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Aside from enabling foreigners to acquire Malaysian properties at lower value, the weaker ringgit also presents a long-term benefit to the local property industry, reported Bernama citing the Construction Industry Development Board (CIDB).

Above:The weaker ringgit also presents a long-term benefit to the local property industry

This is because foreigners make a continuous commitment to the industry once they acquire a property in Malaysia, said CIDB chief executive Datuk Seri Judin Abdul Karim.

“When they (foreigners) buy properties, they have to change their money into ringgit. No harm buying properties here because they (properties) remain here,” he said after the launch of the International Construction Week (ICW) 2015 by Prime Minister Datuk Seri Najib Tun Razak.

Above:When foreigners buy properties, they have to change their money into ringgit.

“Once they have properties here, they have to pay quit rent and the likes. And for me, it’s a good thing.”

Nonetheless, the government should ensure that the supply of affordable homes is enough for the people.

“We should encourage foreigners to put their money here, but at the same time, there should be enough (affordable homes) for locals in order to keep the balance in the market,” he said.

Above:The government should ensure that the supply of affordable homes is enough for the people.

“The most important thing is the government must have a consistent policy in order to ease the investors to anticipate the market. When there is a flip-flop in the market, investors are bit cautious to invest.”

The ICW 2015 also saw the unveiling of the Construction Industry Transformation Programme 2016-2020.

Notably, the prime minister said during his speech that the government expects the property industry to register a double digit growth annually.

Source: Property Guru

Big operators have taken over the luxury villa market in Phuket after it was previously dominated by small players. The completion of Phuket airport’s expansion next year is expected to have a positive effect on resort property sales.The limited number of new luxury villas in Phuket has doubled the price of resale units, as demand is relatively strong in this niche market.Aliwassa Pathnadabutr, managing director of property consultant CB Richard Ellis (Thailand), said top-end villas on the island were part of an exclusive market characterised by a limited number of high-value transactions.

Major players used to be small foreign developers with limited financial backing, but they have been replaced by large operators.This is positive for the market in terms of reduced risks for buyers and an improvement in the quality of villas and designs.Most villa sales are in the entry-level segment with prices below 15 million baht. Despite ongoing demand in the luxury segment, buyers face a limited supply.

“In recent years, buyers’ preferences in the luxury sector have shifted towards hotel-branded products that offer quality management, five-star services and facilities as well as the ability to generate rental income,” Ms Aliwassa said.

However, the proportion of completed luxury villas priced above 35 million baht with hotel branding remains limited and accounts for less than 10% of the villa market.”We’re now beginning to see Western expat groups working in Asia who bought prior to the 2008 financial crisis starting to re-enter the market,” Ms Aliwassa said.With the completion of Phuket airport’s expansion next year, CBRE expects to see further growth in tourist arrivals having a positive effect on resort property sales.Price points have clearly shifted in the past 10 years for successful developments.

In 2005, the first phase of Andara Resort & Villas was launched with units priced at US$3-4 million.Today, resales at Andara are fetching $6-8 million, with some transactions achieving a 100% capital gain.Launch prices of some luxury projects have also hit the $10-million mark.Andy Kunz, general manager of luxury villa and hotel project Point Yamu by Como, said 2015 was not proving a good year for Phuket, as the number of Russian and other Western tourists had decreased.

“Tourism in Phuket has been unfavourable since the coup last year, because Phuket was mentioned in negative ways,” he said.Some four- and five-star and big-chain hoteliers late last year banded together to set up the Phuket Hotels Association.They held meetings to try to figure out how to restore the tourism market and create a Phuket brand.The association tried to persuade budget hoteliers to join, but that segment had no problem with their target groups.Starting operations in late 2013, Point Yamu by Como is is located on Cape Yamu on the eastern side of the island.

The hotel comprises 79 hotel rooms and 27 villas, with rates ranging from 40,000 and 100,000 baht a night.Of the 27 villas, 20 are offered for sale at prices ranging from 61-175 million baht.Total sales value of the 20 villas is 1.7 billion baht, with three units sold to Singaporeans after a soft launch early last year.All villas for sale are required to enter a rental programme in which owners can stay 60 days a year and receive a rental yield.

Source: Bangkok Post

Above:The Vana Nava Hua Hin, a 20-rai jungle-themed water park built by Proud Real Estate, recently added an underwater photo tank. Proud Real Estate is counting on a fourth-quarter tourism recovery to boost the Hua Hin property market.

Proud Real Estate Co, owned by the Liptapanlop family and developer of Vana Nava Hua Hin Water Park, hopes an expected tourism recovery in the fourth quarter will boost the Hua Hin property market.

Above:Tourists from China and Hong Kong were a growing market in Hua Hin

Executive director Proudputh Liptapanlop said tourism was mired in the doldrums after last month’s bombings in Bangkok.

“Travel warnings issued by Hong Kong for its citizens intending to visit Thailand should be lifted this month. That will be a good sign for the overall tourism industry, not only in Hua Hin.” She said.

Ms Proudputh said tourists from China and Hong Kong were a growing market in Hua Hin, which increased its ratio of foreign arrivals to 30% from 20%, with half the foreigners from those two locations travelling to the district.

Above:Travel warnings issued by Hong Kong for its citizens intending to visit Thailand should be lifted this month.

