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Raimon Land launches
The Lofts Ekkamai
An artist’s rendering shows
the completed The Lofts Ekkamai building.
Award-winning property developer Raimon Land recently
announced the launch of The Lofts Ekkamai in Bangkok. The company says their
latest condominium project will cater to the demands of a new generation of
potential homeowners looking for a combination of style, comfort and
convenience in a totally urban setting.
Johnson Tan.
Located just 150 meters from the Ekkamai BTS station on Sukhumvit Road and a
few minutes to the expressway ramps, The Lofts Ekkamai is at the doorstep of
Bangkok’s major business, shopping and entertainment areas. It will occupy 2
rai of freehold land in the renowned Ekkamai - Thonglor area, the
trend-conscious neighborhood with some of the hottest cafes, bars and
restaurants.
Designed by Hans Brouwer of HB Design, the same name behind iconic Raimon
Land projects such as The River along the Chao Phraya and 185 Rajadamri in
Bangkok, The Lofts Ekkamai will feature the company’s distinctive lines and
trademark attention to detail. The interior space has been drafted by
top-notch firm Infine Design, ensuring bright and airy volumes due to the
generous ceiling height and use of glass.
Raimon Land says the loft concept enables its occupants to use the open
space based on any given lifestyle. Perfectly adaptable and suitable for the
corporate executive, business entrepreneur, artist or sports fan, the
interiors can be either conventional or consist of brick walls and
factory-style concrete ceiling finishes, reflecting the ultra-chic converted
lofts now found in industrial buildings and warehouses in Manhattan’s
Meatpacking District or Soho in London.
Duplex units are proving to be
very popular with buyers.
At The Lofts Ekkamai, there will be a wide choice of
apartments ranging from studios, 1, 2 and 3-bedroom configurations, plus
2-story duplex units, each featuring a balcony so homeowners can enjoy the
exterior and the panoramic city view. The project will comprise approx. 263
units in total.
A standout selling point of the project are the exceptional facilities and
amenities, offering owners and their families a relaxing escape from the
hustle and bustle of daily city life. In addition to a podium top garden
with lush, tropical vegetation, other offerings include a rooftop swimming
pool, sun deck, gym and yoga room. A state of the art sky lounge has also
been integrated into the plan for residents’ added convenience. A
sophisticated 24/7 security system will ensure peace of mind at all times.
“Inspired by the famous lifestyle lofts in New York and London, The Lofts
Ekkamai was designed to become the coolest contemporary address in Bangkok.
The units are brilliantly designed with an intelligent use of space,” says
Johnson Tan, Raimon Land CEO. “Its location, offering endless entertainment
and dining options, as well as access to the Ekkamai BTS station and the
city’s main thoroughfares, will usher sophisticated inner city living.”
Bangkok is currently experiencing a surge in demand for city condominiums
from local and foreign buyers. With its ideal position within the city’s
trendy neighborhood, and price starting at THB 3.9 MB, the company feels The
Lofts Ekkamai is perfectly positioned to capture this growing market.
Targeted customer groups include first-time homebuyers living and working in
Bangkok’s Central Business District and also buyers looking for a
Monday-Friday second home to avoid long, stressful commutes. Thai and
foreign investors are also on the lookout for units in the hot Bangkok
rental market. Raimon Land has partnered with Italian brand MisuraEmme, by
Euro Creations, to offer fully-furnished packages.
Johnson Tan added: “The demand for this type and size of condominium is very
strong. Our strategy is simply to offer outstanding quality for an
exceptional project that will be unique in Bangkok. Raimon Land’s track
record for delivering exactly what we promise will be a very valuable factor
that helps buyers make their decision.”
Construction of the 2.1 billion baht project is scheduled to reach
completion in 2016. It has already received its full funding from UOB Bank.
For more information, go to
www.theloftekkmai.com.
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Tulip Group set to launch
new 5-star hotel in Pattaya
Property developer the Tulip Group recently announced the
company had entered into a Memorandum of Understanding (MOU) with Golden
Tulip Hotels and Resorts for a new luxury 5-star hotel on Soi 5 Phratamnak
Hill, Pattaya.
The luxury 25-storey high rise building is set to be one of the most
beautiful properties in the area and is just steps from the stunning Cosy
Beach. EIA approval and the building permit are already in place, and Tulip
Group will start construction on the project as soon as agreements are
finalized with Golden Tulip Hotels.
The property will be a hotel only, however Tulip Group are planning to offer
a limited number of rooms to property investors. Full details have not been
disclosed at this moment in time but it is expected that investors buying
into the project will be offered a leaseback program with guaranteed
returns, no ongoing management or sinking fund costs, as well as some
additional investment benefits.
The 300 room property will have 2-3 restaurants (including rooftop sky bar),
spa, gymnasium, huge swimming pool, meeting rooms, club lounge and a
selection of deluxe rooms, suites and presidential suites.
Royal Tulip luxury hotels are generally described as being exceptional
properties situated in extraordinary locations. With a 5-star positioning,
they provide elegant and luxurious facilities, highly personalized service,
ultra-modern amenities and a deluxe level of comfort.
The Golden Tulip chain traces its roots back to the early 1960s, when the
first Golden Tulip hotels opened their doors in the Netherlands. Since then
the chain has evolved and expanded across the globe, always in step with the
changing needs and expectations of their customers.
Today, the chain operates three well-known brands, Tulip Inn, Golden Tulip
and Royal Tulip, with a total of over 230 hotels in 42 countries, and is
part of the Affiliate of Groupe du Louvre, which is owned by the Starwood
Capital Group private equity firm. Louvre Hotels Group currently has a
portfolio of 6 brands, ranging from 1 to 5 stars.
