Investing in Niseko
New visions for Asia
WATG Architects latest projects
Branded hotel properties The rise in big name residences
MCI (P) 102/01/2013
Ski properties in Japan
Issue 102 March 2013
S$8, RM20, IDR70,000, THB200, HK$60, PHP350
New London opportunities
Battersea Power Station
Weekend restoration
Renovating a heritage home in Sri Lanka
Singapore market moves
Investor responses to government cooling MARCH 2013
|1
KDN PPS 1662/10/2012 (022863)
Luxury real estate, architecture and design
2 | MARCH 2013
MARCH 2013
|3
4 | MARCH 2013
MARCH 2013
|5
6 | MARCH 2013
MARCH 2013
|7
8 | MARCH 2013
MARCH 2013
|9
10 | MARCH 2013
Your Home in Orchard Road Singapore’s Finest Address ION ORCHARD
NGEE ANN CITY
WISMA ATRIA
PARAGON
EXCLUSIVE PREVIEW VISIT OUR SHOW FLAT AT FOR ENQUIRIES AND LEONIE HILL, SINGAPORE APPOINTMENT: OPENS DAILY 10AM TO 7PM +65 9229 2322 +65 6440 6633
Jointly Developed By:
TG Development
ARCHITECT: LAUD ARCHITECTS; DEVELOPERS: TG DEVELOPMENT PTE LTD & TEE DEVELOPMENT PTE LTD; DEVELOPER’S LICENCE NO.: C0668; TENURE OF LAND: ESTATE IN FEE SIMPLE (FREEHOLD); LOT & TS NO.: LOT NO.:0194A, 0196N, 1170N-PT(SL), 0868M-PT(SL)/TS 27; BUILDING PLAN NO.: A53900055-2008; EXPECTED TOP DATE:MAY 2015; EXPECTED DATE OF LEGAL COMPLETION:MAY 2018
MARCH 2013
| 11
12 | MARCH 2013
MARCH 2013
| 13
14 | MARCH 2013
MARCH 2013
| 15
PUBLISHING EDITORIAL Issue 102 MARCH 2013
TERRY BLACKBURN JULES KAY SOFIE LISBY LIAM ARAN BARNES REBECCA FOSTER AUSANEE DEJTANASOONTORN PISINEE CHERNGSAARD JIRAWADEE SANGRAYAB RAWIWAN SRISUMPHAN PIYANUN POBSOOKNAITUM SUPHATRA PAKDEEWIROJ CHRISTINE MAY ABEJO SERENE LIAM NIXON SALIMBANGON CHANIDA CHANKRAPOE NITA ISMAIL
CHIEF EXECUTIVE OFFICER terry@ensign-media.com MANAGING EDITOR jules@ensign-media.com DEPUTY EDITOR sofie@ensign-media.com ASSOCIATE EDITOR liam@ensign-media.com EDITORIAL ASSISSTANT rebecca@ensign-media.com ART DIRECTOR ausanee@ensign-media.com SENIOR GRAPHIC DESIGNER pisinee@ensign-media.com BANGKOK, PATTAYA, HUA HIN ACCOUNT MANAGER jirawadee@ensign-media.com ACCOUNT EXECUTIVE rawiwan@ensign-media.com ACCOUNT EXECUTIVE piyanun@ensign-media.com ACCOUNT EXECUTIVE PHUKET, PHANG NGA, KRABI AND SAMUI suphatra@ensign-media.com ACCOUNT EXECUTIVE INTERNATIONAL MARKETS christine@ensign-media.com SINGAPORE, BUSINESS MANAGER serene@ensign-media.com PHILIPPINES nixonsalimbangon@gmail.com SUBSCRIPTIONS and DISTRIBUTION (THAILAND) chanida@ensign-media.com SUBSCRIPTIONS and DISTRIBUTION (SINGAPORE) nita@ensign-media.com ENQUIRIES, COMMENT, LETTERS Editorial Submissions
editorial@property-report.com GENERAL info@property-report.com
Ensign Media Co. Ltd. SINGAPORE : 39 Arab Street #03-01, Singapore 199738. t: +65 6744 6903; f: +65 6744 6910 BANGKOK:55 BIO HOUSE BLDG, 5th Fl., Sukhumvit Soi 39, Klongton Nua, Wattana Bangkok 10110. t:+66 (0) 2662 5195; f: +66 (0) 2662 5198 PHUKET : 23/4 Moo 3, Kwang Road, T. Vichit, A. Muang Phuket, Phuket 83000. t:+66 (0) 7626 4756; f: +66 (0) 7626 3561 www.ensign-media.com 16 | MARCH 2013
Property Report is available throughout the region (and in Hong Kong) in bookshops and newsagents, and at leading hotels, serviced apartments, golf courses and airline lounges. While every care has been taken in the production of this publication, the publisher takes no responsibility for any errors, loss or omissions that may occur. Currencies quoted are for information only. No part of this publication may be reproduced without written permission of the publisher. All rights are reserved.
MARCH 2013
| 17
EDITORIAL
As Asian economies continue to expand and establish themselves as the world’s new economic force, the competition for regional consumers’ loyalties is heating up. Established (mainly western) global brands have long been targeting key Asian markets like China and Singapore, where a meteoric rise in wealthy customers offers them profitable refuge from the stagnation in Europe and the USA. More recently, the net has been cast even wider to cover emerging economies like Indonesia, Thailand and the Philippines, and the global brand influence has also expanded outwards from the retail sector, moving into hospitality and real estate. For sophisticated consumers and property buyers, global brands tend to represent a quality stamp, a benchmark by which other products and services are measured and a assurance of consistency and lasting value. Yet brands also benefit from powerful marketing engines and invest large sums on building a loyal customer base that is willing to pay for the privilege of inclusion. In the West, global brands have superseded smaller firms to the point where they dominate the market in a significant range of commercial sectors. As most of these firms are from Europe and the US, some Asian companies may perceive such pervasive influence in the East as a form of economic colonisation. However, Asia is by no means a newcomer to the global market, and perhaps predicting the inevitable brand invasion, as western economies faltered, large Asian corporations were swift to stake a claim in established corporations that offer the world everything from luxury cars to beverages, and build large scale retail developments and mixed use hotel projects. The branding of Asia is unstoppable. The onus now is on the region’s new wealthy consumers, who must negotiate the hype and make purchase decisions that serve their real needs as much as their desires and aspirations.
Jules Kay Property Report jules@ensign-media.com
Cover Photo:
Ivanka Trump (Photo courtesy of The Trump Organization) 18 | MARCH 2013
PHUKET’S BEST CONDOMINIUM DEVELOPMENT
MOVE IN TOMORROW VISIT OUR COMPLETED DEVELOPMENT NOW AND SEE FOR YOURSELF WHY MANDALA CONDOMINIUMS a collection of 24 over-sized pool apartments located next door to Phuket's prestigious Laguna area has been named Best Condo Development (Phuket) at the 2011 Thailand Property Awards. Move in tomorrow. SALES FINANCING AND RENTALS ARE AVAILABLE.
www.baanmandala.com
sales: +66 (0) 87 034 2090
info@baanmandala.com
LONG TERM RENTALS AVAILABLE FROM THB 80,000 PER MONTH
MARCH 2013
| 19
EDITORIAL
As part of the Lunar New Year celebrations, I was talked into having my palm read. Sitting on a straw mat inside a dark den in Bangkok’s China Town, I was told I have a long and healthy life ahead of me, only interrupted by short bouts of sorrow. Although that’s probably something I should be happy about, it seemed a pretty standard message to me, also one that seems to be used quite often to describe the region’s property market. Looking into the metaphorical palms of the property market analysts, it is clear that Asia is de rigueur with investors and that this looks set to continue well into the 2013 and beyond. According to a new report by Jones Lang LaSalle, capital values rose an aggregated five percent in 2012, up from 4.8 percent on the previous year. Only Singapore and Shanghai saw price declines, 5.6 and 0.5 percent respectively, while Jakarta outperformed all other Asian cities with an impressive 27.5 percent growth on 2011. Short bouts of sorrow may occur, say the soothsayers, as Malaysia prepares for a general election and Hong Kong and Singapore face increasing opposition to their government housing policies (and in the case of the latter, also its immigration policies). In general, however, the future looks bright as we enter the next phase of the moon.
Sofie Lisby Property Report sofie@ensign-media.com
20 | MARCH 2013
Luxury Sea View Condominium
2 Bedroom Pool
OFF PLAN SALE AVAILABLE NOW 2013
Studio
Karon Hill
Luxury Sea View Condominium
For more information Tel: +66 76 396 265 Mob: +66 84 629 6262 E: sales@phuketkaronhill.com W: www.phuketkaronhill.com MARCH 2013
| 21
CONTENTS Issue 102 MARCH 2013
26
28 Leading Edge: Striking the right balance New cooling measures are forcing Singapore investors to look elsewhere for opportunities, with Iskandar and London both benefiting from the capital exodus. 30 Leading Edge: Growing pains on Bali Bali is seeing a resort and residential construction boom, coupled with infrastructure work taking place island wide in the lead up to the APEC Summit in October. 32 Special Feature: Ski in, build out The Japanese ski resort of Niseko offers
22 | MARCH 2013
an appealing combination of lifestyle benefits and investment returns for second home and vacation buyers. 40 In Brief: Property market news Updates on property market moves, new launches and investment trends from the Asia Pacific region and beyond. 48 Hi Life: Luxury News A showcase of high-end products and accessories aimed at the discerning luxury consumer. 52 Hi Life: Luxury Interview — landscape designer Dr. Colin Okashimo
An internationally renowned artist that combines sculpture with art and design to create highly original outdoor spaces. 54 Hi Life: Home Tech Cook up a storm with the latest kitchen technology. 56 Hi Life: Home Style Metallic and mirrored furnishings are among the latest trends in designs for the home. 58 HI Life: Villa Rentals Private villas are becoming the wedding venue of choice for discerning couples
MARCH 2013
| 23
CONTENTS Issue 102 MARCH 2013 60 In Depth: Neighbourhood Watch Indonesia's second city, Surabaya, is becoming an investment hotspot. 62 In Depth: London's new power play Investment opportunities abound at London's soon to be renovated Battersea Power Station. 67 Design Focus: Global architecture firm WATG have created some of Singapore's contemporary icons, including W Residences and The Oceanfront@Sentosa Cove, St Regis Singapore. 84 Special Report: Branded hotel residences As international and boutique brands move in to Asia, what are the real advantages of investing in luxury properties with hotel style services and a brand identity? 90 Special Report: Interview — Ivanka Trump Property Report talks to the executive vice president of development and acquisitions at The Trump Organisation. 94 In Depth: Singapore home truths Large capital inflows are disrupting the stability of the property market in one of Asia's most reliable markets. Will the governments cooling measures bring normalcy to the Lion State? 100 In Depth: At Home — Labour of love Psyche Kennett, Michael Meyler and Sonali Gunasekera have spent 10 years renovating an early twentieth century planters' bungalow in Sri Lanka. 106 Analysis Investment insights Buyer Advice Designer views Finance Luxury Expert 116 Project Profiles Sri panwa Residences, Phuket Beach Republic, Koh Samui The Lofts at Laguna Village, Phuket The Royal Villas, Phuket Society 24 | MARCH 2013
MARCH 2013
| 25
PICK UP YOUR COPY AT THE FOLLOWING LOCATIONS AROUND THE REGION:
Retail
.
.
.
Hong Kong: Dymocks (12 Branches) Jumbo Magazine House Metrobooks (2 Branches) Page One (4 Branches) Indonesia: Periplus (33 Branches in Jakarta & Bali) Malaysia: All Day Enterprise Borders Bookstores (5 Branches in KL) Diamond Store Dj Book Centre Flying Emporium Gramedia Bookstores Interntional Jasema Enterprise Kinokuniya Book at KLCC Mph Bookstores (18 Braches in KL, Putrajaya & Johor Bahru) Niko Niko Doh Nz Magazine Centre (3 Branches in KL) Popular Book Co (20 Branches in KL, Ipoh, Subang, Borneo & Penang) Syarikat Syidah Times The Bookshop (4 Branches in KL) Singapore: Borders (2 Branches) Cheers (68 Branches) Chevron Petrol Stations (19 Locations) Dufry Singapore (5 Branches) Harris Book (2 Branches) Kinokuniya (2 Branches) MPH Bookstores (4 Branches) Newsstands (24 Locations) NTUC Fairprice Page One Popular (8 Branches) Prologue Times Newslink (6 Branches) Times The Book Shop (5 Branches) Thailand: Amarin (9 Branches in Bangkok) Asia Books (25 Branches in Bangkok) B2s (23 Branches in Bangkok, Chiang Mai, Hadyai, Khonkaen & Phuket) Bookazine (28 Branches in Bangkok, Samui, Pattaya, Hua Hin & Phuket) Exotic Siam – Oriental Hotel Foodland (4 Branches in Bangkok) Friendship Supermarket Pattaya Gift Shop Bangkok Hospital Silom Se Ed (9 Branches in Bangkok, Samui, Pattaya and Phuket) The Books Bumrungrad Hospital The Mall (3 Branches in Bangkok) Villa Market (17 Branches in Bangkok) Central Department premiere & platinum lounge (14 Branches) Cambodia Monument Books (Phnom Penh), Phnom Penh Airport, Siam Reap Airport.
..
..
.
. .
. ..
Hotels & Serviced Apartments
.
.
.
.
. ..
.
. . . .
. .. . . . . . . . . .. . . . .. . . . . . . . . . . . . .. . . . . .. . . .. .. . . . . . . . . .. . . .. . . . . . . . .. . . . . . . . . . . . .. . . . .. .. . . . . . . . . . .. . . . . . . .
..
.
..
.
.
.
.
.
..
.
. .. . .
.. . .
.
Hong Kong: Conrad Hong Kong Four Seasons Hotel Peninsula Hotel Le Meridien Cyberport Cosmopolitan Hotel The Mira Hong Kong InterContinental Hong Kong InterContinental Grand Stanford Hong Kong Island Shangri-La, Hong Kong Kowloon Shangri-La The Langham, Hong Kong Harbour Grand Kowllon Harbour Plaza North Point Kowloon Hotel Royal Pacific Hotels & Tower Lanson Place Hotel The Royal Garden Sheraton Hong Kong Hotel & Towers W Hong Kong Novotel Century HK Eaton Hotel Royal Plaza Hotel Nikko Regal Kowloon Regal Hong Kong Regal Airport Sky City Marriott Ritz Carlton Hong Kong Altira Hotel Macau Crown Plaza Hotels Crown Tower Four Seasons Hotel Galaxy Waldo Hotel and Casino Grand Waldo Hotel Hard Rock Hotel Hotel Royal Hotelisboa L’ Arc Macau Mandarin Oriental Macau MGM Macau New Century Hotel Macau Pousada Marina Infante Regency Hotel Riviera Hotel Macau Sands Macau Hotel Saotiago Sofitel Macau At Ponte 16 Star World Hotel The Landmark The Venetian Westin Resort Wynn Macau Indonesia: Ascott Jakarta The Ritz Carlton Kempinski Hotel Hotel Niko Ciputra Hotel Shangrila Jakarta Four Season Jakarta Jw Marriot Grand Hyatt Jakarta Intercontinental Mid Kristal Sultan Hotel Mulia Senayan The Ritz Carlton Pp Grand Mahakam The Darmawangsa Alila Hotel Grand Sahid Jakarta Park Lane Jakarta Menara Peninsula Sari Pan Pacific Borobudur Int’l Hotel Crown Plaza Hotel Le Meridien Hotel Mandarin Oriental Menteng Exe Apt. Ayodya Hotel Conrad Hotel Four Seasons Resort Jimbaran Grand Hyatt Hotel Nusa Dua Intercontinental Hotel Nikko Hotel Nusa Dua Novotel Nusa Dua Nusa Dua Beach Hotel Puri Bali Hotel Ritz Carlton Hotel Sheraton Laguna Nusa Dua The Bale Hotel The Laguna Westin Hotel Malaysia: Berjaya Times Square Equatorial Kuala Lumpur Grand Millennium Hilton Kuala Lumpur Hilton Petaling Jaya Hotel Istana Hotel Maya Kuala Lumpur Le Meridien Kuala Lumpur Mandarin Oriental Kuala Lumpur Mutiara Kuala Lumpur Nikko Kuala Lumpur Novotel Kuala Lumpur City Centre Renaissance Kuala Lumpur Shangri-La Hotel Kuala Lumpur Sheraton Imperial Kuala Lumpur The Ascott Kuala Lumpur The Ritz Carlton Kuala Lumpur The Westin Kuala Lumpur Traders Hotel Singapore: Ascott Singapore Raffles Place CAPELLA SINGAPORE CAPRI BY FRASER, HOTEL RESIDENCES Crowne Plaza Changi Airport Fairmont Singapore Four Seasons Hotel Singapore Grand Copthorne Waterfront Hotel Grand Hyatt Singapore Hilton Singapore Hotel Intercontinental Singapore Le Grove Service Apartments Naumi Hotel Orchard Park Suites (Service Apartment) Orchard Scotts Residence Pan Pacific Singapore Park Royal Serviced Residences Shangri-La Apartments & Residences Sheraton Towers Singapore Hotel The Fullerton Hotel Singapore The Sail @ Marina Bay The Sail @ Marina Bay Treetops Executive Residences Thailand: Amanpuri Anantara Phuket Baan Yamu Bel Air Panwa Hotel Cape Panwa Hotel & Spa Centre Point Serviced Apartments Citadines Bangkok Dusit Laguna Dusit Thani Bangkok Grand Hyatt Erawan Hilton Resort Phuket Indigo Pearl Phuket JW Mariott Phuket Karma Resort & Spa Kata Beach Resort & Hotel Le Meridien Phuket Beach Resort MaDuZi Marriott Pattaya Mayfair Marriott Movenpick Resort Phuket Oakwood Serviced Apartments Phuket Impiana Phuket Pavilions Resort Sala Phuket Resort & Spa Sala Samui Resort & Spa Serenity Terrace Shangri-La Bangkok Sila Evason Sofitel Residence Sri Panwa The Chedi Phuket The Conrad Hotel The Mangosteen The Oriental Hotel The Peninsula Hotel The Sukhothai Tongsai Bay Trisara West Sands Twin Palms Phuket Andara Phuket Six Senses Samui Centara Samui Four Points by Sheraton Sukhumvit
26 | MARCH 2013
.. .
. . . . . . .. . . . . . . . . . .. . . . . . . . .. . .. . . . .. . . . .. . .. .. . . .. . . . . . . .
Airport Lounges
.
.. . . .. . . . . . . . . . . . . .. . . . . . . . . . . . . . .
.
.
. . .
Hong Kong: CNAC Lounge Dynasty Lounge Royal Orchid Lounge Hong Kong Lounge Emirates Lounge Red Carpet Lounge The Traveller’s Lounge EAST The Traveller’s Lounge WEST Morning Calm ( Korean Air) SQ Lounge Qantas Lounge Indonesia: JW Executive Lounge El John Lounge D Green Lounge Garuda Executive Lounge Indosat Executive Lounge Sunda Kelapa Executive Lounge Batavia Lounge Pura Indah Lounge Premiere Lounge Esplanade Lounge (Raffles) Emerald Sky Lounge (Garuda First & Business Lounge) Mutiara Lounge Garuda Executive Lounge Teluk Banten Lounge Malaysia: Cathay Pacific Lounge Emirates Lounge Plaza Premium Lounge Oman Airways Malaysian Airlines Thai Airways Singapore: Cathay Pacific Airway Jet Quay Terminal Korean Air Malaysia Airlines Plaza Premium Lounge Premier Club & Rainforest by SATS Lounge SATS Premier Club T2 T3 SATS Premier Club Thai Airways The Skyview Lounge (Terminal 1) Singapore Airlines-Paragon Service Ctr. Emirates Lounge Thailand: Singapore Airlines Lounge Cathay Pacific Lounge Birtish Airways/Qantas Lounge Air France Lounge Eva Air Lounge Louis Tavern CIP Lounge (Concourse F) China Airlines Office Thai Airways Bangkok Airways Biman Aangiadesh Lounge Druk Air (Royal Phutan) Korean Air Lounge Gulf Air Lounge King Power Lounge EMIRATES Inflight
.
