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Bangkok properties have always been a favored investment due to low prices and high returns. Due to popular demand, Golden Emperor Properties partnered with Sansiri, Thailand’s leading property developer, to host a property exhibition and seminar featuring attractive investment projects on 18 & 19 July. At the event we also showcased the Hasu Haus project by Sansiri and about 250 clients attended this event.

Above: Over 250 clients attended the weekend seminar

Above: The building model of Hasu Haus, a project by Sansiri in Sukhumvit 77

Above:Terence Chan, Sales Director & Partner of Golden Emperor Properties presented the investment information to local investors

According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in July was 4.7%, showing no change from the previous month and down 0.5 points from last year. The average gross yield across Tokyo was 6.5%, down 0.2 points from the previous month and down 0.6 points from last year.

Above: The average gross yield on an apartment in Minato-ku in July was 4.7%.

The average asking price of a second-hand apartment in Minato-ku was 857,785 Yen/sqm as of July 1, 2015, up 85 Yen from the previous month and up 9.1% from last year. The average asking price for land was 1,226,363 Yen/sqm, up 1.1% from the previous month but down 1.9% from last year.

Building age and gross yield (yield after deducting monthly building fees):

• 1-14 yrs old: 4.72% (4.22%)
• 15-29 yrs old: 5.36% (4.56%)
• 30+ yrs old: 5.53% (4.49%)

Apartments less than 10 years old had an average gross yield of 4.29% (3.84% after deducting building fees).

Average advertised monthly rent for an apartment less than 10 minutes walk from the nearest train station:

• Studio: 132,600 Yen (+2,300 Yen from last month)
• 1-Bedroom: 215,600 Yen (+900 Yen)
• 2-Bedroom: 299,300 Yen (+2,600 Yen)
• 3-Bedroom: 348,300 Yen (+27,400 Yen)

Above: Apartments within a 10 minute walk from a train station rent for around 15 ~ 20% higher.

Apartments within a 10 minute walk from a train station rent for around 15 ~ 20% higher than apartments that are more than 10 minute from the nearest train station.

Source:Japan Property Central

Above:The Lam Luk Ka-Pathum Thani motorway, linking Bangkok’s Outer Ring Road Route 9 to the East, is just the beginning of a new system of motherways the government announced Tuesday for the Central region around Bangkok.

Three motorways linking Ayutthaya and Nakhon Ratchasima, Nonthaburi and Kanchanaburi, and Pattaya and Map Ta Phut, worth a combined 160 billion baht, are set to get off the ground after the cabinet on Tuesday approved the proposal by the Transport Ministry to build them this year and next.

Deputy government spokesman Sansern Kaewkamnerd said the government itself would invest in the three motorways instead of allowing the public-private partnership to take part, saying the projects would take time to recoup investment returns.

The 96-km Bang Yai-Kanchanaburi road will cost 55.6 billion baht, 50.2 billion baht of which would be earmarked for construction and 5.42 billion baht for land expropriation.

Above:Deputy government spokesman Sansern Kaewkamnerd said the government itself would invest in the three motorways.

The environmental impact assessment (EIA) has already been completed, while land expropriation began in 2013. The project is expected to start construction early next year and operate in 2019. The project will also link Dawei special economic zone in Myanmar and Thailand’s Laem Chabang port.

Mr Sansern said the 196-km Bang Pa-in-Nakhon Ratchasima route was scheduled to start construction early next year and operate in 2020.

The project is worth 84.6 billion baht, with 78 billion for construction and 6.6 billion for expropriation. It passed the EIA in 2006 while land expropriation began in 2013. The Transport Ministry plans to secure domestic loans to finance the construction of these two projects, said Mr Sansern.

Above:Three motorways including one linking Ayutthaya and Nakhon Ratchasima.

For the 32-km Pattaya-Map Ta Phut road, costing 20.2 billion baht, comprising 14.2 billion baht for construction and 6 billion for expropriation, construction is expected to start this year and operate in 2023.

The project will be financed by the fiscal budget of the Highways Department.

Transport Minister Prajin Juntong said from now on the Highways Department, which will take charge of the development, would prepare the terms of reference for contractors’ bids, starting with the Pattaya-Map Ta Phut project.

Prime Minister Gen Prayut Chan-o-cha insisted investment in the three motorways would not affect the state’s future fiscal budget.

The three motorways are among the big-ticket infrastructure projects the government is banking on to stimulate the faltering economy this year under its long-term infrastructure development plan.

The cabinet approved on March 27 an eight-year infrastructure development plan worth 1.91 trillion baht.