After forging a strategic alliance with Golden Tulip Hospitality Group,
Louvre Hotels Group has become a major worldwide player in the global hotel
industry, ranking 2nd in Europe, with more than 1080 hotels in 41 countries.
This property will be Tulip Group’s second joint project with the operator,
after last year signing an agreement for a Golden Tulip Hotel and Residence
in Central Pattaya.
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Kingdom Property
appoints Bouygues Thai
to build Southpoint Pattaya
Kingdom Property’s
appointment of Bouygues Thai will ensure that Southpoint Pattaya is
completed to strict quality standards and on schedule.
Kingdom Property has signed a contract with Bouygues Thai
that will see the international construction company build the
Thailand-based real estate developer’s highly anticipated debut project,
Southpoint Pattaya.
Located in the Pratumnak Hill area of South Pattaya, the piling of
Southpoint by Thai BAUER will be completed this month after which the
construction will begin as the fast selling development moves forward
towards its completion date at the end of 2015.
The appointment of Bouygues Thai further reinforces Kingdom Property’s
commitment to quality by utilizing a company behind many of Bangkok’s most
iconic buildings, including The River as well as MahaNakhon which at
77-stories is destined to be the tallest building in Bangkok, housing the
city’s most expensive condominiums in the Ritz Carlton Residences.
Moreover, it brings together two of the most respected players in Thailand’s
property industry, Kingdom Property Chief Executive Officer Nigel Cornick
and Bouygues Thai Managing Director Jean-Marie Verbrugghe who have worked
together on numerous well known projects beginning in 2003 with The Lakes
Bangkok.
Southpoint Pattaya’s promise
of quality is bolstered by a blue chip location at Pratumnak Hill.
Mr. Cornick said he was delighted to once again be
joining forces with Bouygues Thai in Pattaya after working with the company
on notable projects like The River Bangkok and Northpoint Pattaya during his
time as CEO of Raimon Land.
“We are very fortunate with our relationship with Bouygues. It is not an
accident or borne out of any necessity for them to build a project in
Pattaya like ours - but more of a long-term relationship based on trust and
a win-win philosophy where the combination of core values unite and create a
partnership than creates value, efficient delivery and quality of product in
the most challenging of environments,” said Mr. Cornick.
“Pattaya retains great potential, not only in the residential but also in
the hotel and mixed use sectors, and with the right partners, locations and
a focus on developing high quality products we expect to continue the
success we have had here since I launched Northshore in 2004,” he added.
Bouygues Thai Managing Director Jean-Marie Verbrugghe said that he was
pleased to be working with Mr. Cornick again and looked forward to a long
and fruitful relationship with Kingdom Property.
“It is a great opportunity for us to work with Nigel and his excellent team
at Kingdom Property who value dedication to quality and commitment to
professionalism as much as we do at Bouygues Thai,” he said.
Bouygues Thai, which has been appointed under a ‘design and build’
arrangement and as such has been coordinating the design process, is the
latest addition to the impressive team working on Southpoint Pattaya. It
includes Thai BAUER (piling), SODA (project designers), The Beaumont
Partnership (project designers), Colin K. Okashimo and Associates
(landscape) and Meinhardt (MEP and structural engineering).
Southpoint Pattaya is located on a four rai freehold plot a short distance
south of Bali Hai in Pattaya City, on an elevated site on Pratumnak Hill,
offering extensive sea views and within walking distance of the Royal Varuna
Yacht Club. Project finance has been provided by Krung Thai Bank, Thailand’s
largest financial institution.
Unit sizes at Southpoint Pattaya start from studios of 30sqm with
one-bedroom units ranging from 41sqm to 87sqm and two-bedroom units ranging
from 61sqm to 97sqm. The condominium includes a dedicated sky deck with an
infinity edge lap pool and fitness centre along with a landscaped family
zone featuring a children’s pool and playground.
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A finger on the property pulse with Nova Group’s Rony Fineman
Nova Group CEO gives his personal outlook for the
Pattaya property market
As Pattaya continues to expand, the need for
accommodation, be it residential or in the hospitality sector, continues to
grow in line with that demand. Rony Fineman is the CEO of the Nova Group and
he has a long legacy of building hotels and condominiums, right back to when
Pattaya first started to emerge as a tourist destination. Here he talks to
Paul Strachan about his businesses and his passions.
Paul Strachan: Hello Rony, I have to say you are looking remarkably well and
trim.
Rony Fineman: Yes, I saw a picture of myself back in December and didn’t
much like what I saw. I worked hard at it and have now lost about 18kgs …
and I feel much better as a result.
Nova Group CEO Rony Fineman.
PS: Talking about health, let’s discuss the property
market in Pattaya at the moment. There is always talk about a property
bubble, and now this talk is coupled with the poor exchange rates. What
affect does that have on your business and perhaps how you shape your
portfolio?
RF: Well, first of all we at Nova Group were very lucky when we started out
- we basically had an open window. For seven or eight years there weren’t
many developers in Pattaya and we were really the first, and we are still
developing to this day.
I think there are some challenges that we face, the currency being one of
them as the Thai baht is very strong at the moment. Another challenge is the
arrival in Pattaya of many Thai developers, which is understandable as Thai
people prefer to buy from Thais.
The third and perhaps the most serious hurdle is the sheer number of
projects that are out there, it seems that every second person is a
developer. A lot of projects are controlled by developers who come from
overseas and they are smart people. And the Thais have increased the land
values, so when you add this all up, I wouldn’t say there is necessarily an
over-supply but there is certainly enough.