.
.
.
.. . .
..
..
.
Clubs/Banks/Marinas/Restaurants/Others
. . ..
. .. . . . . .. .. . .. .. .. . . .. . . .. . . . . .. . . . . . . .
.
Hong Kong: The Aberdeen Mariners Club Clearwater Bay G&C Marina Club Club Marina Cove Gold Coast Yacht Club Royal Hong Kong Yacht Club American Club (Tai Tam) Butterfield’s Club China Club Chinese Recreation Club Club Grand Kornhill Craigengower Cricket Club Dynasty Fringe Club HK Country Club Kowloon Bowling Green Club Kowloon Cricket Club Kowloon Tong Club Ladies’ Recreation Club Oasis Club Pacific Club Royal HK Golf Club HK Golf Club Discovery Bay Golf Club Shek O Golf Club Singapore: British High Commission Citigold Centre (13 Branches) Coffee Club Pte Ltd (23 Outlets) Hollandse Club Keppel Club Marina @ Keppel Bay ONE°15 Marina Club Porsche Centre Singapore Raffles Country Club Raffles Hospital Raffles Marina Raffles Town Club Republic of Singapore Yacht Club Rolls Royce Motor Cars Singapore Sentosa Golf Club Singapore Cricket Club Singapore Island Country Club (Bukit Location) Singapore Polo Club Swiss Club The American Club Singapore THE BRITISH CLUB The Dempsey Brasserie The Executives Club The Legends Fort Canning Park The Pines Country Club The Tanglin Club Thailand: Australian Chamber of Commerce Black Mountain Golf Club British Chamber of Commerce Loch Palm Golf Club Phuket Country Club Singaporean Chamber of Commerce Bumrungrad Hospital Samitivej Hospital Red Mountain Golf Course
.
.
.
. . .. .. .. .
The Leading Magazine for Luxury Real Estate
SOUTH EAST ASIA Issue 98 November 2012
S$8, RM20, IDR70,000, THB200, HK$60, PHP350
The Leading Magazine for Luxury Real Estate
SOUTH EAST ASIA Issue 99/100 December 2012-January 2013 S$8, RM20, IDR70,000, THB200, HK$60, PHP350
INSIDE A BANGKOK ICON Ritz-Carlton Residences
Philippines Goes Prime
Myanmar — Risky business?
A House in the Country
Architect Felino“Jun” Palafox
UK Green Belt Properties
1
Exclusive Interview
KDN PPS 1662/10/2012 (022863)
MICA (P) 020/02/2012
NOVEMBER 2012 Condominiums • Villas • apartments • hot deals • interiors • design
KDN PPS 1662/10/2012 (022863) KDN PPS 1662/10/2012 (022863)
MICA (P) 020/02/2012 MICA (P) 020/02/2012
CONDOMINIUMS • VILLAS • APARTMENTS • HOT DEALS • INTERIORS • DESIGN
SUBSCRIBE NOW • Delivered to your home or office up to one week before the magazine is available in the shops. • Save up to 40% off the cover price. • Free iPad edition subscription. • Unlimited web access to subscriber only content. • Receive exclusive Property Report event invites. www.property-report.com/subscribe MARCH 2013
| 27
LEADING EDGE Singapore
Striking the right balance What do the experts have to say about the latest cooling measures and their effect on the Singapore market? | by Sofie lisby
SINGAPORE INVESTORS ARE LOOKING AT ALTERNATIVE INVESTMENT DESTINATIONS.
28 | MARCH 2013
No sooner had the Singapore government announced the seventh round of cooling measures than analysts, experts and developers started talking about an outflux of investors' money from Singapore. The measures, effective from January 12 2013, were the most comprehensive of any undertaken thus far, affecting public and private housing, executive condominiums and industrial properties, while targeting both foreign and local buyers including permanent residents (PRs). Since the measures were announced news abounds of Singapore investors looking at alternative investment destinations such as Thailand, Malaysia, Australia and England, amongst others, with two iconic London projects receiving particular attention. Savills launched Kingsgate, a high-end development by Land Securities in Victoria, central London, while Jones Lang LaSalle opened sales of apartments in the iconic Battersea Power Station in south London. "We had an excellent response to the launch," said Chua Shir Yee, associate director, International Residential Sales, Savills Singapore. "I think [the recent cooling measures] have certainly had an impact, given that there is a pent up demand to invest in real estate. If Singaporeans cannot do this in their own domestic market, then of course they look to other safe havens such as London and the UK. Given the current currency play, it certainly makes a compelling argument for them to invest abroad into the UK." The Battersea Power Station apartments also received "overwhelming" response, according to Doris Tan, head of Residential
International Project Sales, Jones Lang LaSalle, Singapore. She did not believe the cooling measures had any affect, however: "Battersea Power Station is an iconic project, which most people are aware of and have been waiting for. [The sales success] has nothing to do with cooling measures." One potential buyer during the sales launch of Kingsgate said he thought London properties still represented great value, despite the fact that prices have increased significantly in recent years. As the owner of several properties in Singapore, the introduction of additional cooling measures there and in Hong Kong where he also owned a property, had made him look at opportunities elsewhere. Some market analysts still believe the strong foundations in Singapore will continue to attract investors. Mohamed Ismail, CEO of PropNex Realty said sound economic fundamentals and the prevailing low interest rate environment, especially in the USA whose citizens are exempt from the heightened Additional Buyers Stamp Duty (ABSD) due to a special trade agreement between Singapore and the USA, means the Lion State remains a significant draw. "With this round of cooling measures, the competitiveness of Singapore as an ideal place for residential property investment by high-net worth individuals will be somewhat compromised," he said. "Nonetheless, the conducive business conditions, strong Singapore Dollar and stable fundamentals are key strengths of Singapore, which would serve to attract foreigners with a medium and longterm horizon to invest in Singapore's properties." Malaysia is also seeing increased activity from Singaporean buyers, according to Khalil Adis, co-founder of the Iskandar Property Collection and an agent for Savills. He said the cooling measures, coupled with the announcement that the state of Johor may be raising the minimum purchase price from the current RM500,000 (US$161,419) threshold has helped spur buying activity. He also said those buying from Singapore are Singaporeans and PRs buying their second property who would otherwise be hit with the new ABSD rate and loan to value ratio. Singapore may be cooling its property market. The question remains whether it is unintentionally killing it in the process.
MARCH 2013
| 29
LEADING EDGE Bali
Growing pains on Bali Bali’s real estate sector is experiencing feverish land-buying and property development, predominately in the island’s southern region,which is already the most congested, developed area. | by Samantha Coomber
INFRASTRUCTURE HAS ALWAYS BEEN A PROBLEM FOR BALI.
Recent Bank Indonesia figures suggest Bali's economy will grow 6.6 to 7.1 percent in 2013 and the Bali Chapter of Real Estate Indonesia (REI) said the island's property market also remains promising, with an estimated 15 percent growth expected on the back of the holiday island's economic expansion. Hotel supply has reached unprecedented levels, especially in tourism strongholds like Nusa Dua and Kuta due to rising visitor numbers and an anticipated occupancy surge triggered by the Asia-Pacific Economic Cooperation (APEC) Summit in October this year. Figures from Indonesia's Central Bureau of Statistics (BPS) indicate more than 3,400 additional hotel rooms were added in 2012, with another 4,700 rooms slated for 2013, and a further 4,100 rooms from 2014 to 2016. In total, some 12,000 plus new rooms are expected by end of 2016. All this hotel and property development has caused a room oversupply, 30 | MARCH 2013
concentrated in the overstretched South and largely brought about by a failure to enforce restrictions and lax licensing for new accommodation. The Indonesian Association of Tourism (GIPI-Bali) Bali Chapter argues that Bali has more than enough hotel rooms, and is warning that all this construction will have a negative impact on the island. Admitting overdevelopment, the south's Badung Regency (including Kuta-LegianSeminyak), plans to limit licenses and curtail new requests for accommodation projects, but this may be too little, too late. Infrastructure has always been a problem for Bali, with no mass public transport system and sub-standard roads, the island's administration is failing to keep pace with the booming property market and rampant hotel development. However, with the APEC Summit fast approaching (and the WTO Summit in December) officials have finally been given their wake-up call. Feverish infrastructure projects are now underway, and a Ministry of Tourism and Creative Economy representative recently stated in the local press that as APEC hosts, Bali is preparing new roads and upgraded airport facilities in time to welcome delegates. "With these worldclass events, it's important that Bali has the capacity to cope with increased demands on its transport systems, as well as first-rate accommodation," a report by the Bali Hotel Association (BHA) stated in February. "Thus, we welcome the infrastructure developments on course for completion in 2013, besides new hotel openings." In the build-up towards APEC 2013, key ongoing construction projects include Simpang Siur Underpass, at bottleneck Dewa Ruci intersection (near Kuta) and Bali's first toll road, elevated above sea-level, connecting Benoa, Nusa Dua and Ngurah Rai International Airport
(NRIA). Designed to solve chronic congestion along Bali's major "tourism highway" and to dramatically reduce driving time, both should be completed by August. Also ongoing is the Kusamba Bypass, connecting east Denpasar and Karangasem Regency (east Bali) and repairs and upgrades of approximately 150 km of damaged provincial roads, the latter to completed before APEC delegates arrive. "Bali traffic has grown along with the island's hotel industry growth. Smart thinking and (overdue) planning should see an enormous improvement in traffic conditions with Simpang Siur Underpass and Ocean Toll Road," stated BHA chairman, Jean-Charles Le Coz. "This is an enormous undertaking, but capacity will increase at least two-fold and alleviate traffic congestion." Anticipating ever-increasing passenger numbers, Bali's NRIA is also currently undergoing a massive redevelopment project – a showcase project for APEC taking airport capacity from approximately 11 million to 25 million passengers annually — earmarked for completion by June 2013. Even this is just a short-term solution, however, as land constraint problems prevent future runway extensions. After years of conjecture, construction of a new international-class airport in northern Buleleng Regency is being finalised, jointly operating alongside NRIA (70km south), handling a combined 50 million passengers annually. A railway link and Kuta-Seririt Toll Road connecting Badung and Buleleng regencies are also planned. Meanwhile, skyrocketing land prices and limited land availability is driving developers to more "peripheral" areas (Pererenan, Tabanan), or northwards and eastwards where land prices are still relatively low. Infrastructure developments are expected to help accelerate the distribution of economic activity across Bali, providing alternative property locations. Buleleng International Airport will support – and accelerate – the north's inevitable growth, while Kusamba Bypass promises to contribute to East Bali's huge potential as the next property hotspot. Bali's infrastructure improvements don't offer a cure-all to the island's challenges, but do inspire investor confidence. The government's commitment to accelerate infrastructure developments is considered positive, and expected to help optimise the potential for economic growth.
PROPERTY AWARDS 2013 Recognising the ever increasing quality of residential properties in Southeast Asia
This year, Ensign Media have added two prestigious events to the calendar of regional property awards events Recognising the 'best of the best' in the region's real estate, the property awards also provide investors with a valuable benchmark for excellence Nominations are now open in a wide range of categories To nominate a developer, project, agent, architect or interior designer VISIT www.thailandpropertyawards.com www.indonesiapropertyawards.com www.philippinespropertyawards.com www.southeastasiapropertyaward.com Or Contact arada@ensign-media.com
MARCH 2013
| 31
SPECIAL FEATURE Niseko
32 | MARCH 2013
Ski in, build out Now a target for property investors, Japan’s Niseko is consistently ranked in the top two snowiest resorts in the world, thanks to a lucky combination of geography and topography that ensures vast, regular quantities of dry powder every winter. | by Matthew Stormont | photos by Alex Dyer
N
iseko is something of a phenomenon as a ski resort. Siberian snow systems build and gather over vast distances as they pass the Sea of Japan, which is not large enough to add much moisture to the snow, they then collide with and dump their precipitation around the Hokkaido’s Annapuri ranges. Although Niseko celebrated its 50th year as a resort in 2012, the area only started to become popular with Japanese visitors during the 80s and this saw the first wave of lodge type accommodation and small winter homes being built around the base of the mountain. The serious recession Japan went through in the 90s caused this popularity to wane and stunted local development in the area until it was “rediscovered” in the early 2000s by Australian visitors who immediately recognised how special the winters were, especially in relation to their own domestic resorts. What followed over the next few years was a frenzied second wave of development, almost solely by western companies that saw luxury condominiums, management companies and hotels spring into life every summer at a seemingly exponential rate.
THE EMPHASIS IS WITH MID- TO LONG-TERM LIFESTYLE CHOICES.
MARCH 2013
| 33
SPECIAL FEATURE Niseko
Two resorts in one Most of the second wave development in Niseko has centred around the village of Hirafu, as Australian developers tried to build around a concept of “ski in-ski out”. Because of the Hirafucentric nature of construction, Niseko and Hirafu have largely become synonymous with one another, but the resort is actually made up of four main ski areas: Hirafu, Hanazono, Niseko Village and Niseko Annupuri. The ski areas are all linked by buses and visitors can also ski between them all very easily under an All Mountain Pass, which is readily available to visitors. Hirafu is still the centre of current developments in the area, a brand new high speed gondola was constructed in time for the 50th anniversary and the planned Hirafu Zaka project, funded by the local council, will add heated sidewalks and transform the centre of the village into something in line with its “Aspen of the East” moniker. The village as a whole has benefited from its multicultural past with older Japanese style lodges standing shoulder to shoulder with modern, chic apartments and condominiums designed by a wide range of Japanese and international architects, a juxtaposition in style that gives a beautifully quirky feel to the area. One that is possibly unique from any other major ski resort in the world. 34 | MARCH 2013
Prices on the rise The close proximity of ski lifts, shops, bars and Michelin star dining has meant that Hirafu land prices are consistently higher than anywhere else in Niseko. Since the mid 2000s, Hirafu has provided investors with excellent capital growth, with short term speculative investors seeing unparalleled returns on fast turnovers. The Hirafu of 2013 looks very different to that of ten years ago — the natural geography of the village funnels development into a narrow valley that has left the upper village feeling rather crowded and real estate at an absolute premium. As long as Niseko remains a ski resort then this strip of land next to the ski lifts in upper Hirafu will always command the highest prices. Even to this day, as developers and investors start to look outside the village the properties in the upper village ski in-out corridor are still constantly changing hands. The high land prices, coupled with smaller and smaller plot sizes in Hirafu have led to a new wave of investment philosophy in recent years. with new areas of the resort receiving the attention previously reserved solely for Hirafu. “Pre global financial crisis, there were a lot of speculative investments based on short-term capital gains,” explains local real estate agent Michael Davenport, owner of Niseko Consulting. “Post GFC, the markets have matured and the emphasis now is with mid to long term lifestyle choices, i.e. people buying properties to use for themselves because they love the area. Although it is likely that properties in the Hirafu village will always command the highest prices, potential investors are realising how much further their money goes just a short drive away.” Indeed, just a five minute drive outside Hirafu, stunning plots of land can be found at a fraction of the square tsubo price expected in Hirafu (a tsubo being the standard Japanese measure of land size and is equivalent to two tatami mats or just over three sqm). “The really exciting aspect for buyers willing to focus on the wider area is that there are beautiful plots available that offer something truly magical” explains Davenport. “If you want a property with a stream or a particular mountain or forest view there is something to suit all tastes.”
and it may therefore offer investors a better chance of capital growth as the coming years see prices rise around all the resort areas.
An expanding investment landscape The development focus shift to encompass the Niseko resort as a whole has led to some exciting new developments in Higashiyama and Hanazono areas, with 2010 seeing Malaysian based YTL buying the Hilton and Green Leaf Hotels and future plans to include a suite of ski in, ski out town houses and villas. The Hanazono resort, owned by PCPD, has seen major investment in the last few years. The updating of its ski lifts and activity centre has added to the appeal of the backcountry terrain and the blossoming summer adventure business enjoyed in this part of Niseko whose popularity is soaring with each year. The land prices have also shown steady growth, but offer good value for those looking for larger plots. The ongoing PCPD developments, which are scheduled to include restaurants, hot springs, hotels and condominiums mean this area warrants special attention for those looking at the longer term. Closer to Hirafu is Kabayama, directly south of the village, a rapidly expanding area with lower density housing and a number of restaurants and cafes. The development and proximity to Hirafu have seen its popularity rise amongst people looking for a plot with more room and at a lower price than can perhaps be found closer to the resort. Prices still remain lower than Hirafu
Buyer considerations Legal ownership structures in Japan offer no barriers for foreign buyers with most properties and land being sold on a 100 percent freehold basis with no need for a Japanese partner or guarantor. The influx of foreign interest has been welcomed by Michael Davenport and a number of other local realtors, for whom business is showing no signs of slowing down. “I think that what we are seeing here is still only the first stages in the overall development of the resort” says Davenport, adding that the continued expansion of New Chitose airport to include more direct international flights, as well as the fact that millions of dollars of land was traded during and immediately after the GFC and has not slowed down since, points to a strong market with plenty of room yet for expansion. As with any emerging product there are a few cons to be wary of when thinking of investing. As a market that is still maturing there is still some stabilisation needed as prices can be variable between properties in close proximity to each other. With the more personalised plots becoming popular it also takes time to match a particular buyer’s needs, so investors should factor this in if looking at a shorter term return.
