ‘Expand Happiness – Have a Big Life’ campaign, supporting the growth and urbanised lifestyle in the Bang Yai/WestGate area, which is fast on its way to becoming the ‘West Business District’ (WBD), hoping to attract customer traffic of over 100,000 people per day to the shopping centre and the IKEA store.
Nattakit Tangpoonsinthana, CPN’s executive vice president/marketing, said CPN is committed to continuing the development of its shopping centres at high potential locations nationwide.
Bangkok and its suburbs remain the prime strategic locations, and intense competition can be seen. CPN sees the opportunities to penetrate into these high potential locations.
“We are the first major retailer to have developed mega projects in both eastern and western Bangkok as we foresaw the trend of urban growth spreading from the heart of the city to its outskirts. Today, our mega projects have achieved significant success. The most obvious example is CentralPlaza WestGate, the ultimate super regional mall in Southeast Asia, which is the best destination for everyone in the family and the largest gateway for western Bangkok. Today, if someone mentions the word ‘WestGate’, most people will think of Bang Yai and of us,” he said.
“The WestGate area has become a prime location, with great capacity in various aspects such as urbanisation, the size of the local population, purchasing power, over 40,000 residential project units, the government’s infrastructure projects and transport networks etc. Upon the arrival of IKEA Bangyai at CentralPlaza Westgate, CPN has been talking about plans to cooperate with IKEA since the start of the CentralPlaza WestGate development. It is a great honour that IKEA, the world-class furniture brand, has chosen to develop its best and newest design store to connect with our shopping centre. The new IKEA store is not only the largest and the latest design in Thailand, it is also the biggest IKEA store in Southeast Asia, with a total area of over 50,000 m2. It includes eight entrances and exits (connecting to CentralPlaza WestGate on three floors), with a total of 29 checkpoints located on every floor for shopping convenience. Convenient transportation connects all routes together: the MRT Purple Line, buses, a pier, the ring road, expressway and motorway. In addition, our shopping centre and IKEA both have parking areas that can accommodate each other’s customers.” Nattakit added.
He said that the partnership between CentralPlaza WestGate and IKEA Bangyai is creating the phenomenon of ‘Big Bang Magnets’ as each is a magnet with the potential to complement each other in three major aspects:
First, expanding target customer groups: the main customers of CentralPlaza WestGate and IKEA are families and the new IKEA store will help to attract more working people and modern-lifestyle teenagers. It will also widen the catchment area to cover upto 13 million target customers in Bangkok, Nonthaburi, Pathum Thani, Ayutthaya, Nakhon Pathom and Suphan Buri;
Second, CentralPlaza WestGate is outstanding in fulfilling all the needs and lifestyles of its customers as a ‘Center of Life’ that offers an extensive range of products and services. The arrival of IKEA will further extend the continuity of the seamless shopping experience through connecting points between the two shopping venues and customer journeys that complement each other. The customers can spend time, eat, drink and entertain themselves and continue on to look for home products and furniture shopping all on one trip.
Third, CPN will introduce the ‘Expand Happiness – Have a Big Life’ campaign to further complement its concept, which encourages everyone to ‘Have a Big Life’. CPN is holding special promotions together with IKEA by bringing signature events that will be held at the IKEA Bangyai opening ceremony to join CPN in the campaign. One such event is ‘Ninja Maze…The Big Adventure Presented by EST COLA’.
source: http://www.nationmultimedia.com/detail/Real_Estate/30340786
by kevinyeo | Mar 13, 2018 | News
Location and land cost are key factors to develop condominium projects in inner Bangkok, which are attractive to investment buyers as they provide good rental yields and capital gains, says property developer Habitat Group.
Chief executive Chanin Vanijwongse said locations should be popular among foreigners as they are the target tenants, citing areas like Asok, Phrom Phong, and Thong Lor, where Japanese and Europeans prefer to stay.
