NC Housing announces Ban Ra Fa Greenery housing development

(From left): Rangsankh Nanthakawong, Deputy MD of NC Housing Co. Ltd., Somchao Tanthuedthum, MD of NC Housing Co. Ltd., and Somnuk Tunthuedthum, Deputy MD of Marketing of NC Housing Co. Ltd., pose for a photo at the announcement of the new development, May 24.

NC Housing Co. has launched its Ban Rak Fa Greenery project, a 760 million baht garden-heavy housing development spread over 41 rai in Jomtien Beach.

Managing Director Somchao Tanthathuedtham and company executives outlined the project at The Glasshouse Jomtien on May 24. They said the development on Soi Chaiyapornwithi, opposite the Pattaya water treatment plant, will offer 206 three-bedroom houses ranging from 138 to 165 sq. meters. Prices begin at 3.2 million baht.

Executives said 13 percent of the development has been sold, 80 houses are under construction and build out should be complete by 2015.

Somchao said the company has so far developed 40 real estate projects in the east and in Bangkok and has seen demand for housing developments with lush gardens, open space and park land. Ban Rak Fa will be unique in the amount of greenery and trees used, he said.

(By Phasakorn Channgam/Pattaya Mail)

An artist’s impression of typical houses at the Ban Fa Greenery project.
 

ITOH-Thai offers a Private Paradise in Pattaya

ITOH-Thai Assets Co. has announced the launch of The Private Paradise condominium development on three rai of land behind Bangkok-Hospital Pattaya.

ITOH-Thai Managing Director Suthichai Rod-urai introduces The Private Paradise condominium.

ITOH-Thai Managing Director Suthichai Rod-urai said at the three-building project’s June 22 unveiling that the development will offer 299 furnished units beginning at 1.55 million baht.

The 572 million baht project features 32-42 sq. meter one-bedroom, and 52 sq. meter two-bedroom units.

Despite their relatively small size, all the units seem larger, due to effective design. Outside, tenants will find a swimming pool, fitness center, restaurant, caf้ and supermarket with on-site security.

The company is considered as a newbie in the real estate industry but it has received a warm response. The Private Paradise is one of four projects for ITOH-Thai and is aimed at Bangkok Thais looking for a weekend retreat.

Sample rooms are available for viewing at Sukhumvit Soi 28 behind Bangkok Hospital Pattaya. Call 082-779-3222 or see OKHappy Time.com for more information.

(By Thanachot A./Pattaya Mail)

Living room of the onsite show suite.

Discovering Serenity in north Pattaya with the Nova Group

Nova Group President – Rony Fineman.

With 26 Pattaya developments either completed or currently under construction, plus several more in the planning stage, leading property developer the Nova Group can rightly claim to be not only a pioneer of the real estate market in this fast growing resort city, but also still remain one of its most dynamic players.

The company’s latest project, unofficial word of which spread rapidly on the local real estate grapevine last month, is the Serenity condominium, to be built on a prime spot of land close to Wongamat Beach and neighboring the Nova Group’s flagship development, The Palm.

Serenity is in some ways a departure from many of the existing projects on this north Pattaya peninsular as it plans to offer contemporary and stylish residential units at a much lower price-point than any of its neighbouring properties. Unit sizes at Serenity will range from studios starting at 21.3sqm up to 2 bed apartments at 50.6sqm. The building will rise to 8 floors in height and incorporate only 153 units in total. An 18m x 7m rooftop swimming pool will offer fabulous vistas across Pattaya bay to the offshore islands.

“There’s seems to already be a lot of buzz in town about Serenity without us even officially announcing the project yet, so we are confident that sales wise it will do very well,” said Nova Group President Rony Fineman during an interview with Pattaya Mail.

The location close to Wongamat beach is undoubtedly one of Serenity’s major selling points and the area where it will be built would certainly seem to be in keeping with its name - offering a tranquil and peaceful setting yet only minutes away from one of the city’s best beaches and the restaurants and shopping areas of north Pattaya.

“We knew about this piece of land for some time as it’s very close to The Palm,” continued Mr. Fineman. “When it came up for sale we got a good deal on it and we looked at the market and saw there was nothing in the area for less than 60-70,000 baht per square meter so we thought ‘why not try and build something and be the first to offer a starting price on Wongamat for under 1 million baht for a completed unit?’”

Amenities at Serenity will include the aforementioned rooftop swimming pool, a gymnasium, underground car parking, garden and courtyard. Unit prices will start below 1 million baht and all apartments come inclusive with a furniture package. The smaller apartments are configured in a way that makes joining multiple units together a very viable option.

“We are seeing demand from both ends of the market in Pattaya, still at the high end and a lot of increasing demand for more economical units in lower priced developments. We saw little point in building another high-end project on Wongamat though as it wouldn’t offer anything that isn’t available already,” said the Nova President.

With only six studios on each floor, Serenity will offer a mixture of unit sizes and floor plans at price-points that should appeal to a large cross section of investors. “Serenity will be a quality development, in a desirable location at a great price,” Mr. Fineman added.

During the interview, the Nova chief was asked about his general overview of the Pattaya property scene and whether he saw any signs that the market might be close to reaching its saturation point.

“At Nova Group we always take everything step by step. Obviously there is talk of there being an over-supply in Pattaya in the near future but I’ve been hearing the same thing for the last 10 years,” he replied. “What people tend not to realize is that although the amount of development is growing in the city, demand is also growing exponentially. There were 8 million tourists visiting the city this past year and we are seeing an increasing demand from Chinese and Indian investors, with both countries offering huge potential markets.”

He continued, “At Nova we try to appeal to different types of buyers. For instance we have condos for sale ranging from 1 million up to 80 million baht. And for us the luxury market has been every bit as successful as the lower priced developments.”

These claims would seem to be borne out by the company’s sales figures for its ongoing projects. External building work on The Cliff in south Pattaya is now complete and 90% of the units have been sold with just 40 remaining. The luxury The Palm development is already 82% sold out with construction not due to be completed until 2015, while similarly the Amari Residences on Pratamnak Hill is 75% sold out (55% of private units) with the piling work not due to be finished until the end of July.