NISEKO INVESTMENT TIPS • • • •
Consider plot size carefully Choose a location within a 10 minute drive of ski lifts Aim for uninterrupted views of Mount Youtei Look for additional features that will attract long term buyers or rental guests
* Courtesy of Niseko Consulting
MARCH 2013
| 35
SPECIAL FEATURE Niseko
THE NEXT NISEKO
AKARI LUXURY An investor’s perspective VILLA A few years ago, Phillip Walker bought a large piece of land just outside Hirafu Village on which he built a 5 bedroom house. Designed by renowned Japanese architect Kazuhiro Ishideone, the property is now one of few luxury houses in Niseko that boasts a secluded setting yet is still within a few minutes’ drive of the Niseko Hirafu ski lifts. Available for rent as a holiday home, the generous interior features high ceilings and large floor to ceiling windows overlooking fields of snow and Mount Yotei. The open living/dining area is characterised by a double-sided stone eco-fire place with Japanese Oak flooring throughout and a large deck terrace leads guests to a beautifully set outdoor hot tub surrounded by Japanese stone. Property Report asked him why he chose to invest in Niseko and about the challenges he faced when building a luxury home at the resort. “A number of factors influenced the decision to build here,” he explains. “The freehold title, proximity to Hong Kong with direct flights, some of the best skiing in winter and great outdoor action in summer including cycling, golf and fishing. There is also the benefits of clean air and a wide range of restaurants in the area.” In terms of the challenges facing those looking to buy and/ or build property in the Niseko area, Walker suggests careful research and due diligence. “There are number of agents and a buyer is well advised to compare prices for land and building,” he says. “Have all Japanese documents reviewed independently. For foreigners there are limited loan facilities from Japanese banks and the building design must comply with local government regulations or there will be delays. If the buyer is planning to rent the property they must ensure the build complies with license regulations also. There is an immense amount of snow and this must be factored into the design and concept. Choose your management company wisely and determine the costs prior to build.” As is the case with most international holiday homes, Walker says buy to rent investors can expect returns to provide a yield of 1 - 2 percent For land buyers, the value can increase year on year. “We attract clients from Hong Kong, Singapore, Malaysia, Australia and Japan,” he adds. “Often large groups that require luxury accommodation for up to 10 people.” 36 | MARCH 2013
Situated approximately two hours inland from Chitose Airport near the centre of Hokkaido Island, some investors are picking Furano to be the next ski resort destination to follow in the footsteps of Niseko. While its neighbour to the west has a mostly expat/Australian clientele, Furano’s cooler temperatures, outstanding powder snow and the highest number of blue sky days for Hokkaido, makes it one of the most popular ski destinations for Japanese people. Great terrain, a modern lift operation and the highly regarded Furano International Snowsports School (FISS) catering specifically for English speakers, plus a season running from November-May provides great skiing and snowboarding.The small township of 30,000 people at the base of the mountain features more than 200 restaurants and bars along with the services of a proper town. A strong local community including volunteer ski hosts run by the Furano Tourism Authority and a wide array of hotels and pensions provides visitors a local charm and authenticity missing in more commercial resorts, so the number of foreigners visiting is constantly increasing. For property investors, Furano’s high season is actually in summer as Japanese visit to see lavender and nature trails. With demand outstripping supply of rental properties, a number of developments have recently been proposed although the boom that Niseko has enjoyed as yet has not materialised in Furano/ Beiel region. A similar model of fractional ownership and rental pool accommodation may appear in Furano in coming years. Hokkaido Tracks and several local entrepreneurs such as World Cup snowboard racer Kajima have unveiled plans for slopeside developments. Planned prices start at around ¥30 million (US$320,000), but to date choice remains very limited with developments still at the planning stage. * Courtesy of Kipsan Beck
MARCH 2013
| 37
SPECIAL FEATURE Niseko
SKI property overview Although the global holiday home market has declined significantly since the onset of the global financial crisis, the proportion of buyers investing in ski properties has risen. According to global consultancy from Savills, the long term growth potential of ski property, combined with the opportunity to generate income from rental use provide compelling reasons to invest. In a 2012 report on the Alpine property market, Savills said 62 percent of its clients in this market segment were motivated by both lifestyle and investment: 30 percent bought for lifestyle reasons and just eight percent for pure investment. As with the rest of the holiday and residential market segments, the most popular destinations remains the most competitive, and the most resilient to the global economic downturn, with France and Austria being the most popular, followed by Italy and Andorra. One of the most significant trends, according to the report, is the emergence of new buyer markets such as Russia, eastern European countries and Asia. Property Report compiled a selection of some of the best properties in the French Alps.
38 | MARCH 2013
Flaine Montsoleil, Flaine, Grand Massif, France
Santa Terra, Tignes Les Brevieres, France
Overlooking the Grand Massif ski resort in the western part of France bordering Switzerland, the Flaine Montsoleil development offers beautifully decorated apartments in the heart of Flaine. Starting at just 36.6 sqm for a onebedroom apartment to 76.2 sqm for a spacious three-bedroom unit, the development offers a range of services including a spa and wellness centre with sauna, steam rooms and jacuzzi; indoor swimming pool, kids club and nursery; basement parking; and a cafe with a cosy log fire. The apartments come with free wifi, satellite TV and fully fitted kitchens. The apartments are available on a leaseback basis offering guaranteed yields up to 3.5 percent p.a with various usage options. Prices start at €244,700 (US$327,335) for a onebedroom apartment.
Located in the heart of Tignes Les Brevieres, a charming 18th century Savoyard mountain village, the Santa Terra development has direct access to the famous Espace Killy ski domain. The development features just 32 luxury apartments built in comtemporary Savoyard mountain architecture, ranging from one-bedroom to four-bedroom duplexes. The majority of the apartments have views of both the Alps and Les Brevieres lake and all are fitted with the newest techonology including wifi, entertainment systems, as well as fully stocked kitchens. Other facilities at Santa Terra include free access to the spa which boasts pool, jacuzzi, fitness rooms, sauna and hammam. There is a decidated concierge service attached to the development which offers properties on a leaseback basis. Prices start at €199,800 (US$267,272) for a onebedroom duplex.
L’Ours Bleu, Vallorcine, Chamonix, France
Refuge du Golf, Flaine, Grand Massif, France
This high end development benefits from a ski-in, ski-out location in the heart of Vallorcine directly next to the lift system. Common facilities include a wellness centre boasting an indoor pool, sauna, hammam, hot tub, massage studios and fitness rooms, while each apartment is fitted with en suite facilities in every bedroom, satellite TVs, wifi and home cinema. Units come in studio, one-, two-, three-, and four-bedroom configurations ranging in size from 30.62 to 105.27 sqm and priced from just €161,600 (US$216,172) for a studio. The properties are available either on a leaseback basis or as freehold.
Located in the Flaine area of Grand Massif and sharing more than 265 kilometres of skiable area with Morillon, Sixt, Samoens and Les Carroz, Refuge du Golf is perfectly positioned close to the slopes. The development combines Savoyard architecture and contemporary furniture with beautiful views over the Grand Massif ski area. The cottages and apartments are all equipped with the latest technology and benefit from south facing terraces. Common facilities include restaurant and lounge bar, ski shop, underground parking, indoor pool and a spa and wellness centre with sauna, steam room and whirlpool, gym and massage rooms. The units come in one- to five-bedroom configurations ranging in size from 40 to 110 sqm and starting from €192,400 (US$257,373). Leaseback and freehold properties are available.
For just the two of you ‌
www.salaresorts.com
MARCH 2013
| 39
in brief
UK Amid economic Armageddon, increased stamp duty, and property prices falling in numerous areas and sectors, 'prime Central London property' has continued to perform in a way that bears little or no relation to the rest of the property market. Recent research indicates that prime Central London prices have risen more than 15 percent since the 2008 high. Bella Tellwright of Crayson, a London-based property firm.
Singapore
Strong Q4 finish The private residential market in Singapore continued to rise in the fourth quarter of 2013, according to data from the Urban Redevelopment Authority. The overall residential property index rose from 208.2 points in 3Q12 to 212.0 points in 4Q12, representing an increase of 1.8 percent compared to a 0.6 percent increase the previous quarter. With that increase, the price index rose to a cumulative total of 2.7 percent for the entire 2012. "Even though the price rise of 1.8 percent q-o-q
island-wide is the strongest in 2012, the y-o-y growth of 2.7 percent is still fairly moderate compared to years 2009, 2010 and 2011, where prices jumped 4.4 percent, 16.5 percent and 5.7 percent, respectively. However, the increase is somewhat matching the market expectations of overall private property price increase of three percent for 2012," said Mohamed Ismail, CEO of Propnex Realty. He said the main reason for the price increase in Q4 was strong demand fuelled by Singaporean investors and PRs buying a second or third property, and HDB upgraders. Ismail added that with the latest cooling measures in January 2013, this group of buyers would likely be sidelined.
Malaysia
Malaysian buyers warned Malaysian buyers have been warned against investing in Singapore's property market after the introduction of new cooling measures on January 12. "In my opinion, Malaysians should wait it out and see if there is any relaxation in the rules a few months down the road," said Alice Chow, a financing consultant in overseas markets. Chow's views are echoed by many industry experts who believe the coming months will see a slowdown in Singapore's real estate market, and potentially a freeze in the purchase of private property. Singapore's latest cooling measures were introduced to curb speculation in the market, and included a rise in Additional Buyer's Stamp Duty (ABSD) by five to 15 percent across the board, except for Singaporean
SINGAPORE’S COOLING MEASURES MAY CURB DEMAND.
first time buyers. Foreigners investing in Singapore's property market now pay a flat rate of 15 percent ABSD. Malaysians made up the largest proportion of foreign investors in Singapore's private property market last year. "If the Singaporean government finds that even such ABSD does not stamp the tide of speculation, they might even raise the interest rate this year," warned Chow. Asia
Thailand
New mixed-use development in Bangkok A new mixed-use development has been announced in Bangkok. The QiSS development will consist of a threestorey retail community mall with a total lettable area of more than 4,000 sqm and a 55-unit grade A serviced apartment building. Developed by Kewpaisal Place Company Limited, the development will be located on Soi Rubia connecting Sukhumvit and Rama IV roads. 40 | MARCH 2013
"This project's concept is to bring a green oasis to the downtown area of Bangkok. "Fifty percent of its common area will be dedicated for lush gardens which will be in English, French and Italian styles," said Narong Kewpaisal, managing director of Kewpaisal Place Company Limited. "QiSS is designed to cater to office workers and university students in a neighbourhood where
the demand for a lifestyle mall has not been met." According to CBRE, there are approximately 200,000 sqm of office space and almost 8,000 condominium and apartment units located within a radius of three kilometres from the project while occupancy rates of both commercial and residential developments in the area continue to be high.
2013 forecast
2-5%
expected average rent increase across all sectors --------------------------------------
17%
expected average residential price increase in Beijing --------------------------------------
12%
expected average residential price increase in NCR (Delhi, NOIDA, Gurgaon) in India --------------------------------------
11%
expected average residential price increase in Jakarta Source Colliers International
Innovation. Renovation. If ever a professional home training tool can get you moving it’s RECLINE PERSONAL. The only stationary recumbent bike derived from scientific research to ensure better posture and correct biomechanics. While keeping you connected to e-mail, your favorite sites, watching TV or listening to your music playlists through new VISIOWEB.
Designed by Antonio Citterio
Take the first step, visit www.technogym.com for our complete line of products or contact one of our local offices in Asia Pacific: Cambodia: 90, Sihanouk Blvd, Phnom Penh (855) 23 995 566 mkexecutivetg@mwdecor.com.kh Hong Kong & Macau: Unit 3008, 25 Canton Road, TST, Kowloon, Hong Kong (852) 3116 2622 info_hk@technogym.com Indonesia: Wisma Nusantara 6/F, Jl. MH. Thamrin No. 59, Jakarta (62)21 391 3943 info-id@dynaforceintl.com Malaysia: 2/F, Bangunan Bangsaria, No.45E Jalan Maarof, Kuala Lumpur (60) 3 2287 9989 info-my@dynaforceintl.com Philippines: Unit 204 Alabang Business Tower, 1216 Acacia Ave, Muntinlupa City (632) 809-7134 inquiry@esports.net.ph Singapore: 1 Kaki Bukit Road 1, #02-14 Enterprise One, Singapore (65) 6842 3166 info-sg@dynaforceintl.com Thailand: 5-03, 5/F Ploenchit Center, 2 Sukhumvit Road, Bangkok (66) 2 656 7886 info-th@dynaforceintl.com
MARCH 2013
| 41
in brief
Singapore Sales volume is expected to drop between 20-30 percent as buyers and investors choose to wait-out and see the effects of the cooling measures. January is usually a slower month and we are monitoring closely after the Chinese New Year season if market activity picks up. Mohamed Ismail, CEO of Propnex Realty
Singapore
Three projects in Orchard Three new high-end residential projects in the prime Orchard Boulevard area of Singapore are expected to be completed over the next two years. The projects include luxury development 21 Angullia Park, Hong Kong-based China Sonangol's first Singapore property project, Skyline@Orchard Boulevard and Boulevard Vue. Skyline@Orchard Boulevard and 21 AngulliaPark are expected to receive their temporary occupancy permits towards the end of 2013 and Boulevard Vue will follow suit in 2015. China Sonangol is confident that its targeted clientele will not be deterred by Singapore's latest round of cooling measures. The developer of TwentyOne Angullia Park is also undaunted by the rising inventory levels in the Orchard area even with
ORCHARD ROAD IN SINGAPORE.
the recent cooling measures in Singapore. Experts say this niche group of buyers are not chasing investment yields, but are attracted by the opportunity to own a freehold property in Singapore's prime Orchard Road shopping belt much like how investors are buying into the exclusivity of Sentosa Cove.
Thailand
Tourism fuels condo demand Thailand's growing popularity as a tourist destination is increasing demand for condominiums. The Tourism Authority of Thailand has targeted 24.5 million visitors in 2013. Emphasis in the tourist industry is now on wealth as opposed to mass market, and a new source of property buyers are keen to purchase within condo-style resorts, something Thailand's market lacks. European developer, Beach Projects, recently relocated its headquarters to Thailand to take advantage of this latest trend.
Cambodia
Construction on the move Cambodia's construction sector is again growing with the value of newly approved investments in construction projects increasing by 72 percent in 2012. According to data from the Ministry of Land Management, a total of 1,694 construction projects were approved last year, valued at a total of US$2.11 billion. That figure compares to US$1.23 billion worth of approved investments in the construction sector in 2011. "We saw the number of projects in 2012 is less than the number of projects in 2011, but the investments were on more land, and the amount of capital invested increased," said Lao Tip Seiha, deputy general director of the construction department at the Ministry of Land Management.. Tip Seiha said the majority of the construction projects were in Phnom Penh, but Kandal, Preah Sihanouk, Siem 42 | MARCH 2013
"There is a new wave of demand from overseas and Phuket's local middle class population for luxurious, spacious condo resorts," said Roy Hanif, partner in Beach Projects. "Whilst capital appreciation is currently minimal on land and villas, according to the Bank of Thailand condos have increased on average in value by 10 percent over the past five years, so the investment potential is massive," Roy continued. According to reports, the condo market in Phuket has grown by 20 percent in the past two years. Russian and Chinese buyers lead the way, with 30 percent of buyers on Phuket coming from Russia alone. Reap and Battambang provinces also attracted a lot of investment. "The majority of projects are buildings people will live in, such as apartments, villas and condominiums," he said. "We can say we now have a domestic market economy, and the demand is ever higher for buildings to live in."
China
Back on track
10.9%
increase in residential property sales in 2012 --------------------------------------
1.2 billion sqm
expected property sales in 2013 --------------------------------------
CNY868.4 billion
(US$139.3 billion)
total residential sales in December 2012, up 8 percent on 2012 THE INDEPENDENCE MONUMENT, PHNOM PENH
Source: Dow Jones Newswire, WSJ
Oriental Living is a contemporary Asian furniture gallery featuring exclusive award-winning brands with an extensive range of handcrafted furniture and home decor objects.
CRAFTED LIVING SPACES
SAMUI 9/18 Moo1 Maenam, Koh Samui 84330, Thailand T +66 (0) 77 247 675 E info@oriental-living.net PHUKET 424 Srisoonthorn Road Cherngtalay, Phuket 83110, Thailand T +66 (0) 76 325 419 E info@oriental-living.net
www.oriental-living.net
MARCH 2013
| 43
in brief
Hong Kong The consumer appetite for property investments is still riding high; hence with the latest curbs by the government in the residential market, investors are faced with the need to park their money in other markets such as office, retail and industrial properties. A short while after the curbs were announced, we have already started seeing these shifts in the investor buying patterns. Richard Kirke, managing director of Colliers International Hong Kong
Philippines
"yoo" inspired project attracts buyers in Boracay Designer Philippe Starck and property entrepreneur John Hitchcox's yoo design studio are collaborating on a new project in the Philippines. The Aqua Boracay serviced apartments will comprise a cluster of fourstorey, low-density buildings. The development will contain 144 units in total, offering one and twobedroom luxury apartments. Prices will begin at PHP11 million (US$270,500). "The resulting residences are spacious, modern, and sophisticatedly designed," said representatives of Aqua Boracay in a statement. Liz Silvestre, associate director for investments and capital market at CBRE Philippines, said that during the two months following the project's launch, it attracted a lot of attention achieving close to a 50 percent sales take up. "Establishing an international brand presence on the island sets the trend of remote luxury that will take visitors to a new level of 'rest and invest'," Silvestre added.
BORACAY
The Aqua Boracay project is strategically positioned to benefit from the growth of Boracay's tourism industry, according to Silvestre. Unit owners at Aqua Boracay have the option to rent out their apartments through a full management and maintenance agreement. The project is scheduled for completion in 2014.
Thailand
Hong Kong
Setting the pace for Bangkok
2013 luxury property forecast
PACE Development Corporation Plc has generated THB836 million (US$28 million) from sales of its luxury Ritz-Carlton branded residences at Bangkok’s MahaNakhon development. A penthouse unit at MahaNakhon, measuring a total of 1,500 sqm, was sold for THB480 million (US$16.1 million), making it the most expensive condominium unit ever purchased in Thailand. The MahaNakhon development comprises 194 units in total, ranging from 120 sqm to 850 sqm in size. MahaNakhon is set to become Bangkok’s tallest building upon completion, measuring a projected height of 314 metres.
Indonesia
Domestic buyers fuel Bali market
BALI’S REAL ESTATE ATTRACTION HAS TRADITIONALLY BEEN VILLAS.
Bali's property market has seen an influx of domestic buyers, according to a survey conducted by hospitality consulting firm C9 Hotelworks. The island's real estate market has 44 | MARCH 2013
shifted in recent years as a result of rising condo hotel developments. Traditionally Bali is a foreign investment market for villas, according to Bill Barnett, managing director of C9 Hotelworks. "Probably 80 percent of the transactions in the marketplace are Indonesians," said Barnett. Domestic buyers in Indonesia have increased as a result of the rising middle class in Jakarta and Surabaya. Buyers are no longer as interested in purchasing a luxury product and are now focusing on entry-level products, according to Barnett.
5%
decrease in rental prices --------------------------------------
10%
decrease in capital value --------------------------------------
4%
increase in prices Jan-Oct 2012 Source: Colliers International
Barnett warned that the guaranteed return levels in Bali's condotel market are unlikely to be sustainable. "We are starting to see the level where the guaranteed return schemes have been brought two or three years ago and will start rolling off soon, and the secondary market is going to emerge," he said. Barnett added that people trying to resell property outside prime locations would struggle, resulting in market deceleration.
MARCH 2013
| 45
in brief
Asia Among the emerging SEA markets, Jakarta should continue to outperform in 2013 due to strong underlying fundamentals. - Jane Murray, head of Research, Asia Pacific, Jones Lang LaSalle
Philippines
FORT BONIFACIO, MANILA
Big plans Philippines property giant Megaworld Corp. is planning to spend a record PHP35 billion (US$860 million) for its projects in 2013, the company has announced. The property arm of conglomerate Alliance Global Group Inc. will launch at least 10 new projects in the first half of the year, banking on robust demand, the company said. Megaworld, coming off a record sales performance in 2012, allotted PHP25 billion (US$614 million) for its capital spending this year. The Andrew Tan-led property group recorded PHP63.5 billion (US$1.5 billion) in residential reservation sales last year. This translated into a total saleable area growth of 71 percent from a year ago.
The company added that it owes its phenomenal sales growth to its portfolio and track record in the Philippine property market. "It is safe to say we will have double-digit growth in sales for this year," said John T. Hao, investor relations head of Alliance Global's property arm Megaworld Corp.