Operating for 10 months, Vana Nava Hua Hin Water Park has recorded 300,000 visitors.Proud Real Estate has thus increased its 12-month visitor target to 500,000 from 300,000.With an investment of 1 billion baht, the water park is the first phase of development on a 35-rai site.

The second phase includes a 30-storey 300-room hotel at a cost of 1.8 billion baht, which is to be managed by Holiday Inn and opened by late 2017.

Ms Proudputh, the daughter of veteran politician Suwat, said the Hua Hin condo market was unfavourable, plagued by an oversupply, particularly for units priced from 60,000 to 80,000 baht per square metre and sized about 30 sq m.

“We’ve postponed the launch of a new condo project we planned for this year until we find a concept that matches our target group, the high-end segment, where there is not a supply glut and demand is strong,” she said.

To draw more visitors, the water park has added a new attraction — Vanadio, an underwater studio with a water tank sized five by 2.2 metres. Up to five visitors can dive in for a photographer to shoot them.

Above:Tourism recovery in the fourth quarter will boost the Hua Hin property market.

Source:Bangkok Post

Rent price rises slowed in every region of the UK over the three months to August 2015 compared to the previous three months, the latest lettings index shows.

But they are still rising at double figures rates on an annual basis and are now 10.5% higher than a year ago, according to the finding from the HomeLet rental index.

The data shows that across the country the average tenancy signed during the three month period was £992 per month but in Greater London it was £1,558 per month.

The index report also points out that the trend is particularly marked in areas where rents have been rising exceptionally quickly this year, notably the South East of England and East Anglia.

Nevertheless, on an annual basis, rent prices remain significantly higher than a year ago, with the average UK rent 10.5% higher than in the three months to August 2014.

Overall, the average UK rent on new tenancies has increased 1.6% in the three months to August 2015, compared to an increase of 2.2% for the three months to July and June 2015.

In the three months to August 2015, with the exception of Wales, where rents rose by 2.5%, no region saw rents increase by more than 2%. Three regions, the South East, North West and North East of England, saw rents fall during this period.

The biggest fall was in the North East, where rents paid for new tenancies in the three months to August 2015 were, on average, 2.1% lower than in the three months to July.

‘Rents continue to run slightly ahead of house prices, with the majority of the UK still experiencing rising rents, albeit at a much slower pace than we saw in the early part of 2015,’ said  Martin Totty, chief executive officer of the Barbon Insurance Group, HomeLet’s parent company.

‘On an annualised basis, however, rents in most regions are still significantly higher than the same period a year ago, with only the North West reporting lower rents for new tenancies in the three months to August 2015 than for the same period last year,’ he added.

He explained that there is a robust rental market which is consistent right across the UK with only one or two exceptions, such as East Anglia, where prices rose sharply in 2014 and early 2015 but have now slowed notably, and the South West, which continues to see annual price rises in double figures.

Source: Property Wire

NOVOTEL plans major renovations for its resort in Phuket to attract guests from emerging markets in order to secure growth of 5-10 per cent next year.

Pobchai Jivavisitnon, owner and managing director of Novotel Phuket Resort and Novotel Phuket Vintage Park, said the company planned to spend Bt70 million to refurbish the former.

Above: The company planned to spend Bt70 million to refurbish Novotel Phuket Resort.

Major renovations will include the swimming pool and additional pool access, public facilities, the spa and the restaurant. All work is scheduled to be completed before November next year, the start of the tourism high season.

The resort was opened 20 years ago with 215 rooms as one of the first international hotel chains on famous Patong Beach. Pobchai said 60 per cent of the resort’s guests had traditionally been from the European market, and most of the rest from Asian countries. “The hotel currently has average occupancy rates as high as 85-87 per cent. Luckily there was no negative impact from last month’s bomb blast in Bangkok.”

Above:Novotel Phuket Vintage Park, served mainly the Asia market.

He said the chain’s other hotel in the Patong area, the three-year-old Novotel Phuket Vintage Park, served mainly the Asia market, at 60 per cent, with the rest mainly from Europe. It has 303 rooms and a 2,000-square-metre swimming pool, one of largest in Phuket. This hotel is also running an average occupancy rate of 85-87 per cent. Pobchai said both hotels were expected to gain more business in the remaining months of the year as they had seen significantly more arrivals from emerging markets such as China, India and the Middle East.

Above: Luckily there was no negative impact from last month’s bomb blast in Bangkok.

“Next year, I expect my two hotels to be able to increase their occupancy rates by 5-7 per cent from this year and increase their room rates by 7-10 per cent,” he said.

In order to secure such growth, the Novotel group so far has no plans to cut room rates even though the hotels are located in a part of the island where they face tough competition. Instead, hotels will be seeking more customers, particularly from China, India and the Middle East.

Several hotel chains have opened properties in Patong, including Ramada and Grand Mercure. Many other brands have also settled there, including Millennium, Centra, Holiday Inn, DusitD2, and Amari.

Above:Phuket International Airport  accounted for more than 50 per cent of international passenger arrivals.

According to a report by C9 Hotelworks, arrivals at Phuket International Airport rose by 11 per cent from 2.8 million in the first half of 2014 to 3.1 million in first six months this year. China and Russia accounted for more than 50 per cent of international passenger arrivals.

Source: The Nation