Other current projects such as Nova Ocean View condominium on Pratamnak Soi 6 and Novana Residence have also sold extremely well and are close to being fully reserved.

As a final point, and being a hotelier first and foremost, Mr. Fineman touched on some of the current and future hotel projects that fall under the Nova Group’s umbrella.

“On the hotel side we have already completed the 2 Centara’s (Centara Pattaya Hotel and Nova Hotel & Spa) and we are currently building the Holiday Inn Express in south Pattaya, near Walking Street. We are also in the process of signing an MOU with a 5 star hotel operator for a new project in north Pattaya close to the Dusit, which we hope to announce soon.”

It certainly seems to be an interesting and exciting time for the Nova Group, who look set to remain one of the city’s most active developers and continue at the forefront of the real estate market in Pattaya.

For more information, go to www.nova-thailand.com.

Park Ventures Ecoplex achieves record office rental rates

Park Ventures Ecoplex in Bangkok.

Park Ventures Ecoplex, a grade A office and retail development, has achieved the highest rental rate in the Bangkok office market at THB 875 baht per square metre per month, thus adjusting the new asking rental to THB 900 baht per square metre since 1 June 2012, according to Nithipat Tongpun, Executive Director and Head of Office Services at CBRE Thailand.

Currently, more than 70% of the office spaces at Park Ventures Ecoplex have been leased out. The tenant mix is a combination of leading and well-known multinational companies such as Club21 Thailand, CIMB Securities, Servcorp, and Tractebel.

One of the key factors driving its success is the strategic location. The building is situated right in the heart of Bangkok’s central business district (CBD) at the corner of Ploenchit and Wireless roads, in close proximity to 5-star hotels including the Okura Prestige Bangkok Hotel which is in the same compound, as well as embassies, leading shopping malls, and other business areas.

With a direct skywalk access to the Ploenchit BTS station, tenants and visitors have very easy access to the property. Other factors underpinning the project’s success include the high-quality specifications, its functional floor plate with a column-free design, and high ceilings.

Being equipped with high technology and innovative energy-saving systems also add to its score as a ‘green’ building, a factor which is increasingly taken into account by tenants when leasing an office space.

According to CBRE Research, in Q1 2012, grade A CBD rents rose to an average of THB 713 per sq.m. per month from THB 702 per sq.m. per month in Q4 2011. The highest rents are in new grade A buildings in the CBD. Average rents for grade A office space in the CBD rose by 1.6% Q-o-Q and by 4.9% Y-o-Y. The achieved rent at Park Ventures Ecoplex currently exceeds the market average by at least 20%.

The total office supply in Bangkok increased to 8.14 million sq.m., a 0.3% increase Q-o-Q and 2% Y-o-Y. The supply grew by approximately 32,000 sq.m. However, there was no new supply of grade A offices in CBD locations; therefore, rents and occupancy rates at grade A CBD offices are well positioned for further growth. The net new take-up of office space in Bangkok was around 35,000 sq.m. The overall occupancy rate improved slightly to 86.1 % in Q1 2012 from 85.9% in the previous quarter.

Mr. Nithipat reports that “the office market continues to improve steadily, with an increase in the net-take up and higher occupancy rate. Providing there is no major external economic shock or domestic political event, the outlook for the Bangkok office market is positive.

“There is very little new space being completed in Bangkok this year,” he added. “If tenants want to upgrade or expand, there is limited choice, especially for tenants requiring large spaces. Rents are rising in the highest quality and best located buildings. Therefore, it is strongly recommended that tenants plan well ahead in advance of lease expiry dates.”

New lifestyle hotels launched in Bangkok and Pattaya

The beachside swimming pool area at Pullman Pattaya Hotel G.

GCP Hospitality recently opened the rebranded Pullman Pattaya Hotel G and Pullman Bangkok Hotel G following an extensive renovation program to position the hotels more favorably to the market demands for cutting-edge designs and providing guests with a chic and trendy atmosphere.

“The motivation behind the rebranding (of the two hotels) came from the need to evolve products to cater to the increasing number of younger and more savvy business and leisure travelers,” said Guy Poujoulat, General Manager of Pullman Bangkok Hotel G. The move into Thailand comes on the back of the parent company’s success with the Hotel G brand in Beijing, China.

The Pullman Pattaya Hotel G hotel was formerly titled the Pullman Pattaya Aisawan, situated on Wongamat beach. The 353-room property has seen its guest accommodation redecorated in a contemporary style and all rooms now come complete with a media hub, Wi-fi internet, 32" LCD flat screen TV, plus separate bathroom and shower areas.

The hotel also offers 13 meeting room areas including the 417sqm infinity ballroom and the 240 capacity Gemini I and II rooms.

Christophe Vielle, Managing Director of GCP Hospitality said. “The success of our first property in Beijing confirmed that guests are keen on seeing the brand rolled-out. The new Hotel G properties in Pattaya and Bangkok were developed with the G DNA guaranteeing an inspiring experience.”

The company has recently secured further properties in Hong Kong, Suzhou and Shenzhen where it intends to expand next with the popular G brand.

Guestrooms have been refurbished in a contemporary yet luxurious style.

Jones Lang LaSalle Hotels advises on sale of Mövenpick resort in Phuket

Jones Lang LaSalle Hotels has confirmed the sale of the M๖venpick Resort & Spa Karon Beach Phuket, on behalf of its owner Kingdom Hotel Investments, to Crystal Caliber Sdn Bhd, a wholly owned subsidiary of Malaysia based TA Global Bhd. Jones Lang LaSalle Hotels brokered the transaction as exclusive advisor to Kingdom Hotel Investments. The total purchase consideration was US$90,208,000.

Occupying a prime location along Phuket’s western coast on Karon Beach and set within extensive landscaped tropical gardens, the 338-key M๖venpick Resort & Spa Karon Beach is one of Phuket’s most established resorts. In addition to its wide range of room categories, the resort features 30 two-bedroom residences, eight food and beverage outlets, four swimming pools, in excess of 1,350 square meters of dedicated meeting space and a variety of recreational facilities.

