Dazzling Expectations for Green Building

Approval of green real estate practices in marketable and residential buildings presents very lucrative Green House Gas (GHG) emission cuts in contrast to other financial sectors. This is one of the major conclusions in a Green Real Estate Guide gathered by global real estate services company, Colliers International.

Mr Simon Carter, author of the Guide and Colliers International Regional Head of Sustainability for Asia - Pacific, reached Bangkok a few days back to talk about international best practice and modern trends in green design with neighborhood architects, designers and developers.

“On a daily basis we are observing the effect of global warming in weather patterns all over the world,” said Mr Carter. “With suburban and marketable buildings representing up to 15.4% of greenhouse gas emissions, we look forward to governments and economies will rapidly turn to buildings to attain deep emission cuts promptly.

“At the same time as the move to green buildings has just started, real estate markets in Asia and the world are expected to change promptly, adopting green standards both in developing fresh buildings and improving accessible ones.

“The expertises of green buildings and their capability to work competently have now been established in different locations all over the world. “

Colliers International Thailand Managing Director, Patima Jeerapaet said the Thai Government had approved the Kyoto Protocol on Greenhouse gas emissions, although had not accepted detailed targets for emission cuts.

“Currently there is a policy environment of hushed support, however there may be a requirement for the more substantial incentives and clearer rules comparable to those accepted in other countries, if Thailand is to maintain pace with other markets.”

Ms Patima said proposals by companies like Tesco Lotus, which has constructed two ‘green stores’ in Thailand and has an extensive energy management program in its facilities supervision, have verified the business reimbursement that is achievable from following green practices.

“The winners in the budding ‘carbon economy’ will normally be those who organize early. We believe progressive developers and landlords are now organizing themselves to show the way, before follow, the change that is imminent”.

Festival Excitement in Phuket

The tropical island of Phuket is most likely the second most well-liked holiday destination in Thailand and it’s not very tough to observe why. Its green hills, turquoise water, elongated sandy beaches and active night spots magnetize sun worshipers, divers, sightseers and revelers in a similar way.

Revelers from across the world gather to the island to take pleasure in the plentiful festivals which are so much a part of island life. A minimum of seven months yearly (from Oct to Apr) there is one thing or other going on. Festivals have incorporated the King’s Cup Regatta (sailing), the Gay Festival, the Vegetarian Festival, the Chinese New Year and the International Cricket Sixes.

From 16th to 17th February every year the 2nd Annual Phuket International Blues Festival is celebrated at the Hilton Phuket Arcadia Resort and Spa. The extraordinary voice of British blues legend Victor Brox fills the air and The Rich Harper Band (USA) used to close the show. The event is in support of charitable trust with all profits being contributed to Phuket children’s education.

With the opening of an innovative international airport, it is now so simple to join the party and with property prices in Phuket still considerably less that other striking holiday destinations and re-sale prices still continuing to rise, owning your own piece of ecstasy has never been easier.

If the consideration of owning a place in one of the friendliest places in the world is striking, villas in a new, exclusive, comfortable residential property development called The Village are at present being obtainable for sale. 148 two to five bedroom luxury pool villas are being build up on Coconut Island, a five minute speedboat ride from Phuket, resting in the secluded waters of Phang-Nga Bay.

The Village estate will be controlled as a water sports resort which will be a focus for both long term residents and short-break visitors, the final yielding outstanding rental returns to villa owners over a 12 month season.

The estate will run a normal 24 hour water taxi service from The Village to Phuket, so should residents or visitors wish to join in the festival fun, it is never far-off.

Foreign Property Investors Eye Bangkok

Property investors from Australia, Singapore and Hong Kong are eyeing opportunities to snap up Thai property in the central business district. Foreign investors had asked some of the major real estate companies to locate attractive properties for them in prime areas for investment purposes.

Majority of investors preferred serviced apartments, residential buildings and hotels in the central business district.

Some of the companies are now dealing with foreign investors interested in serviced apartments and hotels in the prime areas and hotels in Phuket and Pattaya, as well as residential and retail buildings. However, the name the investors were not disclosed, pending completion of the transactions.

Property prices in Thailand have bottomed out, adding that they were relatively low, similar to those in Indonesia. However, Thailand's political and economic stability compared to Indonesia is seen as more attractive to foreign buyers.

UK-based property companies and funds were looking to buy in Thailand as well, especially office and retail buildings. A few UK-based companies are interested in joint ventures with SC Asset to buy office buildings in prime central business districts, but names cannot be revealed. UK-based companies were interested in buying completed buildings rather than land in Bangkok because supply in the sector had outstripped demand, meaning lower prices than before the economic crisis began.

Since 1998 approximately more than 50 property funds have invested in Thai property companies, both through the purchase of a stake and cash injection. Major deals have included GIC Real Estate's 20-per-cent stake in Land and House Co., Westbrook Partners' 40-per-cent equity investment in Amarin Plaza Plc and Lehman Brother's 20-per-cent buy into Noble Development.

