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Pattaya Property Show proves
a hit with developers & buyers
Pattaya City mayor Ittipol
Khunplome (right) attends the opening of the 3-day inaugural Pattaya
Property Show held at the Hilton Pattaya from Jan 9-11. For a full report on
the event, turn to page 6.
Exhibitors, visitors and organisers were all delighted
with the results of the 1st Pattaya Property Show which took place at the
Hilton Pattaya from January 9-12, 2014.
Over 2,000 visitors attended including buyers from over 23 countries,
tourists, expats and Thais. The event was also sold out with over 45
exhibitors.
Companies displaying their projects and services included huge national
developers Raimon Land PCL and Sansiri PCL, the largest local developers
such as the Nova Group, Universal Group and Blue Sky Group, other premium
developers including The Riviera Group, Kingdom Property, Onyx, Pattaya Posh
and Siam Royal View, as well as many smaller local real estate developers.
Agents and brokers were also well represented with some of the city’s
largest agents, A+ Properties, Ocean Residential, Compass Real Estate and
REBA, the Real Estate Broker Association, Eastern Seaboard all present.
Pattaya mayor Ittipol Khunplome
(center right) and Charlie Warner, CEO of Exact Trading Company (center
left), preside over the official opening of the 2014 Pattaya Property Show
at the Hilton Pattaya hotel, Friday, Jan. 9.
Charlie Warner, CEO of event organisers Exact Trading
Company, based in Pattaya, commented, “Our objective was to put Pattaya
property on the international map for real estate investors. Getting the
full support of the city administrators and by holding the event at a
prestige venue on the 17th floor of the Hilton resulted in the high quality
of visitors we wanted. It was serious people with a real interest that came
to the show.”
Mike Bridge of Exact Trading added, “We were very pleased with the results
of our first show in the city. It is always difficult to launch a new
exhibition, but because of Exact’s existing relationships with many of the
companies in this industry, we were able to generate what turned out to be a
very reputable show. A large number of contracts were confirmed during the
three and a half days, and I am sure there will be many more sales in the
next few weeks.”
The Riviera Group’s Marketing Manager Ubonjitr Thamchop said they had been
busy throughout the weekend: “The Hilton Pattaya’s ballroom definitely
fitted our profile of luxury, and we have already sold an apartment worth 12
million baht on the stand. We also have a fair number of excellent leads
which we feel confident we can close a few deals on shortly. I think this is
a very important step for the city to host a top level event to support the
property industry and maybe it should happen twice a year,” said Ubonjitr.
Over 45 exhibitors were present
during the 3 day event.
Meanwhile an Assistant Sales Manager at Kingdom Property
commented: “We were here promoting South Point and received lots of
enquiries, great feedback and we expect many of them to come to visit us at
our showroom.”
A+ Properties Director Steve Edwards stated, “We had a steady flow of buyers
onto our stand and it has exceeded our expectations. We saw Russians,
Germans, Thai and Korean visitors, and most were looking to buy to live in
the property. It has been great exposure for us too, being a relatively new
company.”
Daniel Arie General Manager at Decorum Furniture and Decoration added, “I
was surprised with the response. Many people who knew our shop but had never
visited us before came over to speak to us, and we even sold a large leather
sofa here from our stand.”
VIP Real Estate’s Jens Nielsen from Rayong said, “Although we were not
overcrowded, it did give us more time to talk to the visitors, who were
serious investors and in my opinion definitely keen to buy. Promoting Rayong
offered a different option from all the Pattaya real estate, which I believe
worked in our favour.”
David Thomas from Beach Properties was also in positive mood, ‘It has been a
pleasure to exhibit at a properly run international style show in Pattaya,
and definitely compares with exhibiting at any international event abroad.
We came here with only our luxury houses to promote as there are already
many condominiums on offer. Maybe next time we might introduce some condos
too.”
Philippe Leysen from Houbenvillas said, “Since we were from Koh Lanta, we
actually got a lot of positive feedback from visitors and I feel confident
that we have at least five serious investors from contacts made at this
event.”