Commenting on the sale, Nihat Ercan, Senior Vice President Investment Sales, Jones Lang LaSalle Hotels said: “this transaction is a milestone achievement as it represents the largest single asset sale to have taken place in Thailand in recent years.” Ercan added: “On the back of an international tender process, the sale generated not only strong domestic interest but also significant demand from across the Asia region, highlighting the strength of investor sentiment that exists for well-located, internationally-branded assets in Phuket.”

Mike Batchelor, Managing Director Investment Sales Asia, Jones Lang LaSalle Hotels commented: “The sale of the M๖venpick Resort & Spa Karon Beach brings Jones Lang LaSalle Hotels’ total transacted hotel volume in Thailand over the last 24 months to over THB 13.5 billion (USD 440 million), comprising a total of eight hotel sales in Phuket (5), Bangkok (1), Koh Samui (1) and Koh Phi Phi (1).

“The substantial volume of hotel transactions and continued pace of market activity are a testament to the strength of the continued demand that exists for opportunities in Phuket, arguably Asia’s most highly sought after resort market, as well as in the wider Thai market. Whilst availability of suitable product remains a challenge, we expect continued robust activity in the Thai hotel sector with demand increasingly driven by regional buyers.”

Mr Ercan concluded: “The M๖venpick Resort & Spa Karon Beach offers excellent opportunities for future growth in a gateway resort market that is primed to benefit from continued growth in visitor arrivals and healthy business fundamentals.”

Raimon Land awards Zire Wongamat’s construction contract to Pre-Built Company

An artist’s impression shows the completed Zire Wongamat development.

Following a competitive bidding process, leading property developer Raimon Land recently announced that it had awarded the construction contract for Zire Wongamat, its exclusive beachfront residential project in North Pattaya, to Pre-Built Public Company Limited.

Under the terms of the contract, valued at approximately Baht 1.24 Billion, Pre-Built is responsible for delivery of all the structure, architectural, mechanical, electrical and plumbing works. Construction for the two-tower complex has already started and is expected to be finished by mid- 2014.

Pre-Built PCL is a listed company that has developed its reputation since it was founded in 1995. It has been constructing residential and commercial buildings, shopping centers, schools, government centers and larger complex projects and delivering them on time, while adhering to strict quality control measures. Zire Wongamat marks Pre-Built’s first project in Pattaya, bringing its expertise and proven track record to the bustling seaside resort.

For Raimon Land’s Chief Executive Officer Hubert Viriot, the proposal provided by Pre-Built best addressed the requirements that were defined for Zire Wongamat. “I am confident that our collaboration with Pre-Built will enable us to deliver impeccable units that will meet the expectations of our future residents and home owners. The majority of them are young Thai families who look forward to a perfect place to relax on weekends,” he said.

“Just an easy 90-minute drive from Bangkok, Pattaya has become a favorite choice for secondary homes, because of the recreational and entertainment options that are within the reach of the whole family. Zire Wongamat has proven exceptionally successful also because some units are available with an accessible starting price of 3 million Baht. With more than 70% of the units already pre-sold, we are ready to move ahead.”

Pre-Built Managing Director Wirot Charoentra commented: “We are thrilled to be working with Raimon Land on this exclusive beachfront project. We uphold Raimon Land’s commitment to offer their clients the best quality and value, and because of our expertise and experience, we are confident that we can match their high expectations.”

Occupying over 5 rai of prime beachfront property on Pattaya’s most exclusive cove, Zire Wongamat features two towers, 37 and 54 storeys respectively. Each of the 480 units have been designed to provide stunning panoramic views of the Gulf of Thailand. Customers can choose from a variety of different unit types, ranging from 38 sq.m. studios to 185 sq.m. three-bedroom units. Additionally, buyers can expect top-quality interior decoration as well as world-class amenities like an infinity lap pool, modern fitness centre and sauna.

Raimon Land has secured THB 1,027 million in financing facility from TISCO Bank, the country’s first investment bank, to support the development of the project.

Zire Wongamat’s on-site show unit is open daily. The sales team can be contacted at: Pattaya Office: Tel. 038 225 870; Bangkok Office: Tel. 02 651 96 00 or Email: [email protected].

Work well underway at Zire Wongamat. The project is expected to be completed by mid 2014.

Transfers at ‘The River’ project underway

With the company’s Bt 15 billion ‘The River’ project in Bangkok now over 76% sold and nearing completion, Raimon Land has recently announced the commencement of transfers to its customers.

“We are targeting transfers from The River of around seven billion baht this year with the remaining value next year in combination with the first transfers from 185 Rajadamri,” said Chief Executive Hubert Viriot. “The success of our new projects in Pattaya plus a new launch in Bangkok later this year will secure the flow of revenues and profits through to at least 2015,” he added.

“Our new strategy has been to diversify our portfolio from reliance solely on an ultra-luxury niche to include more mainstream mid and high end segments through the development of the Zire, Unixx and Lofts brands. This new approach has resulted in a much stronger Thai customer base and a more reliable platform for future growth,” said the company CEO.

Raimon Land has previously announced its intention to maintain a rhythm of roughly two new launches per year over the long term. The capital raised from the recent Bt.457 million private placement and the anticipated warrant conversion, plus internally generated cash-flow are sufficient to fund both an accelerated new launch plan and strong dividend payments.

“We are therefore very confident that our strategy will generate substantial and sustainable returns for our shareholders both in terms of capital appreciation and dividends in the years ahead,” concluded Mr. Viriot.

Exploring the power of Feng Shui

Kwanrudee Maneewongwattana, right, Raimon Land PCL’s Deputy Vice President of Marketing, Supanat Charnwaiwit, left, Marketing Manager, Wealth Management Services for Bank of Ayudhya PCL, and Feng Shui Master Kotchakorn Phromchai, center, pose together for a photo during an exclusive workshop on the art of Feng Shui, which was held for Raimon Land customers at the 185 Rajadamri sales office and show suites in Bangkok.

Property developer Raimon Land recently held a workshop on the ancient Chinese art of Feng Shui. The seminar provided attendees with advice on how to create a truly harmonious living environment through strategically-located placements of household items and effective landscape architecture based on the principles of Feng Shui. Observance of the rules of this mystic art is also believed to lead to other benefits like the efficient use of natural resources, good qi and the fight against global warming.

Despite its somewhat esoteric nature, Feng Shui is known to play an important role in the design and location of buildings throughout Asia.

