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.

Thailand’s Pace Development Bucks Movement with Luxury Condominium Opening

Pace Development, is braving the quick recession at the top end of Bangkok’s property market and has newly opened a Bt2.5 billion luxury condominium project, Saladaeng Residences.

Located in Soi Saladaeng, just off Silom Road in the centre of the capital’s business district, Saladaeng Residences presents 132 units ranging in size from 60-396 square meters. With even the nominal 1-bedroom units ranging at Bt10 million, the developers are proclaiming prices of maximum Bt300,000psm for the most pleasing units.

Pace Development CEO Sorapot Techakraisri, who was liable for the high-status Ficus Lane development that was finished in 2007, said that in spite of the market slump he considered investors will still be fascinated to housing property as it makes available higher earnings than savings or shares.

“If investors keep their money in the bank or invest in the Stock Exchange of Thailand, they will get a smaller amount of a return on investment - less than 5%. However, when they invest in property, they will obtain an asset that will produce a yearly return on investment of between 7-10%. This is superior to other investment alternatives,” he said.

Throughout two months of pre-launch sales, 30% of the project value has by now been sold, said Sorapot. The company is aiming a bulk Thai audience, with purchasers likely to be business owners, entrepreneurs and “the younger generation of influential families”, as per the company’s marketing material.

The project has got its environmental-impact-assessment (EIA) endorsement and its construction license, and has been established a Bt700 million loan from Siam City Bank. Construction is planned to be finished mid 2011.

The company plans to open another condominium project in the second half of 2009.

“We have sustained to develop our investment in 2009 for the reason that we consider that this is an excellent time to do so, when competitors are hanging up their investments,” added Sorapot. “In the meantime, we have the most excellent location for developing housing properties to match purchaser demand.”

Soi Thonglor Resists Financial Obscurity

Thonglor is starting to show up as the area of utmost competition in Bangkok for luxury condominiums.

Neighboring the 2 km stretch of Soi Thonglor (Sukhumvit 55), no lesser than 7 luxury condominiums with a united market value of approximately Bt20 billion are rising in the direction of their place in the city's skyline. And in spite of anxiety about plunging demand for condominium units in the capital's wider property market, the least-costly patches of perpendicular living in Thonglor are presently selling for Bt90,000-Bt150,000 per square meter.

Subsequent to the primary impact of the global financial recession on Thailand's property market in the final quarter of 2008, a few developers changed their product variety, choosing low-rise developments that are fast to build and deliver returns in a few months. Others, although, remained certain of abiding demand for high-rise luxury living, maintaining that location - rather than cost - would make the difference in 2009 between accomplishment and miserable sales.

Sansiri's president Srettha Thavisin said there was long-term strong demand in Thonglor regardless of prospects of only slender financial growth in 2009. In only three weeks since the starting of January, Sansiri has accomplished something in preselling units at Quattro of value almost Bt3 billion. The project's total value is approximately Bt5 billion.

Seita Hagiwara, managing director of Sikhara Kotobuki Property, a joint project between Japanese-owned Siam Kotobuki and Thai investors, said his company had determined to build its condominium project, Villa Sikhara, at Soi Thonglor 25 for the reason that the company could observe strong demand in the location, mainly from Japanese investors.

The project has by now sold 60% of its 64 units, which are priced between Bt98,000-Bt104,000 per square meter. Nearly all of its consumers are investors who are purchasing for rental reasons. The company has laid down a rental price of Bt600 per square meter for units at Villa Sikhara, making a monthly rental income of Bt45,000-Bt60,000.

CBD Land Prices Declining A Sheer 20-30%

Land prices in Bangkok's central business district (CBD) has by now started to decrease 20-30% due to concentrated demand, Sahatchai Kwancheun, vice president of property firm Harrison, said recently.

He said the most recent deal the company finished prior to New Year's was the sale of a few land on Silom Road for Bt500,000 a square wah, instead of a 28.57% fall from Bt700,000 a square wah at the beginning of 2008.

The Sukhumvit City Resort condominium project in Sukhumvit Soi 11 has also been enforced to lower its cost, from Bt90,000- Bt79,000 a square meter.

Even though demand for undeveloped land and housing projects continues to rise, investors are postponing their purchases, for the reason that most consider land and apartments in the Kingdom, particularly in the CBD, will drop 20-30% once the global crisis begins in reality affecting the local economy, Sahatchai said.

He said investors started waiting to notice what would take place in 2008's final quarter, even though a few plan to start investing in early 2009, particularly those from the Middle East. Singaporean investors have by now started shopping for housing projects.