The organisers are now considering running the event twice a year, possibly
in October and then again in February 2015.
Staff from The Riviera sales team
prepare to meet new customers.
Knowledgeable sales staff were
on hand at each booth to provide information on the various projects.
The best of Eastern Seaboard and
Thai real estate was on show at the expo.
The region’s leading developers
were all represented at the show.
Many new projects were showcased
to potential investors.
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Hot high-season
for The Riviera
Winston & Sukanya Gale at The
Rivera, Wongamat.
Whilst Pattaya’s real estate market remains questionably
under the spotlight, The Riviera at Wongamat Beach seems to have ignored all
caution and stormed ahead.
Winston Gale, developer of The Riviera told Pattaya Mail, “This high-season
since December, we are pleased to state that we have sold over THB 800
million worth of units in the project, mostly to single buyers and not bulk
investors, and so are delighted at the response from both Thai and foreign
buyers alike.”
The Riviera was originally launched just 4 months ago and has since seen
sales of over THB 2.3 billion out of the expected THB 3.5 billion total
project value.
The luxury showroom located in Soi 16, Wongamat opened last November and
made an immediate impact on the local real estate market. It’s reported 50
million baht cost was, according to Winston, “designed to create a new level
of showroom vision for the consumer.”
A CBRE senior spokesperson said, “This extremely quick level of sales shows
that given a very well thought out product, a desirable location coupled
with heavy showroom investment by the developer, there are still many
investors and individuals that see Pattaya’s ongoing desirability.”
According to Winston at the time of interview, sales had reached a
staggering “70% since starting in October” and had also seen heavy numbers
of these sales generated by many local real estate agents.
The twin-tower development is anticipated to be a landmark project when it
completes in 2017. The Riviera follows the Thailand Property Award winning
The Palm, that is due for completion in 2015 and which Winston co-developed.
For more information on The Riviera, call the sales team on 092-269-1840
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Construction commences at The Lofts Ekkamai
The Lofts Ekkamai units will
offer breathtaking views of Bangkok.
Leading property developer Raimon Land has awarded the
piling contract for its latest condominium project, The Lofts Ekkamai, to
Pylon PLC – one of the country’s most renowned piling contractors, with a
quality track record in major projects. The contract, which follows the
project’s EIA approval, represents the third collaboration between Raimon
Land and Pylon, building upon previous joint efforts at 185 Rajadamri and
Unixx South Pattaya. Piling work began on January 5, 2014 and is expected to
take 3 months.
Officially launched in June 2013, The Lofts Ekkamai has been attracting
potential buyers in search of a chic, trendy residential environment.
Located just 150 meters away from Ekkamai BTS station, the 28-storey tower
sits right inside one of Bangkok’s most fashionable and dynamic districts,
featuring some of the city’s best high-end dining, shopping and nightlife
venues.
“We always focus on location. It is a factor that can determine everything
about the project: style, architecture, target groups, or even the name,”
said Gerry Healy, Raimon Land Vice President – Development. “The Lofts
Ekkamai’s location and design fit exceptionally well together, offering a
stylish home right in the middle of the action in the vibrant city of
Bangkok. This project redefines what it means for Bangkokians to have a hip,
urban lifestyle, and this appeal has driven us to achieve an excellent
reception so far with 65% units sold since the launch.”
Gerry Healy, Raimon Land Vice
President – Development (right), stands with Pisun Sirisuksakulchai, Senior
Executive Vice President of Pylon following the awarding of the piling
contract for The Lofts Ekkamai condominium.
Pisun Sirisuksakulchai, Senior Executive Vice President
of Pylon, added, “We are very proud to be working with Raimon Land once
again. It is an honor for us to take part in the creation of one of
Bangkok’s up-and-coming urban landmarks.”
The Lofts Ekkamai is architecturally inspired by the famous lofts in iconic
urban neighborhoods like Manhattan’s Meatpacking District or Soho in London,
where world-famous artists, fashionistas and other culturally influential
figures managed to create wide-open living spaces that can spark expression
and creativity.
