November was not a good month for Thailand. Legions of protesters took over two commercial airports in the capital Bangkok for eight days practically shutting them down and the ongoing impact on tourism has been catastrophic…
The world was treated to images of trapped tourists venting their frustration while protesters steadfastly tried to get their message across to anyone who would listen.
Ultimately, the protesters got what they wanted: The Thai Constitutional Court broke up the ruling party and prohibited the then Prime Minister, Somchai Wongsawat, from participating in politics.
Wednesday, February 25, 2009
Sunday, February 22, 2009
Baht strengthens- real estate suffers
The rapid increase in the US dollar and Thai baht exchange rate has largely been explained as weakness of the US dollar around the globe, and more recently by continued inflow of foreign capital to Thailand (particularly via the stock market). Thai baht strength has not only become a major concern for exporters, but also has implications for Thailand´s real estate sectors.
Mrs. Suphin Mechuchep, Managing Director of Jones Lang LaSalle Thailand, said "Whilst certain economists encourage the government to reduce interest rates further in effort to curb the baht strength, low interest rates would help property developers burdened with borrowings. They would also benefit the residential sectors as mortgage for home purchases will be less costly for buyers. However, we expect the impact of the strong Baht to be more negative than positive on the real estate sector.
Mrs. Suphin Mechuchep, Managing Director of Jones Lang LaSalle Thailand, said "Whilst certain economists encourage the government to reduce interest rates further in effort to curb the baht strength, low interest rates would help property developers burdened with borrowings. They would also benefit the residential sectors as mortgage for home purchases will be less costly for buyers. However, we expect the impact of the strong Baht to be more negative than positive on the real estate sector.
Friday, February 20, 2009
Thai real estate goes green
Thailand’s real estate developers are increasingly taking on hues of green, as a traditionally conservative industry begins to embrace eco-friendly practices. The impetus seems to be coming largely from changing public opinion about environmental footprints, carbon emissions, and global climate change. What are Thailand’s developers doing, exactly? And what kinds of consumers are attracted to green initiatives?
The shift among developers in Thailand appears to represent a microcosm of a larger regional trend. At a recent building conference in Hong Kong devoted to environmentally-friendly practices, participants discussed ways that the building industry might embrace green spaces and sustainable development. "It’s a matter of urgency that the ways in which buildings are built and used are reviewed as part of the solution to global warming, because buildings consume so much energy,” said Angela Tam, who has written about sustainable development. “It makes sense for the industry as well as the community.
The shift among developers in Thailand appears to represent a microcosm of a larger regional trend. At a recent building conference in Hong Kong devoted to environmentally-friendly practices, participants discussed ways that the building industry might embrace green spaces and sustainable development. "It’s a matter of urgency that the ways in which buildings are built and used are reviewed as part of the solution to global warming, because buildings consume so much energy,” said Angela Tam, who has written about sustainable development. “It makes sense for the industry as well as the community.
Tuesday, February 17, 2009
Is it time for a Correction in the Phuket Property Market?
Should property prices in Phuket come down? Phuket property professionals, Phuket Ocean Villas ask the experts.
On 3rd February 2009 an article appeared in Property Report Asia which claimed Phuket property experts were saying that Phuket residential real estate is overpriced.
It transpired, on reading the article, that there was little substance for this apart from the comments made by one estate agent. As it was obvious that this article had been badly researched and lacked any substantial evidence we decided to launch our own investigation into the status of the Phuket property market.
We were originally asked to comment for the article, but as our comments were contrary to the article´s premise, they were not included. We felt compelled to write this in depth article in response.
On 3rd February 2009 an article appeared in Property Report Asia which claimed Phuket property experts were saying that Phuket residential real estate is overpriced.
It transpired, on reading the article, that there was little substance for this apart from the comments made by one estate agent. As it was obvious that this article had been badly researched and lacked any substantial evidence we decided to launch our own investigation into the status of the Phuket property market.
We were originally asked to comment for the article, but as our comments were contrary to the article´s premise, they were not included. We felt compelled to write this in depth article in response.
Wednesday, February 11, 2009
Thai developers plan to issue debentures to secure funding as credit dries up
A number of listed Thai real estate developers are planning to issue debentures this year in order to maintain liquidity and cashflow, according to a survey conducted by The Nation newspaper.
The revenue raised will contribute to fulfilling loan repayments as well as providing funding for new residential projects, at a time when commercial banks are increasingly reluctant to provide credit to developers.
Property Perfect chief operating officer Dr Teerachon Manomaiphibul said the company is studying the possibility of a debenture issue of between Bt500 million and Bt1 billion in the first quarter of this year.
"Now, the banks are still providing loans for our projects. But should the country´s economy crash, we don´t know whether commercial banks will hold the credit line open for us. As a result, we have to manage our cash by issuing a debenture in the first quarter of this year," he said.
The revenue raised will contribute to fulfilling loan repayments as well as providing funding for new residential projects, at a time when commercial banks are increasingly reluctant to provide credit to developers.
Property Perfect chief operating officer Dr Teerachon Manomaiphibul said the company is studying the possibility of a debenture issue of between Bt500 million and Bt1 billion in the first quarter of this year.
"Now, the banks are still providing loans for our projects. But should the country´s economy crash, we don´t know whether commercial banks will hold the credit line open for us. As a result, we have to manage our cash by issuing a debenture in the first quarter of this year," he said.
Friday, February 6, 2009
Bangkok real estate: Investment activity slows as buyers hold out for price cuts
Despite continued interest and more properties offered for sale, investment activity in the Bangkok property market has been subdued as there remains a wide gap between buyers’ and sellers’ price expectations, according to Jones Lang LaSalle, a professional services firm specializing in real estate.
Suphin Mechuchep, managing director of Jones Lang LaSalle (Thailand), said “Buy-side interest in the Bangkok property market remains strong; however, investors are mostly looking for distressed assets offered at deeply discounted prices. At the same time, sellers refuse to dispose of their property assets at a loss, despite accepting the softer market conditions. As a result, investment activity in the Bangkok property market over recent months has stagnated, with buyers continuing to adopt a wait-and-see attitude, expecting prices to drop in response to the perception of value.”
Suphin Mechuchep, managing director of Jones Lang LaSalle (Thailand), said “Buy-side interest in the Bangkok property market remains strong; however, investors are mostly looking for distressed assets offered at deeply discounted prices. At the same time, sellers refuse to dispose of their property assets at a loss, despite accepting the softer market conditions. As a result, investment activity in the Bangkok property market over recent months has stagnated, with buyers continuing to adopt a wait-and-see attitude, expecting prices to drop in response to the perception of value.”
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