Prime business localities have seen prices falling 20-30% for undeveloped land and 15-20% for condominium projects.

He said land and apartment prices on Sathorn, Silom and lower Sukhumvit roads were also declining, however just 10-20% for undeveloped land and 10-15% for apartments, because of inadequate supply in those locations.

Harrison will auction off 31 plots of land and building projects of value Bt6 billion this month, together with undeveloped land, hotels and resorts, and serviced and normal apartments, both in Bangkok and upcountry.

“We want to hold this auction to increase our sales and encourage the property market in the first half of 2009, mainly with asset prices now just starting to decrease 10-20 % from 2008,” Sahatchai said.

Investors can discover a number of great deals in the market now compared with 2008, he said, adding that the company anticipated earnings of Bt1-1.5 billion from joint assets of value Bt6 billion in the auction.

Chaeng Wattana Turns Out To Be an Innovative Development Center

A lot of Bangkok property developers are turning their interest to the neighborhood of Rattanathibet and Chaeng Wattana roads, as the forthcoming opening of the new Bangkok Government Centre is making the area a center of attention for urban growth.

A recent survey revealed that property firms consider there will be huge demand for apartments in the area once the new government centre starts operations. Numbers of them are launching fresh projects there.

Sansiri, for example, has launched its most recent detached house project, Burasiri, on Chaeng Wattana Road. With just 184 units in a promotion for prices beginning at Bt5.14 million, the project has a market price of Bt1.2 billion.

The company's senior marketing manager Samatcha Promsiri said Sansiri saw huge demand in the site after the new government centre started.

The University of the Thai Chamber of Commerce also plans to release a fresh branch in Chaeng Wattana Road.

The new Bangkok Government Centre is a Bt19billion civil service complex on Chaeng Wattana Road that is at present above 80% finished.

The building will accommodate 35 government agencies and will develop into the workplace for approximately 30,000 civil servants. Developing the huge centre, on top of other government owned properties, has turned Dhanarak Asset Development, a state enterprise in the Treasury Department, successfully Thailand's leading property developer.

The range of the Chaeng Wattana project is now attracting an outbreak of housing developments, including condominiums in addition to detached housing.

Quality Houses has established two detached housing projects, jointly of value Bt4.51 billion. They comprise Laddarom at ChaipreukChaeng Wattana Road, of value Bt2.01 billion, and Casa Ville, of value Bt2.5 billion, on RatchaphreukChaeng Wattana Road.

Vilailux Development is setting up a condominium project of value Bt1 billion on a 10rai plot on Chaeng Wattana Road in 2009, its executive vice president Oraphan Laoprapassorn said.

Preuksa Real Estate has by now launched condominium projects in its brand The Seed in the Chaeng Wattana area. The buildings will be of 8 storeys and will present three types of apartments with floor space of about 22.5-64 square meters.

Moreover, The Bt200million project will present 60 units of 200 square meters.

Branded Expansions Push Samui Upmarket

Three branded developments and a thriving condominium project have pushed Samui to the high-end land of the market at the same time as still keeping up its boutique demand, says chairman of CB Richard Ellis Thailand.

This noteworthy change, which happened approximately 10 years ago with innovative persons undertaking private villa projects, whizzed to the lead with the launch of W Koh Samui Retreat & Residences.

“Samui has moved from having no branded projects 1 year ago to 3 now. The Estates isn't branded Four Seasons although it's basically part of the Four Seasons location and you in fact reach it all the way through the Four Seasons entrance hall.”

All these expansions are facilitated by Bangkok Airways' retro-style private airport on the island which puts tourists in a holiday frame of mind. Away from Bangkok and other places in Thailand this airport also serves flights from Hong Kong, Singapore and Kuala Lumpur.

Mr Simister predicts a bright opportunity for Samui for the reason that its locality will make it an essential part of the appearance of what he calls the "Riviera of Asia".

Even though Samui does not yet have a marina at the same time as Phuket has three in working condition with a fourth about to begin, the smaller island does have prospective.

Samui’s big prospect lies in its planned nearness to Hong Kong, Singapore, Cambodia and Vietnam, says Mr Simister.

Marinas have been talked about in Samui for a short time and there are locations obtainable for marinas of various sizes. There is a fishing society in Samui where fishermen can anchor therefore the prospective for boats are there.”

Samui's immense prospect, said Mr Simister, lies in its deliberate closeness to Hong Kong, Singapore, Cambodia and Vietnam. At the same time as Phuket and Langkawi put forward some very nice cruising waters on the other side of the peninsula, guests would have to make definite trips to reach them, even though a few charter boats for that area.