The project’s loft units, in particular at the last floor and penthouses,
fittingly feature a 5.9 meter ceiling height and breathtaking views of the
city. All units are equipped with floor-to-ceiling windows to further create
a sense of airiness, freedom and comfort for residents. In addition, The
Lofts Ekkamai offers its privileged residents exceptional facilities, such
as a podium top garden, a rooftop swimming pool, a sky lounge, gym and many
more amenities.
For further information, visit
www.raimonland.com.
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Outward bound will be the trend among Asia’s property investors in 2014
In Hong Kong, many real
estate investors are shifting from core to non-core locations.
(Photo/Wikipedia Commons)
Asia’s accelerating economic growth and rising industrial
output and retail sales all point to a positive outlook for the region’s
property markets during the coming year, according to global real estate
services company Colliers International.
Colliers, in its International Asia Real Estate Forecast 2014, says it
expects tight supply and rising rentals in core city locations will
encourage office and retail tenants to relocate to less-expensive
decentralised areas.
“A striking feature in the market is likely to be a big increase in outbound
capital investment by Asian investors,” says Simon Lo, Executive Director of
Research & Advisory, Asia, at Colliers International. “They will be seeking
to exploit the big differences between the property cycles in Asia and the
US and Europe in order to achieve better yields and enjoy the strategic
benefits of diversification.”
Chinese investors are set to lead the way in this trend. They are likely to
spend at least twice as much on overseas property assets as last year. Their
favorite investment destinations will be gateway cities like London, New
York and Chicago. Taiwanese institutional investors will also be major
players, following the recent relaxation of regulations concerning overseas
investments by the authorities in those places. Meanwhile, Korea will be
following suit to see more relaxed policy on acquisition of overseas real
estate by Korean nationals.
In Hong Kong, a key trend of shifting from core to
non-core locations is expected. This applies not only to office occupiers,
which relocations to Kowloon East have seen, but also to retailers who
continue to shift their focus from high streets to sub-urban locations.
Lo explains, “The growth in the luxury segment of Hong Kong’s retail market
has decelerated, with the impact of China’s political reforms on
anti-extravagance rules that deter China tourists’ purchase of luxury goods.
Moreover, as the number of same-day visitor arrivals increases, the market
has observed a change of spending pattern towards mid-priced products and
daily necessities such as beauty and personal care products. These explain
the growing demand in locations out of the traditional high streets that are
mostly occupied by international brands and luxury retailers.”
Key highlights from Colliers Asia Real Estate Forecast 2014 for the region
include:
Modest office rental growth
Overall, Asia’s office leasing sector will remain steady, with rents
increasing by an average of around 3% across the region in 2014. However,
there will be some big variations. Jakarta and Manila are expected to remain
the hot spots. These two cities saw substantial increases in rents last
year, and the trend is set to continue with 13% and 9% growth in 2014. Its
recovery from a cyclical downturn and growing demand will probably fuel a
hefty 12% increase in Singapore too.
The performances of office markets in different regions of China will be
mixed. The region’s two key laggards are expected to be Hong Kong, due to
limited growth in demand, and India, where economic and political concerns
have dampened market sentiment.
Logistics fuels rise in industrial rents
Asia’s logistics real estate sector will definitely benefit from increasing
logistics throughput during 2014. The rents of industrial and logistics
premises will grow by an average of about 3%, as more small and medium-sized
companies outsource logistics operations to third-party logistics (3PL)
operators. Industrial and logistics rents in Manila are expected to remain
the fastest growing in Asia, although by a more-modest 21% this year.
Singapore is the only market that will likely experience a small decline in
industrial rents.
Retailers focus on decentralised locations
The retail sales in the Asia region are projected to grow by an average of
around 8%. Its vast retail market and spending power mean that China will
account for much of this, with added momentum from the government’s
relaxation of its one-child policy and proposals to facilitate the
relocation of people from the countryside to the cities. Vietnam and
Kazakhstan are also projected to see a major increase in retail sales.
