Property Life Magazine December 2013 - January 2014 by Panashco Media Pte Ltd

www.propertylifenews.com

ASIA’S NO. 1 PROPERTY & LIFESTYLE GUIDE • DISPLAY TO JANUARY 31ST 2014

FE AT URES

Get your feet wet MARINA PROPERTY ALTERNATIVES

New Zealand PROPERTY IN THE LAND OF THE LONG WHITE CLOUD

M ORE

TH E

20 H The Aquatic I

View from the top

THE PROPERTYGURU CEO TALKS ASIAN TRENDS

Boracay

PRIME PROPERTY INVESTMENT DESTINATION

Lifestyle

The Royal Villas, the only villas in Phuket to feature private yacht berths. The ultimate yachting convenience and lifestyle opportunity at Asia’s newest state-of-the-art marina

THE TEAM Managing Director/Publisher ALEXANDER KNIGHT alex@panashcomedia.com Managing Editor STEVEN MALLACH steve@panashcomedia.com Sales Director TREVOR WATLING trevor@panashcomedia.com Director, Key Accounts MIRIAM RAHAMAN miriam@panashcomedia.com

MANAGING EDITOR’S NOTE It’s that time of year again when thoughts turn to long lazy days and evenings filled with the company of good friends and family. Of course, for many there are still a few weeks left to wrap up the years’ commercial activities, before taking some much needed time off to recharge those depleted batteries. For some the festive season will be spent at the side of the ocean or other large bodies of water. For many of our European readers, or those headed for the continent, water based activity might be limited to the putting on and taking off of raincoats and rubber boots – but that’s still aquatic activity of a kind. In celebration of all things moisture related we have put together an edition of Property Life that is decidedly focused on H2O. Of course being headquartered in Singapore, itself an island and surrounded by various archipelagos and tropical breakaway destinations we’ve always got a bit of water on the brain. Cheap laughs aside, in this edition we’re going to be taking a look at marinas and yacht clubs and the properties that can be found either within their confines, or within a stone’s throw of these bastions of wealth and privilege. We hope that you’ll also find our regular news, expert opinion and features of interest - we certainly enjoyed putting them together. Let me take this opportunity to thank all of our contributors, our advertisers and our team at Panashco for their support over the last twelve months. To our readers, a special thank you. We will be bringing you much more from Southeast Asia and the rest of the world in 2014. May this festive season see you surrounded by those you love and cherish and may you build memories that will last you a lifetime. Be joyous, be loved and be safe.

Business Development HONG KONG APRIL PORTEOUS april@panashcomedia.com Art Director ARIF VILLANUEVA ADIL production@panashcomedia.com Design Assistant ROMEL BELGA PAULINE DYCOCO production@panashcomedia.com Senior Editor VITTORIO HERNANDEZ editorial@panashcomedia.com Editorial Assistant JONALYN FORTUNO editorial@panashcomedia.com Marketing Manager AVIESSA KHOO advertising@panashcomedia.com UK Sales MARK MARTIN mark@panashcomedia.com Office Manager NORIANTY ASMAT norianty@panashcomedia.com Contributors KRITI JINDAL SCOTT O. TALBOT ELISE KRAUSE JAMES NORMAN Circulation and Distribution SASHA RITZER circulation@panashcomedia.com GET YOUR FREE SUBSCRIPTION AT http://www.propertylifenews.asia/subscription.html or email us at subs@panashcomedia.com DOWNLOAD OUR iPad and iPhone app from the Apple App Store We really want your feedback! Please contact us: Tel: +65 6534 9390 / email: info@panashcomedia.com

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Steven Mallach Managing Editor Property Life

Panashco Media Pte Ltd is registered in Singapore 201127591R. Copyright © Panashco Media Pte Ltd 2013. All rights reserved. Any content of Property Life may only be reproduced, in any shape or format, with the expressed permission of Panashco Media Pte Ltd. For reprints please consult the advertising department. While every care has been taken in the production of this publication, the publishers take no responsibility for any views expressed, errors, loss, or omissions that may occur. Currencies quoted are for information purposes only – and are accurate as we went to press. Printed at Times Printers, Singapore. MICA: 165/04/2012 • ISSN 2251-3949 Property Life is distributed at PropertyGuru events.

