Decrease in Construction Projects Affect Many Other Professionals

Due to the current economic conditions the construction projects have decreased in number and this decrease in number of new construction projects had started affecting several other professionals like engineers, architects, interior designers etc. in and outside Thailand.

Numbers of new construction jobs have gone down by 20-30% in 2009 as compared to 2008. This decrease in construction jobs has been happening mostly since the last quarter of 2008. Therefore, several other professions related to Construction and properties are also very badly affected.

President of Thai Contractor’s Association stated recently that as the developers postponed the construction of their new projects many architects and engineers have lost their jobs in last quarter of 2008. Many developers who have also the blueprints prepared for the beginning of construction have hold back their projects due to the poor demand of housing projects.

Many construction firms confirmed that they have to get to job cuts of a few of their engineers due to decrease in number of construction contracts and financial recession.

As a lot of developers have postponed the launch of their new projects the architect’s careers have also felt a very pessimistic impact.

As per a recent report, the numbers of projects that are to be launched in 2009 are nearly 30% less than that have been launched in 2008.

The situation is worst not only in Thailand but also in other countries outside Thailand. Professionals are feeling the impact in other countries also. In case, if the condition of property market does not get better by the last two quarters of 2009 then many architectural firms also have to start job cutting to cut costs and to survive in the market.

Not only engineers and architects but the demand for interior designers has also decreased a lot. Interior designers are the most affected in Thailand due to the impact of recession and decrease in demand. The developers are doing cost cutting mostly in the segment of interior work.

Foreigners Keen to Purchase Property in Thailand

Decrease in the prices of land and housing projects have encouraged many foreigners to invest in Thailand's property market, mainly condominiums.

Foreign investors are convinced that this is the best time to purchase a property in Thailand. A few foreigners have also shown a great interest in purchasing depressed assets, which are going for 20-30% below that of 2008.

Interest is also being revealed in undeveloped land for developing housing projects, because the land prices are down by 10-20% from 2008.

Chiwathai Hub Soon, is planning to launch a low-rise condominium project of value Bt350 million, the project is named “The Surawong”. The company is all set to purchase undeveloped land and capture existing housing projects of value almost Bt1 billion in 2009 and 2010.

Thailand's property market is looking quite fascinating to foreign investors, due to the fact that prices of land and housing project are quite lower than that of 2008.

Experts believe that US economy would start recovering in the final quarter of 2009, which would in turn encourage the recovery of Thailand's economy.

Thailand property market has always been a challenge for foreign investors. Now, when land and housing prices are quite cheaper than earlier they are ready to accept the challenge.

A property management company well known as Akando Co Ltd is planning to take over housing projects, which is in construction pipeline, however, its project owner is trying to sale the project, on Rama 9 of market value Bt2 billion in 2009.

The managing director of Akando Co Ltd said that the company wants to purchase or take over projects in Thailand property market when land and housing prices have decreased a lot and a few land owners and housing project owners are going through financial troubles. Till nearly all of them have decided to reduce price for sale.

Koh Yao Is Making Available Extravagance and Uniqueness

Koh Yao is situated near Phuket. This place is famous for its 5 star Six Senses Hideaway Yao Noi resort. Actually, this place is positioned somewhere in between Phuket and Krabi. This island has many 4 and 5 star resorts, which provide their facilities to wealthy tourists. As a result Koh Yao Island is developing a lot. Now after the success of these resorts, housing developers are planning to enter the Koh Yao market.

The developing firm Villaguna Residence & Spa is the first housing developing firm, which has launched a project of luxury villa in the eastern coast of Koh Yao in 2008. This project consists of 33 units. These units were one bedroom, two bedroom and three bedroom pool villas. This project is developed on a 150 m long land in front of the beach. This feature of the Villaguna luxury housing development although makes it an extravagant and unique project.

Many developers are eager to choose Koh Yao for their projects as the island is still in the developing stage and also it gains a great attraction from the wealthy tourist groups. Also, due to the existence of the Six Senses, it could definitely maintain its status as a wealthy tourist hot spot.

Most of the probable property purchasers of the wealthy group now days prefer to have a property in comparatively low cost and at attractive locations like beach front and in this view Koh Yao island is certainly the best available option.

The project launched by Villaguna in 2008 makes available deluxe sea facing villas with 1 and 2 storey designs and also obtainable at a quite sensible and logical price.

Six Senses are likely to expand their resort and are about to launch new housing units for sale.