Stock exchange congratulates Raimon Land for entry into SET 100 Index

Hubert Viriot, center, Chief Executive Officer of Raimon Land PLC, and Chief Operating Officer Kitti Tungsriwong, left, receive a congratulatory bouquet from Chanitr Charnchainarong, right, the Executive Vice President of the Issuer & Listing Division of the Stock Exchange of Thailand (SET).

Property developer Raimon Land’s burgeoning reputation in the real estate industry and its healthy financial status was recently recognized as the company’s shares entered the SET 100 Index for the first time on July 1.

The SET100 Index, one of the main benchmark investment indices on the SET, tracks and represents the movements of 100 stocks with top market capitalization, trading liquidity and free float.

Hubert Viriot, Chief Executive Officer of Raimon Land said: “Our entry in the SET100 Index reflects on our company’s comprehensive turnaround and good performance. Our stock has been one of the top 5 performing stocks on the Stock Exchange of Thailand in 2011 and early 2012.

“However, our share price is still fundamentally undervalued with forward valuation multiples at a significant discount to our listed peers in the real estate sector,” he added. “With this inclusion in the SET100 Index, we hope to be recognized as a mainstream stock on the Thai stock market, and that the gap between our share price and fair value will narrow.”

Porchland launches Feelture condo in Najomtien

Wornchai Phakdeesaneha, MD of Real Estate of Porchalnd Group, center, and Phokpol Phakdeesanwha, MD of Porchland, 2nd right, stand with Chonburi MP Porames Ngampichet, 3rd right, and other dignitaries and presenters at the launch of The Feelture condominium.

Continuing is successful foray into the Pattaya real estate market, the Porchland Group has launched its six condominium development called The Feelture, offering furnished units from just 900,000 baht.

Chonburi MP Porames Ngampichet was on hand when Porchland Managing Director Chalermpol Khonjaem unveiled the project on June 22.

The Feelture, located on Najomtien Soi 4 and Sukhumvit Road, offers two buildings on four rai of land. The 500 million baht development offers 301 units ranging from 36 sq. meter one-bedrooms to 59 sq. meter two-bedrooms. Prices include furniture and electrical appliances.

The buildings sport a modern look, with curved and concaved exteriors. The property features swimming pool, fitness center, restaurants, rooftop garden and playground.

Porchland said 40 percent of the units have been booked. Construction is slated to begin in December and conclude a year later.

For more information, call 038-488-333-5 or online at Porchland.com

(By Thanachot A./Pattaya Mail)

Artist’s impression of the completed The Feelture development.

All the units will be superbly designed and decorated with quality materials and electrical appliances.

Vietnam’s rate cut may trigger property boom

A worker is seen at a construction site in Hanoi, Vietnam. (EPA/Luong Thai Linh)

Vietnam’s real-estate market is expected to receive a new infusion of money following a deposit interest-rate cut to 9 per cent from 12-13 percent by the State Bank of Viet Nam and a subsequent fall in loan interest rates.

This was the fourth time during the last three months that the central bank has decided to reduce the dong interest-rate on deposits.

The central bank’s latest move resulted in a decrease in interest rates on loans with various terms at commercial banks.

Last month at Vietcombank, the bank decided to slash the interest rate of termed loans to 12-13 per cent.

Experts said that with such lending interest rates, enterprises’ financial burdens created from high capital costs would ease significantly, thus encouraging them to invest in production.

The lower interest-rate cap of deposits also means that depositing money at banks was no longer an attractive investment channel.

These changes have prompted many people to shift from depositing their savings into the banking sector to other investment channels that they believe will bring profit in the future.

Real estate, along with other sectors, is still popular among long-term investors since property developers, who have been thirsty for capital, have cut prices by 30-40 per cent.

According to many real estate offices in HCM City, within one month, the number of clients who came to buy houses increased significantly, but the number of transactions was still modest.

Trinh Xuan Bac in Tan Phu District said that, although the real estate market remained sluggish, investment in real estate products would bring profits in the long term.

Previously, Bac had deposited money at a bank while he waited for real estate prices to drop even more.

However, he believes that the current interest rate is not attractive enough to deposit money in banks and that now is the right time to invest in property when the prices are low.

Huynh Anh Minh, director of a real estate company in District 2, said the number of people seeking to buy land plots and apartments had increased slightly in weeks, and the number of successful transactions had increased by 20 per cent compared with previous months.

Investors were especially interested in land plots in outlying districts such as Binh Chanh and Cu Chi, Minh said.

Real estate developers have said that the rapid interest-rate reduction had greatly affected investors and individuals who want to buy a home. The lowering of the deposit interest-rate cap to 9 per cent and the banks’ commitments to slash the lending interest rate to 13 or 14 per cent have led people to believe that the property sector would warm up again.

Ngo Dinh Han, director of the ACB real estate trading floor, said the recent interest-rate reduction had not yet created a significant impact on the real estate market.

But he was confident that more money would be pumped into the market, thus improving its liquidity in the future.

The market’s real changes would likely take place in the third quarter of the year, Han said.

Pham Thanh Mai, general director of the Viet Nam Real Estate Association, said the domestic real estate market would continue to meet capital-related difficulties in the near future.

Thus, real estate developers should use mobilised capital resources effectively and efficiently.

Mai said that real estate companies should prepare long-term investment strategies while reducing their risks to ensure available cash flows for important projects.

(Viet Nam News/ANN)

Pursuit of real estate by rich lifting up Hong Kong prices

A view of the city skyline is seen from the Peak in Hong Kong. (EPA/Paul Hilton)

More and more wealthy people in mainland China are trying to buy properties in Hong Kong, according to the 2012 edition of The Wealth Report, released by the consultancy Knight Frank LLP and the wealth manager Citi Private Bank.

The report looked at the wealth management of high-net-worth individuals, or people who have at least $100 million in disposable assets.

It found that the prices of high-end properties in Hong Kong have increased at a 60 percent compound annual rate since 2009.

With the mainland’s booming economy, more people are turning to Hong Kong to buy property. At the same time, mainstream property prices in large mainland cities have been dropping as a result of the price controls that have been set by authorities, the report said.