â&#x20AC;˘ Pointers on the potential for buying investment property overseas, including letting potential and visa or residency offers

Contents

DECEMBER 2013 - JANUARY 2014

The H2O Feature

Waterside properties command a premium price and deliver both lifestyle rewards and a solid return on investment. In this issue Property Life takes a look at marinas, yacht clubs and the properties in and around these havens of wealth and privilege.

Singapore Luxury and growing choice on the ‘The Little Red Dot’. We look at Keppel Bay Marina and the ONEº15 Marina in Singapore.

29 Hong Kong

Amongst the busiest marinas in the world Hong Kong provides both berths and property choice.

Phuket

Langkawi

Bali

Manila

St. Thomas

Split, Croatia

The ‘Island of the Gods’ is the setting and for those in search of a heavenly investment the attractions of Bali more than offset pricey property.

Property investment around the Manila Yacht Club is increasing. What can investors expect in this prime residential area?

A haven from the rough seas that can affect the region, Split is more than a safe harbor. Opportunities exist despite foreign ownership restrictions.

Genoa’s oroginal shipyard has morphed into one of the most visually arresting marinas in the world. Property development and investment is also evolving.

di Porto Cervo - Sardinia, 56 Marina Italy Located on the scenic 55 kilometre ‘Emerald Coast’ Marina di Porto Cervo offers the perfect balance between old world charm and modern convenience.

José Banús, Spain 49 Puerto

Quay, Australia 58 Campbell’s

Port Camille Rayon, France

Marina, Australia 59 Mackay

Port de Saint Tropez, France

Puerto José Banús Marina on the Costa del Sol is a magnet for sun starved tourists and a pricey property investment destination - are there alternatives?

Vacation paradise and property hotspot. Why is Royal Phuket one of the must visit destinations on the Southeast Asian yachting circuit?

The emerald jewel in Malaysia’s glittering archipelago offers visitors the luxury of the Royal Langkawi Marina - and the potential of ongoing development.

St Thomas has more to offer than retail distractions. Those in search of property investment will be charmed by the attractions of the island.

Marina di Portofino, Italy

We look at how the realisation of a resistance fighter's dream has provided some exceptional opportunities for property investment.

The transformation of a small fishing village into a destination for the rich and famous has also revealed the charms of the French Riviera to property investors.

ON THE COVER

The capital of New South Wales also is a consistent performer in global quality of life surveys, but has a reputation as a pricey investment destination.

The combination of superyacht shipyard, marina and residential precinct makes Mackay Marina an attractive investment destination.

61 Dubai Marina

High rise developments on a 3km stretch of manicured shorefront real estate and a market that is increasingly driven by fundamentals makes property an attractive investment.

| The Royal Villas - Phuket

The Royal Villas, an elite collection of six waterfront estates, are the only villas in Phuket to feature private yacht berths. Step directly from your villa onto your yacht and be cruising some of the world’s most pristine islands around Phuket within minutes. © Photo courtesy Image courtesy www.sothebysrealtyphuket.com

www.knightknox.com

+44 (0)161 772 1370

Knight Knox International is a leading provider of buy-to-let developments to the private investor market. Specialists at sourcing investment opportunities in both new-build residences and high-end refurbishment projects, our portfolio of both completed and future stock is testament to the quality of the products we bring to market. With a portfolio of prime new-build, residential buy-to-let apartments, we offer a wide range of opportunities to suit all investment needs, including a number of buy-to-let options available in the highly sought-after rental markets of Manchester and Liverpool.

