P 1
February 2015
The Future of Condo Ownership Around Thailand Real estate Companies and other property commentators have a variety of opinions about the Thailand condo market future. Here are some of the most recent comments and analysis. The Matichon Newspaper has described a recent survey of condominium buyers and found that 50 to 60% of them prefer condos outside Bangkok, adding that Pattaya is seeing major profit speculation. Project developers in northeastern Thailand, especially in Udon Thani and Khon Kaen, have decided against continuing projects in these Provinces. It has been reported that these developers have decided to stop their projects because of unsatisfactory sales and the oversupply of condos in these provinces. There are more profit speculators who buy a condo for future sale than those who buy it for long term ownership.
Each condo project should allow 15 or 20% of profit speculators, but at the moment this figure is about 50 or 60%.
Colliers (Thailand) Co. Ltd., a well-known international property consultant, has commented that there have been too many condo projects in Udon Thani, Chiang Mai, Pattaya, Cha-Am and Hua Hin in recent years. Oversupply was inevitable with slow sales. In some provinces, 25% are planning to buy condos for re-sale profit speculators. This may result in an economic bubble crisis which project owners need to recognise because the demand for condos to live is not as high as in Bangkok. Additionally a house can be bought easily and cheaply outside Bangkok. According to Colliers, at the end of the second trimester of 2014, Pattaya had 62,000 condo units, 73% or 45,000 of which had been sold. This year, more 25,000 condo
units will be completed and 25% of them will be bought for profit speculation.
In Hua Hin and Cha-Am 14,200 units out of 19,200 were already sold. In 2015 eight to nine thousand more condo units will be available with 10 to 15% of them bought by profit speculators. Frank Knight (Thailand) Co. Ltd. through a Board Member and consultant on real estate investment, Mr. Phanom Kanjanthiemthao, described concerns about the condo market outside Bangkok, namely in Pattaya, ChaAm and Hua Hin. In terms of Cha-Am and Hua Hin, Mr. Phanom said he was concerned about oversupply. Lower cost units likely to attract more speculators is the range of 15 to 50%. In Pattaya, Chinese and Russians are the major buyers. With Russia facing an economic crisis and a weaker currency, there is likely to many who default on their purchase contracts. Rattanakorn Asset Co. Ltd., have stated that Pattaya has up to 70,000 condo units available, with 30,000 unsold. This year up to 5,000 more new condo units will be available. It is expected that there will be up to 60% who are profit speculators. In these circumstances, it is possible that at least 40% of the condos remain unsold with prospective customers being unable to complete the purchases. In 2014, some local condo project owners reportedly stopped selling their condos and returned money to their customers.
The Phuket Real Estate Association secretarygeneral, Mr. Phatthanan Phisutwimol said that at the end of the second trimester of 2014, 6,000 condo units out of 19,000 were unsold. It is likely to take a couple of years to sell them. This year 2,000 new condo units will be completed, 60% of the sales will be completed while 40% will probably need to be re-sold because of financial credit problems and cancelled contracts. Down payments as low as 30,000 to 50,000 Baht have been allowed and with new condo units mushrooming some of them will then belong to profit speculators who are hoping for a later increased resale price. Century 21 Co. Ltd. (Thailand) Board Manager, Mr. Suphachai Chaemmanowong
said that the condo market in Cha-Am and Hua Hin will face small problems as 20 to 50% of buy condos for profit speculation. However, this is not very serious because Thai financial institutions are now very strict in granting credit.
In terms of other provinces like Udon Thani or Khon Kaen, most of condo buyers are Thai, with 50 to 70% buying to stay and 30 to 50% buying for profit speculation or longterm investment. “Condos that offer low down payment outside Bangkok will face problems when the buyers do not proceed with their ownership due to economic sluggishness. Outside Bangkok, the price of a house is equal to a condo. This affects the decision of buyers directly,� said Mr. Suphachai. The Real Estate Information Center of the Government Housing Bank, Director Mr. Samma Kheetasin described a new local strategy with condo projects of no more than 80 units located near important places such as universities. Of these, 70 to 75% of them can be sold rapidly. However many big condo companies invest in multiple projects, the first of which will be sold quickly but the rest having problems attracting buyers. The Real Estate Business Association of Chiang Mai and Lampang Chairman, Mr. Non Hiranyachet said that up to 4,000 condo units would be completed this year. 15% will be profit speculators and may not finish the down payments. However, since Thai financial institutions are restricting loans, there will be no serious problems.