Holiday Inn Express will be
coming soon to Pattaya.
People are not rushing in to buy like before although we
still see a very strong market from Russia and emerging markets from China
and India, but with the number of projects that we have, my company is being
very cautious.
We actually have a beautiful piece of land on Jomtien second road; we can go
up forty floors and are in the process of getting the license. But at the
moment I don’t feel it is the right time to launch the project, so we will
shelve it until the time is right.
PS: So you have to schedule your projects according to the market?
RF: If we launch them, I think that within the next twelve months there will
be something like 28,000 – 30,000 units coming on the market and I think
that will be a good test for Pattaya for the people who purchased for an
investment to see if they can find tenants.
I still believe there is room for prime location projects and we see some
Thai developers who can sell out in days, so obviously the Thai market is
very active and very strong. And if you have a good location, you can still
sell quite well, even in today’s market.
The Nova Group received a
Highly Commended award for The Cliff condominium project at the recent Asia
Pacific Property Awards in Kuala Lumpur, Malaysia.
PS: Pattaya has had a huge turn around in the last ten
years and is now far more a destination for families and of course Thais
have now rediscovered Pattaya and realize that Pattaya has a lot to offer.
RF: Yes, in the last ten years Pattaya has gone through a huge
transformation. Going back twenty-six years ago, 80% of the roads here now
didn’t even exist and probably 80% of the buildings as well. In the last ten
years it has definitely changed its image - before it was sleazy,
sex-orientated, not much to do and nothing for families. Today we see a lot
of couples, families, children, it has totally changed and I think it has a
long way to go.
We have two beautiful water parks coming soon, there is talk about Universal
Studios, and they have opened Mimosa on top of the existing attractions,
plus the new Coliseum which looks absolutely brilliant. So there is always
something new for tourists, and for us in the hotel division we had our best
year ever.
So I have to separate developments and tourism. The developments are one
side of Pattaya, not everyone who comes here needs an apartment, and as far
as tourists are concerned we reached 8 million tourists in Pattaya last
year, which is amazing when you compare it to 3 million ten years ago.
Construction has started on
Nova Group’s Serenity condominium in Wong Amat.
PS: Let’s talk about how the Nova Group fits in with what
you have been talking about. People know you as a developer but in a sense
your real passion is hotels, but first can you enlighten us on your various
current Pattaya projects?
RF: At the moment we have The Palm, which is my five-star project on
Wongamat Beach and is 90% sold out. Construction started last year and we
are up to the 28th floor now. It is due to be completed by the end of 2015.
Ocean View we finished already and that is 80% sold, we have just finished
The Cliff and currently have sold 92% of that development.
PS: Didn’t you just win an award for the Cliff?
RF: Actually we have won four awards in the last two years. Last year the
Cliff won first place at the Thailand Property Awards and we won runner-up
award in the Asia Pacific Awards in Malaysia, and it’s great to be
acknowledged as part of Asia, not just Thailand.
In 2011, both Ocean View and the Cliff won awards at the Thailand Property
Awards. This year we will have Amari Residences, The Palm and The Cliff in
the finals for the Thailand Property Awards so we think we have another good
chance to win something. Regarding other projects, Novanna will be completed
in 3 months time, which is 6 months ahead of schedule and is currently 95%
sold.
PS: Novanna is a bit different isn’t it, as it has a close proximity to the
city center so it’s more of an urban residence?
RF: From day one my policy was not to stick with one type of project, be it
luxury or inexpensive. At Nova Group we do everything, so the main thing is
that when you are offered a piece of land you have to think very carefully
before you decide what you are going to put on it: should it be a hotel or a
residential development? And if so, what kind of project? We try to reach
all markets, from the under one million baht concept, which we have done
very well with, to the luxury market like The Palm and the Amari.
PS: And what about hotels? Do you consider yourself as a hotelier and a
developer of hotels, and if so where does that stem from, is it your love of
travel?
RF: When I was 13 years old I started work as a dish-washer in a hotel and I
worked my way up very quickly and by the time I was 17 I was the night
manager of the Jerusalem Hilton. Actually I still have a certificate as I
was the youngest night manager for Hilton worldwide at that time, so hotels
have always been my passion.
We started our hotel business in Pattaya with renting Nova Lodge and there I
got very lucky. It was totally accidental as I had never thought about it in
my life, but it happened. And when we opened our first project, which was
Nova Mirage, actually I bought the land to build my own house it was five
and a half rai. One day I was introduced to a gentleman, he was a developer
from the USA and he said why don’t we develop and the deal sounded good to
me so we did that and we sold out in weeks.
The first stage was Nova Mirage building A and we have never looked back
since then. But as I said, my passion is hotels, I love to create them, I
love to see them full and the development side gives me the finance to be
able to build my hotels.
PS: So when you travel, does your mind ever stop working and when you stay
at other hotels do you pick out their key points and see how you can
incorporate them into your hotels?
RF: I think I keep it but I don’t write anything down. Many hotels are very
similar although some have unique selling points. But when I go on holidays
I really don’t think about work, I have learned to switch off my mind.
Obviously I have to respond to emails etc. but when I am on holiday I am
able to relax and not think about work so much.
PS: I believe you also have some property in London?
RF: Yes, we have just purchased an old pub in Edgware in London. It sits on
a large piece of land and we have the opportunity and the license for 105
rooms. So we are now in the process of talking to interior designers and
builders and getting the costs and bank loans etc. We hope to start work on
it by the end of this year with a view to opening it in about a year and 5
months time.
