Property - Real Estate
HEADLINES [click on headline to view story]: 

The One Villas take root in Sattahip

Property developer confidence index hits record high 57.8

Counsellor’s Corner

Ratanakorn Properties looking forward to a ‘Fab-Feb’


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The One Villas take root in Sattahip

Sawittree Namwiwatsuk
Pacific Rim Rich Group Co., Ltd. has launched a 150 million baht development that will see the construction of 52 private homes in a natural setting in Sattahip.

Siri Chomchan, owner of The One Villas Pattaya development, addresses the assembled guests and media at the project launch party.
The One Villas Pattaya project will be built in two phases on 34 rai of land in Najomtien close to Khao Chichan. The first phase calls for 20 homes and is already half completed. The second phase, 20 percent complete, will see 32 home built.
Foreign residents are the target buyers with homes starting at 6.8 million baht each. Each will range between 185 and 220 sq. meters and five design styles are being offered, with two or three bedrooms each. Each home will also have a swimming pool.
Planners said the development will feature 24-hour security, well- and city water and a 10m. common-use area.
The project was launched in October and will take approximately two years to complete.

A show house at The One Villas project.


Property developer confidence index hits record high 57.8

Thailand’s property developer confidence index reached a record high of 57.8 in the fourth quarter of 2009, boosted by an increase in total sales, employment, and the launch of new projects, according to the Bangkok-based Real Estate Information Center.
Government Housing Bank president, Kan Prachuabmoh, acting in his capacity as chairman of the centre, said the index rose from 55.8 in the previous quarter and 36.3 in the same quarter the year before.
Sales, employment and project launches increased, particularly in December last year when property developers accelerated project construction, consumers rushed to buy in response to sales promotions, and commercial banks stepped up lending because state-supported ownership fees and mortgage reductions were due to expire.
In addition, at that time property developers needed to speed the activities to close their balance sheets.
Prachuabmoh said the confidence index in the next six months is expected to edge up slightly, showing the sector is confident the property market will improve in the near future as developers gradually inaugurate new projects.
However, he conceded that a spate of anti-government protests, fuel price fluctuations, and higher steel prices due to the substantial demand for steel in China remain key negative factors that need to be closely watched and understood. (TNA)


Counsellor’s Corner

Contract To Buy A Condominium Unit – What To Look Out For

David Tan
Question
I expect to buy a condominium unit in two months time and the seller is asking me to sign a Sale Contract now.  Before I sign the Contract, what contractual conditions should I look out for?
Answer
First of all, this Contract is not a sale of condominium unit (“Condo Unit”) contract, not in the eyes of the Thai civil law.  It is a contract whereby the seller promises to sell you the Condo Unit in two months time and you promise to buy the Condo Unit in two months time, better known as a TO sell and TO buy contract.  The Contract will provide for all the binding conditions between the seller and you until the time of ownership title transfer i.e. in two months time.
Furthermore, under Thai civil laws, a sale of a condominium unit only takes effect upon payment of full purchase price to the seller and the registration of ownership title transfer by an official of the Land Office.  These have not taken place yet.
The main contractual conditions which you have to look out for are:
(1) The seller agrees to transfer ownership title of the condominium unit to you at a specified date.  Otherwise, you have the right to claim for the damages for breach of contract. Also, any deposit money, first installment payment etc. paid towards the purchasing of the Condo Unit must then be returned to you;
(2) The seller covenants or gives warranty that the Condo Unit shall be transferred to you free and clear of any encumbrances, mortgages or charges;
(3) All drawing plans of the Condo Unit, building materials e.g. teakwood for walls in kitchen, brochures on the Condo Unit and other specifications of the Condo Unit are considered a part of the Condo Unit and this is defined in the Contract.  (Note: This is now a requirement under the Condominium Act No. 4 B.E. 2551 (2008).  Please see my article Contract Protection for Buyers of New Condo Units published in the Pattaya Mail newspaper on August 28, 2009; and
(4) The party that is responsible for payment of the transfer fee, income tax, stamp duty or specific business tax.  If these are not specified in the Contract, then the parties to the Contract will have to comply with the provisions under the tax laws i.e. you, the purchaser of the Condo Unit, is only responsible for 50% of the transfer fee.
If the seller is a married person and the Condo Unit is marriage property, the seller will have to produce a letter of consent from his/her spouse consenting to the sale of the Condo Unit.  
Note:
  David Tan is a Lecturer of Business Law at Asian University and author of the book “A Primer of Thai Business Law (Second Edition)”, available online at www.chulabook.com.  In Bangkok, the book is available at all Kinokuniya and Asiabooks bookstores.  Any questions on condominium unit purchase, sale or development should be e-mailed to Business Legal Advisory Services at: blas.inter@yahoo.com


Ratanakorn Properties looking forward to a ‘Fab-Feb’

Ratanakorn Properties are getting ready for a fabulous February and they have four great reasons to be optimistic. Although they have been around for over 16 years, many people are still not familiar with the company and its projects. This is all about to change however, and here are the reasons why:
Reason No 1 – Ratanakorn have just appointed Mukesh Thakkar as their Director of Sales and Marketing. Mukesh has now relocated to Pattaya from London to take up his new position.

Mukesh Thakkar.

Commenting on his new appointment Mukesh said: “Well, it started in November 2009 when I was asked on a consultancy basis to prepare a report for Ratanakorn on its position in the Real Estate market and set out objectives on the way forward for the company. I studied the local real estate market, looked at the other developers and their projects and spoke to many people who have been working here in the real estate business for many years. Equipped with all this information, I prepared a plan of action on short, medium and long term goals for the company.
“I concluded that firstly, the profile of Ratanakorn had to be raised to reflect the company’s position as one of the leading developers in Pattaya. Next a marketing plan had to be devised to give buyers and agents a greater awareness of Ratanakorn’s range of projects. I also identified a need to improve the marketing material and to create a corporate brand. Lastly, the company had to improve communication between agents, buyers and the sales team to make the process of buying easier.
“I presented my report to the MD, Tony Ruangratanakorn, and outlined exactly what I believed needed to be done. A few days later I was asked to come in for a meeting and was offered the position of Director of Sales and Marketing and a new sales office at TW condominium Plaza in Pattaya Centre.
“I have been selling Ratanakorn’s properties in the UK for the past 3 years and am very familiar with the company and their projects, this certainly made the decision easier. After careful consideration and discussion with my family, I decided to accept the position as it offered a fantastic challenge and an opportunity to work with one of the city’s leading developers”.
Reason No 2 – On February 1, Ratanakorn will open their new sales office in the Plaza at TW Condominium. The office will initially focus on servicing the Real Estate Agents in Pattaya with all of Ratanakorn’s completed and off plan condominium projects. The housing and commercial projects will be offered to agents at a later date.
Reason No 3 – February 1 will also see the launch of Ratanakorns latest project, Life Star City Tower. The 21 storey tower located in the heart of Pattaya City will be offered off plan for completion in the 3rd quarter of 2012. The tower boasts modern designs with the feature being the 15th floor Sky Pool incorporating: swimming pool, coffee shop, sauna and a golf putting green.
Reason No 4 – By mid February the showroom for Life Star City Tower, which is located at the new sales office in TW Condominium will be completed and ready for viewing. The showroom will give prospective buyers an example of the finish they will receive in Life Star City Tower when complete.
These are indeed four very good reasons for Ratanakorn to expect a Fabulous, February. It looks like we will be hearing a lot about Ratanakorn Properties in the future.