Colliers forecasts retail rents will grow by an average of about 3% across
Asia in 2014, with retailers increasing their emphasis on decentralised
locations. While retail rents in Guangzhou, Hong Kong and Ho Chi Minh City,
Vietnam are expected to decline, those in Hanoi and Singapore are likely to
remain static. The increases in Asia’s other key retail markets will most
likely range by between less than 1% and 17% during the coming year. These
big variations will be due to differences between rents in core and
decentralised areas, as well as the locations of new supply.
Yield expansion to continue
In anticipation of an increase in the cost of funds, Asia’s real estate
yields are expected to continue its upward rise. Office yields in most Asian
cities are projected to edge up by a further 10 to 30 basis points (bps) in
2014. However, Shanghai, Guangzhou and Tokyo will be the exceptions where
yield compressions are foreseen for their office properties due to the
unique buyers profile and economic policies in the market.
The weak Japanese Yen will offer foreign investors a window of opportunity
to snap up high-quality office and industrial developments in Tokyo, where
office rents are expected to edge up in line with inflation and yields are
likely to be compressed by 10-15 bps in 2014. Since it is always difficult
to source top-calibre properties in Tokyo, Colliers believes investors will
seek out opportunities in other major Japanese cities, such as the Osaka and
Nagoya metropolitan areas.
In India, recent policy amendments to increase market transparency and plans
to establish REITs have set the scene for a turnaround in the property
market. However, this is not likely to occur until after the general
election in 1Q 2014. Further stabilisation of the Rupee would also increase
the confidence of real estate investors about returning to the market.
(Source: Colliers International)
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CBRE Thailand receives double awards
Nithipat Tongpun (right),
Executive Director of CBRE Thailand, receives the World’s Best Property
Consultancy Marketing award during the International Property Awards held at
the Grosvenor House Hotel in London.
Property consultancy firm CBRE Thailand recently received
two prestigious awards including recognition as the World’s Best Property
Consultancy Marketing at the International Property Awards and a Silver
award for the Online Advertising and Marketing Category from the Summit
International Awards.
CBRE Thailand was announced the World’s Best Property Consultancy Marketing
for its work on Park Ventures, Bangkok’s award winning eco-complex, at the
International Property Awards sponsored by Virgin Atlantic and Yamaha. CBRE
Thailand competed against real estate professionals from 98 countries from
all over the world to receive this top recognition.
The finest architects, developers, interior designers, and real estate
agents from across the globe gathered at the Grosvenor House Hotel in London
in December 2013 to attend a gala dinner to celebrate the international
award winners.
CBRE Thailand won a Silver award
for the Online Advertising and Marketing category for its website
www.cbre.co.th from the Summit International Awards. The award is presented
to David Simister (center), Chairman of CBRE Thailand.
CBRE Thailand received a total of 10 awards including 1
award at the international level, 2 awards at the Asia Pacific level, and 7
awards at the national level in the Real Estate category covering
consultancy, agency, lettings and website. In 5 years of CBRE Thailand
competing in the International Property Awards, this marks up a total of 39
awards.
“We are proud of our continued success and the award of being in 2013 the
World’s Best Property Consultant Marketing. This is the second time we have
won the World’s Best International Commercial award. CBRE Thailand is proud
that our expertise and experience is recognised, not only by the Thai
property market, but also as being competitive with the world’s best. I
would also like to thank all CBRE Thailand staff for their hard work every
day to deliver leading real estate services to our clients, and this is a
testament to their efforts,” said David Simister, Chairman of CBRE Thailand.
CBRE colleagues in the Asia Pacific region also competed in the awards. CBRE
Philippines won the World’s Best Lettings Agency and World’s Best Property
Consultancy Website and CBRE Japan was awarded Best Property Consultancy in
Asia Pacific.