“Investment buyers usually look for yields and capital gains when buying a condominium unit,” he said. “If a project’s location can draw foreign tenants, the rental yield will be more attractive.”
While location should be attractive, land cost should be low to offer an interesting sales price for an attractive capital gain down the line. The best price range for a condominium unit in inner Bangkok should be lower than 200,000 baht per square meter.
Mr Chanin said while land plots on main roads are generally more attractive than those on sois, they also have higher land prices.
“With lower selling prices, a condominium unit on a soi will have more room to grow, compared with that on the main road,” he said. “But locations should be within walking distance of mass transit stations.”
Property consultant Colliers International Thailand said the take-up rate of condominium units priced between 200,001-250,000 baht per sqm was 80%, the highest in the market at the end of 2017. That was followed by condominium units priced between 150,000-200,000 baht per sqm, which had a take-up rate of 70%.
Habitat surveyed eight newly-launched condominium projects in locations from Asok to Phrom Phong and found those where average unit prices were below 200,000 baht per sqm had a take-up rate of over 80%.
Among five BTS stations from Nana to Ekamai, Thong Lor saw the highest take-up rate of 95% or 2,079 units sold from a total supply of 2,182 units. The average selling price in Thong Lo was 250,000 baht per sqm.
Next was Asoke, where the take-up rate was 83% or 2,077 units sold from a total of 2,488. Phrom Phong came third with 82% or 2,173 units sold from a total of 2,652 units. The average prices were 238,000 and 250,000 baht per sqm, respectively.
In Ekamai, the take-up rate was 75% or 860 units sold from 1,147 units, with an average price of 155,000 baht per sqm. The take-up rate in Nana area was 70% or 921 units sold from 1,316 units, with an average price of 244,000 baht per sqm.
Meanwhile, Habitat, a Pattaya-based developer, will launch its second project in Bangkok, Walden Asoke, with 83 units priced 190,000 baht per sqm on average.
source: https://property.bangkokpost.com/news/1427151/location-and-land-cost-remain-key-factors
by kevinyeo | Mar 12, 2018 | News
The land windfall tax is expected to help fend off a property market bubble as developers take care to avoid tax liabilities that will come into effect if the value of unsold residential units exceeds 50 million baht.
The tax should compel property developers to be more cautious in assessing market demand, said a source at the Finance Ministry.
A draft bill on the land windfall tax, now under consideration by the Fiscal Policy Office, capped the ceiling at 5% of the inflated price, but the applicable rate will be decided later.
Those liable for the tax must own land within a radius of five kilometers of a station serving high-speed, double-track or electric trains, or of the on- or off-ramp of an expressway. Those who own plots within 5km of building-restricted zones such as airports or ports will also be required to pay the tax.
Landlords whose land value is inflated will be charged the land windfall tax every time ownership is transferred from the time when the transport infrastructure project’s contract is signed until the project’s completion.
Once transport projects begin operations, those owning land for residential and agricultural purposes will not be liable to pay the tax, while those who have land for commercial use and whose value is higher than 50 million baht will be subject to the tax upon ownership transfer.
Only property developers for which the leftover units of their projects are valued in excess of 50 million baht will be taxed in the event that land ownership is transferred after the launch of an infrastructure project.
For condominiums, the tax base will be the difference between the sale price and valuation on the effective date of the law. For new or under-construction units, the valuation will be 20% of the average valuation of condominiums in the same area.
But a one-time tax will be applied to cases where land ownership is transferred after a transport infrastructure project starts. That means other landlords on plots for which the tax has been paid will no longer be subject to the tax.
Owners of land near infrastructure projects launched before the land windfall tax take effect will be exempt from the levy.
The Finance Ministry source said a property developer working on more than one project in the same area may be taxed less for the second or third project than for the first one to create a fair tax payment system, as such developers would have already paid the land windfall tax.
For instance, the first project could be taxed at 3% and the second one at 1%.
