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New land and building taxes will not increase tax rates, says Treasury Department

Published April 16, 2019 by SoClaimon

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation


New land and building taxes will not increase tax rates, says Treasury Department

Real Estate April 16, 2019 01:00

By The Nation

The Treasury Department has reassured that a new method for appraising land and buildings will not result in higher land and building tax rates as several parties have suggested, while the Fiscal Policy Office (FPO) estimates about Bt40 billion per year in additional government revenues for the first two years from 2020 when the taxes bill takes effect.

Amnuay Preemonwong, the Treasury Department’s director-general, said that appraised building prices will be lower than the actual construction cost, resulting in the actual tax being lower than some had predicted. The appraised value of buildings will be based on its width and length regardless of the construction materials used.

The land and building tax bill will come into force from January 1, 2020 onwards.

So far, Treasury Department has appraised 20 million plots of land, with a further 13.4 million plots expected to be appraised this year.

Local officers will walk the streets to survey every house and building in the relevant areas. The categories of buildings have been cut to 31 from 69 for easier appraisal.

Amnuay said that area officers must survey and appraise every building in their areas, including those where the combined cost of residence and land is at or below Bt50 and so is tax exempt.

Meanwhile, according to the land and building law, a second house will be taxed from the value of the first baht of land and building, making it necessary to appraise every building in the country.

Amnuay also said that the new land appraisal bill, which has passed its third reading in the National Legislative Assembly (NLA), will shorten the approval period for appraised land prices and for appeals on those values, which will end at the provincial level. In the previous approach, a central committee gave approval.

In the first two years after the land and building tax bill comes into force on January 1, 2020, the government is expected to earn Bt40 billion per year from the land and building tax collection, according to the FPO.

Currently, the government revenue from the building and land tax, and the local development tax, amounts to a combined Bt30 billion.

Although the government revenue from the land and building tax is expected to be higher than in the previous system, the estimated collection is lower than the FPO’s earlier estimate of Bt60-Bt70 billion after the NLA changed the draft tax bill in response to developer pressure.

Meanwhile, the Treasury Department is moving ahead to develop a senior’s complex on a 72-rai (11.5-hectare) plot of state-owned land, while hurrying to soon finalise the first phase with Ramathibodi Hospital in Samut Prakan province after a delay of nearly three years.

The senior’s project will be implemented through a public-private partnership (PPP) scheme. The selling price per unit will include medical service fees. However, the hospital has not yet decided on the medical options in details and the costs to their ageing residents.

Other project details such as the conditions for leaving the project – voluntarily leaving or passing away, fee return, etc – also remain under consideration.

The land in this project will be rented by the department at Bt1 monthly per square wa, with the rental arrangement fee at twice that of the annual rent. It consists of three zones – the 32-rai hospital zone, 20-rai senior’s housing zone and 10-rai nursing zone.

The senior’s housing zone will consist of 1,000 units of 30-55 square metres each. It is expected to be open to rental by middle- to high-income people aged 55 years and above for a 30-year period or until they pass away.


Developer posts Bt4.8 bn in first-quarter pre-sales

Published April 13, 2019 by SoClaimon

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

Developer posts Bt4.8 bn in first-quarter pre-sales

Real Estate April 12, 2019 01:00

By The Nation

Listed property firm Ananda Development Plc has announced Bt4.8 billion in pre-sales for the first quarter of this year, up 19 per cent from its estimate, said the company’s chief financial officer Chaiyuth Chunnahacha said yesterday.

It plans to launch four residential projects worth Bt13 billion in the second quarter to boost its pre-sale total to Bt36 billion at the end of the year.

A total of 10 projects are planned for this year , comprising eight condominiums and two housing estates.

Due to capital constraints , 7 of the condominum projects will be joint venture developments.

Meanwhile, presale total for 2019 is expected to grow by 14 per cent year on year to Bt36 billion while transfers are expected to grow 9 per cent to Bt36 billion, he said.

Luxury market ‘will keep momentum’

Published April 13, 2019 by SoClaimon

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

Luxury market ‘will keep momentum’

Real Estate April 10, 2019 01:00


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THE Property management arm of Sansiri Plc Plus Property Co Ltd has expressed confidence that the luxury market will maintain its growth, with a yield of investment of between 7-10 per cent a year.

According to a company survey, the luxury property market with prices over Bt10 million per unit grew an average 7 per cent per year during 2012-2018, despite the unremarkable growth of the Thai economy and the continued presence of risks to the global economy during the same period.