Luxury housing, on the other hand, has consistently done well in the mainland market, and the average price of high-end properties in Beijing increased by 8 percent in 2011 from the year before, the report said.

Mainland investors bought about 25 percent of the luxury housing that was sold in Hong Kong in 2011. The report said the average price of luxury apartments in Hong Kong rose by 4.6 percent last year.

Patrick Chow, head of research from the Hong Kong-based Ricacorp Properties Ltd, said it is hard to predict what the trend for sales of Hong Kong property will be in the next few years.

In 2009 and 2010, property sales boomed in the special administrative region. Up to 70 percent of the new apartments in Hong Kong were sold to buyers from the mainland, a figure that dropped to below 30 percent in 2011, said Chow.

The report said the newly rich in China and other quickly emerging economies value cities that can offer safety, business transparency and good school systems. That combination of attributes has had a great influence on the prices of the luxury housing found in many places.

Shanghai and Beijing are among the cities that are most attractive to high-net-worth individuals.

The report said the number of Asian high-net-worth individuals has surpassed the number in North America and that the world’s economic center continues to move east.

Citing calculations performed by Danny Quah, an economist at the London School of Economics, the report said the world’s economic center has moved from being at a point in the middle of the Atlantic Ocean in 1980 to a point near the Suez Canal.

(By Wu Yiyao and Li Tao/China Daily/ANN)

China’s home prices will dip, report says

People look at models of new residential developments for sale at a real estate fair in Beijing, China. (EPA/Diego Azubel)

Property prices in China will dip this year but a tumble is unlikely, according to a report recently released by the China Academy of Social Sciences.

Sluggish demand has ruled out big price increases while property developers are unlikely to slash prices because of high land costs, says the academy’s annual report on real estate.

“Property sales will remain low this year, despite a rebound since March, and prices will dip,” said Li Enping, associate professor at the Institute for Urban and Environmental Studies under the academy, a major contributor to the report.

Property prices in small and medium cities that have increased recently will experience the biggest fall, according to the report. And any dip in prices should, eventually, stimulate sales, due to the rapid urbanisation process.

Home prices in key cities, such as Beijing and Shanghai, will only fall marginally even though sales may be sluggish, the report claimed.

With a slew of rigorous measures in place, including tighter lending policies, higher down payments and a ban on third-home purchases, the property market has entered a period of cooling.

Out of 70 major cities tracked by the government, 46 recorded a year-on-year price fall in April, eight more than in March, the National Bureau of Statistics showed.

“Policy fine-tuning has been taking place and the worst time for property developers is, in fact, over,” Zhang Hanya, chairman of the Investment Association of China, said. Zhang is a former director of the Investment Research Institution with the National Development and Reform Commission.

More than 30 local governments have introduced measures to revive their residential markets, Nanfang Daily reported.

“The government has to fine-tune real estate policies due to the economic slowdown,” Zhang added.

GDP growth eased to 8.1 per cent in the first quarter from 8.9 per cent in the fourth quarter of last year. The State Information centre, a government think tank, forecast that GDP growth will slow further to 7.5 per cent in the second quarter, due to property curbs and sluggish external demand.

Though the real estate sector’s direct contribution to GDP stood at 4 to 4.5 per cent, other industries involved in the sector will contribute nearly 20 per cent to GDP growth, Zhang said.

“Given the economic slowdown, it is understandable that the government will fine-tune its real estate policies. But it is unlikely that the government will change existing policies radically as it did during the 2008-09 period,” Zhao Song, director of the land pricing department at the Ministry of Land and Resources, said.

Zhao believes that the land market is showing obvious signs of cooling, and government revenue from selling land will fall.

“Land prices fell in the first quarter after seeing zero growth in the last quarter of 2011,” Zhao said.

According to a report by Centaline Group, land sales hit a four-year low in the first four months of the year despite a slight rebound in new home transactions.

The total value of land purchases by the top 10 property developers in the first four months reached 18.9 billion yuan ($2.99 billion), a year-on-year decline of 63 per cent. The level of land purchases is the lowest since 2008, according to the report.

“We believe the government is not likely to reverse residential market policies in the near term. Nonetheless, as we expected, they are policy fine-tuning to improve affordability for first-time buyers,” said Joe Zhou, head of research for real estate service provider Jones Lang LaSalle (Shanghai).

The People’s Bank of China has urged major banks to both increase the availability of mortgages for first-time buyers and to offer them more affordable mortgages. First-time buyers are now able to receive a 10 or 15 per cent discount from the base-lending rate.

Standard & Poor’s expects government restrictions on home purchases to remain in place for the rest of this year in many cities.

(By Hu Yuanyuan/ China Daily/ANN)

Chinese green building expert shares expertise with Malaysia

Workers help to construct the energy efficient and prefabricated 30-storey Ark Hotel in Hunan province, China in a record 15 days. (Photo/Youtube)

In order to promote a greener and more efficient living environment, the senior vice president of the Broad Group from China, Juliet Jiang, was recently invited to the Green Building International series 2012 in Malaysia to share her expertise on constructing a green building efficiently and in the shortest possible timeframe.

The Chinese construction company used a unique prefabrication process to complete the assembly of a 30-storey tower that currently serves as a hotel in Hunan province in just 15 days. The video of this project has drawn the attention of millions of Youtube viewers since it was first posted.

“We hope the focus is not just on the amount of time taken to complete this project. We would like to emphasize that we do not compromise quality in the process and would like to highlight the sustainability technology behind it,” Jiang said.

“The building has passed the resistance test of a level nine earthquake. It conserves energy up to five times more than that of a conventional construction, and provides air that is 20 times purer than the traditional buildings through our innovative air purification system.”

The accomplishment is made possible because 93 per cent of the building materials are manufactured in the factory. The company welcomes global franchisees to adopt this model and build such factories locally. In supporting the company’s value to be green, the factory should be located no more than 500km from the construction site, said Jiang.

There are currently six factories in China in different provinces. Besides China, BROAD Group also has a foot in India. These franchisees have made full payment for the transfer of technology which costs US$34 million for a population of 10 million and $50 million for a population of 50 million.

Architect Dr Tan Loke Mun, one of the GBI Accreditation Panel, opined that the compressed period of accomplishing a construction project would reduce the work hazards faced by construction workers on the site, wastage and traffic jams.