PS: But why London?
RF: Well before I came to Thailand I lived in London for 9 years. I love
London and England. I would say that London is the second city of my life. I
go there often, in fact I just bought an apartment there. I find it
fascinating in a different way to Thailand. Thailand has the weather, the
people, the food and much more, but London is very sophisticated, the shows,
the parks the opportunity to be in nature. I also have some family and
friends there so it makes it very pleasant. I also like traveling a lot so
if you have a base in London it’s very easy to fly elsewhere.
PS: So what about the Nova Hotels in Pattaya - what exactly do you have and
what are your plans?
RF: At the moment we have six hotels that are open: they are the Centara
Pattaya which has 230 rooms, Nova Park, Nova Gold, Amari Nova Suites, Nova
Spa, which is also managed by Centara, and Nova Platinum in south Pattaya,
which is managed by Amari. And this year we will start a new hotel called
Nova Express which is not far from Nova Park, and we will continue with
Holiday Inn Express on some land we own next to Walking Street.
We also have the Amari Residence, which is in Pratumnak and part of it will
be a luxury 5-star hotel. In Bangkok we have some land on Sukhumvit Soi 15
which we have started to develop already and should be finished by the end
of next year and the best one is a great piece of land we have purchased
behind the Dusit Thani in Pattaya. We bought the land last year and are in
the process of getting planning permission for a 25-storey hotel, this will
be a 5 star hotel under the Nova brand and we will call it Nova Grand Hotel.
We had many well known names such as Hyatt wanting to manage it but I
decided that as it has a prime location that it should go under the Nova
name.
PS: So this will become your flagship hotel?
RF: Yes exactly, and I will move my office there as well.
PS: When you return from your travels each time and you see the positive
changes in Pattaya, what are the things that you think the city still needs
to address?
RF: I think there are many things that need to be addressed. Speaking from
Nova Group’s point of view we have big issues with the drainage system in
the city. Every time it rains we see many areas being flooded and some of my
buildings have underground car parks so we have now had to install flood
prevention systems, which we have had to pay a lot of money for. But I think
the flooding should not happen.
The roads are getting busier and will surely get worse so we need to work
very hard to improve the roads. There is talk about a new high-speed train
in 3-4 years time, that will also add a lot of extra traffic.
I think Pattaya should also be looking at a zoning system, for example the
nightlife. I believe that Pattaya has now became a major destination for
families and if they can zone off the nightlife area then the people who
want it know where to go, and the families who may not want to see that will
know what area to avoid.
I think in general there are a lot of things that are good in Pattaya - we
have a lot of festivals a lot of things happening that attract a lot of
people, not only from Bangkok but also from overseas, such as the fireworks,
the music festival, but this all affects the traffic.
I also think that sometimes we see shop houses and buildings that don’t look
very good on the outside. Maybe they could be sorted out in a good way with
rules and regulations as to what you can and cannot put outside.
PS: Indeed, in Europe there are many rules to which you must conform,
although some might say that the rules are too strict.
RF: I think if there were some control measures it would help the look of
the city. I also see the problem with the beaches, the sand is disappearing.
Pattaya is a beach destination so this must be sorted out. Yes, they are
working on Beach Road, but that is the road not the beach itself. I think
they have to fill in a lot of land and create a wider beach for the tourists
to enjoy.
PS: Do you think with all the changes that we have seen taking place that
Pattaya could lose its Thai-ness?
RF: We still have the crocodile farm, the snake shows, the elephant rides,
Thai boxing, in fact we are involved in the Muay Thai at Mini Siam, and
there is Tiffany’s also, so I don’t think we are going to lose the identity
of Thailand, and of course we have the addition of world class attractions
and that will bring more and more tourists.
PS: Is the low season still having an impact and what do you envisage for
the next quarter?
RF: Actually we are doing quite well this low season, we have seen a pick up
on the last few years and I think that we are going to have a great
winter/high season this year. I think with everything that is going on in
construction and entertainment wise that in the next couple of year we will
reach 10 million tourists in Pattaya.
I would like to see more activity from the government to promote major
attractions such as Disney and Universal, they did it in Singapore and it
changed the place completely, that for me is the last piece of the puzzle
for Pattaya.
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Matrix sees a bright future for Pattaya
With talk of a potential real estate bubble building in
the city many developers may be currently wary of launching new projects
onto the market, but for Matrix Developments it seems to be a case of all
systems go, with the company’s plans firmly set for the next couple of
years.
With a vast portfolio of developments already under its belt, Matrix has
undoubtedly become one of the key players in the real estate sector in
Pattaya. Currently the company is marketing two major projects; the first
being The Vision on Pratumnak Hill, described as “a world-class high rise
building offering state of the art architecture, beautifully designed with
many facilities in one of Pattaya’s most desirable locations.”
An artist’s rendering shows
Matrix’s The Sky Jomtien development.
Already The Vision is 90% sold out however some units in
foreign ownership are still available. It has been granted the much needed
EIA approval and construction is well underway and is on track for
completion by the end of 2014.
The Amazon is a vast project located not far from another Matrix
development, Paradise Park in Jomtien. The Amazon will feature 800 units
across 4 buildings and the first phase is set to be completed by the end of
2014, with the other buildings following thereafter.
Matrix has seen a direct impact on the market following the influx of
Russian investors and also Australians, Singaporeans, Chinese and even the
Japanese, who have been buying up units at another of their new projects,
City Center Residence, just off Third Road in central Pattaya.