The response rate for luxury condominiums during 2014-2018 has been attractive, averaging at 70 per cent, according to the survey. Demand has also continually risen, due to the fact that the products are developed in a rather limited quantity compared to mainstream condominiums in the market. As a result, luxury projects have enjoyed a good response from customers with high purchasing power throughout the extended period.

The absorption rate for luxury projects stands at 15 units per project per month, whereas the absorption rate for mainstream projects stands at 22 units per project per month. These numbers point to a lower absorption rate for luxury projects, which is in line with proportionally lower supply.

However, when consideration is given to the percentage of projects that are able to sell out in less than one year, the survey found that 31 per cent of luxury projects were able to sell out. This compared favourably to the 20 per cent of 417 mainstream projects able to sell out within a year.

Another factor that contributed to luxury properties’ attractiveness is their status as investments that offer somewhat higher returns. Owing to ever-increasingly prices, luxury properties have produced yields of 7-10 per cent. In areas stretching from inner Sukhumvit to Thong Lo, the yield stood at roughly 9.5 per cent.

The company’s managing director, Anukul Ratpitaksanti, said the market is maintaining its growth despite the 2019 challenges that include domestic and international politics as well as economic factors.

He said developing projects to penetrate the luxury group of buyers yields better cost-effectiveness to justify the challenges involved in procuring increasingly rare city-centre land plots, and assembling them into a sufficiently large plot for project development.

He expects 2019 to again present a vibrant scene, with new luxury properties finding their audience. These properties meet the demand of those seeking quality residences, as well as of investors and foreigners.

Although the Bank of Thailand is expected to begin enforcing its new LTV mortgage regulation starting this month, the purchasing power at the luxury level is not expected to be afflicted, particularly among foreign buyers.

The measure requires an increase in the down payment to 20 per cent, with the mortgage not exceeding 80 per cent of the price. This is a level similar to many countries, including the UK and New Zealand. Still, there are also numerous countries where the regulation on down payment calls for an even higher percentage than Thailand’s new mortgage rules. For example, the down payment is 75 per cent in Singapore, 70 per cent in Malaysia and South Korea and 65 per cent in Hong Kong. Thailand’s new mortgage rules will therefore have no effect on investors from these countries, said Anukul.

Rama IV Road turning over a new leaf

Published April 13, 2019 by SoClaimon

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

Perspective of green area of Dusit Central Park at Silom-Rama IV
Perspective of green area of Dusit Central Park at Silom-Rama IV

Rama IV Road turning over a new leaf

Real Estate April 08, 2019 01:00


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RAMA IV Road in Bangkok will be turned into a hub of green architecture in Bangkok with the planned development of new projects, designed under the environmentally friendly and energy-saving concept, between 2020 and 2025.

  The buildings come with a total investment of Bt285.2 billion.

Among the future properties in the location – from Lumpini Park to Klong Toei, is the Bt120-billion One Bangkok by TCC Asset and the Dusit Central Park, which covers a total space of 440,000 square metres at an investment of Bt36.7 billion by Dusit Thani Plc and Central Pattana Plc.

Other properties to rise in the area include the FYI Center Building on Rama IV Road, designed with a focus on energy conservation and the environment.

With an investment of Bt8.5 billion, Golden Land Property Development Plc will develop Sam Yan Mitr Town as TCC Asset plans another green project in the proximity, the Bt20-billion PARQ near the Queen Sirikit National Convention Centre.

Having received a TREE certification from Thai Green Building Institute, Ananda Development will develop Ideo Mobi, a condominium project.

TCC Asset’s One Bangkok is the first project in Thailand to have received a Platinum certification for Neighbourhood Development from LEED (Leadership in Energy & Environmental Design).

Its architecture and landscape design respond to the tropical climate and ecology, utilising sustainable approaches and technologies to significantly reduce energy expenditure and water consumption.

The master plan by Thai architecture firm Architects 49 in collaboration with Skidmor, Owings & Merrill LLP (SOM) and Plan Association, centralises the energy and water-management systems to optimise efficiency and anticipate future growth. The use of green space and permeable materials will retain rain water onsite to reduce runoff and facilitate absorption to help replenish groundwater resources.

The project is a presentation of a fully-integrated “city-within-a city” district under the concept of sustainable and smart living. It is located in the heart of Bangkok on the site of the former Suan Lum Night Bazaar with over 1.83 million square metres of land.

It will be known as an epicentre of modern living in Asean, meeting the Platinum standard of LEED Neighbourhood Development and the standard of US’ International WELL Building Institute – featuring hotels, residential buildings, office towers and retail spaces within a district, according to Architects 49.