Priority developments include the double-track rail network, Bangkok’s mass-transit projects, new and extended motorways, and 1.435-metre standard-gauge rail development.

Source:Bangkok Post

The single-ownership expatriate standard apartment market in Bangkok is performing well despite competition from rental units in condominiums, according to CBRE, a leading property consultancy company.

Above:Most expatriates prefer to live in certain areas, such as Sukhumvit.

The number of expatriates with work permits in Bangkok grew by 9.5% in the first quarter year-on-year to around 79,000, according to Labour Ministry figures. CBRE expects expatriate numbers will continue to grow.

Most expatriates prefer to live in certain areas, such as Sukhumvit, Lumpini and Sathon. They are only in Bangkok for two or three years so prefer to rent their residence.

Above:The number of expatriates with work permits in Bangkok grew by 9.5% in the first quarter year-on-year.

The most popular choice is to rent an apartment or condominium because there are few houses or townhouses for rental in most expatriate areas. There is limited competition for serviced apartments, but only for studio and one-bedroom units rather than larger units.

There are about 11,000 expatriate standard apartments in the most popular areas and the current occupancy is over 90%. There are around 92,800 condo units in the most popular expatriate areas and CBRE estimates that about 30-40% of these are rented out by their owners. The occupancy rate for condos is 80%.

Tenants prefer to rent apartments rather than units from individual owners in a condominium because they can go directly to the building owner for repairs and requests.

Above: In the most popular areas, such as Sathon and the current occupancy is over 90%

In a condominium, the individual owner is responsible for the maintenance inside the unit while the building’s property manager is only responsible for the maintenance of the common areas. This means it can be difficult for tenants to get owners to repair items quickly.

Although many of the apartment buildings are more than 20 years old, generally both the common areas and unit decoration are well maintained and renovated and are in much better condition than many condominium buildings of the same age.

CBRE’s research shows there are only 415 apartment units in single-ownership buildings under construction in the most popular expatriate locations, but there are 27,000 condominium units under construction in these areas, 63% of which will be one-bedroom units.

The prospects for apartments are good, especially for two- and three-bedroom units, because tenants prefer them to condo units and also few new two-, three- and four-bedroom apartment and condominium units are being built.

“Location is not the only key to success. The unit layout, specifications, furniture and facilities along with the unit size are critical to achieving the best rents and keeping an apartment fully occupied,” said Theerathorn Prapunpong, director of CBRE’s Residential Leasing Services team.

Source: Bangkok Post

The TOURISM Authority of Thailand (TAT) has finalised its marketing plan for next year, positioning the Kingdom as a quality destination and aiming to keep it in Asia’s top three in terms of tourism revenue.

Above:TAT’s 2016 marketing plans focused on increasing tourist expenditure, raising the average length of stay, and improving the overall quality of the visitor experience.

Kobkarn Wattanavrangkul, minister of tourism and sports, on Monday called on the entire industry, including both the private and public sectors, to work on the principles of the “three Rs”: restructuring, rebalancing, and repositioning. The aim is to market the country as a quality destination.

She said TAT’s 2016 marketing plans focused on increasing tourist expenditure, raising the average length of stay, and improving the overall quality of the visitor experience.

Because of the current economic instability in Europe and the United States and the lack of recovery in Japan, the agency now is focusing on emerging markets, especially China, India and Asean countries.

Kobkarn signed a Mutual Recognition Arrangement (MRA) on tourism professionals with Asean secretary-general Le Luong Minh in a bid to boost intra-regional tourism as well as to enhance the travel industry’s workforces throughout the region.

Last year in Thailand, Western countries contributed 60 per cent of tourist arrivals and Asia 40 per cent. The ratio is expected to be 50:50 this year as a lot more tourists come from Asia. China alone is expected to contribute 6 million tourists this year, increasing to 7 million next year.

“In 2016, we are confident that we will remain in the top three in terms of international tourism receipts in the Asian region,” Kobkarn said.

The tourism-revenue target for is 8 per cent higher than the projected earnings for 2015, or around Bt2.3 trillion. Receipts from both international and domestic tourism will rise by 8 per cent, above the growth projection for the overall Thai economy for 2016.

TAT noted that Thailand has great connectivity via air, road and sea, and allows visa-free or visa-on-arrival access for citizens of 68 countries and territories.

Above: The 2016 marketing strategy will retain the “Amazing Thailand” brand as well as the “Thainess” identity.

The 2016 marketing strategy will retain the “Amazing Thailand” brand as well as the “Thainess” identity, with concentration on niche markets such as golfers, newlyweds and honeymooners, health and wellness visitors, and halal tourism for Muslims. There will also be a focus on female travellers.

Source: The Nation