City Center is the first downtown project for Matrix and will offer a
holiday environment along with easy access to the famous Pattaya nightlife,
the beaches and shopping.
“City Center is good for investment as these are studios and people can buy
more than one, be it for their family or to use as an office,” says Miki
Haim, Managing Director of Matrix. “ROI will be very healthy because of its
design and rental rates can be inline with hotels in the city center,” he
added.
Miki Haim.
Martix has just released renderings of The Sky project, a
high-rise building set on two rai of land, beautifully designed and
differing markedly from many of the other buildings around town. It will
have 300 units across 30 floors with an average price of 75,000 baht per
square meter.
The Sky lies a mere 500 meters from Jomtien beach, not far from Park Lane,
Paradise Park and The Amazon on Soi Wat Boon. The company says the project
will be marketed in September in time for the high season.
It all seems to add up to an exciting time for Matrix Developments whose
ability to adapt to the changing market environment is one of the key
factors that breeds confidence within the company.
“Matrix has something for every budget and we offer choices in terms of
location and lifestyle,” continued Miki Haim. “We see that Thailand and
Pattaya in particular is still very popular for investors because of its
world-class tourism status and that, coupled with the addition of new
attractions such as the Cartoon Network theme park, will see more and more
Thais coming to Pattaya and the number of investors will continue to grow as
the city grows likewise in step with demand.”
(By Paul Strachan/PM)
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CETUS Beachfront buys steel to begin condo construction
Chalermphon Khoncham, MD,
Apus Development Group (left) and Songsak Piyawannarat, Vice President –
Marketing and Sales TATA Steel (Thailand) PCL (right) sign the purchase
contract for 2,500 tons of steel to be used for CETUS Beachfront Pattaya.
Apus Development Group and Tata Steel PCL have signed a
contract for 2,500 tons of steel to be used for construction of the CETUS
Beachfront Pattaya condominium project in Jomtien Beach.
Apus Managing Director Chalermphon Khoncham and Tata sales director Songsak
Piyawannarat inked the agreement at the CETUS sales office June 20.
“We chose Tata because, in the past, I worked in the utilities and
real-estate development businesses and was familiar with Tata Steel. The
steel is of good quality, durable and is the most-valuable component that
will lead the project to success,” Chalermphon said.
“Tata is determined to offer diverse steel products by using modern
technology for the utmost benefit, including products that help reduce
construction time and withstand the environment,” Songsak commented. He said
the steel for the condo project will come from three Tata plants to help
keep construction on schedule.
A scale model shows the
completed CETUS Beachfront Pattaya development.
To be located on Jomtien Soi 15, the 1.5 billion baht
CETUS will feature two buildings with a combined 310 units. One building
will be 49 stories and feature 294 units. The other building will stand four
stories tall and offer 16 units. The entire plan calls for a natural theme
inside and outside the condos, featuring ocean views for most units.
Chalermphon said construction is scheduled to be complete by the third
quarter of 2015 with CEO Engineers Co. serving as the engineering company
and T. Peerakrit Co. as the contractor. The environmental impact report has
been finished and sales have reached 95 percent, he said.
For more information, call 038-233-999 or visitCetusPattaya.com.
(By Warunya Thongrod/PM)
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N.C. Group launch 2nd phase
of Natureza Condominium
Property developer N.C. Group has launched the second
phase of its four-part Natureza Condominium, following its “Natural
Courtyard” buildings with a “Landscape Courtyard” project.
Somnuek Tanthathoedtham, Senior
Executive Vice President.
At a June 27, press conference, N.C. Executive Vice President Somnuek
Tanthatherdthum and company executives unveiled the latest development plans
for the Chaiyapornwitti Road complex built in a “modern art park” style.
Natureza will be built out in four phases: “Natural Courtyard,” “Landscape
Courtyard,” “Floating Courtyard,” and “Seaside Courtyard.” The grounds
feature a common park and 1,600 sq. meters of open greenery.
Company executives announced in January that the first phase had sold out
even before the official project launch. Construction on the first building
was slated to begin in May.
Like Phase 1, the 500 million baht second phase is comprised of two
buildings with 406 units. Art plays a central role, with decorations
following a “bird & berm” theme, including bird sculptures among the
landscaping. Units come in a range of sizes from 28.6sqm one-bedroom
configurations up to 68.3sqm for the two-bedroom designs. Prices begin at
1.1 million baht.
An artistic theme permeates
throughout the 4-phase development.
“We want to aggressively attack Pattaya, since it is a
market seeing high demand,” Somnuek said. “Integrating art with Natureza
builds value and confidence with customers and creates a difference from
other projects.”
He said more than 40 units have already been booked. For more information,
call 081-634-0395, 081-931-7079 or 083-177-0013.
(By Warunya Thongrod/PM)
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Discovery Beach Hotel dedicates Chic Tower
Anant Thittirojnawat (right) and Nongkhran
Thittirojnawat (2nd right), owners of the Pattaya Discovery Beach Hotel, pay
respects to Somdej Phra Theerayanmunee, the Abbot of Thepsirintharawas
Temple (left), during the opening ceremony.
Pattaya’s Discovery Beach Hotel recently dedicated its
new “Chic Tower,” a 137-room building of higher-end rooms that nearly
doubles the hotel’s capacity.
Anant and Nongkhran Thitirojnawat, owners of the hotel on Soi 6/1, and
Managing Director Naphat Thittirojnawat invited Thepsirithawas Temple Abbot
Theerayanmunee and eight other monks to perform the blessing ceremony for
the new tower at the auspicious time of 9 a.m. on June 19. Following the
ceremony, the hotel executives offered the monks a meal.
