Ground breaking news from Novana Residence

The piling work is already underway for Novana Residence by The Nova Group.

Earlier this month saw the construction machinery arrive at Novana Residence, the inner-city development by The Nova Group.

The land is now cleared and piling work is already underway on the project that will take around 18 months to complete.

The development sits on 1.5 rai of land, within 50 meters of third road South Pattaya. The building itself has 8 floors, incorporating 259 units, with an amazing starting price of only 999,000 THB. All of the units will be tastefully designed, and all come with luxury bathrooms and kitchens as standard.

A spokesperson for The Nova Group added, “With this project we are introducing a straightforward path for our clients to make the right investment and own a piece of the action in downtown Pattaya, further refined with our easy payment plan allowing our clients to invest in a lifestyle of their choosing, combined with a realization of a long lasting profit from their holiday in Pattaya City.”

The Nova Group launched the project early last year and have already sold almost 80% of the units, but still have a number of very desirable pool view and city view units available.

For further information, or request a viewing, please call 038 713 338 or visit their website at www.novanapattaya.com

Centara Grand Residence Pattaya attracts high profile visitors

Vice President of Tulip Group Jason Payne (center) poses with David Good - Centara VP Operations (left) and Voytek Klasicki – GM of Centara Ras Fushi, Maldives (right) at the Centara Grand Residence Pattaya show suites in Na Jomtien, Pattaya.

Centara Grand Residence Pattaya is certainly grabbing the attention of a lot of people right now and those who visit the showroom certainly leave with a marvelous impression. The most recent high profile visitors were Centara representatives in the shape of David Good VP Operations and Voytek Klasicki – GM of Centara Ras Fushi, Maldives.

Vice President of Tulip Group Jason Payne was on hand to show them around and point out not only the stunning features of the Condominium units but also the Centara Grand Hotel that will be on-site.

General landscaping concepts, a convention centre and of course the room set up for the hotel were discussed and as with every other visitor David Good was hugely impressed with the project site.

“Centara is very pleased and proud to be associated with this very special development and look forward to working with the owning company to make it a success,” said David.

Two internationally branded hotels offered for sale

Courtyard Marriott Patong.

CBRE, a leading international property consultant in Thailand, has been appointed to sell two internationally branded hotel properties in two of Thailand’s most popular beach destinations: the Courtyard by Marriott Phuket at Patong Beach and the Courtyard by Marriott Hua Hin in the Gulf resort of Cha-am. A third separate asset, the highly profitable Hard Rock Caf้ and Shop, Patong is also for sale through CBRE. Thailand’s resort markets are enjoying another record high season, as Thailand reaffirms its dominance as Asia’s most popular repeat tourist destination for overseas visitors.

Despite recent flooding, Thailand enjoyed a significant surge in tourism last year, with visitor numbers totalling 17.1 million in the first 11 months of 2011 - an increase of 21.2% compared to the same period in the previous year. While tourist numbers from all major regions globally recorded double-digit growth, the number of tourists from North-East Asia increased the most, with a 34.3% jump to 4.3 million arrivals. Forecast visitor numbers for the whole of 2011 are predicted to be 18.6 million - 17.7% more than the total of 15.8 million tourists who visited over the whole of 2010. This trend is expected to continue into 2012.

Courtyard Marriott Cha-am.

The Courtyard by Marriott Phuket at Patong Beach and the Hard Rock Caf้ and Shop are located in Patong, the number one tourist destination on Phuket’s sought after West Coast. It is very unusual for such a prime freehold property to come to the market in Patong, particularly with the benefit that the property will be sold without the restriction of a long-term hotel management contract, giving the buyer complete flexibility in positioning the property to capture Phuket’s growing tourism market.

The hotel comprises 390 rooms situated in an unrepeatable location in the heart of vibrant Patong, within a few minutes’ walk to the beach. The property was extensively renovated in 2008 and is currently operating as the Courtyard by Marriott Phuket at Patong Beach which opened in May 2008, with the Hard Rock Caf้ and Shop opening in January 2009.

