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Raimon Land to showcase exclusive Thai condominiums at Russian Fashion Week
Luxury developer Raimon Land is attending Russian Fashion
Week (RFW) in Moscow for the first time to present the company’s exclusive
projects in Thailand to the rapidly growing Eastern European market.
 Nigel
Cornick.
RFW, a biannual event now in its seventh year, is the largest fashion week in
Eastern Europe, with 40,000 highly targeted invitation-only guests attending the
eight-day event from October 28 to November 4 at Moscow’s World Trade Centre.
Raimon Land Chief Executive Officer, Nigel Cornick, said RFW provides the
perfect platform to showcase the company’s high-end projects in Thailand to
wealthy buyers from Russia and CIS markets, which last year purchased THB426
million in real estate from Raimon Land.
“What Russians and Eastern Europeans are increasingly finding is that Thailand
offers an excellent investment landscape for luxury property, as purchases
provide strong long-term capital gains and rental yields at destinations
delivering great tropical resort lifestyles,” Mr. Cornick said.
Sales since 2006 reveal Russians and CIS residents purchased THB745 million
worth of real estate from Raimon Land. Of the total Raimon Land units purchased
by Russians, 60% are studios and one-bedroom units, 23% have two bedrooms and
17% have three bedrooms. The majority of these units are priced under THB8
million (53%), while 19% spend more than THB15 million.
The number of Eastern Europeans visiting Thailand has soared in recent years,
jumping 65% in 2006 and another 45% in 2007, when 410,000 arrived, 280,000 of
who were Russians.
Tourism numbers are closely linked to foreign demand for residential property,
and the Raimon Land’s 2007 sales list shows Russians accounting for 23% of all
condominium purchases from the company.
The destination choice for Russian and CIS buyers also aligns closely with those
of their preferred destinations in Thailand, with 63% purchasing properties in
Pattaya, 28% in Phuket and 9% in Bangkok.
Does a 90-year lease
of land exist in Thailand?
David Tan
This is possible if the plot of land is not sold to another new owner or
the land owner stays alive long enough to renew your lease terms. Other than
this, it is fallacious to think that you can lease a plot of land for 90 years
under Thai civil laws.
Under Thai civil laws, a long-term lease of a plot of land can be up to a
maximum lease period of 30 years. The law also provides for leasing land for the
life period of the land owner or the lessee.
A 30-year lease of land is a long-term lease and has to be made in writing,
signed by the lessor and lessee and registered at the district Land Office in
order to be legally enforceable. In Thailand any lease of immovable property for
more than 3 years must be registered. The registration of the 30 years lease
period at the district Land Office means that you, the lessee, has the right to
use or benefit from the plot of land for the registered 30-year lease period. No
other third party would be able to use or receive benefits from the land for the
30 years.
If the land had been bought up by a new owner during the 30 years, this new
owner is binding to your 30-year registered lease i.e. allow you to lease the
land for the registered lease period. In legal language, you have a real right
over the land for the registered 30 years.
Any promises to renew the 30-year lease term for another 2 x 30 lease terms are
just promises agreed upon between the land owner and you. An example of such
personal promises can be a stipulation in the lease of land contract: “The
lessor agrees to renew the lease for another two 30-year lease terms.” Besides
the lessor and yourself, no other person is contractually binding to these
renewal promises. A third person is not a party to these promise agreements.
Therefore, when the plot of land is sold to a new owner, the new owner is not
binding to the promise to renew the lease at the end of the 30-year registered
lease. If the land owner dies, the promise dies too, whoever is the land owner
at the end of the 30 years is not obligated to renew the lease as well.
Tip
One of the recourses would be to lease the plot of land for only 30 years.
Register the written and signed lease of land contract at the Land Office.
Alternatively, you may want to consider purchasing a condominium unit(s).
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David Tan is a lecturer of
Business Law at Asian University and author of the book “A Primer
of Thai Business Law”, available online at www.chula book.com or
at Kinokuniya, Asiabooks and Bookazine bookstores. Any questions or
comments to David should be sent to [email protected] |
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