Singapore
reclamation along the East Coast, Chani and Pulau Tekong. Land set aside for commercial/ industrial and housing Singapore's new land developments is use plan provides expected to increase by greater transparency 32 percent and 30 percent on infrastructure and respectively. dispels fears concerning The population density Singapore's ability will move from 508 to 531 to accommodate the estimated long term persons per hectare with new areas, including population of 6.9 million. Biddar, Tampines North The Ministry of National and Tengah having been Development (MND) unveiled the new land use identified as regions plan following the recent release of statistics on to support population Singapore's future population. growth. The new plan intends to increase land mass by "While these indicators eight percent from 2010 to 2030, presumably from
Land use plan future generation
Philippines
Expats growing demand for condos The growing expatriate population in the Philippines is fuelling demand for luxury condominiums, reports Channel NewsAsia. The rising number of foreign companies, particularly business process outsourcing companies, has led to larger expatriate communities in the country. Philippines' robust property market has convinced Gerry Lane, president of Lane Archive Technologies Corporation, to expand his company's presence in the Philippines. "We're investing in both residential and industrial property this year. I'm going to have considerable expansion here, and I have more 46 | MARCH 2013
confidence right now than I have had in many years here in the Philippines," said Lane. Filipino expatriates living overseas are also purchasing high-end condominium units. Century Properties said their international sales have increased to 35 percent, as more Filipinos and foreigners abroad consider investing in the country. "In the UK, you can invest, but it's really expensive properties‌ you'd rather invest money in the Philippines," said Gio Moreno, logistics administrator in the UK.
suggest a higher density of person per unit area, there will be an opportunity for the real estate industry to innovate and create more conducive urban environment through clever urban designs and integration of complementing land uses," said Chua Yang Liang, head of research South East Asia and Singapore at Jones Lang LaSalle. UAE
Dubai prices surge
30%
increase in prime property prices in 2012 --------------------------------------
1,320 sq ft
average size of properties sold in 2012 --------------------------------------
1,722 sq ft
average size of properties sold in 2011 --------------------------------------
16%
increase in value of transactions facilitated by Hamptons Mena Source: Hamptons Mena
MARCH 2013
| 47
HI LIFE
Luxury News
PRADA POCHETTE This season, Prada have gone back to basics by producing miniature versions of previous classic designs. The latest pochette from Prada’s Spring-Summer 2013 collection is available in yellow, red, black, pink and white. The concept behind the classic pochette was to present it either as a unique ready-to-wear accessory, or as an “organiser” to be carried within a larger bag. Made of Saffiano leather, the multifunctional pochettes feature Prada’s patented diagonal cross hatch design that is pressed onto the leather. The soft calf hide leather is then finished with a wax treatment that makes it water repellent and scratch resistant. 48 | MARCH 2013
SERPENTI BRACELET BY BULGARI The Bulgari Serpenti bracelet is part of a distinctive jewellery collection that draws its inspiration from the intensity and vitality of the serpent. Featured here, the Serpenti bracelet is crafted in 18 karat white gold with full pavé diamonds. The bracelet is also available in pink gold with rubellite, and yellow gold with peridot. The flexible reptilian form lends itself to a variety of jewels and timepieces, and is fast becoming a modern icon of Bulgari’s design. This unique style originated from Bulgari’s 1940s timepiece designs which have evolved into increasingly varied versions over the years.
RAVEN PLATFORM SANDALS BY JIMMY CHOO Follow trend setting celebrities this season by investing in a pair of Raven platform sandals by Jimmy Choo. These elegant peep toe platforms are from Choo’s Spring-Summer 2013 collection, and with a heel measuring 5.7 inches they will give an excellent boost to your height, and your style. Pictured here in luxurious tobacco coloured suede, the Raven platform sandals are the perfect accessory to complete your elegant daytime outfit. If you want to make a bolder statement with your footwear, the Raven sandals are also available in course glitter fabric in orchid, metallic snake print leather in bronze and mirror leather in orchid.
MARCH 2013
| 49
HI LIFE
Luxury News
PORSCHE IPAD CASE Push your iPad into top gear by accessorising with this leather Porsche iPad case. Made out of original vehicle interior leather, the case is also lined with a protective padded cover that ensures protection from the bumps and scrapes of everyday use. Measuring 9.8 x 7.9 x 6.3 inches, the case fits iPads one and two as well as other brands of tablet. The case is one in a range of items in the Driver’s Selection collection created by Porsche design to introduce the excitement and passion of motoring into everyday items and accessories. All items in the collection are available online.
AGATHON REGULATEUR BY FABERGÉ Fabergé’s collections of hand-made watches feature the highest quality craftsmanship using the finest materials. The Agathon Regulateur in Rose Gold and Hazel Enamel is one in a limited edition collection of 25 watches. The 40 mm diameter, made of solid 18 karat white gold, showcases the skeletonised guilloche engraved movement viewed under sapphire glass. The silver guilloche dial is fitted with a white gold motion work plate decorated with guilloche and white enamel. The hand-wound mechanical F1856 movement has a 38 hour power reserve and jewels. A butterfly clasp set with a cabochon sapphire fastens the chocolate alligator strap.
BLACKTIE SUNGLASSES, BY CHRISTIAN DIOR Originally designed in 1952, the wayfarer style has become synonymous with “cool” across the globe. Christian Dior was one of the first fashion designers to produce a line of branded sunglasses, and the Blacktie 130S sunglasses do not disappoint as a luxury accessory. The sunglasses draw on 1990s style inspirations to invigorate the classic wayfarer style, and freshen up your spring wardrobe. The designer frame offers a luxury alternative to a timeless style which will serve you for seasons to come. In black and tortoiseshell, the acetate frame highlights the intricate double bridge and the “Dior Homme” signature. The graded grey lenses guarantee 100 percent UV protection. 50 | MARCH 2013
MARCH 2013
| 51
HI LIFE
City Rental Luxury Interview
Philosophy meets landscape design Internationally commended landscape architect Dr. Colin Okashimo established his practice, Colin K. Okashimo and Associates (CKOA) in 1996. Since then, his team has employed its distinctive techniques at residential and commercial developments across Southeast Asia and beyond. The Canadian born artist catches up with Property Report to share his design philosophy, inspirations and latest projects. | by Rebecca Foster
As both a landscape designer and sculpture artist, Okashima highlights the importance of a development's location in providing inspiration for his team. CKOA utilises an unusual approach to accustom themselves with the sites they are developing, which reaches far beyond researching basic facts and figures about the location. "You need to know socially, culturally, environmentally, historically what's happening on every site," he says. "Another type of research I wanted to develop‌ is what happens intuitively when you go and visit a place. [I want to] document a new way of finding out how far you develop a feel for what a place 52 | MARCH 2013
is, and therefore when you test various options of what you're designing by creating a sculpture, that becomes the testing ground for whether or not it feels appropriate." From Okashima's perspective, having an insight into the nuances of a location is a key part of the landscaping process, and an essential component in crafting an atmosphere that complements the whole development. According to his sculptor's philosophy, charging in and executing immediate plans without fully engaging with a location is a general problem within the international landscaping industry. With a doctorate in Philosophy, Okashima endeavours to
weave his intellect, and also his own personal practice of meditation into the process of his work. This knowledge certainly enlightens the smoothly carved surfaces of the sculptures and subtly provocative landscapes that feature in CKOA's creations. Yet despite a focus on creating environments characterised by calm and tranquillity, Okashima doesn't want his landscaped spaces to send people to sleep. "Your audience has to be provoked to the point where it's memorable," he says. "It needs to produce some sort of meaningfulness for the viewers." CKOA's unique research process, as developed by Okashima himself, was one of the main factors that propelled him to set up his own practice. "I wanted to be personally involved with every aspect of the research, the design, creating the work, and I think that's very important in terms of having the strength of all the experience run through the entire project," he explains. Ultimately, Okashima believes that the landscaper should strike a balance between what he dubs "the subtle nuances of a place" and the facts and figures. "We work with academics," he says. "They provide not just the research, but also come with us to the site and give their opinion on what we're developing." Currently, CKOA is working on residential projects in Thailand and Malaysia, including Kingdom Property's Southpoint development in Pattaya. "What's great about working with Nigel as a developer [Nigel Cornick, Kingdom Property CEO] and decision maker is that he understands our process," says Okashima in reference to Southpoint. "He understands what we're trying to do and he's supporting us." Evidently passionate about the site based research that inspired him at Southpoint, Okashima continues, "There's a lot of attention to detail, there's a lot of warmth to the materials, there's a lot of reference to the history and the culture of what's on the hill, and there is a casualness you find that's also a reference to the beach environment." When reflecting on the distinctions between commercial and residential developments, Okashima reveals that his team is often recruited by the client before the architect is consulted, and on frequent occasions CKOA have actually led the master planning of projects. "Some clients bring us in much earlier
than the architect,"he says, "particularly if it's a place where the environment is one of the key selling aspects of the project." Whatever the development, one of the paramount philosophies shared by the team at CKOA is that each new project is an opportunity for growth and learning. "We are very interested in seeing through [the project] to the very last day, and then past that, in terms of watching it grow through its use and how people choose to enjoy it," he adds. "We go back and visit our projects a lot, we want to learn from them." With residential projects in Singapore, Malaysia and Thailand, as well as hotel projects in the Seychelles and Mauritius, CKOA's unparalleled meditative vision of landscape design is gaining popularity in a diverse range of locations across the globe.
MARCH 2013
| 53
HI LIFE
Home Tech
COOKING UP A STORM
KVIK’S MANO KITCHEN Kvik’s chic, white Mano kitchen combines sleek lines with coarse materials to give your cooking space a stylish edge. Currently one of Kvik’s most popular designs, the Mano units are available in Kvik’s Basiq range, which offers standard sized units and X-Large or XX-Large units which can provide up to 40 percent more storage space. Crafted from compact white laminate, the materials that make up the Mano kitchen are hard wearing and impact resistant. The Mano kitchen can be customised to suit your own tastes with Newform XT U-spouts that are available in white, black, chrome or brushed effects.
GAGGENAU VARIO COOKTOPS 400 SERIES
GAGGENAU RECESSED TABLE VENTILATION AL400
The Gaggenau Vario cooktops 400 series fuses the best of kitchen technology with dynamic sculptural design. Induction and gas cooktops, steamer, Teppan Yaki, electric grill, deep fryer and ventilation elements can all be integrated into a highly stylised unit measuring 38, 60, 80 or 90 centimetres in width. The various configurations within the range are able to accommodate a variety of cooking styles, depending on your preferences. The meticulous crafting of the stainless steel allows appliances to be snugly flush mounted, and are the cherry on top of an elegant, design focused kitchen.
The Gaggenau AL400 table ventilation system provides an ideal solution for ridding your kitchen of unwanted vapour and cooking odours. The system is especially effective for cooking islands and open plan kitchens. The highly flexible AL400 can be flush or surface mounted and can be integrated discreetly into all kitchen layouts. The system is available in widths of 120 or 90 cm, and is 14 cm deep. The AL400 is equipped with three power settings and one intensive setting which resets automatically every few minutes, and it can be operated by remote fan units.
54 | MARCH 2013
Whether or not you enjoy cooking, there is no reason why the kitchen should not reflect the same elegance as the rest of your home. Some of the latest kitchen designs and gadgets are created not only for their convenience, but also to add style to the culinary landscape. The smartly designed products in ranges by Gaggenau, Kvik and Teka also help make cooking a smooth, stress free process.
TEKA DPL 90 IHOOD If you enjoy a sing-song while preparing your evening meal, Teka’s decorative cooker hood is the perfect addition to your kitchen. Measuring 90 cm in length, the hood comprises double turbine motors to help remove steam and cooking odours, in addition to an iDock and two side speakers. The iDock works with both iPhones and iPods. Available in stainless steel and black glass with LED illumination, the sleek design of the iHood adds a touch of class to your cooking space, as well as a little more fun.
TEKA HL 870 OVEN
KVIK’S RIMINI KITCHEN
This stainless steel multi-function oven features a total of nine cooking functions, plus a Hydroclean facility. With a capacity of 60 litres, the oven also operates from a touch control programmer. The HL 870’s stainless steel is also fingerprint proof, which is great for people who want to preserve the sleek, fresh style of their kitchen even when they are in the midst of whipping up a gourmet masterpiece. The oven comprises a drop down grill, double glazed door, one deep tray and a reinforced cooking grid. The HL 870 also features a children’s safety block option.
The Rimini kitchen does not disappoint in delivering Kvik’s trademark quality design and ergonomics. Rimini is Kvik’s country kitchen design, and has taken a step further by including a reinterpretation of the classic pilasters between the cabinets. With worktops of solid 30 millimetre teak, the Rimini successfully fuses traditional and modern styles. It is available in Kvik’s Basiq, X-Large and XX-Large ranges. With X-Large cabinets, Kvik has made space for internal drawers in the middle and bottom drawer. The design features great attention to detail, with a light positioned inside the drawer to help you identify just what ingredients you have in stock.
MARCH 2013
| 55
HI LIFE
Home Style
METALLIC MARVEL If you fancy breaking away from traditional floral prints and warm flowery hues this spring, metallic and mirrored furniture is one of the hottest new décor trends this year. The glamorous and luxurious ambience created by the sleek lines of the pieces featured here reflect an eclectic blend of global influences, mixing the best of Eastern and Western styles. Combining organic surfaces like wood and metal is a great way to add a radical edge to your decorating style, and organic shapes like ovals and curves are also becoming increasingly popular. However, if the smooth lines of this “space-age” inspired furniture are too much for your personal aesthetic, add a little warmth to your living space by accessorising with silk cushions and lampshades, sticking to your metallic colour palette. Adding a mirror is also a key accessory for introducing the illusion of extra space to your living area.
1 2
4 3
6
1. AND furniture, The Legion coat rack. www.andfurniture.com 2. AND furniture, Shard wall/ ceiling light. www.andfurniture.com 3. Ovo, Bloom dining table. www.ovo.com.hk 4. Dedon, Yin Yang love seat. www.dedon.de 5. Baker furniture, Andre Arbus collection, Flambeau chandelier. www.bakerfurniture.com 6. Dedon, Orbit love seat. www.dedon.de 56 | MARCH 2013
5
MARCH 2013
| 57
Special Advertsing Feature
HI LIFE
City Rental Villa Rental
Marriage of convenience In favoured tropical hotspots such as Phuket and Bali, private villas do not solely provide luxury shelter for holidaymakers, but are increasingly sought after as destination wedding venues. | by TINA HSIAO
In recent years, market commentators have been preaching a “build small” approach to private villas in order for rental villas to keep up with the shifts in travel patterns and client demographics. In the case of the booming destination wedding business, however, especially taking into account the guest list, size does matter. “We’re seeing demand for better and more competitive villas with the ability to offer them as a wedding venue, with 30 percent of our business now from weddings,” says Wayne Hue, director of sales and marketing at Luxury Villas and Homes (LVH), a villa rental and management company with a portfolio spanning Phuket, Koh Samui, and Bali. Thanks in part to the wedding boost, LVH’s Phuket villas have brought an impressive return on investment in recent years. “Even though we haven’t had that long to compare, for our Phuket villas we’ve seen between 30 to 40 percent in rental returns over the past two years.” 58 | MARCH 2013
The Signature Weddings, a sister company of LVH, was set up specifically to offer bespoke villa weddings on Koh Samui and Phuket, with a team of event planners in place to arrange everything from celebrants and Thai dancers to floral decorations and fireworks. Wedding organisers remove the hassle of the tedious legwork and offer on-the-ground contacts and connections, but in mature markets such as Phuket, couples can also opt to do this themselves, with caterers, hair and makeup artists, florists, and photographers on the island all on the top of their game. Looking at the bottom line, at the end of the day with all expenses factored in, a wedding held at a luxury villa versus a comparable five star hotel would cost the same pretty penny. But as with any event, it’s the small things that count -- the myriad unsung intangible factors that add up to a smooth-running day to remember. Regardless of the chosen destination for the big day, villa weddings are increasingly becoming the popular choice for a number of reasons: Totality and privacy: With the whole villa catering exclusively to the one event, the couple can make a day (or a week) of the wedding. Guests can arrive
Villa Tievoli One of seven villas in the gated Sava estate, situated 20 minutes north of Phuket International Airport on Natai Beach, Villa Tievoli is a beachfront wedding dream. The sprawling villa features six double bedrooms, four of which have en-suite bathrooms with another bathroom shared between two pool-level bedrooms. At the heart of the villa is a doubleheight living room with oversized sliding glass panels that look out over the length of the infinity pool and beach beyond. Indoors, a large television room features a large plasma TV with 3D viewing options, and on the other side, a billiards table enroute to the fullyequipped kitchen.
whenever they wish to make full use of the villa facilities, and the bride and groom can enjoy pre- and post-ceremony celebrations with no set schedule or open bar hours to adhere to. Likewise, as a private venue, couples and their guests need not worry about strangers loitering about the buffet line or splashing around in the swimming pool. Inspiring surroundings: A wedding villa is in essence a home, which means all the facilities and amenities are in place to entertain guests when the couple can’t. Larger villas are often equipped with an AV room to chill out in, a large lounge to gather in, a games room for the teenage guests, private pool, landscaped gardens, and stunning views, be it mountain, coast or even right from the beach. Depending on how a couple wants their wedding album to be themed, the chances are there is a villa offering the exact backdrop to the photographic memories. Flexibility: With no one other than invited guests, what a couple can plan into the day is endless, be it professional spa therapists to offer poolside massages, a game of volleyball set up on the lawn, or seaside mah-jong frivolities into the early hours of the morning. Dining options are also limitless, whether it is a D-I-Y barbecue
feast on the beach or a formal sit-down dinner in the comforts of the air-conditioned indoors. No gathering is complete without drinks, which couples can source at wholesale prices without having to cringe at corkage fees. Child-friendly facilities: No offspring-towing guests will be able to have fun unless their children are safe and kept entertained. With a villa, parents can safely leave their children in the AV room to watch a DVD, or let them frolic in the pool or garden, safe in the knowledge that there are no random strangers around. There is also always the possibility of arranging for a babysitter, again keeping the children in proximity to the watchful eyes of parents. Should the after party drag out longer than the kids’ eyes can stay open, bedrooms and living room sofas provide perfect temporary nap spots so the adults can continue enjoying the party. Proximity to ceremony: Especially with larger hotels, getting from the designated hair and makeup room to the actual ceremony might be a bit of a trek, which in a tropical destination, can be even worse than it sounds. With everything contained within a villa, the couple can charter their own short path to the altar, again, without worrying about prying eyes.
Flanking the 25 metre-long swimming pool are three bedrooms on one side. On the other, a glass window-enclosed dining room arm connected to the kitchen can be closed off or opened to flow out onto the outdoor living area. A built-in barbecue, long bar counter, and plenty of sofas and seating comprise the outdoor entertainment area. An unobstructive awning is stretched across the entire terrace area in case of tropical showers. Between the swimming pool and the beach is a well-manicured lawn, with an open air sala gazebo off to one corner. Fronting the villa is a 200 metre stretch of golden sand providing literal front row seats to the sun setting under the Andaman waters right in front of the villa. This villa is offered in partnership with Luxury Villas and Homes. For information and reservations: villarentals@ensign-media.com
MARCH 2013
| 59
INDEPTH
Neighbourhood Watch
01
02
City of Heroes Home to approximately three million people, Indonesia’s second city Surabaya is fast becoming one of Southeast Asia’s hotspots. | by Rebecca Foster Situated on the northeastern shore of Java, Surabaya has long been known nationally for the central role its people played in the struggle for Indonesian independence, but modern Surabaya's reputation as an international, cosmopolitan destination is also growing rapidly. Increasingly touted in Indonesia as a shoppers' paradise, Surabaya boasts over 20 shopping malls, with more under construction. It is also one of Indonesia's top golfing destinations. Just an hour's flight from Jakarta, Surabaya's Juanda Airport also links the city directly to Singapore, Malaysia and Hong Kong. However, despite the multitude of new developments popping up in this maritime city, Surabaya still retains strong links with its past. Traders and artisans have been drawn to the city for 700 years and many have remained in the area and built their own unique communities.
04
60 | MARCH 2013
05
03
06
01 Graha Famili township www.intiland.com Intiland's Graha Famili township is located in western Surabaya, in one of the city's most exclusive areas. The township has been developed around an 18-hole golf course designed by Arnold Palmer, and boasts a choice of integrated residential areas offering a range of highend units. In 2011, the township launched several different stylish housing choices, including the Celestine, Amaris, Helena and Orelia designs. Intiland is still in the process of developing further residential clusters surrounding the golf course, in addition to pedestrian pathways linking to onsite commercial facilities.
04 Ciputra World www.ciputraworldsurabaya.com The mall at Surabaya's Ciputra World is phase one of PT Ciputra Surya Tbk's first commercial developments. Known simply as Ciputra World Mall, it is strategically located at the heart of some of Surabaya's most exclusive residential areas, including Darmo Hill and Graha Famili. The exclusive six-storey shopping centre is also conveniently located for expressway access to the rest of the city. It was developed with a focus on lifestyle, and as an ideal destination for an afternoon of retail therapy in mid to high-end shops. The mall provides a unique blend of leisure, dining and retail facilities and is the city's most cosmopolitan shopping destination.