The new Chic Tower at Pattaya
Discovery Beach Hotel adds 137 four-star rooms to the resort.
The Chic Tower adds 137 four-star rooms to the Discovery
Beach’s existing 164 three-star accommodations, as well as a conference
room.
Naphat Thittirojnawat, MD of
Pattaya Discovery Beach Hotel, thanks guests for attending the opening
ceremony in the conference hall of the hotel’s new Chic Tower, Wednesday,
June 19.
“The beginning of Chic Tower stemmed from the success of
the existing hotel with foreign tourists,” Naphat said.
He said the new building features a modern white-and-gray motif and as well
as the accommodations it also offers a conference room and restaurant to
attract business meetings and conventions.
“I believe we will receive a good response from the Thai market. The Chic
Tower will not disappoint with its four-star service and views of Pattaya
Bay,” Naphat said.
(By Warunya Thongrod/PM
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CBRE predicts the future of Bangkok’s property market
CBRE Thailand Managing
Director, Aliwassa Pathnadabutr, talks during a press conference marking the
company’s 25 years of business in Thailand.
Property management and consultancy firm CBRE recently
marked its 25th anniversary of doing business in the kingdom by pausing to
reflect on the changes in the Thai property market and outlined some
predictions for the future.
Bangkok Residential Market:
Central Business District: The Bangkok condominium market has grown
significantly from having less than 10,000 condominium units in 1988 to over
350,000 units today. With continuous supply coming on to the market, the
condominium market will become even more complicated and competitive, says
CBRE. The downtown CBD market offers a wide range of units with higher
prices per square meter compared to the midtown market which is almost
exclusively made up of one-bedroom units.
Bangkok downtown area.
Within the prime downtown locations such as areas
surrounding Lumpini Park including Rajdamri, Ploenchit, Wireless Road and
Langsuan and major main roads in Sukhumvit, there will be fewer new freehold
projects as there is limited freehold land available. The high land price
above THB 1.5 million per sq.wah which is set to continue to rise further
will also affect the feasibility of condominium projects.
In secondary locations within the CBD and sub-sois, developers need to be
more cautious in terms of new launching new projects as higher land prices
and construction costs will drive up prices over the market affordability.
The prime downtown areas have drawn continued interest from foreign buyers,
particularly Asian buyers from Hong Kong/China, Singapore, Taiwan and Japan.
They consider Bangkok both attractive and affordable for second residences.
CBRE say they expect the downtown market to be a healthy, low volume and
high value market with the clearance of built unsold inventory and a limited
number of new launches.
Market prices have dramatically shifted over the past two decades from THB
35,000 per sq.m. at Somkid Gardens, one of Bangkok’s first condominium
developments, to prices in excess of THB 250,000 per sq.m. today. Whilst
each price barrier at THB 100,000, THB 200,000 and THB 300,000 per sq.m.
seemed impossible to achieve at the time, these barriers have all been
broken. In the next decade, prices will continue to rise on the back of
limited freehold supply and increased affluent buyers’ demand for prime CBD
locations.
The Sukhumvit area has shown the highest price appreciation in recent years
and no one would have predicted prices of THB 200,000 per sq.m. 18 months
ago, says CBRE. With continued redevelopment, the sky train and new major
retail and office developments, Sukhuvmit is becoming the prime location,
all be it at a discount to Central Lumpini prices.
Midtown: The midtown market has the biggest challenge in terms of supply
volume and distortions in the percentage of one-bedroom and studio
properties, yet it remains the only purchase opportunity closest to the CBD
for young middle-level executives and white collar employees. Developers in
this segment should be cautious about the potential for saturated demand in
certain locations, particularly for first-time developers. The report says
there is an imbalance in the midtown market that will need to be corrected.
CBRE believes that the Bangkok condominium market is set to grow further and
will encroach on the suburbs. The midtown market will face a situation where
a small condominium unit with proximity to a mass transit station will be
more expensive than a townhouse in the same general area and growing
competition for midtown and emerging suburban locations with lower prices.
This conflict will be resolved with sizing and market pricing and will
require in-depth market study to ensure feasibility. At present, the midtown
market is not a market for short-term speculators as the re-sale market will
be less liquid.
Office Market
With over 8 million sq.m. of office accommodation in Bangkok today, compared
to less than 1 million sq.m. 25 years ago, the office stock in Bangkok is
significant and 25% more than that of Singapore. The quality of standards of
the best buildings are now also on par with the world’s leading cities,
where new buildings are designed around the tenant’s needs to offer features
such as flexible floor plates and high-speed zoned lifts. The growing
eco-trend is also reflected in the increasing number of LEED certified
buildings with energy saving features.
The office market is moving into a period of robust health, and for the
first time in 20 years, the market is becoming a landlord’s market and the
first time in 5 years where take-up has exceeded 100,000 sq.m. per annum,
with further growth expected. At present, the market record rent is THB 980
per sq.m. per month at Park Ventures on Wireless Road, the highest level of
rent achieved in the past 25 years, even higher than the previous peak in
1992-1993 at THB 820 per sq.m. per month at Diethelm Towers, Wireless Road.
Office rents in Thai Baht terms will continue to appreciate, but still offer
extremely good value regionally. In many respects, says CBRE, Bangkok is a
natural regional base, particularly with the opening up of Myanmar. If a
regional office package incorporating work permits and visas, the transfer
of technology and tax benefits was improved by the government to attract
companies such as in Hong Kong and Singapore, the service sector could grow
significantly. Bangkok can offer regional companies a base for their
operators at a third of the cost of Singapore.