Attractive factors helping the positive investment environment could be attributed to the improvement in fundamental factors, such as gross-domestic-product growth and low interest and inflation rates.

Property Market in Phuket Is Hardly Affected By the Current Political Situation

In spite of the shutting down of Phuket International Airport for two days, real estate experts in Phuket claim their industry is not likely to be influenced as foreign consumers know Thailand's political circumstances.

Martin Phillips, based in Phuket as managing director of the upmarket residential brokerage Engel & Volkers (Thailand) Co, said no customers had deferred purchases regardless of the circumstances being international front-page news. Thailand was not unaccompanied in facing political problems and that these conditions time and again takes place in Europe.

''This is not strange and these are generally short-term disturbances, much the same as the momentary closure of Phuket,'' he said.

''We do not feel that the political circumstances will have an effect on property purchases in Phuket as most consumers in Phuket are foreigners who are familiar with Phuket and know Thailand to a certain extent. We consider the demand for Phuket properties will not fall owing to this,'' he said.

Although Mr Phillips added that current political improbability in Thailand was not obliging to business normally or to the resort property market, which would do well from an environment more favorable to investor confidence.

"As this is a domestic concern, and has so far stayed quite diplomatic, it regrettably will not be viewed optimistically across several sectors, not just resort property,'' he said.

Patima Jeerapaet, managing director of the consulting firm Colliers International Thailand, said Thailand required to correct the country's image right away to support foreigners about the generosity Thai people generally make available to foreign guests.

He said foreign investors were still certain about the basics of the Thai economy, which were much enhanced than those of its neighbors like Vietnam, Cambodia and Burma.

He confessed that a few foreign investors might holdup purchases, however said investors who realize the theory of high-risk, high-return were still coming across to invest in Thailand.

Bangkok Property Market Expects Impact of Incentive Measures

Regardless of the successful formation of the new government and the launch of policies to improve the Thai economy, peripheral factors like increasing fuel prices and the global economic delay continue to surpass economic forecasts in Thailand. Emotions in the property market have afterward remained depressing with the deliberate growth of demand in major property sectors.

There was a probability that the Thai economy would develop following the formation of the new government. The same anticipation was set in the property sector where demand depends mostly on economic conditions. Although the government and some economic houses adjusted the economic growth protrusion for Thailand growing, the agreement is that the Thai economy improved at a moderately slow rate in the first quarter of 2008. In addition, it has also been depressingly exaggerated by a number of external factors -- be it the fuel price crisis or apprehensions over the global economic slowdown. These incidences have a negative attitude on the demand in the property market, both in the residential and commercial segments.

Fuel price hike continues to hit real estate

The continued hike in fuel prices has persistently hit the property sector in various ways. On a bigger scale, it is motivating the cost of living in Thailand to increase considerably. This will certainly affect demand in the residential sector as consumer spending power is concentrated and buyers are more careful to be dedicated to loan burdens.

On a smaller scale, the fuel price hike has increased construction costs. It is expected that construction costs in Thailand increased by 15% on average in 2007, due to increased costs of construction materials because of the fuel price hike.

An instant impact of the increasing development cost has been considered in the residential sector. For instance, the average selling prices of condominiums in recently launched projects in central Bangkok increased by 15% from the same period of 2007.

Possession of Land by Foreigners in Thailand is Restricted

Possession of land by foreigners is strictly restricted in the Kingdom of Thailand. That being said, it is not impracticable for a foreigner to attain interest in real estate in Thailand. Foreigners are permitted to buy apartments although should abide by strict rules and fall within some specific conditions. In recent times, Thailand has passed legislation that would let foreigners to buy condominiums. Also through the deliberate use of corporate law, forming corporations to hold title to land is another alternative used by foreigners to hold land titles.

LAND
Under the Land Code of Thailand, a foreigner may possess a land only by desirable quality of a provision of an agreement permitting the person to obtain immovable property. Prior to 1970, Thailand had completed 16 such agreements with countries together with, the U.S.A., England, Germany, France, and Japan. Though, since 1971, foreigners or popular foreign-owned companies have not been capable of possessing land or buildings with land in Thailand.

Though, the Thai Land Code has been afterward modified to let foreigners to buy land for residential purposes since January 19, 2002. The land bought for residential purposes under the modification cannot exceed one rai (just about 1600 sq. meters). The following set of laws and conditions must also be met:

1. Transferring funds more than Baht 40 million to Thailand for investment and maintaining such investment for more than 5 years;

2. You have to get authorization from the Minister of the Ministry of the Interior;

3. The land to be purchased must be positioned in Bangkok Metropolis, Pattaya City, or Tessaban (Municipality), or in the area mentioned as residential zone as per the law of Town and Country Planning and must not be in a military safety zone as per the law of Military Safety Zones;

4. If a foreigner, who is granted authorization to purchase such land, does not make use of the land for residential purposes within 2 years from the date the registration for land attainment is made, the Director General shall have the power to dispose of such land.