Thai Property News

Phew!!

Signs of a measure of calm returned to global stock markets on Friday, ending a tumultuous week.  Asian stocks extended their region-wide rebound Friday, with Hong Kong shares leading the way with a 6.73 per cent jump, ending one of the most volatile weeks in the market’s history.

In Bangkok, the SET index surged 32.32 points up 4.3 per cent, marking the Bangkok bourse’s first substantial rebound since the US announced interest rates cuts to stimulate its economy. Japan’s Nikkei index soared more than 4 per cent, and the Topix 4.7 per cent. India’s Sensex and Nifty indices both added on more than 6 per cent.  Stocks on the Singapore Exchange climbed 3.59 per cent. Stocks in Taiwan, rose nearly 3 per cent, fueled by a rally of technology shares and gains on Wall Street for two consecutive days. Philippine share prices rose 2.85 per cent, and Australian stocks charged ahead 5 per cent. What do you think?  Bear market or correction? 

Thai Airways will operate two flights a day from Suvarnabhumi airport to Samui.  The fare is expected to be similar to that currently offered by Bangkok Airways.The new route will be popular among foreign tourists.  Prices have already risen in Samui and, of course, this will make the latest hot spot in Thailand even more accessible.  Yes, Samui could well be the new Phuket!!

Nuntawun Polkuamdee of The Bangkok Post reports The Stock Exchange of Thailand ended its final day of trade for 2007 at 858.1 points, with Thai stocks posting a 26.22% gain for 2007. 

The smaller Market for Alternative Investment posted even stronger gains, rising 40.81% over the year to close at 272.37 points.

Foreign investors were net buyers of 55 billion baht worth of securities in 2007 and accounted for one-third of daily turnover. Local institutional investors, net buyers of 2.16 billion baht worth of stocks, accounted for 14.5% of daily turnover, while retail investors represented 52.5% of total trade.

The chairman of the Association of Securities Companies, Kampanart Lohacharoenvanich, said 2008 should be even more volatile for the Thai market, given risk factors such as US sub-prime mortgage crisis, high global oil prices and the US presidential elections, while local concerns include uncertainties about the new government and its policies, and tougher market regulation under the recently amended SEC Act.

Choppy times ahead.

http://www.bangkokpost.com/291207_Business/29Dec2007_biz23.php

December 27 Turnout in Thailand’s election reached a record 74.45%, higher than the 70% projected by the army-backed government, according to the Election Commission Chairman Apichart Sukhagganond.Final figures provided by the Commission show that about 32.8m of the 45.64m eligible voters cast ballots.

The People Power Party (Thaksin’s allies) won 233 of the 480 seats in parliament, just short of the number needed to govern alone.  The Democratic Party, which came in second with 165 seats, has refused to join a PPP-led government. 

The remaining seats were split between five smaller parties.

The Thai Stock Exchange did not react significantly - although the SET was up around 1% at close on 27 December - not exactly a ringing endorsement.

Looks like the long awaited return to democracy as voters across the country went to the polls on Saturday for the first of two days of advance voting, and the Election Commission indicated that the polls were peaceful….and busy…

The Bangkok Post reports almost a million voters turned out across the country yesterday to cast advance votes for the general election, defying earlier speculation of public apathy towards the long-awaited polls marking a symbolic return to democracy following the military coup in Sept 19 last year which toppled then prime minister Thaksin Shinawatra and his elected government.

Analysts have said that yesterday’s high turnout can be seen as representative of the mood around the country towards the election and that it shows that the general public is anxious to get the country back on the democratic track.

A total of 893,659 people turned out for the first of two days of advance voting yesterday - 43% of the 2.09 million people who registered to cast advance ballots outside the constituencies where they have house registrations. Advance voting ends at 5pm today.

A total of 415,803 people from other provinces who registered for advance voting cast their ballots in Bangkok yesterday. Another 94,536 voters registered in the capital also took the opportunity to get in their votes early.

The government is hoping for at least a 70% overall voter turnout.

Meanwhile, to maintain law and order, sales or serving of alcoholic drinks was prohibited throughout Thailand until midnight (1700 GMT) Sunday. Violators face a maximum fine of 10,000 baht or six years imprisonment.