“Financially, this will help construction companies save up on interest costs,” he said.

The organiser of the series hopes that Malaysians will be inspired to make a difference to create a more sustainable and efficient living environment through this kind of innovation.

“All parties ranging from the consultants to the end users will benefit if the span of construction projects are cut. This can reduce the number of abandoned projects,” Tan said.

(The Star/ANN)

Mixed views on land acquisition in a cooler Malaysian market

Malaysia’s landmark Petronas Twin Towers are shown in the capital Kuala Lumpur. The nation’s major property developers have been buying up large land parcels despite signs of a cooling real estate sector. EPA/Ahmad Yusni

Research analysts and property consultants have mixed views about developers that have been buying sizeable parcels of land recently, as the real estate market in Malaysia has slowed down and prices are relatively reasonable.

“It is a good time to acquire land when the market is slow. Some property developers may just be able to get a bargain price for their purchases,” said property consultancy CB Richard Ellis (M) Sdn Bhd executive director Paul Khong.

Khong said that real estate sellers would also be more realistic concerning prices, as there were not too many buyers around.

He pointed out that the property sector was moving slowly back to a “buyer’s market” and the principle of “cash is king” would rule again.

In recent months, property developers such as Mah Sing Group Bhd, SP Setia Bhd, WCT Bhd and Hua Yang Bhd have been actively expanding their land bank, particularly in the Klang Valley area, which encompasses the nation’s capital Kuala Lupur and its environs.

Mah Sing last month announced that it was paying 333.26 million ringgit (US$105.93 million) or 18.55 ringgit per sq ft for 412 acres targeted for a mixed township near Bangi, Selangor.

SP Setia recently acquired 21.3 acres freehold land in Penang for 185.6 million ringgit ($58.99 million), and said this was for a mixed residential development project with a gross development value (GDV) of 1.1 billion ringgit ($349.64 million).

Meanwhile, WCT recently acquired two parcels of 468 acres and 57 acres in the Klang Valley.

WCT executive director Choe Kai Keong said that the land costing 450 million ringgit ($143.04 million) has a potential GDV of 5.2 billion ringgit ($1.65 billion).

The 468 acres in Rawang, Selangor would be developed into an integrated township with an estimated GDV of 1.2 billion ringgit ($381.43 million), while the 57-acre in Overseas Union Garden in Kuala Lumpur is planned for a mixed development worth 4 billion ringgit ($1.27 billion).

Hua Yang also has been acquiring small parcels of land in the Klang Valley since last year.

Hua Yang, which is known for developing residential properties in the affordable segment, recently agreed to pay 15.2 million ringgit ($4.83 million) for 21 acres of freehold land in Ipoh, Perak in the northeast of the country.

“Prices and sales of properties have obviously slowed down in 2012 as the number of buyers has been halved, with stricter bank lending guidelines. This is rather sensitive in the mid-high and high-end segments (such as above the RM3mil category) of the residential market,” said Khong.

Khong said property developers were now moving quickly to look at larger land banks to develop new projects, and were looking at cheaper locations where there was still demand from the mass market in the mid and lower-mid sections.

“Landed properties especially in the RM2mil and below categories should still do relatively well, as investors will still continue their quest but at a slightly lower segments.”

He also noted that the recent land sales were centered in secondary locations outside the city centre, but were in reasonably “good locations” and were in respect of big parcels where the developers could develop the “evergreen” landed segments again.

Khong pointed out that regardless of market conditions, property developers needed to take a long term view about their land bank.

“They have to continue to acquire land and develop, to sustain their operations and cover overhead costs.”

However, one property analyst said there were concerns that developers might be too aggressive in expanding their land bank.

“In good times, when the property market is hot, developers can increase their gearing without much worry as they can launch and sell properties quickly. Now, the market has cooled and they should be careful about increasing their gearing too much,” he said.

Maybank Investment Bank (IB) Research said in a recent report that it took a neutral view of SP Setia’s recent land buy in Penang.

“Despite its strategic location, the RM200 per sq ft land cost (in Penang) appeared to be on the high side. It is 33 per cent to 60 per cent higher than the 125 ringgit to 150 ringgit per sq ft asking on transacted prices in the area.”

However, Maybank IB noted that SP Setia’s net gearing was still very healthy, as this was expected to increase to 0.14 times post-acquisition of the Penang land (from 0.08 times as at January 2012).

Meanwhile, Kenanga Research said it took a neutral view of Mah Sing’s recent land buy near Bangi as the deal is expected to result in the company’s net gearing reaching 0.6 times (from the 0.3 times in the fourth quarter of 2011), based on an assumed 70:30 debt-equity financing.

“This has exceeded our comfort level of 0.5 times net gearing,” said the research unit.

However, Kenanga Research said Mah Sing’s expected net gearing of 0.6 times is manageable amd should fall below 0.5 times over the next two quarters, on the back of continuous billings.

(Thomas Huong/The Star/ANN)

S. Korea different from Japan in property bubble, say experts

A group of real estate experts downplayed the possibility of a Japan-like property bubble burst at a forum hosted by the Korea Chamber of Commerce and Industry last month.

Participants who shared the view that South Korea’s property market is different from Japan included professor Choi Hee-gap from Ajou University.

Choi said that Japan suffered a property market crash - which was initiated by enterprises in the 1980s - in the wake of policymakers rapid hikes in interest rates in the 1990s.

“Unlike the Japanese case, Korea saw the expansion of the realty market on the back of active investment of households,” he argued.

“Further, thanks to financial authorities strict regulations on mortgage loans over the past several years, a bubble in housing prices is not so big.”

But he added that the government should implement detailed measures to cope with the aging society and resolve worries over a sharp drop in housing prices.

Kim Deok-ryeh, a researcher at Korea Housing Institute, said whether the sluggish real estate market will be revitalised depends on the pending bill on easing regulations, the coming presidential elections and the eurozone fiscal crisis.

Among the participants were officials from the Ministry of Land, Transportation and Maritime Affairs, Hyundai Research Institute, Citizens Coalition for Economic Justice and the Korea Housing Builders Association.