“We are extremely excited to take on these instructions. A hotel in this prime Patong, Phuket location is rarely made available to the market. Importantly, the hotel is not tied to a long-term management contract, giving owner-operators and investors the opportunity to introduce their preferred brand to the lucrative Patong market. In addition, the Hard Rock Caf้ and Shop can also be acquired and this part of the property is operated under an agreement with the Hard Rock Group. The Hard Rock Caf้ and Shop, Patong is one of the best performing Hard Rocks globally. The Cha-am hotel has been recently renovated and all 243 rooms have views over the Gulf of Thailand,” said David Simister, Chairman of CBRE Thailand.

Tourist arrivals in Phuket have grown from just over 1.5 million in 2006 to over 3.5 million in 2010, with total numbers for 2011 forecast to be in excess of 4 million. Patong is the single most popular destination for inbound tourists of all nationalities in Phuket. Patong no longer has a low season and tourist numbers are expected to grow further with the expansion of Phuket International Airport to double its handling capacity from 6.5 million arrivals annually to 12.5 million arrivals annually.

The Courtyard by Marriott Hua Hin is located in the southern resort of Cha-am. Long popular with Thais seeking a beach holiday within easy reach of Bangkok, the area is increasingly favoured by foreign tourists as more international hotel chains have been developed between Hua Hin and Cha-am.

The 4-star hotel is ideally positioned directly on the best stretch of beach in the area which is wide and sandy and suitable for swimming. It is also conveniently close to Cha-am, with the town’s many restaurants, shops and nightlife within walking distance. Fully renovated in 2008, this stylish 243-room hotel has a comprehensive range of quality hotel and conference facilities. Like the Phuket property, it is offered free of any management contract, thus giving the buyer the freedom to operate under any brand and take full advantage of Cha-am’s growing popularity as a tourist destination.

Centara soft-opens new hotel in Central Pattaya

Centara Hotels & Resorts has announced that its latest hotel in Pattaya, Centara Pattaya Hotel, soft-opened recently.

The hotel joins two other Pattaya properties that are currently open, and a third that is at present under construction.

Centara Pattaya Hotel is located on the corner of 2nd Road and Soi Sukrudee (Soi A.R.) in Central Pattaya, within a few minutes’ walk of the beach, and is a new-build property offering 152 rooms and suites, including family-friendly units.

“We are very happy to announce that Centara Pattaya Hotel has opened,” says Suthikiati Chirathivat, Chairman of the Executive Board, Central Plaza Hotel Public Company Limited. “This is another very significant step in our strategic development of the Pattaya market.

“The hotel is part of our core Centara brand, and complements our existing Grand and Boutique Collection brands in Pattaya. We therefore are widening our appeal in the market. Pattaya, we believe, has enormous potential for growth.”

Centara Pattaya Hotel general manager Austin Robinson says that the location is ideal for independent travellers, couples and families, and that the facilities of the hotel are designed to match the requirements of these different categories of guest.

“Becoming the latest member of the Centara family is very exciting for us, and my team and myself look forward to welcoming and serving our guests,” he said.

Amongst the hotel facilities are a large swimming pool and dedicated pool bar, a fully equipped fitness centre, and a kids’ club that provides two different activities zones, one for the young ones and one for teens.

The hotel’s all-day dining restaurant, Mix Bistro, seats 120 guests and offers a comprehensive a la carte menu combining International cuisines and authentic Thai flavours together with a buffet breakfast to be enjoyed either indoors or by the terrace overlooking the swimming pool.

The Lobby Bar has a deli section and serves drinks and snacks, while the Blu Pool Bar offers tropical cocktails, refreshments, draught beers and a variety of made-to-order snacks and sandwiches.

The hotel is equipped to handle meetings and presentations, with a meeting room that can hold up to 120 persons seated theatre-style, 90 people in a classroom set up and 150 persons for a reception.

Centara Hotels & Resorts is Thailand’s largest operator of hotels, with 38 deluxe and first-class properties covering all the major tourist destinations in the Kingdom. A further 16 resorts in the Maldives, Philippines, Vietnam, Bali Indonesia, Srilanka and Mauritius Indian Ocean, brings the present total to 54 properties. Centara Hotels & Resorts also operates two state-of-the-art convention centres in Bangkok, and one in Udon Thani in northeastern Thailand.

Top-end condominium prices continue to rise

Higher quality and limited development sites pushing prices up in Bangkok

The Woodlands tropical swimming pool.