Raimon Land Postponed Launch of three Projects.

The developing firm Raimon Land has postponed the launch of its three projects because of the global financial recession. All of these projects are planned to be launch in 2009

These three projects were –
1. Amalfi, a villa style resort project in Phuket,
2. Rajdamri, a high rise condominium project in Bangkok's CBD, and
3. The Edge, a condominium project in Pattaya.

The total value of the projects were not yet known as the value depends on the construction costs and the construction costs can only be evaluated after the start of the construction procedure.

The company actually wants to be very careful regarding new investments in the coming one year. These three projects might be launched after two years, as per the economic conditions and the market conditions.

Raimon Land’s managing director further stated that every new project needs a lot and lot of investment and they don’t have enough cash in hand. Every project requires minimum Bt 2-3 billion. So, the company had to take loan from banks. Due to the current economic crunch, banks are very careful at the time of lending to consumers. They made a clause of having presale of minimum 40%-50% of the entire project value. That is why the company has postponed the launch of new projects in 2009.

In spite of the fact that a leading developing firm Raimon Land’s had postponed launch of its three new projects, several other developers are putting their step forward with the plans of launching their new projects. These developers consider that the condition of Bangkok property market has improved quite a lot since the last quarter of 2008.

Almost ten property developers have planned to launch their new projects in 2009. The total market value of these projects is Bt30 billion.

Leading Developers Ready with Fresh Sets of Housing Projects

The leading developers of Thailand are all set to launch fresh Housing projects. All these projects will be of total value approximately Bt 30 billion. This change in Thai property market is the result of improving confidence of the probable purchasers.

The Sansiri Developers, a leading property firm of Thailand is planning to launch around 11 fresh housing projects of entire value of Bt 15 billion. Among these 11 projects, 5 have been already launched.

Another leading property firm, Peurska Real Estate is all set to launch 8 fresh housing projects of entire value of Bt 5.9 billion in March 2009.

The well known property firm, Land & Houses is also going to launch 3 fresh housing projects of value Bt 3 billion in March 2009.

Asian Property Development has planned to launch 11 fresh housing projects of entire market value of Bt 17.7 billion in 2009. Among these 11 projects, it will launch one housing project of value Bt 660 million in March 2009

Even though the financial system of Thailand has dropped a lot by the global economic downturn but the demand of housing projects of value Bt 3 million to Bt 5 million is still very strong.

At the present point of time, nearly every developer wants to improve the sale. Therefore this is the perfect time for the probable purchasers to purchase apartments or residences.

Actually the developers have to try a little harder to meet the requirements of probable purchasers as the demand of residences of value in between Bt 1 million to Bt 3 million is increasing continuously.

Investors are paying attention towards the real estate sector because if they invest their money in any other investment option then they will get return of only 5% or less. However, in case if they invest the same money on a property, it will be an asset for them and they will get a return of approximately 7% - 10%.

The Real Estate Sector of Samui Going through Financial Scarcity

The real estate sector of Samui is undergoing through a high financial scarcity.

The developing tourism sectors and increasing access to Samui initiate a fresh set of probable future investors to the Samui’s property market, and with modifications to how the island is governed it may well get better concerns about required infrastructure development and other local matters.

Thailand is still experiencing the consequences of current uncertain political events and a defective national plan which concentrated mainly on local affairs at the same time as other regional financial systems were gearing up to deal with the shock of a global economic recession.

Till now, the Thai baht decreased in value just about 15% in 2008 in comparison to major currencies and is most likely to fall another 5% in 2009, therefore creating lower acquirement prices for offshore purchasers.

The Thai luxury property market is working at a ruthless handicap compared to other developed markets.

This is for the reason that in a segment subjugated by foreign or international investors there have been no major government motivation packages/reforms addressing foreign possession of land and accessibility of mortgages to foreigners.

With the raise of luxury branded developments in the market, Samui's name as a luxury hotspot has been outlined. Though, with the capital markets are in crisis and obtainable debt getting lesser day by day, the development channel appears to be quite stagnant in 2010; which long term will hang supply demand into a more encouraging ratio, although instant will put current retail pricing at risk.

The Samui luxury property segment, on the other hand, continues to witness transactions with purchasers lessening the development risk by choosing on hand product to off plan units.

As the global financial recession continues to intensify the gap between opportunities on price are turning out to be clearer, despite the fact that property values are holding because of the inadequate activities by investors.