The International Property Awards is the world’s largest and most recognised
property awards with 98 countries participating last year and the value of
projects entered estimated to be around £100 billion. World’s Best awards
were given out for the most exceptional real estate agencies, lettings,
agencies and property consultancies, as well as the best industry websites
and marketing campaigns. Judging was carried out through a meticulous
process involving a panel of over 70 experts covering every aspect of the
property business.
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AIA expands business platform to property development
AIA executives pose for a
photo on the roof of the AIA Capital Center in Bangkok during the building’s
topping out ceremony.
Insurance giant AIA Group is expanding its business
platform in Thailand by investing in property development. Over the next two
years, the group will be launching two large-scale office and retail
complexes in Bangkok’s prime areas. AIA’s first and biggest property
investment to date is the 6 billion baht environmentally friendly AIA
Capital Center, the only ‘Grade A’ office complex along Ratchadapisek Road,
which will complete and be ready to commercially launch by June 2014.
“Based on AIA’s experience in life insurance industry in Thailand for over
75 years, we have strong confidence in the country’s potential, especially
in its future economic growth and development,” revealed Anucha
Laokwansatit, General Manager and Chief Investment Officer of AIA Thailand.
“The 6 billion baht investment in the AIA Capital Center marks a significant
step in strengthening the foundation for our growth while ensuring a stable
future,” he explained.
A computer graphic shows the
completed 6 billion baht AIA Capital Center.
Standing on a spacious plot of land of nearly 10 rai, AIA
Capital Center is a 34 storey building offering 54,000 square meters of
‘Grade A’ office space, with each storey ranging between 1,700 and 1,800
square meters, and an additional 5,000 square meters of retail space. The
entire complex with a total construction area exceeding 100,000 square
meters will include banks, restaurants, cafés, a fitness center, and
convenience stores.
“Our Group decided to invest in this project because we see the solid
potential of this location which we believe will become Thailand’s next
business center for two crucial reasons, namely its location adjacent to the
new Stock Exchange of Thailand, which makes the environment resemble Wall
Street in the US, and its proximity to the underground mass transit system.
These factors strengthen our belief that this location will become a prime
financial area,” added Anucha.
Designed to conform to global environmental standards set by the world
renowned American environmental design institution, LEED (The Leadership in
Energy and Environmental Design), the project includes unique qualities that
makes it a green building, unlike other buildings along Ratchadapisek Road.
One of the most outstanding points of the AIA Capital Center is the height
and airiness of every space, from the stylish lobby with a 9 meter high
ceiling to 3 meter ceiling heights in its office spaces. The latter is the
highest ceiling found in any office space in Bangkok (commercial building
average ceiling heights range between 2.75 – 2.90 meters) and design
flexibility is created in offering column-free office spaces.
“AIA Capital Center features cutting-edge green design because AIA intends
to make this office complex visually outstanding, energy efficient and
environmentally friendly as much as possible,” Anucha emphasized.
“Our building design incorporates many types of green spaces that generate
positive health and emotional benefits to people working in the building and
living in the local community, so we welcome everyone to use our green areas
for recreational purposes and encourage the public to view our project as a
new urban park. With ample space, the building is also ideal for hosting
various public activities,” he added.
The AIA Capital Center is on schedule for completion and ready for tenants
to move in by early summer 2014.
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Issara expands to Chiang Mai with new low–
rise condo in a contemporary northern design
Songkran Issara speaks exclusively to the Chiang Mai Mail about his company’s new project
By Peerasan Wongsri
Chiang Mai Mail General Manager Peerasan Wongsri recently met with Songkran
Issara of Chan Issara Development Public Co. Ltd. at the Issara showroom in
Chiang Mai as K. Songkran paid a flying visit to the city.
Songkran Issara of the Chan Issara Development
Public Co. Ltd.
K. Songkran is originally from Songkhla Province in the south, the son of
Chan and Malee Issara. Married to Sri Issara, he has three children; two
sons and a daughter. He was recently appointed as Managing Director for the
Chan Issara Wiphapol Co. Ltd, a subsidiary of Chan Issara Development Public
Co. Ltd.