This is what we have all been waiting for - and this will hopefully get Thailand back on track, and will hoepfully be good for the Thai property market. Thailand Property News will keep you posted with the results. For the full report,see:

http://www.bangkokpost.net/topstories/topstories.php?id=124448

The Nation reports that although the property market in Bangkok and its surrounding area has shown signs of dropping 10-20 per cent this year, property developments at the country’s tourist destinations are recording strong growth of up to 10 per cent.

A recent survey conducted by Ocean Property shows the property market in Hua Hin and Cha-am has grown 10 per cent this year, following investments totaling Bt22 billion since July 2006. Of the total, Bt10 billion has been invested in detached housing, Bt10 billion in hotels and resorts and Bt2 billion in condominiums.

Ocean Property itself has spent Bt1 billion to build the Asara Villa and Suites luxury resort in Hua Hin. Over the past year, four detached-housing projects comprising 375 premium beachfront units have been launched in the area, and condominium projects launched in the same period offer 740 units, with prices starting at Bt80,000 per square meter. Of the detached houses, 6 per cent are selling for Bt3 million to Bt4.9 million, 28 per cent for Bt5 million to Bt9.9 million, 51 per cent for Bt10 million to Bt24.9 million and 15 per cent for Bt25 million to Bt49.9 million.

Ocean Property is planning to launch a Bt600-million detached-housing project called Ocean Villa Hua Hin in the second half of the year, close to its new Asara Villa and Suites. It will have only 18 units, ranging in price from Bt25 million to Bt120 million. “The project will focus on a unique market, and we’ve already booked seven units,” says president Nusara Banyatpiyaphod.

The demand for property in Hua Hin is probably driven by the area’s growing popularity as a tourist destination. The area’s resorts have received 2.3 million visitors in the past year. About 80 per cent of them were domestic visitors and the rest foreigners. “We believe Hua Hin is now the best tourist destination close to Bangkok,” Nusara says. (Source: The Nation)

The temperature is dropping, the sky is clear and local jazz fans are as excited as they always are at this time of year. It’s time once again to luxuriate in warm and soothing jazz tunes while sprawling on a soft green lawn underneath the moonlit sky.

A spiritual treat that people have come to yearn for after a long year of hard work, the 5th Bangkok Jazz Festival, which kicks off next weekend, guarantees to indulge the audiences’s soul with three evenings of world-class acts like Shakatak, Matt Bianco, Laura Fygi, Kitaro and Blood Sweat & Tears.

This year, the jazzy affair that expects to draw more than 15,000 music-lovers each night will be held from December 8-10 on the lawn of Ror Nueng Phan Nueng Ror Or, a 32,000-square-metre military field on Vibhavadi Rangsit Road; the venue having changed from its usual home of Sanam Sua Pa royal park.

The 5th Bangkok Jazz Festival runs on Saturday, Sunday and Monday, December 8, 9 and 10. A one-day ticket costs 1,200 baht while a three-day pass is priced at 3,000 baht. Tickets are available at Thaiticketmajor (tel 02-262-3456). For more information, please call 02-203-1240.

Malaysia is not the only country to provide incentives to foreigners to stay. Thailand has tried too, but as you can see from the November edition of Thailand Property Report, it’s hardly competing with Malaysia.

Thailand’s exotic, friendly charm attracts tens of millions of visitors each year, with more and more tourists opting for a longer stay, either in retirement, for business purposes or simply as a lifestyle choice. And over the last decade, the Royal Thai Government has endorsed certain ‘foreigner privilege schemes’ in order to attract high spending tourists by offering greater ease of travel and business opportunities, but how useful are these schemes and what do they actually offer members?

In 2001 the government initiated the Longstay Tourism Development and Promotion Project, and the Thai Longstay Management Company was established to facilitate longstay for tourists over the age of 50, providing a one year multiple re-entry visa, fast immigration, accident insurance and many privileged discounts ranging from hotels and resorts and spa’s and over 2,000 shops around Thailand. Yearly memberships were available from 12,000 Thai Baht without the visa, up to 72,000 Thai Baht for the most complete package.