Prices of top-end condominiums in both completed buildings and off-plan projects in Bangkok’s central business district (CBD) continue to grow. Despite slower sales and high levels of new supply entering the market over the past years, rising development costs and sustained demand have driven price growth, according to Jones Lang LaSalle, a professional services firm specializing in real estate.

Suphin Mechuchep, Managing Director of Jones Lang LaSalle, said “Though top-end condominiums are only a small segment of the market and are not necessarily representative of the Bangkok condominium market as a whole, we have discovered some interesting movements in this sector. Generally, the sector has continued to perform fairly well. Though demand from foreign buyers has not yet fully recovered, interest from this group has picked up since the conclusion of the national elections last July. In addition, Thai buyers remain active with most of the recent purchases being made by high net worth Thais who are buying for their own occupation or as an investment.”

Jones Lang LaSalle observed that recently completed developments are enjoying an average sales rate of approximately 85% while newly launched projects have witnessed the lower average sales rate of 50%, which is a relatively healthy rate when taking high levels of new supply that have entered the market over the past years into account.

Data from Jones Lang LaSalle revealed that the number of top-end condominiums in completed buildings across Bangkok’s CBD rose from 10,324 at the end of the first quarter of 2006 to 21,464 at present. An additional 3,867 units are expected to be completed between now and the end of 2013.

Prices on the rise

According to Jones Lang LaSalle, top-end condominium units in some completed developments have enjoyed price increases by as much as 40% over the past three years. Certain newly launched projects are offering prices ranging between THB190,000 and THB230,000 per square meter, compared to a price range between THB150,000 and THB200,000 per square meter offered by comparable new projects launched in 2010. Units in prime locations within the CBD such as Ploenchit, Witthayu, Langsuan, Saladeang and Sathorn areas where land for new developments is becoming scarce fetch the highest prices.

While sustained demand provides room for price increases, higher development costs, mainly including land and construction costs, have been another major factor that are pushing up prices of new condominiums.

With new commercial and residential developments having mushroomed over the past years, vacant land and sites for redevelopment in Bangkok’s CBD have become increasingly scarce. In addition, most developers of top-end condominium projects are aiming for the highest quality. All these have contributed to the rise in condominium prices,” Mrs. Suphin explained.

Government’s plan to raise minimum wage expected to push up construction costs

Many developers are positioning to increase prices of their residential units as a result of higher prices for construction materials and rising labour costs. Steel prices, which are up by 10% since early last year, are having the greatest impact on condominium prices relative to other residential developments. The prospective increases in the minimum wage will also have a direct impact on construction costs.

“With the government’s plan to raise the minimum daily wage to THB 300, residential prices are likely to rise further as development costs would inevitably increase. Some pundits forecast a 5-7% increase in the prices of new condominiums,” said Mrs. Suphin.

“Despite the recent cut in Oil Fund levies which has led to lower transportation costs, there is no guarantee that prices of construction materials will be lowered. In addition, if the new wage plan materializes, construction material manufacturers would likely be affected,” she added.

Stimulus measures unlikely to affect
top-end residential market

After the Bank of Thailand imposed mortgage limits in early 2011, condominium buyers are reportedly holding off on purchases until new stimulus measures initiated by the newly formed government take effect. One of the notable prospective policies is the three-year 0% interest loan for first-time homebuyers. However, all these measures are unlikely to have an impact on the top-end condominium market.

Most people who bought top-end condominiums are not first-time homebuyers. While the government announced intentions to launch measures to help home buyers, we anticipate that these measures would be aimed mainly at providing help to homebuyers in the middle to low end segments,” Mrs. Suphin comments.

Outlook

Jones Lang LaSalle believes that prices of top-end condominiums in Bangkok will rise further despite stronger competition. This is because developers are well capitalized and remain confident that rising development costs and product quality justify prices.

Although foreign interest has been rising since the conclusion of the July elections, due to the global economic outlook remaining shaky, Thai buyers will continue to be the main source of demand, lured by rental income, low interest rates and the desire to purchase property as an inflation hedge.