Chan Issara Development Public Co. Ltd. have built housing projects in
Bangkok, Phuket and Cha-am - Hua Hin and their over 25 years of experience
has made them the leading real estate company in Thailand. Known for quality
construction and design, the company’s newest development in Chiang Mai,
labeled ‘The Issara Chiangmai’, will feature 570 units in 4 low-rise
buildings with a large central green area on 6.5 rai of land on the 2nd ring
road.
Here K. Songkran talks about the project and his company:
CMM: Where and how was “Chan Issara” established ?
The project will offer resort style living with
serviced units and 24-hour security for both regular visitors and full time
residents.
K. Songkran: The company was established in1987 and we initially began to
develop and facilitate real-estate in Bangkok. Gradually we expanded the
business to tourism destinations such as Phuket and Hua Hin before becoming
the leading real-estate company in Thailand. The company has since continued
its expansion and launched developments in other popular locations in
Thailand, like Chiang Mai.
CMM: How have resources been allocated for this project?
K. Songkran: For ‘The Issara Chiangmai’ we have allocated the project over
6.5 Rai of land, situated near the 2nd Ring Road, a short 5 minute drive
from Central Festival at San Dek intersection. The company will build condos
in a northern contemporary style under the concept ‘Special uniqueness
inspired by inherited cultural arts amidst the natural charms of Chiang
Mai’. Unique features of the project include a central green area, which
covers over half the property, a library, a jacuzzi, children’s swimming
pool, a gym, and a swimming pool next to Maenam Kao. Providing 24 hour
security and a spacious lobby, the condo offers a peaceful and secure
ambience.
Songkran Issara (right) chats with Chiang Mai
Mail’s General Manager Peerasan Wongsri about his company’s new development
in Chiang Mai.
‘The Issara Chiangmai’ will have a total of 4 seven storey buildings and
will offer 1 bedroom condos from 35-40 sqm starting from 1.89-3.28 million
baht and 2 bedroom condos from 70-77 sqm from 4.99-7.25 million baht.
Reservations will be available from May 2014 and the project is most likely
to be completed in 2016.
CMM: What was the objective of choosing Chiang Mai?
K. Songkran: There are many projects under construction for the Issara
Group, including locations in Bangkok, Phuket, Cha-am – Hua Hin and now
Chiang Mai. Personally, I prefer up-country projects, and to make them
resort style. I have had my eye on Chiang Mai for 15-20 years but back then
Chiang Mai was not ready in many aspects. Today the infrastructure is ready,
with an international airport and conference center, better schools and
attractons like the night safari. The roads have also been developed and
improved plus the launch of the ASEAN Economic Community in 2015 will make
Chiang Mai the northern hub. In addition, Chiang Mai has seen higher income
growth resulting in a higher purchasing power for local residents.
CMM: Is it true that the ‘Sri Panwa’ project by the Issara Group in Phuket
has earned a world class reputation and is attracting a large amount of
tourists in Phuket ?
K. Songkran: Yes, the Sri Panwa project in Phuket has developed a lot and
was originally constructed as a hotel with a resort atmosphere. Recently,
the Sri Panwa has received recognition as a world class attraction which
brings income to the people in the area as more visitors come. As for the
previous projects, we have enhanced the service for customers and are still
developing a new look to serve customers in Chiang Mai.
CMM: What are the main selling points of your new Chiang Mai project?
The Issara Chiangmai will have 570 units in 4
low-rise buildings with a large central green area on 6.5 rai of land on the
2nd ring road.
K. Songkran: We decided to make a project here because we believe the city
is ready for such a development. Real-estate developers in Chiang Mai are
known as developers with potential, including investing power and there is
high competition here. This requires that our project incorporates unique
features, from design to environment and landscaping, plus accessibility to
such places as Tesco Lotus, Central Festival, Meechoke Plaza and the
hospital. The development is also located next to the Kao river, which will
be integrated into the project and help offer the pleasurable ambiance of a
resort amid the convenience of city life.