The footprint of the Bangkok office market is also evolving. It is no longer
just one CBD market, but a number of viable Secondary Business Districts
(SBDs) have emerged. For example, with the extension of mass transit
connections and retail in the north of Bangkok, the Ratchada area is
becoming the predominant choice for office locations compared to Vibhavadee,
which was once a popular area in the past before the mass transit system was
completed.
Land & Investment
Bangkok has lagged behind Hong Kong and Singapore in terms of transactions
of high quality tenanted, income generating investment property such as
offices, retail centres and hotels, with only one to two transactions
complete per year. With the advent of REITs, property funds and a higher
profile of the Bangkok market within the region, CBRE predicts this will
change. As an example, the company recently completed the transaction of
Liberty Square, a 40,000 sq.m 23-storey office building adjacent to Silom
BTS earlier this year.
However, with the office market on its’ rising cycle, most landlords of
Grade-A offices will hold on to their properties to capitalise on the high
returns. Buying opportunities may exist for older properties in a good
location, but will require renovation or refurbishment to enhance long-term
appreciation.
Competition for key land sites will always be fierce as evidenced by the
tender of Crown Property Bureau’s Suan Lum site. Within the land map of
Bangkok’s prime locations, there are clearly extremely valuable sites with
huge development potentials such as Makkasan and sites owned by government
organisations such as the state railway land and the port and tobacco
monopoly, which are mostly available on leasehold.
The current Thai law permits a maximum registered lease term of 30 years. In
CBRE’s view, in the modern property economy, 30-year leaseholds will become
increasing unviable as it would not be financially feasible for quality
large scale investments. The government and developers would benefit from
the extension of the 30-year lease to a maximum of 99 years. The market
would be healthier and perform better for both freeholders and leaseholders
and would encourage large-scale income producing projects and transactions.
A longer lease period would offer the ability for investors to purchase
long-term interests and allow for at least one redevelopment cycle,
following the patterns adopted in other markets such as Europe. The
extension of the leasehold term would also simplify the 30+30+30 leasehold
tenure and be of significant benefit to the residential sector.
Challenges &
Opportunities
CBRE says a challenge the property market must tackle is professional
property management. All too often, high quality developments fail to
appreciate on completion and deteriorate rapidly due to the lack of
expertise and insufficient budgets to maintain their values over the
long-term. Without good property management, properties which should become
an appreciating asset can become a depreciating consumer durable which is
illiquid.
Co-owners must realise the necessity of raising CAM fees in cases where the
budget is insufficient to manage and maintain a property effectively to a
high standard. It is vital to the property market to ensure long-term
appreciation where quality is sustained. For example, selected quality
buildings in Bangkok age significantly within less than 10 years, whereas
100 year old properties in Manhattan and London continue to appreciate and
remain prime investments.
Another challenging area says CBRE is property taxation. The tax system is
complex and does not support constructive growth in the market, both in its
approach on tax on rental revenue and upon property disposal. The current
taxation system neither benefits the investors nor the government. In many
circumstances investors are double taxed with the property tax on rental
income and personal income tax.
Amongst the challenges, the market also offers plenty of opportunities for
the years to come. With the integration of the ASEAN economies through AEC,
Thailand appears to be one of the most highlighted markets. Given its’
strategic location as a regional hub and proximity to borders of emerging
economies such as Myanmar and Laos, its property market stands to benefit in
various sectors from offices , serviced apartments and residential leasing
to hotels.
The opening of Myanmar has been particularly highlighted, where Thailand is
expected to be the principal beneficiary. At present, there is an extreme
shortage of serviced apartments, hotels and office space in Myanmar.
However, there is no clear market understanding by foreign developers, nor
land laws at present. There is significant potential for property
development and investment in the Myanmar market; however, there are huge
risks. The risks equal the rewards and CBRE Thailand is advising a number of
international parties for projects in these areas.
The CBRE report concludes by predicting that the market will always present
challenges and opportunities. The key to succeeding in any market condition
is the ability to adapt to the changing trends. CBRE says Thailand needs to
embrace the changes required to develop the market into a truly global
property market which attracts large-scale developers and investors, and no
longer remain inwardly focused.
For more information, visit the CBRE website at
www.cbre.co.th.
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Changing shape of Phuket’s residential market
Amari Residences Phuket.
Leading real estate consultant CBRE Thailand reports a
significant change of direction for the property market in Phuket, a trend
which started late last year. The change is likely to be the most
significant since the Asian crisis in 1997 and is driven by a number of
factors: namely the entry of Bangkok-based and Thai public listed
developers; the move towards smaller units resembling the Hua Hin and
Pattaya developments and a significant increase in the number of Thai buyers
in Phuket.
After a period of slowdown following the global crisis in 2008, the Phuket
market is now enjoying a new wave of activity. By 2011, the stage was set
for a change when Bangkok based, Thai public listed developers such as
Sansiri and Supalai entered the Phuket market in a significant manner. Their
first projects focused on the mass entry level market and were met with
instant success, selling out within days from launch to a predominantly
local Thai buyer base.
Laguna Shores.
The success of these projects has led a number of
developers to consider the viability in Phuket of Pattaya and Hua Hin style
developments which attract both Thai and foreign buyers. This model is
characterised by smaller unit sizes and significantly cheaper total unit
prices. CBRE believe this is the beginning of a new and sustainable market
for Phuket.