CW Asset finds condo buyers like the resort concept

Giving purchase incentives, like free furniture, is very popular with local condo developers at the moment. In some projects there is much more than furniture that is offered to the buyer as an incentive to make a purchase. Some projects offer what you could call turn-key condominium residences. These turn-key projects have mostly billed themselves as resorts. The resort concept appeals to those condo buyers that want a getaway in Pattaya, a second home, where you don’t have to worry about anything. Just show up on the day of ownership transfer, with your suitcase and almost everything is already in the new condo.

Competition is driving condo purchase incentives. As the competitive nature of the ever increasing number of local developers grows, we are sure to see greater numbers and varied selections of purchase incentives. CW Asset has hopped on the purchase incentive band wagon and now offers units at their Bang Saray Beach Condo project as either furnished or unfurnished. Purchase a furnished unit and start living stress free as soon as you are ready to occupy the condo. Want to save some money then choose the unfurnished option. It is real freedom of choice.

CW Asset has a new second condo project in Bang Saray called CW Ocean Condo. This project goes further to satisfy the buyer with many options and choices. It seems that the resort concept of providing everything including even a washer/dryer combo has a lot of appeal. For the buyer that wants to save money though, CW Asset also offers unfurnished units.

There has been a definite rise recently in the number of Thai condo buyers. It seems now the majority of condo buyers are looking for instant gratification and want a finished product. This is especially true for Thai buyers. Developers are finding that now with excellent financing opportunities, Thai buyers are more active in the local condo market than ever before. To accommodate their purchasing objectives, developers are offering a wide variety of fully furnished condo units. It is an interesting trend, expensive for developers and excellent value for buyers.

The new top local condo trend is that developers are offering more one bedroom units. In the new CW Ocean View Condominium (CWoceanCondo.com), fully furnished one and two bedroom ocean view units start at 990,000 Baht. Many local developers have started offering more one and two bedroom designs. It is an interesting trend. CW Asset has also shifted to developing one and two bedroom condo projects with rooftop pools. For more information contact CW Asset Co., Ltd. (English) 085 272 8338, (Thai) 085 272 8228, www.cwasset.com, E: [email protected]

(By Imorn Luekhamharn)

ZEN launches new project at The Park

The Park’s tropical swimming pool.

The Chinese new year of the Dragon just celebrated is meant to be one of prosperity and strength for new enterprises.

It seems to have started well in one of Jomtien’s most desirable and unique projects.

ZEN, a new project supported by a strong international finance and management team is launching its first building inside The Park, in collaboration with the current owner.

A ZEN representative explained why they had chosen The Park: “This part of Jomtien is clearly developing into an excellent neighborhood and we were looking for something special for our investment. The Park has that quality. It just makes you fall in love with it the moment you drive in. It has the location, the tranquility; it is the ideal place to develop our concept.”

This new building will feature one and two bedroom units, designed to adapt to the current market demand, with top quality finishings. The condos will be sold fully furnished and equipped.

Starting at only 899,000 Baht as a promotional launching price, they present an incredible opportunity to own a property in The Park’s luscious private compound.

Purchasing terms have also been set up with the buyer’s comfort and security in mind, with only as little as a 15% deposit, with another 30% that will be paid in installments over 24 months.

Customers also will have the opportunity to win a luxury C Class Mercedes Benz Avantgarde.

Construction is scheduled to start in June of this year and completion of the building will be in 2014

Show units are available for viewing on site. For more information you can also visit www.zeninthepark.com or call 038118 432 (Eng.) 038118 433 (Thai) 038118 434 (Russian).

Can your heir inherit your freehold condo - are you sure?

If you are a foreigner who has purchased a condominium unit on a freehold ownership basis in Thailand, you may be under the impression that part of the value you purchased was the peace of mind in knowing that you could easily leave the unit to your heir. However, if your heir is also a foreigner then, unfortunately, this is only partially true. Thailand’s well known stringent restrictions on foreign freehold ownership of immovable property also curtail if and how a foreigner can own an inherited freehold condominium unit.

Thailand’s legislation on condominium ownership is laid out in the Condominium Act (1979) and as further amended (the “Condominium Act”). Only under certain conditions does the Condominium Act allow foreigners to own a freehold condominium unit. Perhaps the best known current foreign ownership restriction is the “49% foreign freehold quota”; with very limited exceptions, foreign freehold ownership cannot exceed 49% of the total floor space of a condominium project in Thailand.