02 Surabaya International School www.sisedu.net SIS follows an American programme accredited by the Western Association of Schools and Colleges and caters for students aged three to 18. Founded in 1971 as an English-medium school for foreign students, 26 nationalities are now represented and many SIS graduates progress onto four-year university programmes in the US, Australia, Singapore or their home countries. The current campus comprises 48 classrooms, including computer labs, science labs, photography lab and a "Little Theatre". Other facilities include two playgrounds, athletic field and swimming pool. SIS is one of Indonesia's first wireless, laptop schools. SIS is located in western Surabaya, the campus is 30 minutes from Surabaya's central business district.
05 Shangri-la Hotel www.shangri-la.com The Shangri-la Hotel is situated adjacent to Surabaya's exclusive Darmo neighbourhood, and only a 30 minute drive from Juanda International Airport. This luxury hotel comprises 383 sumptuously decorated rooms, including 18 exclusive suites. All the rooms feature comfortable, modern decor in addition to elaborately carved Javanese wooden wall frames that introduce a touch of Indonesian authenticity to an otherwise contemporary stay. Many rooms also afford panoramic views of the city and facilities include an aerobics studio, health club, spa, swimming pool and tennis courts. On site dining options include the Nishimura Japanese restaurant, Portofino Italian restaurant and the Shang Palace Chinese restaurant.
03 The Platinum @ Graha Famili township www.intiland.com The Platinum apartments provide luxury living Surabaya. Part of Intiland's exclusive Graha Famili township, The Platinum offers residents a tranquil and private living environment. The project was designed by Singaporean architect Chan Soo Khian, and embodies a chic, cosmopolitan style. The project comprises 28 units, spread across a 1.4 hectare area of land, and offers fully serviced apartments which provide residents with a range of daily services including maid service and property maintenance.
06 Dining @ JW Marriott Hotel www.marriott.com The variety of dining choices at the JW Marriott Hotel is enough to tickle anyone's taste buds. The Vis a Vis French restaurant features classic French cuisine, as well as seasonal dishes of the chef's creation, all of which are complemented by an extensive wine list. The Tang Palace Chinese restaurant is renowned in Surabaya for its high quality and authentic tasting cuisine, particularly its speciality Cantonese Dim Sum. The Imari Japanese restaurant features a choice of options, including two Tatami rooms, Teppanyaki show cooking or traditional a la carte dishes for both lunch and dinner. Located within the hotel's gardens, The Pavilion restaurant is open for breakfast, lunch and dinner and an ideal venue for those looking to sample local delicacies.
MARCH 2013
| 61
Indepth Battersea
London’s new power play One of London’s oldest buildings is getting a new lease of life, and property buyers in Singapore and Malaysia are rushing to secure their own share in the project. | by Jacqueline Danam
Buyers... clearly appreciate the mixed-use nature of the town centre scheme which will provide London with a thriving new community on the banks of the River Thames.
Construction began in 1929 Construction completed in 1953. Original architects: Theo J. Halliday and Sir Giles Gilbert Scott. Original design theme: Brick cathedral Size: Largest brick building in Europe. Power: Up to 509 megawatts Closed: Ceased to generate electricity in 1983 Status: Grade II listed building
62 | MARCH 2013
B
attersea Power Station, a historic London landmark easily recognisable by its four towers, is soon to become a massive mixed-use development. The project is being undertaken by a heavyweight Malaysian consortium, and in the first week of sales, commitments were made worth over ÂŁ600 million (US$945 million). Even before the project's launch in Singapore about half of the units reserved for the event had already been snapped up by investors from the Lion State keen to benefit from an early entry. "We set aside 100 plus units for the Singapore launch," says Dr Tan Kok Heng, chief investment and marketing officer with Sime Darby Property. "The overwhelming response is all due to the sheer hard work of all who were involved in marketing this project."
Another key factor in the positive reception that this landmark London project has been garnering – its launch in London and Kuala Lumpur also inspired enthusiastic responses - is the financial muscle and excellent track record of the three Malaysian entities behind the development. In addition to Sime Darby Property, an MNC with global, diversified interests, the other two entities involved are SP Setia, an award-winning public listed real estate player with multiple projects in Malaysia and abroad, as well as the Employees Provident Fund, a social security institution that invests its members' contributions to generate income. Units offered at the Singapore launch included the one-, two- and three-bedroom apartments and penthouses
MARCH 2013
| 63
Indepth Battersea
in what are known as the Faraday, Bessborough, Scott, Dawson, Fladgate and Pearce blocks. Of the five penthouses that were available for sale, two had already been reserved. The most popular units, however, appeared to be the onebedroom apartments. Of the 10 available for sale, nine of these had already been reserved before the preview. Besides the various apartment types offered in the six blocks, the development's residential component will also include townhouses and another two blocks. "We have nearly 3,000 units that need to be sold," says Ron Tincknell, CEO of Battersea Power Station Development Company (BPSDC), a British-based company under the ownership of the Malaysian consortium, which is managing the development of the project. "Buyers, both in the UK and abroad, clearly appreciate the mixed-use nature of the town centre scheme which will provide London with
64 | MARCH 2013
a thriving new community on the banks of the River Thames." Kok Heng says the consortium is targeting a mix of buyers, from those interested in acquiring units solely for investment purposes to parents who wanted their children to stay in their own homes while studying in London. Also being targeted are those who have strong links with the UK capital, either because they have family members living there or because they have studied or worked there in the past and are keen on owning a home that they can return to in the future. Locals and foreigners already residing in London have also been purchasing units, mainly one-bedroom apartments. "We are pleased with the international spread of buyers that we have so far," Kok Heng added. "This is what we wanted." It's not all good news for the Battersea Power Station
VOTED
MARCH 2013
| 65
Indepth Battersea
project, however, which has also received some criticism, mainly from Londoners who believe the area has been neglected for too long for anyone to want to live or work there. Jo Eccles, managing director of Sourcing Property, which specialises in central London and Surrey, is warning clients to be cautious about the huge developments in the Battersea and Nine Elms area. "Whilst the plans for Battersea Power Station look exciting, with investment in infrastructure and the creation of hotels, restaurants, shops, a theatre and cinema, my concern is whether they will be able to create a genuine community from scratch where such commercial outlets can really thrive and survive," Eccles said. "Many other riverside developments which have been equally isolated from existing communities have failed so far, and we will wait to see if Nine Elms can really achieve what others haven't." Other real estate experts have expressed similar concerns. "The huge volume of flats due to be built in and around Battersea Power Station means that once everything is built, rental yields are likely to be compressed as investors will all have their flats on the rental market at the same time, causing an over supply, and capital appreciation is also likely to be much slower," says Camilla Dell, Black Brick Property Solutions . "Prices are now in excess of £1,000 (US$1,500) per sq ft. In my professional opinion, you really need to be buying below that threshold 66 | MARCH 2013
WE HAVE NEARLY 3,000 UNITS THAT NEED TO BE SOLD.
to be in with a chance of seeing any significant price growth over the next few years." Tincknell, however, disagrees. "The [Battersea Power Station] project is only a mile from Westminster and the new U.S. embassy is being built just 400 yards away with, I am sure, more embassies to follow," he says, adding that the power station itself will be a draw, as it has been from the time it was featured on the cover of a Pink Floyd album in 1977 to a more recent appearance in the Batman movie, The Dark Knight. "We are also building the highest swimming pool and tennis court in London on the station's roof, and the largest shopping mall in south London is also being planned." Another significant development is the recent announcement by the UK government of a Northern Line Extension on the London Tube. This will effectively give the development its own station — Battersea Power — with travel time less than 15 minutes to the West End or the City of London. A similar development, Canary Wharf, which was once also an abandoned industrial area, is now home to large MNCs and some of London's priciest real estate. "We can say there are similarities, but Battersea Power Station has a stronger heritage compliance," says Kok Heng. "Plus, we are creating something inside the power station as well as around it." Building on site is forecast to commence in late summer, with completion of Phase One expected in 2016/2017.
DESIGN FOCUS
WATG / Wimberly Interiors
Global design empire Property Report recently caught up with Brad McNamee, Senior Vice President of celebrated global design firm WATG to talk about the company’s Singapore projects, which include the W Residences at Sentosa Cove, the Oceanfront @ Sentosa Cove and the St Regis Residences, as well as to discuss the art of creating new properties within local design traditions. | by Sofie Lisby
S
ince its inception in Hawaii in 1945, WATG has been a pioneer in innovative architecture. The philosophy, then and now, is to create engaging and functional architecture with a sense of place. Having working on projects in more than 160 countries and territories across six continents, the company has a strong record in hospitality architecture having created landmarks such as Ayana Resort & Spa on Bali, The Venetian in Las Vegas and the upcoming Viceroy in Istanbul as well as Ritz Carlton, St Regis, Hilton, Sheraton and Mandarin Oriental hotels in iconic locations such as Kuala Lumpur, Mauritius, and Hawaii to name just a few. While the US and the Middle East have traditionally been WATG's main markets, more than half of the company's projects are now based in Asia and with the advent of branded residences the company has foraged into this unique segment in Singapore. Property Report recently caught up with Brad McNamee, WATG Senior Vice President to talk about the company's Singapore projects, which include the W Residences at Sentosa Cove, the Oceanfront @ Sentosa Cove and the St Regis Residences, as well as the art of designing within local design traditions. MARCH 2013
| 67
DESIGN FOCUS
WATG / Wimberly Interiors
68 | MARCH 2013
BRINGING IN MORE FOREIGN ARCHITECTS HAS OPENED UP PEOPLE'S VISION HERE FOR MORE UNIQUE AND CREATIVE DESIGNS.
Which features would you like to highlight from the W design? Our original architectural concept was inspired by the unique context of Sentosa Island overlooking the South China Sea, with ivory beaches and lush tropical landscape. The architectural details are an abstract reinterpretation of the environment with simplified shapes, colours and materials in a contemporary aesthetic. The metal paneling on the facade is evocative of iridescent fish scales, and the roof lines rise and fall in rhythm to mimic crashing waves. The architectural design is layered with juxtapositions, merging sensuous forms that reference the sea with reflective and colourful materials that underscore the building is an expression of man and nature.
design. In particular, I develop a unique vision and design solution for each project, rather than rely on a formulaic approach. As we evolve and challenge conventional practices, we must inform our clients, developers, government officials and consumers on the distinction and corresponding advantages. Specifically relative to residential development, rather than focus on maximising the saleable area and efficiencies with rectangular rooms, we highlight the unique features, such as curved forms, that not only differentiate the product, but are appreciated by customers and command higher prices. As a result, foreign architects have more freedom of expression which is transforming the skyline in Singapore with contemporary building forms and materials.
What's so unique about designing in Sentosa Cove? The tropical island of Sentosa is truly a unique destination that blends the cosmopolitan energy of Singapore with the tranquil resort ambiance of Southeast Asia. The site is actually a manmade peninsula of reclaimed land, surrounded by a private yacht marina, with long-distance views of the sea and the city lights of Singapore in the foreground. Our design contemplated the view corridors throughout the property, and we intentionally framed different perspectives from different areas within the development. The stylish enclave provides an urban texture and lifestyle experience within a resort environment.
Speaking of trends, is sustainable design high on WATG's agenda? Sustainability is no longer a trend, rather it is a practice that is integrated into our design process. Although zero-energy buildings are an ambitious goal, we must balance this with the expectations and comfort of the average buyer. Humidity and climate patterns in Southeast Asia will often warrant air conditioning, especially to accommodate international travellers. The Hansar Hotel and Residences in Bangkok is successful at balancing fresh air ventilation in the outdoor terraces and public spaces with green walls and airconditioned rooms. At the W Sentosa, we included a retractable glass wall in the Ballroom to create a seamless transition from indoors to the Garden Terrace that overlooks the lush resort landscape and sparkling South China Sea.
How does Singapore and Southeast Asia differ as a design location compared to WATG's other markets? Each destination provides us with a unique canvas to design a compelling experience. We begin each project with an in-depth analysis of the targeted customer, and we then script a journey for them to experience and discover the destination within the context of the hotel. We are inspired by the colours, textures and traditions of the locale, and reference those details to reinforce the sense of place. As western hotel brands have pioneered into Asia, we have collaborated with them to maintain their differentiating pillars with the bespoke traditions of the destination, including architectural details, service standards, cultural traditions and cuisine. The geographic and climatic context are also critical. How do you think the arrival of more foreign designers have influenced architectural trends in Singapore? I've noticed, coming here as a foreigner myself, that I have a different perspective and approach to
WATG also designed the St Regis Hotel and St Regis Residences off Orchard road. How was this location different than Sentosa Cove? The St Regis is located on a relatively small site of approximately four acres, and the context on Orchard Road is more urban than Sentosa. Our design solution balanced specific zoning and height restrictions with the developer's desire to maximize the saleable area of the residences. The design quite literally took inspiration from the Singaporean flag with the red colour and the crescent symbolic of a rising nation. The three buildings are visually linked with crescent-shaped forms and profiles, clad in translucent glass to achieve a luminous glow. The property is situated amidst an open residential area on Tanglin Road, embassies, and an urban business district on Orchard Road, reflecting the duality of Singapore as a 21st-century destination.
MARCH 2013
| 69
DESIGN FOCUS
WATG / Wimberly Interiors
70 | MARCH 2013
THE OCEANFRONT @ SENTOSA COVE. COURTESY OF PETER MEALIN
MARCH 2013
| 71
DESIGN FOCUS
WATG / Wimberly Interiors
W’S ARCHITECTURAL DESIGN IS LAYERED WITH JUXTAPOSITIONS, MERGING SENSUOUS FORMS THAT REFERENCE THE SEA WITH REFLECTIVE AND COLOURFUL MATERIALS THAT UNDERSCORE THE BUILDING. COURTESY OF W SINGAPORE, SENTOSA COVE
72 | MARCH 2013
THE THREE BUILDINGS OF ST. REGIS ARE VISUALLY LINKED WITH CRESCENTSHAPED FORMS AND PROFILES, CLAD IN TRANSLUCENT GLASS TO ACHIEVE A LUMINOUS GLOW. COURTESY OF PETER MEALIN
MARCH 2013
| 73
DESIGN FOCUS
WATG / Wimberly Interiors
THE ST. REGIS SINGAPORE AND THE RESIDENCES AT THE ST. REGIS SINGAPORE. COURTESY OF PETER MEALIN
74 | MARCH 2013
THE OCEANFRONT @ SENTOSA COVE. COURTESY OF PETER MEALIN
MARCH 2013
| 75
DESIGN FOCUS
WATG / Wimberly Interiors
76 | MARCH 2013
NIGHT VIEW OF SENTOSA COVE
MARCH 2013
| 77
DESIGN FOCUS
WATG / Wimberly Interiors
THE OCEANFRONT @ SENTOSA COVE OCCUPIES THE OUTER PENINSULA OF SENTOSA COVE. COURTESY OF PETER MEALIN
78 | MARCH 2013
THE DESIGN OF ST. REGIS WAS INSPIRED BY THE SINGAPOREAN FLAG WITH THE RED COLOUR AND THE CRESCENT SYMBOLIC OF A RISING NATION. COURTESY OF PETER MEALIN
MARCH 2013
| 79
DESIGN FOCUS
WATG / Wimberly Interiors
THE BENTLEY SUITE AT THE ST. REGIS NEW YORK CELEBRATES THE RICH HERITAGE AND WORLD-CLASS CRAFTSMANSHIP PRACTICED BY THE LUXURY AUTOMOBILE BRAND IN CREWE, ENGLAND. COURTESY OF BRUCE BUCK
80 | MARCH 2013
WIMBERLY INTERIORS, A DESIGN STUDIO OF WATG, DESIGNED THE BENTLEY SUITE AT THE ST REGIS NEW YORK WITH DETAILS THAT ARE EVOCATIVE OF A RACING CAR. COURTESY OF BRUCE BUCK
MARCH 2013
| 81
DESIGN FOCUS
WATG / Wimberly Interiors
ST.REGIS SINGAPORE COURTESY OF PETER MEALIN
82 | MARCH 2013
MARCH 2013
| 83
SPECIAL REPORT Branded Hotel Residences
A brand apart Asia’s second wave of branded residential property is bringing diversity and dynamism to the urban and resort markets with hospitality additions and signature design schemes offering buyers an appealing combination of financial opportunities and lifestyle benefits. | by Liam Aran Barnes
BRANDED RESIDENCES ARE INCONTROVERTIBLY BACK IN VOGUE AROUND THE REGION.
I
n August 2012, amid an environment of economic uncertainty, fresh cooling measures and supposed subdued investor interest in Asian luxury real estate, Savills ranked the sale of a unit at Singapore-based development The Marq on Paterson Hill, with an average price of S$71,511 (US$57,717) per sqm, the sixth most expensive residential property globally in a study of ‘world class’ cities. Three months later, in the equally erratic Hong Kong housing market, a 621 sqm apartment at Swire’s OPUS HONG KONG sold for a staggering HK$455 million (US$58.7 million) to become one of the world’s most expensive condominiums, second only to London’s One Hyde Park. Then in February this year, Thai property firm Pace Development Corporation announced the THB480 million (US$16.1 million) sale of a penthouse apartment at its flagship MahaNakhon project. While this sum falls someway short of the premium precedent set by its island-state counterparts, the Bangkokbased penthouse is now the country’s most expensive condominium.
MAHANAKORN BY PACE DEVELOPMENT CORPORATION 84 | MARCH 2013
THE RITZ CARLTON RESIDENCES BANGKOK
Labelling success Excluding the obvious - eye-watering price tags and prime locations in some of Asia's choice metropolises - these landmark residential properties all have something else in common: brands. Branded residences are incontrovertibly back in vogue around the region. From Yangon to Hong Kong, luxe hotel brands, international starchitects and the globe's leading interior and fashion designers are all associating themselves with Asia's most desirable residences. MahaNakhon, which upon completion will also be Thailand's tallest building, is set to feature the highly-coveted Ritz-Carlton branded residences, Swire's OPUS HONG KONG was legendary architect Frank Gehry's first foray into Asia, while The Marq is set to boast the world's first Hermès-decorated apartment. The concept of the branded hotel residence, however, is by no means a recent trend in the region. The market originally emerged, fuelled by tourism booms, particularly in Thailand, Indonesia, Philippines and Malaysia during the 90s, and although the initial offerings were exclusively located in resort markets and tended to attract buyers looking for a holiday home with the adage of hospitality services, by the early 00s it had evolved into a much more investor orientated sector. "Resort real estate, especially in markets like Thailand, saw demand outpacing supply. Pricing was ramped up and there was a feeding frenzy," Bill Barnett, managing director of asset management and hospitality consultancy C9 Hotelworks says. "Project sales pace was high and disposable incomes along with big bonuses allowed buyers to purchase hotel managed villas over US$1 million and upwards. This was the golden age for branded real estate."