Meanwhile, Dusit Thani Plc and Central Pattana Plc have teamed up for Dusit Central Park, a Bt36.7-billion mixed-use project under the green concept, it was announced last week.

Wallaya Chirathivat, deputy CEO of Central Pattana Plc, said the project focuses on the need for a large, green area in view of visitors’ preference to stay close to nature and follows the trends of energy efficiency.

Dusit Central Park will connect four Bangkok neighbourhoods in four directions – Ratchaprasong (north), Charoen Krung (south), Sukhumvit (east), and Yaowarat (west) – creating a new junction where old meets new, and financial meets commercial. This seamless connection responds to both business and lifestyle needs, she said.

The project is expected to be completed in 2024.

Meanwhile, the state-owned Port Authority of Thailand (PAT), is developing 2,353 rai on Klong Toi port under a five-year master plan (2019-23). It plans to combine the port and commercial areas for development with an investment of Bt100 billion.

The plot will be divided into zones for various purposes with the port and Customs department area occupying 943 rai; area for port service, 118 rai; state-owned area,160 rai; rental area for state units, 160 rai; commercial area for rent by the private sector, 313 rai; rental area for social activities, 203 rai; residential area, 198 rai; and a 200-rai transport hub.

All structures on the plot will be built under the green concept, said a source from the port authority.

Following completion of the mixed-use projects in 2025, Rama IV and the central business district in its proximity will become a landmark of green architecture in Bangkok, said a property expert.


Published April 13, 2019 by SoClaimon

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation


Real Estate April 08, 2019 01:00

By The Nation

2,902 Viewed

Listed property firm Supalai Plc plans to launch a Bt20-billion mix-used project, Supalai Icon Sathorn, this year.

The project will consist of condominiums, priced between Bt9 million and Bt300 million a unit, as well as retail and office space, according to the company’s chief executive officer Pratheep Tangmatitham.

Sustainable architecture gaining in stature

Published April 13, 2019 by SoClaimon

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

FYI Centre on Rama IV
FYI Centre on Rama IV

Sustainable architecture gaining in stature

Real Estate April 08, 2019 01:00


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FROM THE USE of solar panels and energy-efficient glass to combining design with forestry, sustainable architecture is reaching new heights in Asia, according to a research by real estate agent JLL.

In Thailand, the Thai Green Building Institute website shows 108 buildings applied for its certification with 36 having been certified under the silver, gold and platinum categories. The criteria for certification covers a projects’ design, construction process as well as energy sources.

In line with the trend, certification for well-being was initiated by the US’ International WELL Building Institute with an emphasis on the wellness of people residing in a building, in terms of air and water qualities, lighting, fitness, ease of mind and convenience through innovations. It reported that 1,602 projects from 50 countries had applied, with 159 buildings having been certified.

Eric Lee, head of JLL’s Greater China Property and Asset Management business, said that in recent years, eco-friendly skyscrapers had been gaining traction, noticeably in China, as governments tackle rapid urbanisation and its impact on the environment. “While tall structures typically served as landmarks, they are also increasingly used to showcase businesses’ corporate environmental responsibility,” Lee says.

“Many project owners and developers seek green accreditation such as LEED [Leaders in Energy and Environmental Design] in order to attract businesses that are on the path to sustainability,” he says.

Yet sustainable designs aren’t just doing their part for the planet. Occupiers are increasingly demanding a green working environment, according to Daniel Safarik, an editor at the Council on Tall Buildings and Urban Habitat (CTBUH) and JLL.

Aliwassa Pattanathabut, managing director of CB Richard Ellis (Thailand), says office tenants now increasingly prefer LEED (Leadership in Energy and Environmental Design)-certified buildings which have completed LEED-certified interior fit-outs.

Multinational companies such as Citibank, Unilever and L’Oreal have all undertaken LEED fit-outs of their Bangkok offices, and all new Starbucks retail branches will have LEED-certified interiors.

Many Thai companies have also completed LEED-certified fit-outs and Kasikornbank achieved LEED CI v2.0 Gold certification in 2011 for its Phaholyothin headquarters project.

A number of office buildings with LEED Core and Shell certification already exist in Bangkok. Park Ventures and Energy Complex have achieved LEED Platinum status, and Sathorn Square and the recently completed AIA Capital Centre have both secured LEED Gold certification, she said.

Although, the cost of constructing a green building under LEED is higher by 10-20 per cent, depending on whether Silver, Gold or Platinum certification is being sought, it can charge higher rents, she said.

