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Above:High-end detached homes in the On Nut and Pattanakarn areas of Bangkok have great potential.

Demand for high-end detached homes in the On Nut and Pattanakarn areas of Bangkok have great potential according to the latest survey from real estate firm Plus Property.

The agency reported that the high-end real estate market is still going well despite a weakening economic outlook, and demand is still high for detached houses priced between THB 10 million and THB 20 million in great locations.

It said the Onnut-Pattanakarn area has potential for being the newly sought-after location for long-term living and investments, as sales have been recorded at 83 percent while land prices keep rising by as much as 22 percent.

Above:Poomipak Julmanichoti, Managing Director of Plus Property, revealed the weaker economic conditions have urged individuals to save more and spend cautiously.

Poomipak Julmanichoti, Managing Director of Plus Property, revealed the weaker economic conditions have urged individuals to save more and spend cautiously, and financial institutions have become stricter in processing loan approvals.

The decision for residential purchases has been delayed, especially among the medium- to low-end segments, hence the government’s stimulus measures to promote residential loans for houses priced below THB 1.5 million to stimulate purchasing power among the group.

However, the high-end real estate market will remain good, he said, as affluent buyers have not been affected much from the slowing economy.

Findings from Plus Property have indicated that the market for single-detached houses priced between THB 10 million THB 20 million has continued to expand, along with increasing demand.

Although supply for high-end detached houses priced from THB 10 million accounts for only 12.6 percent of total detached housing supply, the combined value is worth 24 percent of the total projects available at present. As such the segment is quite appealing for investments, he concluded.

Location is still a crucial decision-making factor for buyers. The survey reported that the cumulative supply in Salaya-Bang Yai-Nontaburi area totaled 1,598 units, of which 87 percent were sold.

As for Bang Khae-Bang Bon-Ratchapreuk area, the cumulative supply was at 1,351 units, of which 85 percent were sold. In the Onnut-Pattakarn area, which is worth taking a closer look at, had cumulative supply at 936 units of which 83 percent were sold.

Above:The Onnut-Pattanakarn area, considered another location in eastern Bangkok with great potential, has seen a continued stream of demand and relatively good transactions due to the proximity to downtown and convenient transportation routes.

The Onnut-Pattanakarn area, considered another location in eastern Bangkok with great potential, has seen a continued stream of demand and relatively good transactions due to the proximity to downtown and convenient transportation routes. Commuting to Sukhumvit, Petchburi, Ramkamhaeng, Ratchadaphisek and the Suvarnabhumi airport takes 15 minutes, thanks to the newly extended section of Pattanakarn Road. In addition the area is surrounded by many department stores and community malls such as Seacon Square, Paradise Park and Mega Bangna, as well as Suanluang Rama IX recreational park.

All these factors promote Onnut-Pattanakarn location as desirable place for living, according to Plus Property.

Due to the potential of th Onnut-Pattanakarn area, real estate developers have continued to launch many horizontal residential properties. The latter half of 2015 saw cumulative supply of detached houses priced between THB 10 million and THB 20 million at 936 units, of which 83 percent were sold. Inventory is now at only 157 units and is expected to be absorbed within nine months, provided that no additional supply will be added.

Above:The high-end detached housing market has been expanding as property developers are answering to the demand.

Consequently detached housing prices tend to rise in accordance with renewed land price appraisal, as for example, the land along the main road of Prawet district is now (2016-2019) 22 percent higher than the previous appraisal (2012-2015).

Average prices are now at THB 99,813 per square wah, while the highest evaluated prices are in the THB 130,000 to THB 170,000 range per square wah. Besides, well-developed infrastructure in the area may contribute to higher detached housing prices in the future. It is also expected that Onnut-Pattanakarn area will be the new and attractive location for long-term living and investment.

“The high-end detached housing market has been expanding as property developers are answering to the demand. There will be more small-size projects in the heart of the city and some projects are spread into peripheral areas to serve the demand and take advantage of the planned transportation projects and upcoming urban development in greater areas,” said Poomipak.

Source: Thailand property

The Phuket resort condominium market picked up during the final quarter of last year, with a 57 percent year-on-year growth in sales according to new research from CBRE Thailand.

Developers are focusing on investors who are interested in rental income, the firm noted, with many projects bringing in a hotel management brands to convince prospective purchasers of the income potential.

The total completed supply of resort condominiums amounted to around 6,200 units with a further 4,500 units in the pipeline that are expected to be completed by 2018.

“This year we have seen some evidence of Chinese buyers buying individual units, a few Chinese investors buying in bulk up to ten units at a time, and a handful of Chinese developers developing joint venture projects,” the real estate firm reported.

The majority of buyers continue to be Western expatriates; the number of Chinese buyers is not yet significant but is expected to grow in the near future.

Going forward, newly launched units will continue to be small in size and have a low lump-sum price. As the market becomes more competitive and a rental guarantee becomes the norm, it is important that developers have a real ability to provide income through a management company; buyers prefer a hotel branded-management company.

CBRE said it has seen an increase level of resales at the upper end of the market. This is because there have been limited new launches in this segment and also because vendors of completed, older projects have become more realistic about achievable prices.