The project will focus on after-services, we expect 40% of customers will be
locals, 30% from Bangkok and another 30% will be foreigners. For those who
do not live here regularly, the project will provide cleaning services
including looking after the unit after every visit and the project will
allow customers to rent according to their wishes. Unit bookings can be made
from May 2014 onwards.
For more information on the project call 095 885 5818-9 o go to
www.theissarachiangmai.com.
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Real estate stands to suffer if economic woe continues
As Thailand’s economic growth softened throughout 2013
owing to the combination of lackluster export figures, rising household debt
and declining consumption and investment, long-standing political tensions
flared up late in the year, further dampening the economic outlook for the
end of the year into 2014.
While most economists expect the country’s GDP results in 2013 to show
growth of less than 4%, and are now revising 2014 forecasts downward,
Bangkok’s property market made it through the year relatively unscathed, yet
it is expected to feel the impact in 2014, according to real estate
specialists Jones Lang LaSalle.
Suphin Mechuchep.
Suphin Mechuchep, Managing Director of Jones Lang
LaSalle, said, “The Bangkok property market finished strong in 2013 despite
unfavourable conditions throughout much of the year. Demand across property
sectors was robust, as reflected by both steady growth in selling prices and
rents, as well as the successful introduction of new supply.”
In the condominium sector, most of the new projects launched were well
received by buyers, with those located near existing and under-construction
mass transit stations achieving the highest pre-sales rates. Average selling
prices continued to grow in 2013, though the growth rate was less than in
2012 due to stiff competition as a good amount of supply remains available
in the market.
Bangkok’s commercial property sectors performed well throughout 2013 as
limited supply and strong demand drove occupancy rates and rents to all time
highs in the office sector while the prime retail market is experiencing
near-record high occupancy and rent levels. Across Bangkok, office occupancy
has reached 90% while rents have been increasing for nine consecutive
quarters. In the prime retail market, occupancy is above 94% while rents
have been increasing for 13 consecutive quarters, due largely to limited
supply and strong demand from both local and international retailers.
“Strong fundamentals helped save the Bangkok property market in 2013. But at
this point, it remains hard to predict where the market is heading in 2014,”
continued Mrs. Mechuchep. “The major concern by most parties is the current
political turmoil. We have already seen property developers, owners,
investors and occupiers becoming more cautious, with some of them adopting a
wait-and-see approach. The fact that some property developers and owners
have become reluctant to invest in marketing and promotional campaigns
exemplifies this trend,” she said.
The Bangkok property market
finished strong in 2013. (Wikipedia commons)
“Though experience from previous bouts of political
unrest that Thailand has faced over the last decade suggests that short-term
impacts from individual incidents of unrest on the property market have been
limited, there has been longer-term uncertainty created by these events, as
is evidenced by the fact that growth in Thailand’s foreign direct investment
has not kept pace with its ASEAN neighbours in recent years,” the Jones Lang
LaSalle chief added.
“With all eyes on elections scheduled for February 2nd this year, the most
important factor in the outlook for 2014 is how quickly and smoothly the
current political situation is resolved,” she concluded.
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Chic Republic opens Pattaya location
Home-furnishings retailer Chic Republic brought its
unique line of high-end furniture, lighting and decor products to the
Eastern Seaboard with the opening of a store in Pattaya.
The spacious and stylish “home fashion store” at 244/31 Moo. 11 Sukhumvit
Highway (opposite Big C South Pattaya) markets products under a “mix and
match” concept, letting decorators choose between modern and
Thai-traditional styles. Western-flavored choices include “Modern Chic,”
“Luxury Classic,” “Romantic Vintage,” “Elegant American” and “Beach &
Garden.”
Special features, such as the “Sleep Gallery,” offer some of the kingdom’s
largest selections of bedding. Special interior 3D program designing
services are also provided to give free home decoration ideas.
CEO Kijja Pattamattayasonthi said the word “chic” was not only easy to
pronounce, but set Chic Republic apart from other furniture retailers.