High-End Residential Market Still Targeting High Sale Figures

In spite of the global financial slump, managing director of the high-end Saladaeng Residences continues to be watchfully optimistic. In spite of everything, the wealthy will definitely invest somewhere, he reasons.

High-end Saladaeng Residences project in Bangkok's CBD has a tough task there: selling luxurious property at the time of financial crisis.

Yet he is watchfully hopeful and hopes to attain the target of selling 60-70% of the 132-unit project in the coming 12 months. The project is of value Bt2.5 billion.

In the last two months, they have sold around 35% of the total units. Purchasers from Thailand account for 70% of the sales at the same time as the rest of purchasers are from Europe, the US and Asian countries like Hong Kong.

Most Thai purchasers are industrialists and second-generation business-owners, between the ages of 30-40. Also, there are some high-income professionals and self-made millionaires.

“As for the international purchasers, they take in retirees and professionals, like lawyers, who still have the buying power left,” he says.

This high end housing project is priced from Bt10-100 million per unit for a single penthouse. The average price per square meter is at present set at Bt160,000.

The firm is mainly targeting purchasers with a net value of Bt50 million or more and second-generation members of recognized family-owned or controlled businesses.

These people are youthful and generally educated in foreign countries. This project is offering them a super-deluxe high-end housing product at a location where unoccupied land plots for fresh development projects are rare.

The units of this project are comparable to high-end condominiums in Singapore or Hong Kong, like the Ritz Carlton, although as per price that is 7-10 times cheaper.

Aside from the unique design, their material conditions are among the top as they are going to make use of real teakwood for the floors and natural stone.

The project's foundation has already been finished, and the construction is about to be completed by 2011.

Condition of Real Estate Business in Recession

In this tough time of global financial slump, location and quality are the foundations of real estate business. The best location is the one which is unique and exclusive. And quality developments are always successful. Most of the probable purchasers at the present circumstances are in search of proficiency or quality that is up to the five star standards.

Siam properties is ready to launch various projects which have secondary residential units and valued at approximately Bt1million -Bt50 million. This present situation of crisis had actually made it very easy and comfortable for the purchasers. Now, they can buy a classy villa having personal pool at just Bt. 5 million. Everybody is on a race of cutting own budget. Although a few activities are observed in the market, but most of the probable purchasers are adopting the wait and watch attitude. As a result, the rental market is still well-built at the same time as foreigners balance the advantages and disadvantages of the timing for getting caught up again.

The most significant thing at this point of time is the interest rates are minimum. Therefore, people are considering the value of their cash holdings going down continuously in real terms at the same time as inflation strides on. As a result, people are going to consider sincerely in the coming six months regarding being active in property purchases. The different aid and rescue packages for financial systems all over the world will take some time to get outcome. Although, experts believe that the real estate sector of Pattaya will again start flourishing slowly and slowly by June 2009.

Another positive symptom is that many foreigners are coming back to Thailand and Pattaya due to this worldwide financial slump. This is revealed by a recent government report.

Thailand Property Market Improving Little Bit In 2009

A leading property developer of Thailand, Puerska Real Estate Plc has observed that its sales figure has improved a little bit in the initial two months of this year. This increase in sales figure had given strength to their confidence and in the initial quarter of 2009 they are looking forward to attain a sale figure of at least Bt3 billion.

This increase in sales figure of a particular property developer firm is also showing positive signs of recovery of the entire Thai property market.

The sale figure of Puerska is Bt 1.3 billion in February 2009 and Bt 995 million in January 2009. The sale figure in December 2008 was Bt 400 million. Most of the properties sold by Puerska include single houses and town houses.

Puerska is all set to launch 22 fresh projects this year. In total this projects will be of value Bt15-18 billion. Puerska Real Estate Plc is also ready to launch its first international project in Bangalore, India. Among the remaining 21 fresh projects, 8 are all set to be launched in the first quarter of 2009. These 8 projects will comprise of approximately 2625 units of total value Bt 5.93 billion. These are 4 townhouse projects, 3 single housing projects and 1 low rise condominium project.

Several other property developer firms are also ready to launch many fresh projects in the first quarter of 2009. These projects will be of value around Bt.30 billion.

Launch of these fresh projects in the market will certainly boost confidence in the market.

Another leading developer Sansiri has already launched 11 fresh projects till now in 2009.

Land and Houses Developers have launched 3 fresh housing projects of value nearly Bt.3 billion in the initial two months of 2009.