The market all but bottomed-out during the heady days of the Global Financial Crisis, however, when HNWIs turned their attention back towards the private villa segment. As a result, developers had to diversify, changing the playing field in an attempt to maintain investor interest. No longer are branded residences exclusively orientated in resort destinations, available to only HNWIs and little more than upscale serviced holiday homes. As evidenced by the landmark transactions in Hong Kong, Singapore and Bangkok, developers have started to target investors in their own back yards, introducing new branded products to the urban arena. "City-based projects tend to be located as part of hotels and mixed-use developments," Barnett says. "The allure is not the hotel managed yields, but a prestigious place to live. A good number of high net worth local and foreign buyers are now choosing these options and more of the million dollar hotel branded real estate has shifted from resorts to urban property." Re-inventing resort property While branded properties increasingly become associated with cities in Asia, the once dominant resort sector has assumed a different guise, with a number of developers starting to cater more to wider market segments. Banyan Tree Group, in particular, has capitalised on the surge of domestic middle-class investors in countries such as Singapore and Thailand, and its latest venture - Laguna Shores - offers entry prices of around US$100,000. Located on Phuket, the Laguna Property-developed project offers MARCH 2013
| 85
SPECIAL REPORT Branded Hotel Residences
buyers two payment schemes. The initial option is investment focused, whereby owners are be entitled to 30 days stay per year outside of the peak season in order to maximise rental returns, while 'Pool B' is more lifestyle orientated, providing unlimited days stay per year, with added flexibility that allows owners to place the unit in a rental pool when unoccupied. "The Laguna Shores project is a new type of product which has been launched to meet the high demand for affordable holiday homes situated within a primary spot at Laguna Phuket," Lyndon Phillips, sales director at Laguna Property says. "The fact that when complete, these new apartments which will range from one-bedroom units to two-bedrooms with mezzanine, and will be managed under the Banyan Tree Group gives owners peace of mind that their property will be well looked after and provide a solid return on their investment at the same time." Phillips adds that the use of well-known brands such as Banyan Tree is integral in reassuring investors, especially in destinations were the real estate market can be somewhat volatile. These sentiments are also echoed further up the property price ladder. "More often than not, we find that it is more than just investment in terms of dollars for the buyers," Marco Alessandro Biggiogero, chairman of Filipino-based development Aqua Boracay says. "The prestige associated with owning a branded residence, along with the knowledge that the residences are managed by a group of knowledgable hospitality experts gives buyers the peace of mind that they are investing their money in the best and most meaningful way." Celebrated design, marketing and brand specialists yoo, which pioneered the branded residential concept at the turn of the millennium, is the major name behind AQUA Boracay. The development, which has units starting from US$270,000, is yoo's latest venture and, considering the design firm's track record, is set to attract investors 86 | MARCH 2013
TOP: LAGUNA SHORES BY BANYAN TREE BOTTOM: AQUA BORACAY BY YOO
the world over. Yet while the allure of big name brands in Asia has endless milage and the major international companies continue to hold sway, local, boutique firms are also honing in on the widening market, especially in emerging nations. From its humble beginnings as a small time developer on Bali, Bukit Uluwatu Villas and its hospitality arm Alila Hotels has grown to become a regional player. Its latest projects - Alila Villas Bintan and Alila Seminyak (Bali) - are both slated to launch in 2014. The former will comprise two to three-bedroom villas available from US$1.8 million and provide various ownership options, including revenue sharing and guaranteed yields, which, according to director Andrew Tjahyadikarta, can compete with the big names in the branded residential market. "The current trends of branded residential products are dominated by western brands such as the Ritz Carlton and Four Season, however, we believe Alila has its own position in the hotel, resort and residential market due to the growing number of our loyal fans," he says. "The advantage of having a brand is to make sure we maintain high occupancy rate in addition to stable and strong room rate."
Investment considerations Boutique property developer Kalara Group, based on Koh Samui, also took the plunge into the residential resort market a couple of years back and the decision appears to have paid off. Its two developments Code and Lanna, all but sold out prior to completion and provided buyers, many of whom are seasoned property investors, with a reported 100+ percent ROI. “Well managed resort real estate yields better than traditional buyto-let residential real estate. A good yield once the resort operations have stabilised into year two of operations would be seven to eight percent,” says Carl Lamb Kalara’s managing director. “Also, nightly rack rates for hotels will generally go up faster than traditional longer term
TOP: LANNA BY KALARA DEVELOPMENTS BOTTOM: ALILA UBUD POOL VILLA
tenancy rental rates, so in years three and onwards you can generally expect much more substantial increases in income with resort based properties than with residental properties which at the most may increase by no more than 5 percent a year.” Resort real estate, adds Lamb, also takes the hassle of management away from the investor, so if you are investment savvy but time poor it provides an excellent platform to generate a tertiary income without requiring any real commitment of time. The issue of whether branded developments achieve and maintain premium prices compared to non-branded residential property remains key for investors looking to enter the market. A recent study by Knight Frank shows that, for the most part, branded residences are currently outperforming non-branded properties, with an average 31 percent uplift worldwide, while the estimated uplift from the Southeast Asian cities studied hit 21.9 percent. Moreover, data published in last year’s Wealth Report suggests that the Asia-Pacific region will experience a 150 percent growth in UHNWIs over the next five years. Couple this with the fact that there has been a significant increase in HNWIs investing in residential property over the last 24 months and it becomes evident why developers have been so eager to enter branded residential markets in the region. “It seems likely that as global wealth creation expands, the demand for high-quality residential development property in key global centres will undoubtedly rise,” Liam Bailey, head of residential research at Knight Frank says. “But, importantly for the branded residential sector, the premium placed on service, design and ultimately brand provenance, is likely to be maintained in the future.” In the case of Asia, however, which has rapidly assumed a position as a magnet for consumer level standardisation, there may be a danger that the luxury end of the property sector will follow the precedent set by carbon-copy shopping malls and branded retail outlets, which could eventually see residents become blind consumers of brand name product, irrespective of the independent options available. For the time being, however, innovative designers, sought-after brands and celebrity architects continue to add serious dynamism to Asia’s residential landscape. Boutique developers, meanwhile, are hot on the heels of the international giants, building creative offerings that not only provide a plethora of choice for buyers, but also represent real opportunities for healthy returns.
PROFESSIONAL HOSPITALITY SOLUTIONS FOR OWNERS, DEVELOPERS AND INVESTORS • Hotel & Resort Management • Rental Pool & Property Management • Concept & Design Development • Technical & Pre - Opening Service • Feasibility & Financial Consulting • Owner & Investor Representation • Sales & Marketing Representation
Thailand's Leading Boutique Hotel
Boutique Hotel Management Asia The Trendy Building, Level 11th, Sukhumvit 13 Rd., Wattana, Bangkok, Thailand 10110 info@BHMAsia.com | www.BHMAsia.com | T +66 2 168 7533
MARCH 2013
| 87
SPECIAL REPORT Branded Hotel Residences
Brand Ambassadors Developing and marketing a respected residential hotel brand not only requires a focus on quality, but also the ability to offer investors a range of unique selling points that extend through every element of the construction, management, marketing process and service approach. Property Report asked those behind some of the region’s leading residential and hospitality brands for their opinions on the various elements that come into play. Typical prices for branded and non-branded luxury developments City
Branded: Typical Price per sqm (US$)
Non-branded: Typical Price per sqm (US$)
Uplift percent
Bangkok
7,209
5,406
21.4
Hong Kong
18,044
14,574
19.1
Jakarta
2,785
1,949
5.7
Kuala Lumpur 6,956
5,217
35.7
Source: Knight Frank
ALILA ULUWATU "We believe in design, eco-luxury, highly personalised service and superb management quality, dramatic sceneries and locations, and lastly always provide element of surprise (in positive ways) to all our customers. But I think the one element that truly differentiates us from other high-end brands is our design taste. We always focus on providing the most spectacular design each time we develop a project. Each new project has to be better than the previous one. In order to always achieve our goal, we make sure we have a strong in-house design, development, and marketing teams while at the same time we keep working with many super talented world-class architects." - Andrew Tjahyadikarta, director of Bukit Uluwatu Villa highlights the Alila's USPs.
AQUA BY YOO
LAGUNA LANG CO
LANNA BY KALARA DEVELOPMENTS
"What we have seen in the Asian market, and also internationally, is an increasing appreciation for good residential design. People want good design to run through every aspect of their lives, and the ultimate expression of this is through the home." - John Hitchcox, Founder of yoo explains how the Asian market has now reached a level of sophistication where design is a distinguishing factor for residential properties.
"Vietnam is becoming a popular beach destination with the increasing numbers of domestic and international tourists. The coastal vacation demands are increasing in recent years, especially for exclusive villas. With the rapid growth of the Asian middle-class, demand for luxury tourism products and destinations are increasing steadily." - Ravi Chandran,Managing Director, Laguna Lăng Cô discusses the merits of moving into the Vietnam market
"The larger brands have a distinct disadvantage in that all aspects of their resorts are process driven - from the architecture to the fit out, to the room design, to the recruitment of staff, even down to the menus and uniforms. Everything follows very exacting guidelines so there is often a lack of flair with the bigger chains and also the feeling from the guests point of view that they have been "processed" rather than treated as individuals." - Carl Lamb, managing director of Kalara Developments talks about the disadvantages associated with larger brand names.
88 | MARCH 2013
MARCH 2013
| 89
SPECIAL REPORT Ivanka Trump
90 | MARCH 2013
Scion of brand sophistication With construction of Trump Tower century city well underway and set to provide buyers in Southeast Asia with one of the world’s most recognisable luxury brands, Ivanka Trump and her brothers are already setting their sights on regional expansion.
A
t 31, businesswoman, heiress, socialite, writer, mother and former model Ivanka Trump is executive vice president of development and acquisitions at The Trump Organisation. She founded the Trump Hotel Collection with her brothers back in 2007, and the company has since grown to be regarded as one of the leading hotel management firms in the industry. In addition to overseeing operations, Trump also spearheads the interior design decisions for the Trump Hotel Collection properties and provides the creative vision for the brand as a whole. Working in partnership with Century Properties, she has played a key role in the brand’s much publicised Trump Tower Century City project, driving the development’s position as a bold luxury statement for Asia and creating what will soon be an iconic landmark on the city’s skyline. Property Report editor Jules Kay asked Ivanka Trump for her insights on Trump Tower Manila, luxury branded real estate and Asia’s market potential. Ivanka on choosing Manila as a location for such a major project… “We chose Manila for the launch because we knew that a market such as Manila would have a deep appreciation for what the Trump brand stands for. It’s thrilling to see our vision realised and we are overwhelmed by the excitement for the project and its highly anticipated completion.” Ivanka on the reasons for building a mixed use development… “The majority of our opportunities are mixed use with a hotel and residential component. Our global expansion plans are heavily focused on gateway cities and premiere resort destinations, which is a highly competitive market place, but our ability to add tremendous value to both the residential and hotel components of luxury mixed use projects uniquely positions us against our competitors.” Ivanka on the interior choices for the Trump Tower Century City residences… “The interior design choices were inspired by three iconic New York City locations. Park Avenue, Fifth Avenue, and SoHo. The Park Avenue overall design philosophy is classic and timeless with a fabulous elegance and lush greenery representative of its namesake. Fifth Avenue evokes the upscale retail shops and deluxe real estate from the most expensive avenue in the world with art deco accents in light wood veneer floors and walls, marble, granite and much more. The SoHo inspired interior blends elegance in its decorative cast-iron façade and trendy interior design through high contrast hues, which I love.” Ivanka on the concept of luxury around the world… “Regardless of the region Trump standards are always the same. The Trump concept and execution of luxury is the culmination of many years of experience and dominance in the luxury property space and we will continue to adhere to these standards as we hopefully experience more growth in Southeast Asia. Trump Tower Century City¹s emphasis on sophistication, quality and craftsmanship is evident in its many amenity spaces. The building is the first condominium in the world to use a selection of Hermès home collections for its amenities and common areas among many other luxurious details and signature Trump touches.” Ivanka on approaches to luxury hospitality in Asia… “Hotel guests in the Asia Pacific region have very high expectations of both hotel design and service levels. The unique approach to luxury development in the region is one of very high quality and an emphasis on food and beverage offerings and customised service. Fortunately, one of our brand pillars is to have world-class restaurants in all our Trump Hotel Collection locations and we will certainly continue to deliver this brand promise in our Asian hotel developments.” MARCH 2013
| 91
SPECIAL REPORT Ivanka Trump
Ivanka on key elements of the Trump Collection properties that distinguish the brand from other global names… “There are three distinguishing factors of the Trump Hotel Collection: location, physical structure and personalised service. Our hotels deliver the very best of each factor and are defined by unparalleled customer satisfaction domestically and abroad.” Ivanka on the potential in the Asia region for more Trump branded real estate and hotels… “We are concentrating globally on the major gateway cities and world-class resort destinations. In the Asia Pacific region, we have identified China as a major point to focus our development efforts. To that end, we have appointed a key industry executive to spearhead our growth efforts in Greater China. In addition to Trump Tower Century City we have a branded residential project in Pune India. Sales of units in these projects have been brisk and at a price which represents a substantial premium to market. Resort areas in Asia where we are actively pursuing hotel management contracts include the Gold Coast of Australia, the Maldives, Bali and Phuket. We are also exploring opportunities for branded commercial office space, retail malls and golf courses. We are very positive about our growth in the region across our various platforms due to the Trump brand’s strong aspirational nature and our reputation of consistently delivering the highest quality of product and service that increasingly resonates with the growth of the affluent sector of the Asia Pacific region.”
92 | MARCH 2013
ABOUT IVANKA TRUMP Born: October 30,1981. Education: Spent two years at Georgetown University before transferring to the Wharton School of Business at the University of Pennsylvania, where she graduated in 2004 with a BS in Economics. Business: Working with Dynamic Diamond Corp., she designed and introduced a line of jewellery at the brand’s first flagship retail store in New York City. She has also released her own brand of handbags and footwear. Publishing: Ivanka wrote a book entitled The Trump Card: Playing to Win in Work and Life, which was published in 2009. Television: She has appeared on the judging panel of reality television shows ‘The Apprentice’ and ‘The Celebrity Apprentice’. Modelling: First magazine cover was on a 1997 issue of Seventeen. Since then she has featured in campaigns by Versace, Marc Bouwer, Thierry Mugler and Tommy Hilfiger. Trump has appeared on the covers of Forbes, Elle Mexico, Golf Magazine Top Choice Magazine and inside Harper’s Bazaar.
MARCH 2013
| 93
Indepth Singapore
Singapore home truths The flight of foreign capital from the West continues to fuel property demand in Singapore, Hong Kong and other Asian cities, which may be good news for some, but the phenomenon also risks upsetting a delicate socio-economic safety net, at least as far as Singapore is concerned. | by Jaya Prakash
LARGE CAPITAL FLOWS HAVE THE POTENTIAL TO DISRUPT THE FINANCIAL SYSTEM IF NOT TACKLED HEAD-ON.
94 | MARCH 2013
I
t may not have been the perfect appellation, but a house of cards is what it is shaping up to be as Singapore's property market scurries to get a sense of balance. The trade dependent nation and Asia's financial powerhouse has been something of a tease since the onset of the financial crisis in 2008, and its remarkable ability to lure foreign capital to its shores is made all the more achievable by Western economies' eagerness to allow for cheap credit. While capital inflows were largely welcomed, they have also created something wholly unexpected and unseen in the nation's history. Most of the "hot money" (the new economic parlance used when funds move out to seek higher returns) began finding its way into the nation's booming property market. Residential property prices rose to such historic levels that they even became grist for political parties to lap up in recent by-elections, which in some cases eventually saw the firmly entrenched ruling party defeated.
MARCH 2013
| 95
Indepth Singapore
96 | MARCH 2013
Executive stress One statistic that turned heads and sparked loud cries for state intervention was the sale of an Executive Condominium (EC) last year, which went for a jaw-dropping S$2.2million (US$1.75million) even though its holding space of just 4,349 sq ft, was hardly any bigger than a common duplex in Australia. "Clearly the objective behind the development of ECs has been forgotten," lamented Lawrence Loh, a writer to the city-state's widely distributing broadsheet The Straits Times, clearly chagrined at the changing social dynamics for housing. ECs are considerably larger than holdings afforded in units provided for by Singapore's public housing scheme, commonly referred to as HDB (Housing Development Board) properties. Confucian values have always entailed from children a certain ex-gratia to parents and ECs are now increasingly becoming a home of choice for the nation's upper middle-class and their extended families, encompassing a three-tier line of grandparents, children and grandchildren. As it appears, rules are already in place as to who can buy ECs. To what extent property developers themselves partook in what is increasingly turning out to be a speculative sport caused a mild rumpus. It was so much so that it even caused the nation's National Development Minister Khaw Boon Wan to intervene, when he ticked off property professionals in his blog post, urging them to keep to the "intent and spirit of the EC policy". When ECs were first mooted in the mid-1990s they ostensibly were for the so-called and supposed 'sandwiched class", namely, Singaporeans rich enough to purchase public housing but who did not qualify for private home purchases. The policy was generally welcomed because firstly it gave an aura of a landed bearing and secondly, with a larger holding space and ability to accommodate more family members than merely the married couples purchasing them, ECs satisfied a necessary social and national goal of keeping family units together in a single abode. Yet despite such avowedly noble intentions, what has actually come to pass is couples turning the entire scheme on its head and leasing out these huge behemoths because of the promise of huge rental earnings. That in turn has caused tongues to wag, and many people believe the government should place administrative and monetary restrictions, even sanctions, on how EC purchases are handled. "The government should play an active and effective role in managing this situation," Lawrence Loh declared, inferring that since land price for an EC sale is subsidised, prices for such properties should not rise to astronomical heights.
Double-edged sword The Singapore economy undoubtedly grew more than was expected in the final quarter of last year. It expanded 1.8 percent, thus avoiding a recession. Though some economic analysts are predicting a recession to break out sometime in the middle of this year, most of these sentiments have been labelled misplaced or simple knee-jerk reactions. There is little to deny the continued attraction of Singapore as a well-developed economy, which still excites the world, especially when it comes to pulling in investments. If a sampling of a recent parliamentary exchange is any gauge, there is immediate cause for worry for the extent of impact foreign direct investments (FDI) exerted on the real estate landscape. "The impact of foreign money flows on the property market has been a concern," claimed Lawrence Wong, Singapore's Minister of State for Defence and Education in parliament last year. The government has therefore implemented measures to help moderate excessive investment demand, including from abroad." Large capital flows have the potential to disrupt the financial system and if not tackled head-on could fuel asset price inflation similar to what Vietnam experienced in 2008 when unbridled foreign direct investments wreaked such havoc on the nation's financial system that it led to a depreciation of the nation's exports. Perhaps it was with that episode in hindsight that Wong extolled prudence and highlighted the steps needed to ensure that this huge inflow of funds did not threaten the stability of the financial system or the property market. But with Singapore, or with any Asian nation for that matter, central bankers rarely make moves to stop the inflow of foreign capital; they merely try to manage it.
Financial fallout Whilst hot money was welcomed for all it brought, it also gave a fillip to the nation's private home prices. Reports say that real estate prices have risen by a whopping 56 percent since the onset of the global financial crisis and it is now widely believed that prices will rise even further, not only creating the real possibility of an asset bubble, but worse still, depressed sentiments. The main worry, however, remains inflation or in Singapore's case imported inflation. Michael Wan, an analyst at Credit Suisse said that inflation reduces purchasing power, reduces the real interest rate and that will boost property prices. The real clincher, however, is in the outlook for 2013. With the daily drone of bad news from Europe receding appreciably it now seems there's an emergent ray of hope. Wan predicts 2013 will be better than 2012 and with positive data from China and Europe led by the European Central Bank's (ECB) to boost confidence in the continent's banking and financial systems, the year ahead may look different. Based on findings taken from a recent survey by the Monetary Authority of Singapore, Wan said Singapore's economy is forecast to grow by 2.7 percent in 2013. Such a "growth shock", he said would also impact home prices negatively. For example, if Singapore's economy grows just 0.4 percent to 0.5 percent per annum over the next five years, this would cut property prices by 16 percent.