“We focus on exhibitions showing a mixture of a modern and traditional home
style atmospheres in our store,” Kijja said. “This includes all high-quality
products and our unique style of decorating homes. We also provide free
delivery service so that our customers will not have to go through trouble
to hire any trucks. Free installations are included as well as our expert
designers, which will be there to help make suggestions for our customers’
homes.”
He said the company works hard to determine what’s popular in the market as
well as come up with its own interesting ideas.
“We have also studied home-furnishing styles from all over the world,
including Italy, France, England and the United States, to combine with our
own traditional patterns,” Kijja said. “We focus on the need of our
customers, Thai or foreign, and what they want for their homes and what’s
suitable for their expectations to make them comfortable.”
Chic Republic, which operates two branches in Bangkok and one in Hua Hin, is
celebrating the opening of the Pattaya store with a sale offering discounts
up to 40 percent. For more information, see ChicRepublicThai.com.
(Veechan Souksi/PM)
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Real estate investment a major factor in city success
Top 30 cities for real estate investment worldwide demonstrate strength of “super cities” and growth of second-tier cities
As business and political leaders convened to discuss
global challenges at the World Economic Forum annual meeting in Davos,
Switzerland last month, there is slowly becoming a greater appreciation for
the importance of real estate in reshaping cities and, therefore, the
world’s commercial geography.
According to research by property services company Jones Lang LaSalle, with
real estate investment levels reaching a new high of an estimated ten
dollars chasing each dollar of prime assets, real estate is no longer
considered a consequence of city success, but is now actively employed to
drive it. A look at the 30 cities worldwide where 50 percent of the US$4.6
trillion in direct commercial real estate investments has been concentrated
over the past decade highlights real estate’s impact on the strength of
super and primary cities and the growth of second-tier cities.
According to Colin Dyer, CEO of Jones Lang LaSalle: “Investors are
allocating more capital to real estate today but focusing on a specific set
of cities globally. This has created an increase in demand for the limited
stock of prime properties in super cities, the world’s most attractive real
estate markets. As a result, investors are moving along the risk curve into
second-tier markets, which are becoming more conscious of how real estate
can make them more attractive to investors.
“The most successful markets share characteristics like transparency, good
governance, strong education systems and innovative city planning. The
‘push-pull’ effect is strengthening super cities and boosting investment
prospects for second-tier cities.”
Recent research from Jones Lang LaSalle identifies the connections between
cities of different sizes and rankings and how the investment market
responds to the underlying momentum that each is creating. These newly
revealed patterns and perspectives on performance bring more attention to
the need for cities to consider real estate as a core performance driver.
Cross border capital investment is boosting demand in the super cities such
as London, Paris and New York, supported by the continuing flood of Chinese,
Korean, Malaysian and Canadian money (amongst others) and helping
consolidate their attraction.
But with 50 percent of the US$4.6 trillion in direct commercial real estate
investments over the past decade having been concentrated in 30 cities
worldwide, there are signs of change. Investment patterns are shifting
partly due to the shortage of available product in the super and primary
cities and partly to the dynamism in second-tier cities.
Mid-size cities with innovative urban strategies, good governance and sound
education bases are gaining momentum by using well designed, accessible,
flexible real estate to attract and retain growth sectors such as tech,
healthcare and bio that will underpin future economic success.
While corporates remain focused on containing costs in their existing real
estate portfolios, they are migrating to second tier cities and expanding to
new geographies to meet business demands and to take advantage of skills and
new market opportunities. This is further encouraging real estate investors
up the risk curve as they chase corporates into new areas.
Super cities are the largest, most internationally connected cities with
very deep corporate bases and high levels of real estate liquidity. The four
super cities (London, Paris, New York and Tokyo) account for nearly
one-fifth of global direct commercial real estate investment activity.
Primary cities have high levels of international connectivity and
significant concentrations of global business services.
Second-tier cities are mature cities with lower levels of international
business activity than the other categories.
(Source: Jones Lang Lasalle)
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