News

Source form: Bangkok Post

The Krung Thon Buri-Wong Wian Yai area is a new rising star in the condominium market thanks to its peaceful atmosphere and proximity to Bangkok’s central business district (CBD).

Plus Property Co, a full-service management agency, called the expansion of public transport and railway networks a major driving force behind the emergence of new hotspots for residential property development.

The aerial view of Wong Wian Yai with almost no traffic during Songkran festival in April 2015. (Bangkok Post file photo)

BTS at Bangkok

The area that centres on Krung Thon Buri Road and Wong Wian Yai has become a new destination for high-rise development, with an absorption rate of 90% last year, while average condominium sales prices and rental rates have risen by 15% and 32%, respectively.

Poomipak Julmanichoti, managing director of Plus Property, said the expansion of public transport systems to connect various parts of the city had pushed potential property buyers to seek out condominiums situated close to skytrain routes for extra convenience and lower commuting expenses.

This has led to the emergence of new residential property hotspots throughout the city.

Plus Property research shows the Krung Thon Buri-Wong Wian Yai area now possesses significant potential for future high-rise development.

Wong Wian Yai area

“In terms of demand, we’re seeing higher interest in condominium development in this area. Market surveys found the average take-up rate in the second half of 2014 was as high as 79% of 9,691 available units. On the supply front, the number of available units also grew by 37% year-on-year in the same time frame, in line with the 38% growth in demand,” Mr Poomipak said.

“Additionally, new projects continue to be introduced into the market. These new arrivals appear to have enjoyed an excellent reception, as our latest survey showed an absorption rate of 90%. This reflects a continuing trend in high-rise residential property growth and increasing demand for condominium projects in this zone.”

And the higher demand has driven up prices.

In the second half of last year, average condominium prices increased by 15% from 2012 to 100,780 baht a square metre.

The bank of the Chao Phraya River along Krung Thon Buri Road to Wong Wian Yai now boasts an average price of 116,013 baht per sq m, while rental rates last year rose by 32% from 2013 to 441 baht per sq m or between 15,000 and 25,000 baht a month for a one-bedroom unit.

These factors essentially guarantee high demand for the area.

Krung Thon Buri

Krung Thon Buri-Wong Wian Yai is a long-standing commercial zone on the Thon Buri side of the river. Packed full of residents and communities, the zone is close to the heart of the city and offers convenient commuting to CBD areas such as  Silom and Sathon roads.

Areas along the Silom skytrain route, which links Phra Nakhon and Thon Buri districts, enjoy particularly high growth in residential high-rises.

Growth is especially high in Wong Wian Yai, itself a business and transport hub with easy CBD access via Wong Wian Yai and Krung Thon Buri skytrain stations.

The area is also a meeting point of four major roads connecting Bangkok to upcountry or the Old Town area in Phra Nakhon.

The zone’s peaceful atmosphere, proximity to the river and booming retail hub of Charoen Nakhon Road have caught the eye of those looking for urban properties along skytrain routes in Thon Buri.

Economy is a key factor that affects a country’s property market. In Asia, apart from the “Four Asian Tigers” (Hong Kong, Singapore, Korea and Taiwan), many other Southeast Asian countries have also demonstrated great growth in recent years but have been relatively ignored for property investments. Malaysia is an example of this as this country’s economic and property market shows great potential.

Source: Hong Kong Trade Development Council

Malaysia has 5 Major economic advantages, including:

1. Continued increase of the country’s Gross Domestic Product (GDP)

• Malaysia’s economy expanded by 5.8% year-on-year (YOY) in Q4 of 2014, after rising by 5.6% and 6.5% respectively in the previous two quarters.
• The services and mining sectors were the main drivers of economic expansion, growing 6.2% and 9.6% YOY respectively.

2. Trade surplus for the 17th consecutive year

• Malaysia’s exports expanded by 6.4% to US$234 billion in 2014, and imports edged up by 5.3% to US$209 billion during the same period.
• Exports of manufactured goods, accounting for about two-thirds of total exports, saw an expansion of 7.6% amid stronger sales of electrical and electronic products.
• With faster exports growth, Malaysia reported a trade surplus for the 17th consecutive year in 2014, amounting to US$25 billion.

3. The Government launched the Economic Transformation Program

• The Economic Transformation Program (ETP) launched in 2010 targets 12 National Key Economic Areas believed to have the greatest potential to boost overall economic growth, including palm oil cultivation, tourism, financial services and electronics industries.
• The ETP is a comprehensive economic plan to propel Malaysia’s economy to the rank of high income economies (with a per capita income of at least US$15,000) by 2020.