MARCH 2013
| 97
Indepth Singapore
Singaporeans first Since a horrific traffic accident involving a Ferrari driven by a Chinese national in 2012, instances of crime perpetrated by foreigners have created murmurs of resentment amongst Singaporeans. Many have been blamed for snatching away jobs, places in schools meant for Singaporeans, overcrowding in public buses and trains and also for the high property prices. Well-placed sources within the nation's Employment Ministry say that steps are being taken to slow the intake foreigners to perhaps a trickle in conjunction with a policy to raise the local population from its current 5.1 million to a staggering 6.9 million by 2030. To accommodate for this huge spike in numbers, Singapore will be making available some 700,000 new homes, more land for property development and will institute more measures to prevent the kind of speculation the nation saw over the last several months in an avowed bid to prevent runaway home prices at the expense of the larger, common good. The much publicised cooling measures over the recent past are an ostensible bid to establish a sense of 'sanity' and according to the nation's Deputy Prime Minister, Tharman Shanmugaratnam, the heart of the problem lies with
unusually low interest rates, which he said are "fuelling [the] property market". The recently announced measures were specifically targeted at the use of property purchases for investment exercises, as well as on foreigners often accused of snapping up properties and sub-letting them. With the new restrictions that loophole for foreigners will be plugged and it will become harder for them to derive an income from yields. Meanwhile, the raising of the additional buyer's stamp duty (ABSD) from the present five percent to seven percent will apply to all classes of property purchases from public to private housing in the hope that it may put off speculation and discourage over-borrowing. The hope, or indeed promise, is for all these policies to translate into greater demand and supply equilibrium. However, any objective reading would indicate this may be something beyond Singapore's control. Laissez-faire economies have in the past found it very difficult to stop foreign capital from coming to their shores, and this is hurting the delicate socio-economic balance that such conditions inadvertently bring to their property markets.
At the end of January, Singapore's Ministry of National Development (MND) released its Land Use Plan paper, which outlines strategies to ensure that Singaporeans continue to enjoy a high quality living environment. Key land use strategies include: • • • •
98 | MARCH 2013
reclaiming additional land developing some reserve land intensifying new developments recycling land with lower intensity uses (such as old industrial areas and some golf courses)
MARCH 2013
| 99
INDEPTH At Home
Labour of love In 2002, three friends bought a run-down 1930s planter’s bungalow in the Sri Lankan hill country for £12,000 (US$18,000). It soon became a weekend renovation project that has so far lasted a decade. | by Jaya Prakash | photos by walter kelly 100 | MARCH 2013
CELEBRATED SRI LANKAN ARCHITECT MURAD ISMAIL ADVISED A STRAIGHT RENOVATION FOR RUSIGAMA.
A
s residents of Sri Lanka, Psyche Kennett, Michael Meyler and Sonali Gunasekera often used to escape to the hills. They discovered a small village called Aislaby near Bandarawella, where they found a perfect 1930s bungalow complete with fire places, white saronged servants and a croquet lawn. There they would sit on the swing seat in the garden and discuss how one day they would own a place just like it. "Twelve years later, I was working in Vietnam and Michael and Sonali sent me an email with some very poor photos of the Rusigama estate bungalow. The email subject said 'maybe this email will change your life'. I suppose it did." says Kennett. It turned out that a local arrak [rice whisky] dealer had actually been given the house as a settlement for the previous owner's rather large outstanding bar bill. He had then advertised the property in Sri Lanka's Sunday Observer – a paper you'd buy a second hand car from, but not exactly where you'd expect to find an 800 square metre early twentieth century eight bedroom planter's bungalow. "We've since spent maybe fifty thousand pounds on renovating it – not much more," says Kennett. "Serious property developers would faint (or at least cast their eyes to heaven) if they heard how unsystematically we went about it – but then again, at that price, it didn't really matter." Hill country Situated in the centre of Central Province, only a few kilometres from the 13th century temple at Naula, which marks the very centre of the island, the Rusigama Estate Bungalow used to be at the centre of an 850 acre mixed estate of spice trees, cocoa, fruit, vanilla, tea and some rice paddy. It sits at around 550 metres above sea level, the same elevation as Kandy, which means the climate is always cool at night and in December cold enough to use cotton
blankets, a luxury in tropical climes. The surrounding area is known as the "cultural triangle" because of the three ancient historic sites of Polonnaruwa, Sigiriya and Dambulla, while closer to hand, the lovely and little known temple complex at Naula, and the Buddhist cave painting temple at Ridigama are also a short drive away. "Once I get up to the house, I tend to sit on the veranda and enjoy the view of the Knuckles, Sri Lanka's highest mountain range, which overlooks our place, or go on a hike to the waterfall or the next village," says Kennett. "The house sits in the saddle of a mountain with jungle all around it, but we are connected thanks to a solar power system and internet. The communication towers are on top of the Knuckles and the locals say that Dialog, the telecommunications company, used elephants to get the pylons up there through the jungle – there are no roads." House with a history The title deed for Rusigama is marked 'crown property', which means it was staked as a claim by Sri Lanka's original British settlers. The first owners were the Barnets, then there was the arrack dealer who procured the house from a certain Mr DeKretzer, the alcoholic husband of the last of the Barnet daughters. In those days to stake a claim, British citizens simply had to prove to Her Majesty's government agent that the land was not being used by others. In fact, the 850 acres belonged to the temple, and to this day Psyche says there are people who remember the Barnets as "the people who stole the temple land." Co-owner Meyler went in search of the last owner, DeKretzer, to unlock the stories of this very idiosyncratic house and to see if there were any photos of how it used to look. That's when the new owners found out three earlier generations of Barnets were buried in the garden. "The original old man Barnet was a well to do British MARCH 2013
| 101
INDEPTH At Home
planter who set up shop in better known Nurawa Eliya, had an affair with a Tamil estate worker and tucked her away in Rusigama — as far as he possibly could from his English wife. The progeny of this union, John Barnet, built the Rusigama Estate Bungalow in 1905," Psyche explains. "It took old man DeKretzer precisely forty years to drink away every tree, every farmable acre, every stick of furniture in the house until there were four acres left and no furniture worth sitting on. There are still old ladies in the village who say 'Wanna buy your bath tub back? I know someone who's got it.' I'm still looking for the four poster beds." A challenging build Celebrated Sri Lankan architect Murad Ismail advised a straight renovation for Rusigama. Ismail has since won acclaim and made his fortune renovating some of Colombo's better known colonial spaces – the Old Dutch Hospital and the Colombo Racecourse. Ismail also put the new owners in touch with a skilled contractor named Omar who gave them a deal – he'd let them have his best work teams if they could do the job when they didn't have any other work on – and so the project began. Water was the first problem, as in this case it came from a spring nearly a kilometre up the mountain, which in the rainy season was a waterfall, but in the dry season no more than a trickle from a spring. Originally all the land up to the waterfall belonged to the estate, but was one of the parcels De Kretzer had sold off. "The title deed stated we owned the source but no longer the land in between," says Psyche. "We did eventually manage to secure the deeds to a pipeline across our neighbour's land, but there were some worrying moments, especially when the water engineer informed us that we were sitting on a hundred metres of solid rock. We hired women from the village to do the work as they were the most reliable workers. Of course, all the men were incensed that we paid them equal wages, but it seemed like it was time a little gender equity came to the hills around Rusigama. At points they had to cut 20 centimetres down into the rock to lay the pipeline – which was made of some sort of flexible black spongy piping material, not copper or PVC, as these would be more likely to be stolen. 20 centimetres 102 | MARCH 2013
down was also to prevent porcupines from digging it up and eating it. Porcupines! Now there's an exotic plumbing dilemma for you." Interior touches Inside, the original house had beautiful tongue and groove ceilings, unfortunately beyond repair, so the owners took photos and had them remade, but simpler with cleaner lines. For this they used a termite resistant wood called luminadella – a beautiful blonde hard wood that grows locally and ages into a mellow brown. Every room at Rusigama opens onto verandas, as well as onto the rooms in front and behind. This means there's a total of 23 doors in the house and a lot more windows. 50 years of black paint was hiding the all-wood frames, so these were stripped and re-set with beading instead of the old putty – another mammoth task. "Slowly the lovely hundred year old jack wood panels emerged," says Kennett, "and you know, for all those doors, there isn't actually a front door to the house anywhere. I suppose that's what I like best – it's all a bit eccentric." To maintain the authenticity of the home, all the materials for the renovation were sourced locally. The stone sink was carved out a boulder in a granite cutting shop in nearby Peredeniya, titanium oxide cement was mixed on site for the bathrooms and kitchen. Takaran – the old heavy gauge galvanised tin sheeting used on all the old planter's bungalows was chosen for the roof instead of newer bonded metal roofing material, this based on advice from the contractor who said it was just too light for the heavy winds up in the hills. "We took him at his word as the roof had already blown off once and we didn't really relish a repeat performance," says MARCH 2013
| 103
INDEPTH At Home
Kennett. " I did comb the island for what I'd call a lab sink too. Those shallow oblong sinks you used to get in chemistry labs in schools – but to no avail. I recently saw one cast out on the street in Rangoon and could have cried – or carried it back in my luggage had it fit – but Sri Lanka doesn't really do antique fixtures like old taps, fans and bathtubs so I've picked up a few retro repro bits in Bangkok for the house, and it works."
IT WAS ONLY LAST YEAR THE HOUSE WENT SOLAR, A DELIBERATE CHOICE FOR SELF SUFFICIENCY.
104 | MARCH 2013
Home comforts When you see Rusigama now, it's hard to imagine there were no functioning bathrooms or even a kitchen. The latter used to be in the 'line rooms', a derelict structure below the house where the servants once lived, and where, in the next phase, the plan is to install a swimming pool. The new kitchen is now part of the largest room in the very centre of the house. What most people are also astonished by is the fact that the owners spent most of the first 10 years without electricity, instead using traditional coconut oil and kerosene lamps. It was only last year the house went solar, a deliberate choice for self sufficiency that involves the use of an American 'Outback' inverter, plus eight panels, 14 batteries and lightening protectors all sourced in China at a fifth of the price it would have cost 10 years ago. "Let there be light! It's wonderful," says Kennett. "We have ice cubes in the gin and tonic, music, movies, internet and reading in bed at night without the fear of a Jane Eyre styled house fire as you turn the page and knock over the kerosene lamp at your elbow." Outside there is still plenty of work to do. One of Kennett's close friends, Declan Buckley designs tropical gardens for the rich and famous in London, so to switch the concept
back to the tropics she has asked him to create a fake English garden for Rusigama. "It's unlikely he'll agree, but in a way that's what all those original planters dreamed of – a little piece of England with the hanging baskets and the roses," she says. "There are bits of those gone wild at the back of the house but they now blend with the pomelo and bergamot trees, the guava, clove and nutmeg. Putting all that into some semblance of order is what's on the cards for the next decade I suppose." Original vision Colombo today is full of fashionable architects. Many have sprung from the legacy of Geoffrey Bawa, the Frank Lloyd Wright of South Asia and inspiration for most modern architecture in Sri Lanka. Following in the Bawa tradition, there are now countless old planter's bungalow across the island that have been renovated in a post modern Bawa style using sleek concrete, old wooden columns, water features and courtyards that open to the sky. Kennett and her friends talked to a lot of theses Bawa inspired architects, but in the end decided to opt for a straight renovation – retaining the building's original charm and keeping things simple. "The bathrooms are the only modern bits and that's only because the original fixtures haven't been retrieved from the village yet," she says. "Meanwhile you could play badminton in the master bedroom and you could probably fit my Bangkok apartment into it too. I love all the space. I like the idea of sticking a few oversize paintings on the walls and a few nice pieces of furniture around the edges and then just enjoying the bits in between."
MARCH 2013
| 105
ANALYSIS Insights
GREATER CHINA AND SINGAPORE HAVE BOTH GONE THROUGH A SERIES OF MEASURES, WHICH STILL HAVE NOT DONE THE TRICK.
Down at the eleventh hour In Asia, cooling down heated markets seems to require quite some considerable effort and the results may see domestic investors run from the cold.
I’m the biggest idiot in the entire universe. I recently spent those dim dark hours of early morning dashing between Bangkok’s two airports – Suvarnabhumi and Don Mueang. With a 6 am flight schedule to Bali, I smugly made my way to the latter airport by four forty-five and figured there was plenty of time to settle into one of those comfy chairs with a jumbo cup of caffeine. Instead, after a rude awakening at the check-in counter, I provided much amusement and solicited hilarious laughs from the airline counter staff and 20 taxi drivers who quickly gathered around in some sort of Gangnam-style circle dance. A white-knuckle fast and furious dash to Bangkok’s other airport had my heart beating like Jack Rabbit Slim. 106 | MARCH 2013
Thankfully my blood pressure has since dropped and a cooling off break has prevailed over my badly damaged ego. I don’t meditate, and yoga makes no sense at all. So all I have is bloodshot eyes and crusty computer keys to fall back on while wolfing down a crusty banana muffin. Speaking about the need for cooling measures, two of Asia’s top property markets are still trying to stick their overheated real estate engines into the deepfreeze. Greater China and Singapore have both gone through a series of measures, which still have not done the trick. Meanwhile, other Asian markets are reporting rising regional transactions from these pent-up giants. Strong economic growth and a skyrocketing
middle class have continued to multiply a double dose of both end-users who want to trade up, and investment buyers looking for premium yields. Throwing a wrench into the equation are the rapidly rising Asian currencies in countries like Thailand and the Philippines. Will the currency appreciation slam the large export sectors and chill down growth, or will the domestic buying pool look to take their stronger currency to buy properties in the UK, Europe and US? As for the evil spectre of inflation, this looks to be down to a two-horse face with parallel economic highs. First to blink dies. Don’t watch the other guy, just focus on the finish. Still, Asia is struggling with the uncertainty of a continued domestication of its eight ball in the corner pocket go-to market. How deep? No one is certain. Will the cooling measures bring Asian buyers from nearby countries instead of those from the far away West? After all, all this liquidity needs a home. Blasting into the Year of the Snake, perhaps we need to substitute a coiled up question mark as our logo of the day. Overheated property prices, and upward heat seeking land values, which continue to defy gravity look set to rule for the moment. Still I hear this little voice inside of me crying out in the dark, and it’s asking about fundamentals. The question continues to be bubble, burst or buoyant, my three drinking buddies, the 3 B’s are waiting for me down at the bar. I’ll have a scotch on the rocks please. In fact bring me an entire bucket to help cool me down.
-------------------------------------------BILL BARNETT is the founder and managing director of hospitality and property consulting firm C9 Hotelworks, a leading analyst in the region, he also writes for various publications including his own news site www.thephuketinsider.com
MARCH 2013
| 107
ANALYSIS
INVESTORS HAVE BECOME MUCH MORE AWARE OF POTENTIAL DOWNSIDES AND [MANY] DEVELOPERS HAVE REALLY UPPED THEIR GAME.
Buyer Advice
You gotta have faith Don’t rule out off-plan investing, but it’s always best to stick to developers with a proven track record, solid partners and plans for ongoing management. I’m into my twelfth year at the sharp end of Southeast Asian real estate, but I still get a tad nervous when approached by developers wanting us to help them sell anything off-plan. We recently had a developer approach us wanting us to kick start a sales campaign by massively discounting the first 2 or 3 units in his project, and my first thought was why on earth would he want to be doing that? Surely a well designed, high quality property is worth its price and whilst I like to make sure that we’re negotiating best possible pricing and favourable terms for our clients, if a developer drops his pantaloons completely when we haven’t even started marketing yet, that’s a mighty loud alarm bell. So I asked why the blazes this chap wanted to discount his units so heavily and he blatantly said it was because the project had completely run out of cash, and none of the shareholders wanted to put any more money in. Naturally, I made my excuses and left the meeting as fast as my little legs could carry me… BUT not before I replied that bringing end user investors in to buy units off-plan in a project with massive and debilitating cash flow issues was tantamount to 108 | MARCH 2013
fraud and that I hoped he would not even consider moving forward with such a ruthless and risk ridden plan. The Southeast Asian property markets have become much more sophisticated over the last (gasp!) 12 years and investors are more aware of potential downsides. Developers have really upped their game and professionalised, but every now and then some little known amateur creeps in and starts marketing properties that look fantastic as CGIs on the website, but are being developed under circumstances which are so darned risky they may never get finished (or sometimes even get started). Off-plan investing is one of the most easy and profitable ways to make money in real estate. In fact, I was involved in a project last year where some of my early bird clients actually made a higher ROI on their units than the developer when they bought pre-construction The subsequent high demand pushed prices up so much they had actually doubled in value by completion. This particular developer has been around and doing a fab job for a long while, and lucky for you I’ve been around a long while too so I know who the good ones are.
Here are some notable examples… Multi-award winning Kalara on Koh Samui has been developing for over 10 years and like a fine Bordeaux, just gets better and better every year. The quality of Iguana Pattaya’s finished product is always way beyond the prices they sell at off-plan. In the Philippines, Raffles Manila is a great example of a huge windfall for our clients who invested before construction began — they cashed in on around a 300 percent increase in the per sqm pricing over the build. A more recent winner is the newly launched Aqua in Boracay, especially now legendary a-list design and management company yoo have signed the hotel management contract, which is worth about a 20 percent increase in property values for starters. And we really do love Six Senses if you’re looking for that very special bolt hole. I could go on (you know I’d like to) but these are just some of the region’s exceptional companies that deliver real estate we can market, even off-plan, with genuine passion and unshakeable confidence. George Michael said it right. You gotta have faith. -----------------------------------------------CLAIRE BROWN formed Claire Brown Realty in 2004 having worked for various developers across Southeast Asia. Her roles included sales and marketing, project management, construction planning and consultancy. As well as running the business, Claire is also developing her own project in Bali, a luxury villa and spa retreat in the beautiful and somewhat undiscovered province of Tabanan. She enjoys travel, food and wine, interior design and shopping – in no particular order. www.clairebrownrealty.com
MARCH 2013
| 109
ANALYSIS Design
SUSTAINABLE DEVELOPMENT IS BEING ACHIEVED IN SOME OF THE PLANET'S MOST HIGH-PRESSURED URBAN ENVIRONMENTS.
Sustainable intelligence Ask most internationally renowned architects where they think their finest moments in design would take shape, and the answer – at least until recently – is unlikely to have been India.
India is becoming fertile ground, seeded with significant architectural opportunities for those with the concepts and courage to take them on. What I find astonishing is the rate at which the reality in India is changing. Combined with the sheer scale of construction being rolled out, there is a quite surprising openness to creative design and innovation. I believe we will see some extremely innovative and exciting large-scale architectural projects arising in India over the next five to 10 years. In my last column, I suggested that the highly speculative real estate markets of the subcontinent might not seem the natural habitat of ecological thinking, but sustainable development is being achieved nevertheless in some of the planet’s most high-pressured urban environments, thanks to inspired architects and bold developers. We were first approached by Pune-based developers Marvel Realtors in 2008. We have since gone from one client and one project to four clients and 20 projects involving over 13 million sq ft of real estate. We have been very fortunate to have grown together with Marvel over the past four years. Our projects range from individual houses (Selva Ridge) 110 | MARCH 2013
to 22-storey multi-tower residential developments (Verano), an 18-storey luxury residential condominium (Sangria), and a 28-storey luxury high rise apartment (Kyra). I was quite surprised to find the Indian market in general, and our clients specifically, very open to challenging designs and our specific approach, which is very process driven. At the outset of a project we tend to explore a wide range of design strategies and assess them on various criteria, ranging from the client brief, the site and context, orientation and climate, view optimisation and open space maximisation. We have found our clients in India to be very interested in this ‘journey’ and therefore much more involved in the outcome, supporting our design ideas with more conviction than if they were simply presented with a given design. One aspect unique to our Indian portfolio is the sheer size of the projects. Some of these exceed two million square feet of built up area (BUA) and go beyond architectural design into master planning. This presents challenges in ways a single building cannot – asking us to generate a more holistic environment, incorporating
multiple buildings, traffic engineering and extensive landscaping. Another very challenging aspect of designing in India is the context. Most of our projects to date have been designed in what we would refer to as ‘mature’ environments – i.e. with existing communities, buildings, infrastructure and landscaping. Many of our projects in India are in greenfield sites, with little or no context. This has several implications. On the more pragmatic front is the fact that we have to envisage a future context full of roads and buildings – and in a worst case scenario, a ‘hostile’ environment, one that we want to be protected from. This means trying to ensure that our primary views and outlooks are focused on our own site and internal landscaping. On a more esoteric front it means that we are essentially designing an oasis, without the ability to respond to and reflect something local or vernacular – which can leave the architect in a sort of design vacuum. But it also pushes the architecture to develop its own set of values and guidelines, whether driven by a more global aspect of cultural relevance or by environmental sustainability. Some years ago I met Charles Correa, and he described different cultures going through various stages of development. He used the analogy of a glass of water, being slowly filled until it reaches the brim and starts to overflow. I think India has reached that stage and we are seeing a sea change of scope, attitude and enthusiasm across the board. India is gaining confidence and it is only a matter of time before this manifests in the architectural arena. -----------------------------------------------HANS BROUWER
HB Design was founded by Hans Brouwer in Hong Kong in 1995, then moved its headquarters to Singapore in 1998. Prior to that, Hans worked for the legendary Sir Norman Foster and Partners. During his eight years with the firm he became project director, responsible for cutting edge projects in Japan, Germany and the UK. HB Design was registered as an architectural practice in Thailand in November 2008. Today, HB Design has projects underway in Singapore, Thailand, Malaysia, India and Vietnam. www.hbdesign.biz
What matters to you, matters to us Corporate and personal tax advice International tax planning Expatriate services Transfer pricing Commercial law services
www.bdo-thaitax.com BDO Advisory Limited, a limited liability company incorporated in Thailand, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. BDO Advisory Limited is promoted by the Thailand Board of Investment to provide advice and assistance on tax and legal matters and has been designated as the exclusive accountancy partner of Oxford Business Group (OBG) to provide specialist analysis for The Report Thailand 2012. BDO has been engaged by the Thailand Property Awards since 2006 to supervise the entire judging process. We believe our involvement enhances the integrity of the judging process and contributes to making the awards a truly credible and worthy prize.