Source: Thailand Property

Announced at the “g meet 2016″ summit hold at the InterContinental Hotel Bangkok yesterday, a historic Travel Partners Pledge was made between GTA, Tourism Authority of Thailand and a host of global tourism leaders from Thailand’s biggest source markets in Asia Pacific, Middle East & Africa.

Travel and technology senior leaders from AccorHotels, AIS, Caissa Touristic, Compass Hospitality, Derbysoft, Far East Hospitality, Flight Centre, JTB, MakeMyTrip, Metglobal, Minor Hotel Group, Onyx Hospitality Group, SiteMinder, Starwood Hotels & Resorts, Thai Airways, Tuniu and Tourism Authority of Thailand gathered at GTA’s g meet 2016 summit to discuss “the future outlook of travel” and “the future of travel intermediaries”.

Thailand’s star has risen dramatically in recent years with the destination drawing a total of 29.9 million international visitors in 2015, an increase of over 20% compared to 2014, according to data provided by the Ministry of Tourism and Sports Thailand. With the destination keen to increase yields and the average length of stay, its move to promote the luxury market is also in line with trends that show Thailand as an attractive proposition to upscale travellers indicated by the 17% increase in the Average Daily Rate (ADR) in the luxury accommodation segment, according to C9 Hotelworks, a Thailand-based tourism consultancy.

Ivan Walter, CEO, GTA said: “Thailand is one of the world’s most desired and dynamic tourism destinations. It is therefore fitting that we are here today to announce such an important partnership with the Tourism Authority of Thailand and be surrounded by many of the world’s influential travel suppliers, travel agents, technology partners and hotels.

“We believe that through our partnership, we will be able to encourage more upscale travellers to visit Thailand to appreciate indigenous travel experiences – lavish accommodation and personalized unique on-the-ground excursions. But most importantly, we want people to enjoy pleasant interactions with Thai culture, its environment and its greatest asset – its Thai people.”

Tourism Authority of Thailand Deputy Governor Juthaporn Rerngronasa said that she was humbled by the strong encouragement of the industry – led by GTA – to support Thailand develop its tourism business in the important luxury segment.

“We are delighted to be working with GTA to promote Thailand as a luxury travel destination. We thank them for leading the key industry players here to Bangkok so they can witness the many luxury experiences our country has to offer and recognize the distinctive opportunities first hand. We are sure this strategic partnership with GTA, one of the world’s most influential provider of travel content and experiences, will be a great success.”

Celebrating 41 years in business in 2016, GTA is part of the Kuoni Group.

Core to GTA’s success as a leading travel company for the fully independent travel (FIT) industry is its longevity in the industry, good financial stability, coupled with its global presence, and the expertise of its people. GTA has long-connected travel sellers to hotel partners to offer unrivalled content at the best possible prices through its highly reliable technology. The world’s travel trade books nearly 14 million room nights a year through GTA, relying on its ability to take care of their customers from the time they book through to the time arrive at their holiday destination .

Source：The Nation

Above:The Base Park East Park on Bangkok’s Sukhumvit 77.

Sansiri has announced that is has sold out all residential property units at The Base Park East on Bangkok’s Sukhumvit 77 in what is has described as “tremendous interest among both Thai and foreign customers”.

The prolific Thai developer, which has sold units throughout Asia, noted the Sukhumvit77 (On Nut) area of the city is a bustling business zone with high occupancy by both Thai and foreign customers.

Above: The developer is now in the process of launching Habito.

At the same time the area is also recognised as an ideal zone of rental opportunities by both Thai and foreign investors with rental returns as high as 8 percent. The developer is now in the process of launching Habito, the company’s first community mall project in June.

A spokesperson for Sansiri said this project is the fifth in the Sansiri Town Sukhumvit 77 (T77) that has received tremendous response, with the ratio of 68 percent Thai and 32 percent foreigners. The top three foreign customers are from Singapore, China and the United Kingdom. The spokesperson added that about 47 percent of the purchased units were expected to be rented out, while 44 percent were purchased to serve as private residences. A total of 90 percent of all units have gradually been transferred to their owners.

Above: Sansiri sell out at The Base, developer is now in the process of launching Mori Haus.

Rental yields in Bangkok range from 5.0% to 8.0%. Over the past three years, we’ve seen yields on medium-sized apartments (120 sq. m.) rise significantly.

In most countries´ major cities, smaller apartments earn higher rental yields than bigger apartments.  That´s not true in Bangkok. A 60-square metre (sq.m.) apartment in Bangkok’s central location now earns gross rental yields of around 5.6%, while a 120-sq.m. apartment also centrally located, earns gross rental yields of around 8.0%.

Yields have risen at the luxury end of the market, though since last year they have fallen for the large sizes, such as 250 sq. m.

The apartments included in our survey are located in Bangkok’s upscale residential areas which includes Sukhumvit Road, Silom, Sathorn, Riverside, Rama III, and Central Lumpini.

The Thai price index for single detached houses rose by 4.9% (4.11% inflation-adjusted) during the year to end-Q4 2014. The condominium index soared by 14% (13.18% inflation-adjusted), and is actually a more relevant index.   Condominiums are what Bangkok people, including foreign homebuyers and expatriates, tend to live in.  The price index for townhouses rose by 6.60% (5.82% inflation-adjusted).

Source：Global Peoperty Guide