But the second project could be charged at the same rate as the first if the government determines that its unit prices are higher on account of infrastructure project development, the source said.
source: https://property.bangkokpost.com/news/1426547/windfall-tax-likely-to-deflate-property-bubble
by kevinyeo | Mar 8, 2018 | News
The residential, office, retail and logistics sectors will continue to be robust this year thanks to the country’s economic growth and the upbeat global outlook, says property consultant CBRE Thailand.
Managing director Aliwassa Pathnadabutr said new condominium launches in Greater Bangkok this year will rise by 10-15% from 64,000 units last year because of strong confidence in the Thai economy among consumers and developers.
The main contributors to the Thai economy are exports and tourism. Last year the country finished with 3.9% year-on-year GDP expansion, resulting from 9.9% growth in exports.
The tourism sector, which accounted for 20% of the country’s GDP, saw a record 35.4 million arrivals, a rise of 8.6% from 2016.
“Technology and diversification will be key trends in the property market this year,” she said. “Local developers have diversified to other sectors like offices, hotels, and retail, not focusing only on residential development.”
Many developers over the last two years have shifted to the high-end segment from the middle-to lower-end markets. This trend drove the growth of 51% in newly launched high-end residential supply last year to 12,544 units, up from 8,321.
Middle-to lower-priced condo supply saw a rise of 18% from 43,800 to 51,700, while the overall market grew 23% to 64,200 units.
“Continuing growth of new condo supply in the high-end segment will not cause oversupply, as such projects will be in inner city locations and on a smaller scale than those in the middle-to lower-priced segment,” she said.
But soaring land costs will drive selling prices of new condo supply in the high-end market, which CBRE estimates to be 285,000 baht per square meter on average, up from 270,208 last year, a rise of 9.2% year-on-year.
The highest price was in riverside locations at 321,750 baht, followed by Sukhumvit (255,954) and Silom-Sathon (233,583).
Resale high-end condo prices increased 7.4% to 213,194 baht, with the highest price in the Silom-Sathon area (229,496), followed by Lumpini or Lang Suan-Wireless-Phloenchit (215,729) and Sukhumvit (194,357).
Last year CBRE sold 900 condo units worth a combined 17 billion baht, rising from 15 billion in 2016. Some 561 units were in the high-end segment, with 25% bought by foreigners, up from 22% in 2016.
The largest portion of buyers was from China at 28%, followed by Hong Kong (14%), Singapore (8%) and France and Britain (6% each).
“Foreigners came as property investment buyers and partners in joint ventures with local developers. Both groups will come in higher numbers this year as Thai property prices are lower than other countries and banks remain more cautious about project lending,” she said.
From 2013-17, more than 70% of joint ventures were with Japanese partners. This trend is projected to continue, with 73% of partners from Japan, 18% from Singapore and 3% each from Chinese, American and Hong Kong.
In the office sector, demand will remain strong, with key drivers comprising e-commerce, tech firms and online business, co-working space operators and banks.
There will be at least four international co-working space operators that plan to open their first locations in Thailand with a combined 18,000 sqm of office building space in Bangkok’s central business district (CBD) this year.
Two of the co-working spaces are from Singapore — The Great Room and JustCo — and one each will be available from serviced office operator Regus and a US firm.
But key challenges in the office sector include the large quantity of new supply being completed, with 1.48 million sqm in the pipeline from 2020-23. About 800,000 sqm will be in the CBD.
“In the future, it will change from a landlord market to a tenant market,” said Nithipat Tongpun, CBRE’s head of advisory and transaction services.
“To be competent, office landlords should focus more on collaborative spaces to attract millennial talents, not just locations near mass transit lines and others with attractive rental rates,” said Mr. Nithipat.
With the economic recovery and growing consumer confidence, new retail supply exceeding 300,000 sqm is projected to be completed this year.
source: https://property.bangkokpost.com/news/1424159/economic-tailwinds-buoy-sector