A Real Estate Association of Songkhla source mentioned that, from 2011 to 2013, 70% or 5,000 of 7,000 units of 40 condo projects were already sold. From 2012 to 2013, there were less than 5% of profit speculators and few people preferred buying resold condos. This situation is different from Phuket, Chiang Mai and Pattaya. Many people who bought condos in Songkhla send their children to study in the province. They do not buy houses as a condo unit costs much less than a house. The overall picture is one of concern about the high level of property speculation, with buyers expecting a profitable resale which may be unlikely in an oversupplied market place.
PROPERTY TODAY, February 2015
P2
PROPERTY TODAY, February 2015
P3
PROPERTY TODAY, February 2015
P4
Regal
Facts
RESIDENCE
Two Bedroom
Land Build up Area Price Price Include: 30 Years
Three Bedroom
Three Bedroom
350 m2
350 m2
500 m2
125 m2 4,900,000
207 m2 5,975,000
230 m2 8,873,000
Family Golf Membership at Springfield Golf Course, Full Furniture Package, Landscape Gardens, All Taxes and transfer fees.
Deluxe 3 Bedroom Pool Villa
3 Bedroom Pool Villa
Regal Residence luxury living to a new level modern American designed spacious villas with vaulted ceilings in living rooms, offering a choice between 2, 3, 4 and 5 bedrooms, all with private swimming pools. pr Located in the most prestigious area of Hua Hin, just 1,5 km away from Hua Hin Beach. With a library, a fully equipped gym and coffee shop, Regal Residence offers an affluent lilifestyle in a gated community with 24 hour security.
Web: www.regalthailand.com
2 Bedroom Pool Villa
Phone: 082-635-3151, 091-779-1175, 032-511-535
Facts
Two Bedroom
Land Build up Area Price
208 m2 100 m2 4,736,000
Email: sales@regalthailand.com Three Bedroom 208 m2 150 m2 5,436,000
Three Bedroom 369 m2 214 m2 7,476,000
Price Include: 30 Years Family Golf Membership at Springfield Golf Course, Full Furniture Package, Landscape Gardens, All Taxes and transfer fees.
Luxury private pool villas in Lotus Villas & Resort in an area of 160,000 m, just 4km from main road in Soi 112, and ten minutes away from Market Village. Offering a choice between 2 to 5 bedrooms, and freedom to customize, meet your own needs and wishes at the best value for money in Hua Hin . Natural and quiet surroundings with lush tropical gardens, free shuttle bus service, restaurant, bar, large swimming pool, game room, mini market, se hotel reception and security 24 hours already in full operation. We offer a safe and fun environment for the kids with many facilities, where residents enjoy special discount. Built to the highest and green standards, Lotus Villas & Resort is the escape you have been looking for that benefits the environment as well as your wallet.
2 Bedroom Pool Villa
3 Bedroom Pool Villa
Deluxe 3 Bedroom Pool Villa
Web: www.regalthailand.com
PROPERTY TODAY, February 2015
Phone: 082-635-3151, 091-779-1175, 032-511-535
Email: sales@regalthailand.com
P5
LOT US P O O L P E N T H O US E A unique green resort and residential area.