In March 2007, TLM launched a new service called “Thailand Second Home Longstay Project”, which allows foreigners to purchase a property in Thailand on a 30-year renewable lease, with carefully established legal assurances included in the deal to gain investors’ trust, although it’s currently on hold until the general election has been held and a new government is in office.

Business visa’s in Thailand are generally restricted to a maximum of ninety days and require a visit to a Thai Embassy abroad. Both programmes provide welcome visa assistance and fast tracking through immigration. Despite offering a longer five-year multiple re-entry visa, Thailand Elite still requires members to visit the local immigration office every 90 days, whereas Thai Longstay offers a one-year multiple re-entry visa with no further stamps required.

Thailand Second Home may still be worth waiting for, it seems, as this programme means you can purchase a lifetime membership for 500,000 Thai Baht and then securely purchase a home to use as you wish for the rest of your life. It also includes benefits such as discounted TLM membership rates and opportunities to realise an income through the management of Thailand Second Home.

Post election confidence may well lead to the creation of yet more privilage schemes in Thailand, or add to the benefits that already exist. But as is the case with many private investors, a common strategy seems to be “wait and see”. Please take a look at the full report at www.property-report.com/archives.php?id=1089&date=0711

It is generally accepted that the Pattaya property boom is over. Or then again……

According to international property firm CB Richard Ellis, Pattaya is on the upward trend of the property cycle albeit the growth of the overall property market in the resort city is below projection due mainly to the Foreign Business Act amendment.

The Bangkok Post 18 November reports an interview with Aliwassa Pathnadabutr, CBRE’s managing director: total condominium stock in Pattaya including Condotels is about 24,800 units in 2006 and is expected to reach 27,800 units by the end of this year. Less than 10% of the total condominium stock is the luxury supply.

Among the recent launches of luxury properties are the 543-unit White Sand Beach on Jomtien Beach and The Chateau Jomtien in the Pratumnak area, housing 317 units in four towers. CB Richard Ellis expects more launches of condominium projects in Pattaya.

She said the residential market in Pattaya faced challenges from strict enforcement of the property ownership law that limits foreign ownership in a condominium project to 49%. Demand from foreign buyers exceeded the limit and the challenge for developers is to sell the 51% Thai quota of a condominium.

“To effectively strengthen this resort market, the foreign ownership quota should be enlarged,” said Ms Aliwassa.

Pattaya is now viewed as Thailand’s most accessible resort destination.

Its villa segment is growing in line with the tourism industry and the rising trend of second and retirement homes in Thailand. There are 17 luxury villa projects, comprising 626 units, being marketed in Pattaya as of the third quarter of 2007, and about 54% have been sold.

Most of the projects are located next to a beach or within proximity of Jomtien Beach. Prices of these luxury villas ranged from 6.8 million baht to 60 million baht. However, as a result of increasing land prices, more villa projects are expanding to Na Jomtien and Bang Saray to the east of Sukhumvit Road.

Ms Aliwassa added that the 9%-per-year average growth rate in tourist arrivals to Pattaya was a positive sign for both the hotel and residential markets.

Hmm. Again the statistics tell us the ’slump’ is being over-egged. Or maybe we simply haven’t seen the ripple effects from the sub-prime debacle.

What’s your view? Do you think the sceptics are right and Pattaya’s property market is overheated - or do you go with CBRE’s view? Let Thai Property News have your views now.

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Thai Property News is looking forward to this summers’ film festival.  Not to be mistaken for the Bangkok Film Festival, the Bangkok International Film Festival was first organised by the Tourism Authority of Thailand in 1998, and is now an established world player on the cinematic festival scene.

In the Official Competition there is one film every night, while the festival is topped and tailed with premières on the opening and closing nights. Prizes - the Golden Kinnaree Awards - are given for Best Film, Best Actor, Best Actress, Best Director, Best Cinematographer and Best Screenwriter, and there is a Lifetime Achievement Award.

The festival takes place in a number of cinemas in close proximity: both the EGV Grand and Metropolis, the Major Cinemplex in the World Trade Center Tower, three screens at the Apex (Lido 2, Scala and Siam) and SF Cinema City in the Mah Boonkrong Center.

The full programme is available on the Bangkok International Film Festival Website