About 180 business leaders also participated in the KCCI forum as observers.

Meanwhile, Hyundai Research Institute recently warned that Korea may follow in the footsteps of Spain and Ireland as the country is now past its demographic window, the period when the percentage of people able to work reaches its peak.

We must be mindful of the possibility of a property bubble burst as a sharp fall in the proportion of the working age population cuts demand for real estate,” an HRI analyst said in the report titled Time to Prepare for Demographic Bonus 2.0.”

He said that Japan, the US, Spain and Ireland all faced real estate bubble bursts and financial crises amid plummeting asset demand as the working age population fell from its peak.

Korea has so far benefited from a demographic bonus with a growing working age population, or people aged between 15 and 64, offering more potential for high economic growth as smaller ratios of dependents to workers tend to boost savings and investment in human capital. But not anymore, the report said.

“Between 1966 and 2012, Korea enjoyed a demographic bonus, in which the rising share of the working age population and the decreasing costs of supporting dependents spurred economic growth,” it said.

(By Kim Yon-se/The Korea Herald/ANN)

Mandarin Oriental to open a luxury hotel in Chengdu, China

(L to R) Chen Dong, Project Founder of Chengdu Mind River Land Co. Ltd; Andrew Hirst, Operations Director – Asia of Mandarin Oriental Hotel Group; and Xie Xiangping, Managing Director of CDH Investments exchange contracts at a press announcement in June.

Mandarin Oriental Hotel Group has announced that it will manage a luxury hotel which is under development in Chengdu, the capital of Sichuan province, China.

Mandarin Oriental, Chengdu, which is slated to open in 2015, will form part of a prestigious mixed-use development located on a prime riverfront site in the Jin-jiang district, close to the city’s key commercial and entertainment areas and opposite the ancient Wang-jiang Park, which dates back to the Ming dynasty.

According to a press release the hotel will be “positioned as the most sophisticated luxury hotel in Western China. Located on the top 33 floors of an iconic tower, the property will feature 320 spacious rooms including 41 expansive suites, with outstanding views of the Jin-jiang river, the city skyline and Wang-jiang Park.”

The hotel will also offer a spectacular 1,200-seat grand ballroom and a 500-seat junior ballroom plus a variety of multi-purpose function spaces, making it an ideal destination for conferences and social gatherings.

The owner and developer of the project is Chengdu Mind River Land Co., Ltd. The Hong Kong based international architectural firm, Aedas, has been appointed as master planner and architect.

Mandarin Oriental, Chengdu.

Leading Malaysian developer enters Indonesia

Malaysia’s leading publicly listed property developer S P Setia Berhad is expanding its business to Indonesia with high expectations that Southeast Asia’s largest economy will provide big opportunities for high-end structures.

Setia, Malaysia’s biggest developer, marked its entry into the Indonesian market by officially launching its representative office in Jakarta earlier this year. The representative office was actually established in August 2011.

“We see great promise and potential in Indonesia and would like to get to know the country and its people better by having a representative office in the capital. As we seek to learn from you and understand your country better, we also hope that our presence will help you to get to know us more,” Setia president and chief executive officer Liew Kee Sin said.

The Jakarta office is the company’s fifth overseas destination after Vietnam, Singapore, Australia and China. Setia, whose market capitalisation reaches 7.7 billion ringgit (US$2.5 billion), is planning to establish a representative office in London soon.

Liew said that the representative office was not intended to be his company’s sales agent in the country.

“We are not allowed to sell in Indonesia. The office task is principally to show our projects in Malaysia, Singapore, Vietnam and Australia. In the long term, we want to explore the opportunity of investment,” Liew said.

Liew said that although Setia’s focus was on township development, the company was open to any possibilities of property development, including residential, office buildings and shopping centers.

Liew also said that his company was open to possible joint ventures with Indonesian companies.

“A joint venture can be established either in Indonesia or in Malaysia. However, there has been no assessment with Indonesian companies yet,” Liew said, declining to reveal how much his company had positioned itself for future investment.

Setia project director Richard Ong Kek Seng said that the company needed up to three years of study before finally starting a project.

“We need to understand the market first,” he said, admitting that cooperation with domestic companies would make the process quicker.

Apart from displaying its properties and window-shopping in investment, the company is expecting that the representative office helps it to source directly for Indonesian arts and crafts, building materials and furniture to be incorporated into its projects.

Liew pointed out that Setia had previously reproduced Indonesian architecture into the company’s signature projects.

“Duta Nusantara (a low rise development project started in 2006) in Kuala Lumpur was inspired by Indonesian architecture and the serene lifestyle offered by the many world-class resorts of Bali,” Liew said.

Rusmin Lawin, the secretary-general of the International Real Estate Federation (FIABCI) regional secretariat for Asia Pacific, said that there were no worries over Setia’s entry into the country competitive property market.

“As long as the market is growing and there remains huge backlogs, it’s okay,” Ruswin said, citing that Singaporean property developer Keppel Land had entered the country prior to Setia.

(By Raras Cahyafitri - The Jakarta Post/ANN)

Indian firm won’t get 100,000 acres of Bangladesh land

Indian business conglomerate Sahara India Pariwar will not be given 100,000 acres of land to build a satellite town near Bangladesh capital, Dhaka, as reported by the local media, a minister said at the end of last month.

State Minister for Housing Abdul Mannan Khan’s statement came in the wake of strong objections from the local realtors against the government decision to give Sahara entry into the country’s real estate sector.

Refuting recent media reports on this, Khan said a memorandum of understanding was inked with Sahara Matribhumi Unnayan Corporation Ltd in this regard.

“But there is no such provision (giving the land to Sahara) in the MoU,” Mannan told the parliament in response to lawmakers’ queries.

The country’s procurement policy and other rules and regulations will be followed properly in such housing projects, he mentioned.

He added that the government was determined to save agricultural land and it always emphasises the importance of minimal use of agricultural land for housing.”

The two sides signed the deal on May 24 in the capital.

On June 2, real estate and housing association leaders demanded the government enter a dialogue with them before going ahead with Sahara’s proposal.

Communications Minister Obaidul Quader on June 14 said the government should have discussed the matter with its own stakeholders on whether the sector needs any foreign investment.