Furthermore, pursuant to Section 19 of the Condominium Act, even where foreign freehold space is available, only foreigners who meet one or more of the following conditions are entitled to receive a freehold title to a condominium unit in Thailand, regardless of how they received the unit:

1) Any foreigner permitted to permanently reside in the Kingdom under the Immigration Act;

2) Any foreign immigrants permitted to enter the Kingdom under the Board of Investment Act;

3) Any alien juristic person registered under Section 97 and 98 of the Land Code;

4) Any alien juristic person qualified under the 24 November 1972 Announcement of the Revolution Committee No. 281 and which has had a Board of Investment Certificate granted under the Board of Investment Act; or

5) Any alien or alien juristic person who has brought foreign currency into Thailand or who has withdrawn Thai Baht currency from their foreign resident Thai Baht account or who has withdrawn money from a foreign bank on deposit in Thailand. [Pursuant to Section 19 ter (5) of the Condominium Act, the amount of currency required under this paragraph (5) is defined as “not less than the price of the unit to be purchased”.]

The Condominium Act outlines clearly that any foreign person who does not fulfill at least one of these conditions is not entitled to own a condominium unit in Thailand.

What does this mean with regard to inheritance? Obviously, if you are a foreigner and your heir is a foreigner then, the 49% quota would not be an issue as the unit would pass from one foreigner to another maintaining the same foreign/Thai ownership ratio before and after inheritance. However it is quite possible, even quite likely, that your foreign heir might not meet any of the additional Section 19 criteria for foreign freehold ownership of a condominium. In such case, while your heir may have legally inherited your condominium unit, they will not be legally eligible to continue owning it and Section 19 septem of the Condominium Act, as follows, would then be applicable:

All foreigners not qualified under Section 19 who receive the condominium unit either by inheritance or in any other way, must report the matter to the relevant administrative official within 60 days from the date they receive such property and they must then sell the property within one year from the date they receive it, otherwise, the provisions of Section 19 quinque shall be applied mutatis mutandis.

Section 19 quinque of the Condominium Act provides that if the said foreigner fails to sell the condominium unit within the time allotted, the Director of the Land Department shall have the right to sell the unit.

Thus, if your condominium unit is inherited by your foreign heir, such heir must inform the land officer at the Provincial Land Office or the Branch Land Office respectively where the condominium is located within 60 days of such inheritance. Then, if your foreign heir does not meet the criteria under Section of 19 of the Condominium Act, such heir must comply with Section 19 septem Condominium Act and either sell the condominium unit themselves or face having the Director of the Land Department sell the unit. Note, however, that your foreign heir would have up to one year after inheriting the unit to either sell the unit or comply with Section 19. Most likely the best, if not the only, option for your heir to comply with Section 19 would be for your heir to then transfer the relevant foreign currency into Thailand. After such transfer your foreign heir would then be entitled to continue to own the freehold condominium unit in perpetuity.

(Article written by Duensing Kippen law firm: www.dktaxandlaw.com)

Property developers head for the hills in Hua Hin

This photo shows a property at the Banyan Village and Golf Resort in Hua Hin. (Photo/Banyan Hua Hin)

Hua Hin inland area is now a key focus for developers due to increasing land costs in the coastal areas according to a property report on the Hua Hin residential market by Colliers International Thailand.

Supply overhang in Hua Hin inland risks being exacerbated by an influx of new supply over the coming years. Good quality developments can overcome this challenge.

Retirement communities could be an important niche for the market in the coming years due to retiring babyboomers from Europe and an increasingly aging Thai population. Hua Hin’s mountainous location close to the sea is a compelling one.

The average selling price in the Hua Hin Coast area is the highest at more than THB 78,000 per sq m., although the maximum selling price in the area is approximately 150,000 per sq m and the minimum price starts at THB 46,000 per sq m. Cha Am records a similar average figure as many of the projects are located closer to the sea than in Hua Hin and in close proximity to the centre. Hua Hin Inland has lower prices due to its distance from the coast and the less well known developers while the remoteness of Pranburi accounts for the lower prices in that district.