MARCH 2013
| 111
ANALYSIS Finance
THERE ARE MANY OTHER SUBTLETIES, NUANCES AND CAVEATS INVOLVED IN ACQUIRING THE RIGHT KIND OF PROPERTY FOR INVESTMENT.
Property in your portfolio The golden rule is always making sure that there is enough diversification amongst the traditional assets classes – equities, bonds, alternatives and cash to mitigate overall risk, but what about adding a physical property portfolio to that mix?
Over the years when discussing international retirement portfolios and which asset types to include in them, the question of whether or not to buy property outside of one’s main residence often comes up and thus needs to be properly and carefully considered. The answer of course is that it is almost always a good idea to add property to your retirement portfolio, and I think it is fair to say that the majority of high net worth individuals we encounter have significant exposure to the sector and most of them have done very well indeed over the years from their property holdings. Creating a passive income stream from rental income in addition to seeing capital values increase over time, can be a 112 | MARCH 2013
most rewarding and worthwhile exercise which many individuals find a lot more interesting and satisfying than watching (and worrying about) dividend yields, stock prices and currency movements. But how to go about doing it whilst at the same time side stepping the many pitfalls that lie in wait for the unwary? Things are never as they seem in the Southeast Asian property arena, despite its many opportunities, amongst all the success stories there have been many failures and fortunes lost. From an investment perspective, resort property is very different to that in the city and landed houses very different to condominiums. Supply and demand imbalances have to be assessed and the availability of mortgage finance
considered, not to mention ownership regulations and the impact of property taxes. The days of 12 percent yields from rental income in the most popular locations have largely gone, and thus expectations have to be more realistically managed now. There are many other subtleties, nuances and caveats involved in acquiring the right kind of property for investment and there is no substitute to having experienced professional’s on hand in the same location — one preferably on your side and not the seller’s. Regular contributors to this publication in the property field are well equipped with the knowledge to guide you in the right direction. They will help ensure that your objectives are met, that you are not left holding the ‘off plan’ baby after a developer vanishes prior to completion, and they may just stop you from buying the worst unit in a new condo block that will be virtually impossible to sell or rent later on. Liquidity is an important consideration, as in the wrong climate it will take a long time to sell a property and for this reason many individuals decide to add commercial property funds to their asset base. They want exposure to the sector, but value the convenience of being able to sell the asset fast if capital is required. Again, this is an area that requires expert input as it too can be fraught with danger if not properly understood. In the final analysis, if you can accumulate some quality property that generates income plus capital gains over time, and a separate portfolio of other asset classes that also provides income from the capital sum in later life, then you have a properly diversified retirement portfolio that should serve you well in the years ahead. -----------------------------------------------JERRY DINGLEY
of Property Portfolio Services and business partner Tim Whiteley have a combined 50 years of experience advising expatriates & international investors both onshore UK and in the Asia Pacific region. Specialist areas include Offshore Trusts, UK Pension transfers (QROPS) and creating tax efficient retirement and investment solutions for individuals around the world. info@ifainternationalgroup.com
MARCH 2013
| 113
ANALYSIS
Luxury Expert
SUCCESSIVE SINGAPORE GOVERNMENTS HAVE MADE THE LOCAL POPULATION ONE OF THE RICHEST IN THE WORLD.
The heat is on The Hong Kong government is planning to build up a land reserve by reclamation, as well as to speed-up public and private housing development increasing housing supply by 18 percent over the next five years.
The promises being made in Hong Kong are for more land and more flats to meet pent up demand, but it is clear this won’t be enough in one of the world’s most expensive places to buy a home. The government will have to do much more and take more drastic measures. Meanwhile Singapore is preparing for a population increase of 30 percent by 2030. The government is rightfully planning ahead, as they were caught unprepared by the inflows of people that followed the city-state’s economic and business success, as well as increased demand for foreign workers from banking to construction. But the infrastructure is lagging behind and now the government will be investing billions of dollars to catch up and be ready ahead of the next spike. Naturally, not everyone in Singapore is happy. Singaporeans have got used to a rather jam-less flowing traffic and not too full buses and trains, things that their counterparts in other major cities such as Hong Kong, Tokyo, Osaka or Seoul could only dream about. While living in Tokyo for over a decade I experienced rush hour 114 | MARCH 2013
on the city’s metro, sometimes noticing that I could almost lift both of my legs of the ground without falling down, so crowded was the train. Singaporeans, however, demand quality of life and the government is working hard to satisfy its population. Additional taxes have been placed on residential property to cool the markets and deter foreign buyers, but the results are doubtful. The highest end property, which is barely half a percent of the Singapore market was hit the worst and foreigners might stay away while the mass market is still sizzling, mostly because there is still a real demand bottom up. “We can expect more foreigners to stay on the sidelines of the Singapore property scene and after a while we might just become unattractive to foreign investors. Foreigners will leave the sidelines as their home markets become more attractive and profitable to invest in,” says Swee Yong Ku, the CEO of International Property Adviser Pte Ltd. He is rightfully referring to foreign permanent residents and investors from countries such as Indonesia and Philippines, that might turn away
from what has been their much preferred Singapore property. I am certain that fears of being swamped by an influx of foreigners will prove to be overblown, especially if infrastructure development catches up. With fertility rates still below replacement rates, foreigners are the only way to replace the shrinking labour force. The reality is that in both Hong Kong and Singapore the vast majority of the population are home owners and one thing is guaranteed to be common to homeowners, be it those with humble government sponsored housing or palatial villas. Nobody wants to see their property go down in value. Successive Singapore governments have made the local population one of the richest in the world. The majority own their own homes and property prices in Singapore have skyrocketed, be it public or private sector. Local people will also benefit directly from population growth as it should ensure strong and stable demand for housing – the most significant investment for Singaporeans and permanent residents. This means there won’t be any squeeze on retiring baby boomers, a very rare situation in a world of economically strained ageing and retiring generations who have experienced an unprecedented wealth drought. For this reason alone, the change in demographics in Singapore should be considered well worth supporting. When it comes to taming the stratospheric rise in property prices, the outcome of the Hong Kong government’s actions remains to be seen. As for the outlook for long term investors and homeowners in these world prime cities. Let me spell it out for you: the future of your property holdings is bright for the next 15 years. -------------------------------------------ALEX SHLAEN is an economist and holds an Executive MBA from Kellogg School of Management and HKUST. He is the founder of Panache Management Pte Ltd which represents Aston Martin Interiors, Tonino Lamborghini Casa, Formitalia design lines in Asia.He is also a serial real estate investor. He writes as The Luxury Expert for Property Report Southeast Asia. www.PanacheManage.com
MARCH 2013
| 115
HI LIFE
Sri panwa Residences, Phuket, Thailand A family owned and managed site, Sri panwa is the first luxury resort development by the Charn Issara Group, parent company of Charn Issara Residence Co. Ltd. Situated on the tip of Cape Panwa, the development is located within 40 acres of undisturbed rainforest that overlooks the Andaman Sea. The villas are positioned along the eastern and western ridges of the cape, approximately 40 to 60 metres above sea level and the development comprises 59 separate units, including seven pool suites, 24 onebedroom pool villas, 21 two-bedroom pool villas and seven private residential villas. The private residential villas comprise 3-5 bedrooms and all the pool villas at Sri Panwa afford ocean views. The interior of the villas is based on a contemporary, tropical design style with a seaside interior theme. The villas aim to offer a comfortable living environment that reflects the tropical surroundings of Phuket, and each provides a high standard of modern amenities, with an infinity pool, Jacuzzi system, outside bathroom and a fully equipped kitchen. The Sri panwa resort also offers a range of hotel services, including a communal pool, fitness centre, library, steam rooms, tennis courts and spa. From the communal pool, it is a short walk to the resort's private beach. Dining facilities include the Baba Poolclub and Baba Soul Food serving a range of Western and Thai food. The resort is located approximately 35 minutes' drive from Patong, and 20 minutes away from the Phuket Country Club.
116 | MARCH 2013
FACT BOX
Project Profile
Project name: Sri panwa Residences Developer: Charn Issara Residence Co. Ltd Product Type: Private Residences and Luxury Hotel Pool Villas Location: Cape Panwa, South Eastern Phuket Launch date: May 2009 Total land area of developments: approximately 40 acres Total number of sub-divisions: 59 Average size of sub-division: Pool Suites: 90 sqm, Pool Villas (one bedroom): 190-230 sqm, Pool Villas (two bedrooms): 300-320 sqm, Private Residential Villas: 800-2,000 sqm Price Range: xxxx Facilities: Gym, swimming pool and private beach, tennis courts, game room, forest park, steam rooms, water sport, yacht mooring, library, cooking school. Monthly maintenance fees: US$1.34 per sqm / month Rental return per annum: About 7% ROI Contact details: Tel: +66 (0) 76 371 000 chill@sripanwa.com www.sripanwa.com, www.sripanwaresidence.com
SUPERYACHTS, SUPERCARS, FINE ART & GREAT FUN.
SINGAPORE YACHT SHOW REDEFINING LUXURY
18-21 APRIL 2013 ONE째15 MARINA CLUB, SENTOSA COVE, SINGAPORE
www.singaporeyachtshow.com
Held in:
Supported by:
Venue Host:
Supporting Association:
MARCH 2013
| 117
HI LIFE
Project Profile
Developed by British property impresario Tim Dean-Smith, Beach Republic is based upon the concept of providing residents with a relaxing, full service environment amid luxurious tropical surroundings. The development captures a combination of Thai and Mediterranean lifestyles within an exclusive self-contained resort development located at the morthern end of Lamai Beach, Koh Samui. The beachside resort complex is strategically situated within walking distance of Lamai Town's tourist shops and restaurants, with the island's biggest tourist beach, Chaweng, just eight kilometres away and Koh Samui airport a short 13 kilometre drive. Nearby attractions include an aquarium, tiger zoo, golf courses and the famous Big Buddha statue and temple. The Residences at Beach Republic comprise 39 units in total, with 25 deluxe suites ranging from 45 - 115 sqm in size, and one and two-bedroom units. The resort also comprises eight pool villas offering one or two-bedrooms and ranging from 160 - 240 sqm in size. Six penthouse units are also available, and feature one to four bedrooms, ranging from 118 - 418 sqm in size and five of them affording panoramic ocean views. Each of the villas and penthouses has access to its own private swimming pool, and comes with a fully fitted kitchen and dining area. Residents at the pool villas also have access to their own private walled garden. On site facilities at the resort include the Ocean Club and Restaurant, two communal infinity edge pools, a fitness room and the Beach Republic Asian Fusion Spa. Property owners at The Residences receive privileged access to the Beach Republic Ocean Club. 118 | MARCH 2013
FACT BOX
Beach Republic, The Residences, Koh Samui, Thailand Project name: Beach Republic The Residences Developer: Tim Dean-Smith Product Type: Shared ownership Location: Lamai Beach, Koh Samui, Thailand Launch date: January 2009 Total land area of developments: One hectare Total number of sub-divisions: 39 Price Range: From US$20,000 for a twoweek fractional ownership Facilities: Beach Club, two infinity edge swimming pools, Mediterranean and Thai restaurant Monthly maintenance fees: US$940 for a two-week fraction Expected rental return per annum: 5.88 percent Contact details: Robert Pestello +66 89 011 9538 robert@beachrepublic.com Website: www.beachrepublic.com
MARCH 2013
| 119
HI LIFE
The Lofts at Laguna Village, Phuket, Thailand A luxury low-rise residential development within a community of high-end residences, surrounded by lagoons and pristine landscaping. Developed by Laguna Property, The Lofts comprises three low-rise buildings designed to offer modern comfort and convenience in a tropical holiday destination. Based on a contemporary design concept, three unit types are available, including one bedroom executive apartments and two bedroom, two storey lofts with an open floor plan design. The three bedroom penthouse units also feature a rooftop pool, sun deck and spacious balcony. Unit sizes range from 85 to 539 sqm. Buyers also have a choice of three interior design themes, including Phuket Sand, Phuket Spice and Phuket Chic. The Lofts is located in the northeast corner of the recently completed phase one of Laguna Village and are integrated within a collection of other luxurious resort properties. Everywhere within the Laguna Phuket resort is accessible through a network of intra-community roads and waterways, served by complimentary boats and buses. Facilities include over 30 restaurants and bars, five luxury spas and an 18-hole golf course. Further amenities include the neighbouring Clubhouse to which residents have exclusive access, as well as a restaurant, outdoor lounge/ bar area, children's play area, fitness centre and a swimming pool. Strategically located in Bang Tao Bay, The Lofts is within easy reach of some of Phuket's finest beaches, including Bang Tao Beach which is a five minute drive away. The Lofts is also just a twenty minute drive from Phuket International Airport. 120 | MARCH 2013
FACT BOX
Project Profile
Project name: The Lofts at Laguna Village Developer: Laguna Grande Limited Product Type: Low-rise condominium development Location: Laguna Phuket Launch date: May 2008 Total land area of developments: 17,336 sqm Total number of sub-divisions: 25 Average size of sub-division: 152 sqm Title: Leasehold structures Price Range: From US$250,000 Facilities: The adjacent Clubhouse features a lobby and reception area, an indoor restaurant, an outdoor lounge/bar, children’s play area, fitness centre and a swimming pool Monthly maintenance fees: THB50 (US$1.67) per sqm Contact details: Property Sales Centre +66 (0)76 362333 +66 (0)76 362334-5 info@lagunaproperty.com www.lagunaproperty.com
MARCH 2013
| 121
HI LIFE
The Royal Villas, Royal Phuket Marina, Thailand A high-end development comprising six waterfront residences and a series of luxury 'aquaminiums' centred around a lifestyle marina in an idyllic tropical island location. Each of the Royal Villas is designed in a traditional Thai architectural style as a luxurious and spacious residence that affords generous views of the marina. The Royal Villas also aim to provide the ultimate in convenience for boat owners with each of the units featuring its own private yacht berth, which can accommodate vessels of up to 25 metres in length. Vessels moored there also benefit from Royal Phuket Marina's professional concierge and marina maintenance services. The villas feature three bedrooms, a living room, a family room, a cabana, bar and fully equipped kitchen. The master bathroom also features an indoor Jacuzzi. Each villa contains approximately 1,059 sqm of living space. Additional features include a pool bar and outdoor sala, a swimming pool with Jacuzzi system and an outdoor terrace. Amenities within Royal Phuket Marina include a 250 metre boardwalk alongside the marina, which features a shopping and lifestyle complex with 9,000 sqm of retail and office space. The marina also features security and management services throughout all public areas, ATMs and a dedicated area for taxi standby. 122 | MARCH 2013
FACT BOX
Project Profile
Project name: The Royal Villas Developer: Royal Phuket Marina Product Type: Waterfront villa Location: Koh Kaew Muang, on the East coast of Phuket Launch date: June 2008 Total land area of developments: 6,748 sqm Total number of sub-divisions: 6 Average size of sub-division: 1,058 sqm Title: Chanote Price Range: From THB 185 million (US$6.2 million) Facilities: Marina facilities, health club, training and social zones, tennis courts, restaurants, sports bar and yacht club. 3,000 sqm events/conference facility. Monthly maintenance fees: THB500,000 (US$16,759) per year Contact details: Miss Kanittha Prasopsirikul +66 81 810 3328 kanitthap@royalphuketmarina.com http://villas.royalphuketmarina.com
DIRECTORY
MARCH 2013
| 123
PIMEX 2013 Property Report 130116_a.pdf
C
M
Y
CM
MY
CY
CMY
K
124 | MARCH 2013
1
16/01/2013
08:48
Your Best Choice Car Rental • • • •
All our vehicles are maintained to the highest standards. Honest, reliable, friendly business. The longest reputation in car rental in Phuket (since 1974). No hidden extra costs - what you see is what you pay (tax, insurance all included in rental rates). • Full comprehensive insurance included (with excess of 5,000 baht).
www.PureCarRent.com 75 Ratsada Road, Taladyai, Muang, Phuket 83000 THAILAND Tel: 076 211 002, 076 217 797, 076 256 797 Fax: 076 214 220
MARCH 2013
| 125
China’s only private exhibition for distinctive properties around the world
㊰⟄
04.13-14
㊰⟄
09.14-15
âź?ä?ž
06.22-23
ăš°ăˆŠ
11.09-10
SHANGHAI
HANGZHOU
SHANGHAI
NANJING
á€ťŕ¸‘ŕĄ™áœż Ὁ JOGP!LVOUBJ FYQP DPN á’˛ÖśŕžËŠáˆ“ĚĄÖśá§?͘
126 | MARCH 2013
XXX -VY1SPQFSUZ DO
MARCH 2013
| 127
HI LIFE Society
2
1
3
5
4
1&2. Able Architects fifth anniversary Over 100 industry suppliers and specialists from around Thailand gathered at the Blue Elephant Restaurant in Phuket Town on January 16 to celebrate the fifth anniversary of Phuket based firm, Able Architects. Money raised from ticket sales was donated to local charities, including the Soi Dog Foundation and local tsunami disaster orphans. 3. The Emerald Terrace Condo Patong Official Luanch Feb 6,2013 The President of the event : Khun Chairat Sukban, Deputy Mayor With Mr.Sampan Thongsamak, Mr.Esa Huovila MD.of St.Jamesproperties co.ltd. Mr.Sawit Ketroj ,MD. Phuket Future Development.,co.ltd.
6
4&5. Phuket Property Show Special guests from the National Association of Realtors and the Real Estate Sales and Marketing Association of Thailand joined Thanusak Phungdet, president of the Phuket Real Estate Association (PREA), for the Phuket Property Show 2013 in January. Organised by PREA, this year’s two-day exhibition was held at Central Festival Phuket just outside Phuket Town. PREA will also hold a training course this April for those who wish to acquire a Real Estate license, which offers a global standard of approval from the National Association of Realtors. 6. Launching the Haven His Royal Highness the Regent of Perak and Her Royal Highness the Raja Puan Besar of Perak joined other government officials to celebrate the completion of the Haven’s Acacia Tower in February. The completion ceremony was held at the Haven Lakeside Residences site in Ipoh Malaysia.
128 | MARCH 2013
MARCH 2013
| 129
130 | MARCH 2013