(The Daily Star/ANN)

Expert urges ban on loans for Taiwan’s overpriced real estate

A Taiwanese business expert has urged the nation’s central bank to formulate more stringent measures to control housing prices

Professor Chang Chin-er of the National Chengchi University said loans given to people purchasing homes with a unit price of 1.5 million Taiwan dollars (US$50,180) a ping (3.3 square metres) or above should not only be restricted but outright banned.

Chang made the appeal during a news conference where it was announced that Taiwan’s home price-to-income ratio for the first quarter was 8.2, while the figure for Taipei was 12.2.

A number of 12.2 means residents of Taipei need to forgo food and water for 12.2 years before they can purchase a house.

According to the Construction and Planning Agency, home sales in Taiwan during the first quarter totaled 36,148, a decline of 17 per cent compared to Q4 2011 and 40 per cent compared to Q1 2011.

Prices, meanwhile, averaged 8.38 million Taiwan dollar ($280,342), a decline of 5 per cent quarter-on-quarter and 8 per cent year-on-year.

On average, unit prices stood at 220,000 Taiwan dollars ($7,359) a ping, or 3.3 square meters, in Taiwan and 510,000 Taiwan dollars ($17,061) in Taipei.

The average area of homes purchased was 40.1 pings in Taiwan, a decline of 0.6 per cent compared to Q4 2011. The figures for Taipei City and New Taipei City were 35.9 pings and 35.2 pings, respectively, a decline of 6.1 per cent and 0.5 per cent quarter-on-quarter.

For Taiwan, the mortgage burden rate was 33 per cent, and the figure rose to 45 per cent for Taipei.

“Taipei and New Taipei homebuyers are likely to switch to small-area and medium-priced homes due to the burdens of home ownership,” Chang said.

“Many people have expressed the belief home purchases will affect their quality of life. This is negative for a healthy development of the home market and the society in general.”

(The China Post/ANN)

Opus offers an opulent choice in Hong Kong

(From left to right) Gordon Ongley, Chief Operating Officer (Hong Kong) of Swire Properties; Glenn Pushelberg, founder of Yabu Pushelberg; Martin Cubbon, Chief Executive of Swire Properties; George Yabu, founder of Yabu Pushelberg; and Adrian To, General Manager, Residential of Swire Properties, pose for a photo at the opening of the Opus show apartment in May 2012.

Property watchers have had their first glimpse of Opus Hong Kong, the first residential project in Asia by Pritzker Prize-winning architect Frank Gehry, which unveiled its show apartment to the public recently. “I thought the building in such a beautiful spot should have an organic feel to it,” says Gehry, who is also one of four finalists who competed to design the new National Art Museum of China. Thus, he has incorporated finely tuned glass-enclosed columns to form the structure, twisting up around the building like reeds swaying in the breeze. “It gives a delicacy to the facade,” Gehry adds.

“In Opus Hong Kong, Frank Gehry has created one of the most significant new works of domestic architecture in Asia,” says Martin Cubbon, chief executive of Swire Properties.

The show apartment was designed by Yabu Pushelberg, the design studio co-founded by George Yabu and Glenn Pushelberg. The company won the Platinum Circle Award for their exceptional achievement in the hospitality industry, and the James Beard Foundation Award for excellence in restaurant design.

“Gehry’s breathtaking design and the building’s exceptional location demanded the very best in interiors. We are therefore delighted to collaborate with renowned North American design firm Yabu Pushelberg, whose award-winning work has attracted wide praise in the design world,” adds Cubbon.

The exclusive project, which has only 12 luxury residential units, was completed in March.

Opus sits on 53 Stubbs Road and is developed by Swire Properties, a major player in the Hong Kong real estate market, known for its high-end residential, retail and commercial properties.

Perched on the sublime hillside of The Peak, Opus draws its inspiration from the breathtaking scenery surrounding the site.

Architect Frank Gehry inspired the unique design of Opus Hong Kong.

There are two double-level garden apartments with private swimming pools on the lower levels, and one apartment on each of the succeeding 10 floors, with access to rooftop swimming pools. The size of each unit ranges from 560 to 640 square meters, palatial by Hong Kong standards.

Another of Opus’ unique selling points is, the units are only for rent and not for sale, unless Swire receives an exceptional offer.

Potential tenants will pay the price for the lifestyle. Each apartment has a distinct floor plan and its own spectacular view of the city and surrounding hills. The units are tastefully furnished with balconies in the form of boat decks that are carefully oriented to make the most of the scenic panorama.

Living room and family room of the Opus Hong Kong show apartment by Yabu Pushelberg.

Views of the building from the city are equally striking, as the tower’s distinctive silhouette stands out against the lush green landscape of The Peak, the highest point in Hong Kong.

The building’s helical external structure also reduces the need for load-bearing walls, which allows the open-plan apartments to flow around a central core and the sinuous facade of the building to be composed almost entirely of glass. As a result the interiors are bright and airy with minimal interruptions of the view of the surroundings.

“This building represents such an exceptional union of nature and modern design that we wanted to continue that sense of balance into our interior,” Glenn Pushelberg says.

“Our approach combines natural materials and bespoke modern furnishings in an organic scheme that flows through the apartment and makes the most of the light-filled space. Residents of an exceptional building such as this are looking for an interior that is unique and yet recognizes and responds to its context. We are confident we have achieved that balance at Opus.”

Yabu and Pushelberg’s portfolio boasts of private residential projects in New York, Toronto and Hollywood, hotels like W Hotel in Times Square in New York and St. Regis Hotel in San Francisco and retails like Louis Vuitton Hong Kong and Lane Crawford in Beijing.

“This is a very high-end luxury and special project for us. It is Frank Gehry’s only one in Asia, so the interior design is custom-designed and handmade,” George Yabu says.

“We designed and traveled around the world in a year to select materials for almost every piece of furniture and art panels. Everything in this flat is unique,” Pushelberg says.

Coming up using the elevator, the block enjoys different views at every angle. From one side are the high rises and harbor of Hong Kong Island, and from another side, a peaceful and green mountain landscape.

The postmodern-style hallway and traditional screens divide the apartment into different spaces with surprises at every corner.

(By Wang Ru/China Daily/ANN)