The growth of new retailing centres in Hua Hin means the district is becoming ever more popular for visitors and Cha Am risks being left out of the tourist rush due to the lack of attractions and a centre.

Condominiums represent by far the main source of supply in the Hua Hin - Cha Am - Pranburi area. Landed development only really took off in 2006 after developers looked at land away from the coast and into the hillsides targeting the foreign market for villas and affordable second homes for Thais. Coastal locations have always been most sought after and therefore high land prices mean that condominiums become the most feasible option.

As land prices increased in the coastal areas after the recovery from the Asian Financial Crisis, developers looked elsewhere for suitable land and hence the growth of the inland areas of Hua Hin. Either these were in the less attractive lowland areas catering to lower income buyers or in the hills often with a sea view that were in the higher priced brackets and targeted European buyers.

Are “Little Switzerlands”
a thing of the past?

It sounded like a recipe for success. Develop a villa development on land in the hills above the coast of Hua Hin and target one nationality. Hence “Little Swedens and Germanys were created which allowed for easy communication through a common language and a feeling of togetherness.

The reality is somewhat different according to Antony Picon, Associate Director of Research at Colliers International Thailand. “These communities are somewhat isolated and residents’ social lives can often be limited to a small group of people and personality clashes result”, he said.

Picon pointed out that within the communities there can be peer pressure to act the same way like they do in their own countries. “People choose to live away from their home country for many reasons and escaping from the confines of their home country is one of them but they end up out of the frying pan into the fire”, he added.

In fact high net worth individuals tend to gravitate towards multinational projects even into retirement. Picon believes that such buyers are normally very international in perspective and comfortable in more than one language. “They are more than happy living with people from different nationalities due to their previous cosmopolitan lifestyle and this enhances their experience of living in such communities”, he pointed out.

With such nationality based developments starting to be out of favour, residents find it tough reselling their units. “It would be difficult selling a unit in little Sweden to someone outside that country for example”, Picon added.

Ghost towns and
construction sites

The image of a villa in a pleasant community in the mountains overlooking the coast of Hua Hin might be a picture of paradise. However this image can be put sharply out of focus due to phasing of the project and the neglect of a proper rental system according to Antony Picon.

The first problem relates ironically to an event that happened far away in Phuket in 2004. “After the tsunami that ravaged the island many developers turned their attention to alternatives, especially Samui and Hua Hin”, said Picon. This led to much land acquisition and the launching of new projects including villa developments in the hillsides. However Phuket bounced back, western currencies fell and Lehman Brothers happened.

“This pulled the rug under the market and developers were left with a mix of completed and partly constructed units and plenty of unsold land”, Picon said.

The market has picked up and people are buying again but not to the same degree. There Picon is concerned with the livability of various projects. “The market is likely to simmer for some years and so you are likely to see ongoing construction within projects for some time to come. What this means is that an occupier of a villa will have the vision of his “paradise” home being surrounded by rebar, cement and construction workers for the foreseeable future”, he warned.

Some developers are also focusing too much attention on sales and construction with rental programmes being an afterthought and this could spell problems in the future according to Picon. “The main concern is that buyers do not put their units into a rental programme and then only visit their properties for a few weeks a year in many cases”, Picon explained. When many buyers act in a similar fashion then for most of the time the development will be deserted.

Picon pointed out that for any resident or renter who remains this can be a depressing experience. “They like to be in a quiet and peaceful environment but not a deserted one and the atmosphere can become eerie and such a ghost town effect will create a vicious circle with the remaining residents packing their bags”, he added.

Picon suggested a proper rental programme is put in place from the start and buyers urged to take this up or even in some cases buyers having only the option of a pooling system with a time limit put on their own use of the property. Another option is for a certain number of units to be retained by the developer or an investor for rental purposes only.

The Scandinavian
connection in Hua Hin

The district of Hua Hin is particularly attractive to Scandinavian visitors accounting for nearly 44% of foreign hotel guests in 2010. Also in terms of residential purchases this group accounts for the biggest market although interestingly Sweden, Norway and Denmark represent a significant buying market but not Finland, despite recording the highest number of visitors out of the four countries.