For example, FYI Center is able to set rents at 10 per cent above the average rate for the area around Rama IV Road.

But it presents a challenge in terms of cost for both domestic and multinational firms wishing to rent space in a certified green building, she added.

Aliwassa said not only can new buildings be certified, older buildings could be updated and renovated to achieve green-building status.

This would offer more choices for companies seeking rental space at a time when the country is striving to become the hub for corporate headquarters in the Asean Economic Community, she said.

“Most multinational firms expanding their investment in the region have a policy to rent green office space. Office owners should follow the trends for more business opportunities and higher income in the long term,” she added.

ALL INSPIRE Developer gears for IPO of 150m shares

Published April 6, 2019 by SoClaimon

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation


ALL INSPIRE  Developer gears for IPO of 150m shares

Real Estate April 05, 2019 01:00

By The Nation

All Inspire Development Plc plans to launch an initial public offering of 150 million share in the end of this month at Bt6 to Bt7 per share, its financial advisor Asia Plus Securities Co Ltd said yesterday.

The company will also be listed in the Market for Alternative Investment (MAI) in the middle of May this year, the company’s financial advisor said.

All Inspire Development Plc recorded a total revenue of Bt2.34 billion and Bt343 million in net profit for 2018, up 228 per cent and 323 per cent respectively from the previous year.

Property firm hails project success

Published April 6, 2019 by SoClaimon

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

Property firm hails project success

Real Estate April 04, 2019 15:40

By The Nation

Frasers Property Thailand Public Company Limited (FPT), a real estate platform, said its project at Bangplee had an occupancy rate of 95 per cent.

FPT said it will continue to drive the growth of its industrial property business in response to an expansion of industrial and logistics trade.

Sopon Racharaksa, FPT president, said: “The industrial property rental business in Thailand is on an upward trend which was attributed by positive factors from the growing trading and country consumption as well as from Eastern Economics Corridor Development initiative that is a part of ‘Thailand 4.0’ government’s policy.”

Harry Yan Khek Wee, KPT vice president, said: “Our ready-built industrial property has embraced the customer-centric approach while creating an enriching customer experience.”

E-COMMERCE Property investors turn to modern logistics assets

Published April 6, 2019 by SoClaimon

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation


E-COMMERCE  Property investors turn to  modern logistics assets

Real Estate April 03, 2019 01:00

By The Nation

Globally, modern logistics properties has become one of the most sought-after asset classes for property investors, according to CBRE, a leading international property consultant.

This is because of the huge increase in demand driven by the growth of e-commerce.

E-commerce retailers need very high specification warehouses to use as fulfilment centres but developers around the world , are struggling to keep up with demand because e-commerce has been growing rapidly.

 James Pitchon, Executive Director at CBRE Thailand, said that e-commerce is just taking off in Thailand, currently accounting for only a small percentage of retail sales, but Thai e-commerce is expected to rise rapidly and should reach the levels of more advanced markets where it accounts for 15-18 per cent of total retail sales.

Based on research by David Egan, Global Head of Industrial and Logistics Research at CBRE, on the relationship between online sales and demand for modern logistics property in the USA, CBRE estimate that, using a similar ratio to the US market, every Bt1 billion of online sales in Thailand will generate 4,000 square metres of demand for e-commerce logistics space.

Adam Bell, Head of the Industrial and Logistics team at CBRE Thailand, believes that 2019 will be the year that demand for modern logistics space in Thailand, especially Bangkok, really takes off.

CO-WORKING SPACE JustCo plans to double footprint in region

Published April 6, 2019 by SoClaimon

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation


CO-WORKING SPACE  JustCo plans to double footprint in region

Real Estate April 03, 2019 01:00

By The Nation

Singapore-based co-working space provider JustCo has announced plans to double its current footprint in the Asia Pacific in the first half of 2019, or an ten-fold expansion from its beginning in 2015.

Spurring this growth is the debut of six co-working centres in Melbourne, Sydney and Seoul, while increasing its presence in existing cities like Singapore, Shanghai, Jakarta and Bangkok where JustCo will open its third location at Samyan Mitrtown by Golden Land Property Development Plc in the fourth quarter of this year. In its first venture beyond Asia, JustCo will open four co-working centres in Sydney and Melbourne.

By mid-year 2019, JustCo would have secured or opened nine new Central Business District locations across the region, expanding its portfolio to 29 centres in the Asia Pacific.

This series of consecutive launches speak volumes of the increasing demand for shared workspaces and the gap in the market, according to the company’s release yesterday.

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