Lotus Pool Penthouses is a part of the extension of Lotus Villas & Resort, a unique resort, of 17 private pool villas and offers free stay during the construction. Offering contemporary designed luxury apartments with a choice between one and two bedrooms, all completely furnished to 5 star hotel standards, including TV's and DVD's. Move in and start living the good life. With indoor and outdoor kitchens, Jacuzzi on the balcony, air-conditioning throughout, rain showe in the bathrooms, BBQ on the terrace and sun loungers in the garden, Lotus Pool showers Penthouses offer the ideal second home. - Phase one with total of 19 double units with only 4 single units unsold - Phase two with total of 34 double units - 6% annual Rental Guarantee for 5 years paid up in frond. - 6 weeks free use of the penthouse per year - Finance 40% with free interest for one year - Full use of all facilities of Lotus Villas & Resort Hua Hin, Restaurant/bars/game room/saloon/Spa/ Mini Market/ Free Shuttle Service to the city/4 large swimming pools/24 Hour Reception & Security
Lotus Villas & Resort
F O R M O R E I N F O R M AT I O N C O N TA C T: 082-635-3151, 091-779-1175 0 8 3 - 0 8 8 - 6 7 7 2 s a l e s @ re g a l t h a i l a n d . c o m
SOLE AGENT
083-006-1300, 032-511-535 w w w. re g a l p ro p e r t y h u a h i n . c o m PROPERTY TODAY, February 2015
P6
WEB DESIGN
WEB DEVELOPMENT
3D VISUALISATION
LOOKING FOR
CREATIVE TALENTS? DESIGN@REGALTHAILAND.COM
PROPERTY TODAY, February 2015
095-531-5281
GRAPHIC DESIGN
LOGO DESIGN
PRINT DESIGN
P7
E X C LU S I V E S E L E C T E D P R O P E R T I E S FOR SALE IN HUA HIN
Resort Apartments 1 o r 2 - b e d r o o m a p a r t m e nt s
Soi 112
Classic Villa
2 or 3-bedroom villa
B l a c k M o u nt a i n
From THB 2.190.000
From THB 3.410.000
Living area: From 60 m2
Land area: From 380 m2
Included: Airconditioners, European kitchen, modern b at h r o o m s , fu r n i t u r e , c o m m o n p o o l , s u p e r b f a c i l i t i e s .
I n c l u d e d : K i t c h e n a n d p l a nt e d g a r d e n . O p t i o n s : Sw i m m i n g p o o l , Ja c u z z i , fu r n i t u r e p a c k a g e .
Living area: From 56 m2
From THB 5.436.000
Modern Villa
2 or 3 bedroom pool villa
S o i 1 02
Resort Villa
1 or 2-bedroom pool villa
Soi 112
From THB 3.490.000
From THB 4.736.000
Land area: From 195 m2
Land area: From 208 m2
Living area: From 72 m2
I n c l u d e d : Sw i m m i n g p o o l , p l a nt e d g a r d e n , k i t c h e n F u r n i t u r e p a c k a g e i s av a i l ab l e a s a n o p t i o n .
Luxury Villa
3-bedroom pool villa
L i v i n g a r e a : F r o m 1 57 . 1 1 m 2
Included: Airconditioners, European kitchen, modern b at h r o o m s , fu r n i t u r e , g r a s s i n g a r d e n , s w i m m i n g p o o l 7 x 3 mt r , t r a n s f e r f e e s .
Soi 88
Up Scale Villa 3-bedroom pool villa
Soi 114
From THB 6.200.000
From THB 8.900.000
Land area: From 456 m2
Land area: From 484 m2
Living area: From 131 m2
Included: Airconditioners, European kitchen, modern b at h r o o m s , fu r n i t u r e , g r a s s i n g a r d e n , s w i m m i n g p o o l 7 x 3 mt r , t r a n s f e r f e e s .
Included: Furniture package, European kitchen, air-conditioning, landscaped garden, transfer fees.
P l az a N o . 5 H i l t o n R e s o r t & S p a , N a r e s d a m r i R o a d , H u a H i n . 0830061300 s a l e s @ r e g a l t h a i l a n d .c o m
Living area: From 151 m2
0895508018 0955315281 w w w . r e g a l p r o p e r t y hu a h i n .c o m
PROPERTY TODAY, February 2015
P8
PROPERTY TODAY, February 2015