At the end of 2012, Laguna Resorts & Hotels Plc. launched Laguna Shores in
an almost beachfront location overlooking a lagoon within the Laguna Phuket
integrated resort development. The project features small unit sizes from
42sqm, with a starting unit price of under THB 4 million at launch. Up to
47% of the units were sold in Q4 2012 to a largely foreign buyer base.
This was followed in Q1 2013 by the launch of an absolute beachfront
project, Baan Mai Khao by Sansiri Plc. which has attracted significant Thai
demand for a Phuket project, due in part to the loyal following Sansiri has
in the Thai market. The launch of Baan Mai Khao also marks the emergence of
the Mai Khao area, already the location of several upscale hotels and an
area with growth potential that can be compared to the development of Bang
Tao in the early 1990s at the start of Laguna Phuket.
Another new project which recently began pre-sales is Amari Residences
Phuket, a hotel-serviced residence located in one of Phuket’s most prime
locations overlooking Patong Bay. Backed by Italthai Plc, the development is
fully managed and serviced by the existing Amari Phuket Resort, providing
rental management and offering a 6% guaranteed yield for the first 3 years.
The launch of these projects represents a significant change for the market
as they are being built by credible Thai developers who are not dependent on
immediate cash flow from sales to commence construction. These projects can
therefore be delivered on a timely basis and give buyers greater confidence
compared to projects built by first-time developers with limited funding.
The presence of these developers has also resulted in a marked difference in
the product being offered where developers bring their expertise from other
markets to Phuket. This is shown in the level of professionalism, quality of
show suites and marketing presentation which is setting a new benchmark for
the market.
Along with the shift in the developers’ profile, the market is also
beginning to attract Thai demand, particularly for Amari Residences Phuket
and Baan Mai Khao where the developers are able to draw on their track
record of success in Bangkok and other resort locations to secure Thai
buyers. A growing number of local investors are also looking for investment
opportunities beyond Bangkok, and Phuket is the ideal alternative with its
ability to attract the highest number of international tourist arrivals
after Bangkok and with an established infrastructure to support further
growth. Although the proportion of Thai buyers is still lower than Hua Hin
and Pattaya, this represents a significant change.
“Having been involved in the Phuket property market for the past 25 years,
this is the most significant change we’ve seen in the market since 1997,”
said David Simister, Chairman of CBRE Thailand. The changes have led to
renewed interest in the market by both developers and buyers, and the launch
of new projects after several years of slowdown. The new Thai demand also
reinforces the island’s position as Asia’s leading resort destination.
With the success of these projects and the ability to draw in Thai demand,
CBRE says it expects to see other Public listed developers entering the
market to launch new projects with smaller one-bedroom units. The total unit
prices in general will move to closer to Pattaya and Hua Hin, but as Phuket
is an island, there are finite physical boundaries and hence limitations on
future supply.
For the rest of the year, CBRE also believes there will be continued
activity for the entry level segment below THB 10 million, both for
condominiums, leasehold apartments and small villas in inland locations. The
top-end luxury villa market (THB 125 to 250 million), whilst limited in
volume, will still be sustainable in the long-term as Phuket still has
significant unique attractions. In addition to interest in new projects, the
secondary re-sale market in Phuket has also seen an upswing in the number of
enquiries and transactions.
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PACE’s MahaNakhon condos a hit with Dubai buyers
High-end Thai property developer PACE Development
Corporation PLC., recently announced it had firmed up sales exceeding 420
million baht for 10 luxury condominiums at its Ritz-Carlton branded
residences in Bangkok as a result of a 3-day road show conducted in Dubai at
the end of April.
An artist’s drawing shows the
completed MahaNakhon tower and mixed-used development in the Silom/Sathon
central business area of Bangkok.
The roadshow was the first ever conducted by a Bangkok luxury property
developer in Dubai to tap into the Middle East market and European
expatriates located there. The Ritz-Carlton branded residences will form
part of PACE’s landmark 19 billion baht MahaNakhon mixed-use development
rising in the center of the Thai capital.
Sorapoj Techakraisri, CEO of PACE Development said, “It was something that
no one had done before. But we were confident that the trip to Dubai would
attract buyers because the Middle East is very familiar with the
Ritz-Carlton brand and they know that it promises the highest specifications
and quality, services, and most importantly, first-class upkeep long after a
residence is sold.”
Sorapoj said that of the 10 luxury residences sold, seven were larger
2-bedroom residences, and three were 3-bedroom residences.
“Most of the buyers are expatriates interested in investing in Bangkok
because of excitement surrounding the approaching ASEAN Economic Community
(AEC). They find it reassuring to invest behind the Ritz-Carlton Residences
brand and an iconic building in an excellent location, which will become
Bangkok’s tallest landmark,” he said.
According to Sorapoj, many buyers are aware of Bangkok’s new rail
transportation infrastructure plans and that this has helped boost optimism
that Bangkok could become a center and gateway to the region.
“Middle East buyers also favour the luxury, mixed-use concept,” he said.
“They know from experience in Dubai that luxury brands located in the
mixed-use development also increase the value of residences in the same
property.”
A 77-floor pixilated tower (314 meters in height) will form the center-piece
of the MahaNakhon mixed-used development and will be the tallest building in
the country when completed in 2015. The project will include 200
Ritz-Carlton branded luxury residences and a 159-room boutique hotel.
Construction of the 7-storey CUBE Lifestyle and Retail Center, which is also
at MahaNakhon, has already topped off and will be open at the end of this
year. The CUBE includes some of the most premium names in dining and
entertainment, including Vogue Club, Dean & DeLuca’s flagship outlet, as
well as L’Atelier de Joël Robuchon, among others.
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