Many other leading developers like Supalai, Asian Property Development and Pace Development etc. have launched fresh projects in the initial two months of 2009.

Property Perfect Delays Condo Projects and Targets Low-Rise

One of the leading listed Thai property developer ‘Property Perfect’ recently announced that it is expected to delay investment in its two new condominium projects worth Bt2.75 billion which were expected to be launched in the first half of the year 2009. However, the property developer instead favors low-rise projects with a much shorter construction time frame.
As per Property Perfect’s director and assistant chief business development officer Sirirat Wongwattana, “We need to keep an eye on the market this year to make sure demand will resume. It’s too risky for large investments when consumers need to see finished products before making a decision,”

Announced in year 2008, the projects are to be located in Sukhumvit and Ratchada respectively. The first project could be put on hold for a minimum of two years depending on the economic situation, while the second project is expected to start at the end of the year 2009.

The developer is also expected to launch four new low-rise projects in 2009. The details are given below:

1. 402 detached houses in Ratchapruek
2. 321 townhouses in the Sathorn area
3. 114 detached houses in Ramkamhaeng and
4. 319 detached houses in Pattanakarn

Majority of low-rise construction projects have shorter construction periods, and as a result it allows the company to generate revenue more quickly.

New projects of the company are due to be completed by year-end and thus expected to realize about Bt1 billion from our new projects this year.

Leading Broker Is Expected To Give Away 50 Percent Discount On 4 Bangkok Condominium Projects

One of the leading property broker and consultant Harrison recently announced that it is expected to give over a mega sale offering discounts of up to 50% in order to close sales on at least four completed Bangkok housing projects that are nearly more than 80% sold.

Following units are expected to be open for auction, at a starting price offering a discount of up to 50%, and will then be open for almost two hours of bidding.

1. Units at Saint Louis Grand Terrace
2. @City Sukhumvit 101/1
3. Waterford Sukhumvit 50
4. The Master Centrium Asoke

The auction is slated to be held from March 28-29, 2009, at the individual project sites, with the effort of closing sales at all the above four projects to liquidate assets and arrange funds for new and upcoming project investment.

Vice president at Harrison, Sahatchai Kwancheun, said the sellers – three condominium developers and a group of investors - might face a little loss, but most of them felt that it is always better than retaining the units for longer period and then end up paying maintenance fees and a possible renovation cost. The initial price for some units in the auction is expected to be as low as Bt850,000.

All those buyers who will book under this campaign will also get special credits and interest rates from Siam Commercial Bank, according to a statement issued by Harrison.

The details of all the participating projects are as follows:

1. @ City Sukhumvit 101/1, which includes of five 11-14-story buildings located on a 7 rai plot of land with a total of 799 units;
2. Waterford Sukhumvit 50, seven different 8-story buildings located on a 11 rai plot of land with a total of 738 units;
3. Saint Louis Grand Terrace Sathorn, it is a 28-story building situated on a 2 rai plot of land with a total of 245 units; and
4. The Master Centrium Asoke, this is a 27-story building located on a 1 rai plot of land with a total of 79 units.

Holiday Packages Offered To Probable Apartment Purchasers

In the time of recession, many developers are offering several types of fascinating offers to attract probable apartment purchasers. Now, a developer Mr. Bob Wolff is offering holiday packages and cruises to the purchasers who will purchase at least three apartments or the entire estate.

This offer of holiday package includes business class tickets and 12 day holiday packages in 4-star Laguna Beach Resort, which is situated in the Phuket Island, Thailand. This package also includes 2 cruises. These cruises will be in the developer’s own 60ft luxury motor boat in the Sea Wolff.

All this offers are offered in the project of East Park, which is situated in Witton Park, close to Bishop Auckland.

At present, the Thailand’s property market is going through a very poor situation due to recession. Therefore, to lure probable purchasers there must be something innovative. And the offer that Mr. Wolff has given is a completely innovative idea. This offer will surely boost up interest of the probable apartment purchasers, who are till now taking a wait and watch attitude.

Mr. Bob Wolff has been living there for around 17 years now. He said that this is the best incentive any apartment purchaser would ever get.

This project is being jointly sold by Charltons Estate Agents, of Richmond and GSC Chartered Surveyors of Barnard Castle.

The apartments present a forceful chance for buyers, although the offer that Mr. Wolff is giving to the probable purchasers is making the project an exclusive one.

This project includes a main house, Castle keep. It further includes two minor properties like the old forge and sawmill cottage.