There are a number of reasons for the connection according to Patima Jeerapaet, Managing Director of Colliers International Thailand. “Scandinavian travel operators were particularly active in Hua Hin in the 1990’s and the Swedish monarch Carl XVI Gustaf makes regular visits to Hua Hin thus cementing a strong bond between the two countries” he said.

In general Scandinavians tend to be more family orientated but independent minded and also prefer the outdoor lifestyle. “This is what could lead them to Hua Hin rather than the other more commercial resorts in Thailand” added Patima.

As a result not only are many Scandinavians purchasing property in Hua Hin but also a number of developers hail from the region. The social security systems in these countries allow for generous retirement provisions and this will mean that many of the retiring babyboomers in Scandinavia will have the capital to buy a second home in order to escape the Arctic winter weather. (Source Colliers International Thailand).

Matrix hits the mark with Amazon and Vision

It’s been three months now since property developers Matrix MR Co. Ltd. hosted one of the most talked about events in Pattaya of 2011 - the lavish Hollywood style launch party for their Amazon and Vision condominium projects held at the Centara Grand Mirage Beach Resort. Whilst in the aftermath of the party the intervening period appears to have passed relatively more sedately, the company has been busy behind the scenes securing the necessary EIA documentation and approval and construction is expected to start on both developments imminently.

The View condominium development by Matrix is due for completion in the next few months.

Whilst the dotting of i’s and crossing of t’s has been taking place, Matrix have been reaping the rewards of their successful marketing campaign and competitive pricing structure and have already sold a large percentage of units in both projects off-plan.

The Amazon is modeled on similar lines to the company’s earlier developments, Park Lane and Paradise Park, but with an even greater emphasis on greenery and landscaping features while the Vision represents a departure from the company’s recent low-rise large lagoon pool style projects, with its sleek architectural design destined to grace the Pattaya skyline from its lofty and exclusive position on Pratumnak Hill.

The company is not standing on its laurels either; another project is being lined up for construction in downtown Pattaya that will cater to the needs of customers who desire a more central location.

Meanwhile, other developments under the Matrix banner are preparing to accept their first residents, with Paradise Park in Jomtien, The View at Cosy Beach and Sunset Boulevard Residence II being close to completion and the Art on the Hill project already up to the eighth storey of construction.

The View was originally slated for completion in September but now the company expects the project to be finished by the end of first quarter 2012, while Sunset Boulevard has a target date of May 2012 for the building work to be concluded and units fitted out.

Matrix take particular pride in always delivering their projects on time, as the majority of their customers are end users who are waiting to move in, and therefore time management is a critical element in both the construction phase and customer service ethic held by the company.

With all the current projects either ahead of or on schedule and new ones about to break ground, it seems that Matrix is a company that holds true to its promises and is destined to be a big player in the Pattaya real estate scene for a long time to come - one of the many reasons they were awarded the prestigious “Best Developer South East Asia” title by the Overseas Property Professionals (OPP) in London last year. We certainly expect more exciting developments from this company in the not too distant future.

For more information on Matrix and their various projects, go to website: www.realestatepropertypattaya.com.

China commercial property sectors continue to outperform in 2012

According to the latest report released by property management company Knight Frank, despite uncertainties in the global economy, positive outlook about China’s economic growth will lift demand for quality commercial properties on the Mainland. Frank Knight expects the uptrend of rents and prices of commercial properties in first-tier Chinese cities will continue in 2012. The rents and prices of Grade-A offices are expected to grow 15% and 10% respectively in Shanghai, followed by Guangzhou and Beijing in 2012.

In the residential market, the Chinese government is unlikely to launch further tightening policies, says the report. Prices will only adjust slightly this year. Although the transaction volumes of luxury flats will decline significantly, rents and prices in Shanghai and Beijing will increase slightly, while those in Guangzhou will remain stable.

Thomas Lam Ho Man, Head of Research at Knight Frank in Greater China, says “in Hong Kong, we forecast that the current downtrend in Central Grade-A office rents will continue in 2012. In the residential market, mass home prices are likely to drop 10–15% in 2012. However, with continued tight supply, luxury residential properties are likely to perform better, with price declines limited to 10% in 2012. Retail properties will continue to outperform other property markets in 2012 and retail rents are expected to continue their uptrend in 2012, albeit at a slower pace amid the risks of a worsening global economy.”