4. Encouragement of trade integration at the regional and global level

• Malaysia is a member of the World Trade Organization (WTO), and it adopts a liberal trade regime.
• Import tariffs, where applicable, are mostly imposed on an ad valorem basis. The average applied duty rate was 6% in 2013. For non-agricultural products, import duty ranges between 0%-50%, and about 65% of the non-agricultural imports were duty-free.
• Raw materials, machinery and essential foodstuffs are generally non-dutiable or subject to duties at lower rates.
• The trade regime has been progressively liberalized to encourage integration at the regional and global level.

5. The establishment of the ASEAN Economic Community

• Malaysia is a member of ASEAN and the country is committed to the ASEAN Common Effective Preferential Tariffs (CEPT). Malaysia also adopts the rotational chair of ASEAN in 2015, and is scheduled to roll out the ASEAN Economic Community by December 2015.
• Malaysia has continued to participate in various free trade arrangements (FTAs).

Source: Hong Kong Trade Development Council

As Malaysia benefited from the above five factors, the International Monetary Fund (IMF) expects the Malaysian economy to expand by 5.2% in 2015 and by 5% in 2016 respectively. According to sinchew.com.my, the average Malaysian property price in 2000 was approximately RM139,000 (approximately HKD$310,000), and grew to approximately RM277,000 (approximately HKD$620,000) in the first quarter of 2014.

Source：ExpatriateAdvisory.com

Apart from considering Malaysia’s capital, Kuala Lumpur, as a potential area for investment, other areas should not be neglected. In 2008, UNESCO declared Georgetown, Penang as a World Heritage site. Since then, property prices in Penang have been rising rapidly and has since attracted overseas developers to Penang for development of high-end projects.

In the past three years, the second-hand property prices in Penang have already increased by about 30%, some even by 50%. Investors have begun to notice the potential of Penang properties, hence in recent years, a large number of foreign investors have started to investment in Penang real estate. Additionally, the Malaysian government has launched the “Malaysia My Second Home” program, and have since attracted retirees to buy properties there.

Source：ExpatriateAdvisory.com

Apart from considering Malaysia’s capital, Kuala Lumpur, as a potential area for investment, other areas should not be neglected. In 2008, UNESCO declared Georgetown, Penang as a World Heritage site. Since then, property prices in Penang have been rising rapidly and has since attracted overseas developers to Penang for development of high-end projects.

In the past three years, the second-hand property prices in Penang have already increased by about 30%, some even by 50%. Investors have begun to notice the potential of Penang properties, hence in recent years, a large number of foreign investors have started to investment in Penang real estate. Additionally, the Malaysian government has launched the “Malaysia My Second Home” program, and have since attracted retirees to buy properties there.

Golden Emperor Properties is hosting a seminar about Penang property investments on 27 – 28 June 2015. The event will also showcase E&O’s exclusive 21-acre seafront project, Quayside. Come and join us to find out more. For more information or to RSVP, please visit http://goo.gl/G4157O.

Golden Emperor Properties will also hold a Malaysian retirement seminar on 27 – 28 June 2015. For more information or to RSVP, please visit http://goo.gl/db7xQp.

Thailand, the Land of Smiles, has a plethora of attractions for locals and tourists alike. Additionally, it is an investment hotspot with rental returns of up to 10% and with prices starting from HKD1,100,000. Golden Emperor, in partnership with Sansiri hosted a Thailand Property Fair on (13 Jun & 14 Jun) to provide investors with more information on investment opportunities in various provinces of Thailand. Also, Properties from Bangkok, Phuket, and Pattaya are showcased at the event.

About:Golden Emperor, in partnership with Sansiri hosted a Thailand Property Fair.

Above: Bangkok Property ——NYE’s model

Above: Phuket Property —— THE DECK’s model

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

Golden Emperor Properties, in partnership with Sansiri, hosted an event in Hong Kong on the 30 – 31 May to launch the latest freehold condominium project, The LINE, situated in the future transportation and high speed rail hub of Bangkok. This joint venture mega project between Sansiri and BTS Group is the first of its kind, and our clients in Hong Kong had the first pick of the units in this project.

Over 1,500 investors attended over the weekend, and the units in The LINE were completely sold out.

Above: Kingston Lai, CEO of Asia Bankers Club conducted an English seminar to inform investors about the Bangkok property market and The LINE

Above: Terence Chan, Sales Director of Golden Emperor Properties, a subsidiary of Asia Bankers Club, simultaneously conducted an investment presentation in Cantonese

Above: The building model of The LINE, a project by Sansiri and BTS in Jatujak

Above: Over 1,500 investors attended the event over the weekend and all the units in The LINE were completely sold out

Article source: Bangkok Post, 19 March 2015