X1 The Quarter, Liverpool A five-phase development in the heart of Liverpool's waterfront 1/4 mile from Liverpool Marina Albert Docks Views to Liverpool city centre on selected units

X1 The Exchange, Manchester 132 residential 1 and 2-bed apartments 10 minutes from Manchester city centre Private parking on selected units

X1 The Edge, Liverpool New-build development 231 double-bed en-suite rooms Built by experienced student developer

In association with:

Contents

DECEMBER 2013 - JANUARY 2014

16 74

66 90 F E AT U R E S

14 FINANCIALLY SPEAKING Balanced investment and the path to retirement.

THE H2O PATH TO RICHES Water plays a vital role in nature, but is it as important to property investment?

AQUARIA GRANDE

EXPERT OPINION

BANGKOK RISING

Reality forces rethink of grand design

The PropertyGuru Interview

Ultralux condominiums and the changing face of Bangkok

IS WHERE 73 HOME THE HEART IS

According to FlipKey (A TripAdvisor company) vacation rentals that offer the comforts of home are finding a ready market in Asia. We chat to Chris Chandler, Head of Business Development for FlipKey in the Asia Pacific region.

CONDOMINIUM 74 THE VS YACHT DEBATE Terra firma or the high seas – is it all about the balance sheet?

PROPERTY 78 AUCKLAND PERFORMANCE

DAKOTA 83 NORTH BECOMES SHALE OIL HOT SPOT

New modular housing investment opportunities fueled by black gold

PLACE TO CALL 86 AYOUR OWN

Island Styling in Southeast Asia

SKIES FOR 88 CLEAR INVESTMENT IN BORACAY

Is new infrastructure about to power Boracay property investment to the next level?

A ray of sunshine in the land of the long white cloud

80 AFFORDABLE LUXURY DEFINED YOTEL prepares to enter the Singapore market.

90 PROPERTY BUBBLES Are you interested in getting yourself into deep water with your property investment?

REGULARS

International News

News

Malaysia Update

By The Numbers

Afterwords - Publisher’s Opinion

NEWS DECEMBER 2013 – JANUARY 2014

Hong Kong boasts world’s priciest retail street THE MOST EXPENSIVE RETAIL location in the world is Hong Kong’s Causeway Bay, where high-end retailers are competing for limited space, according to a report released today by Cushman & Wakefield. Causeway Bay experienced a 14.7% rental value growth and recently broke the USD $3,000 per square foot barrier for the first time in the survey’s history, with average rents of USD $3,017 per square foot. Causeway Bay beat Fifth Avenue in New York for the second year in a row -- last year the Hong Kong Street beat its New York rival for the first time in 11 years, according to the firm’s annual report. Fifth Avenue kept the number two spot with rents of USD $2,500 per square foot, almost $900 per square foot ahead of the next location: Paris’ Avenue des Champs-Élysées, where rents are USD $1,601 per square foot. RANK 2013

2012

London’s New Bond Street is enjoying continued demand from international luxury brands, the firm said. The location jumped from sixth to the fourth most expensive shopping street in the world, with average rents of USD $1,047 per square foot, a 15.6% increase. The London location surpassed the Ginza district in Tokyo, which moved to fifth place with average rents of USD $984 per square foot. “We have also seen positive growth across almost all of the top global cities as international brands continue to compete for premier positions in the world’s most highly sought after shopping streets,” Cushman & Wakefield’s global head of retail John Strachan said in the report. Global retail rents grew 3.2% in the year, slightly lower than the 4.5% growth the previous 12 months. Retail values in 85% of

COUNTRY

CITY

LOCATION

the locations surveyed were either stable or increased. The strongest region was the Americas, with prime rents increasing by 5.8%. Looking ahead, the firm acknowledges economic risks in 2014, but expects conditions to steadily improve across most markets, as retailers continue looking for the best locations. “Limited supply and higher rental costs will create obstacles for some brands, leading a number to look to alternative locations in close proximity to the main thoroughfares,” Martin Mahmuti, a senior analyst in Cushman & Wakefield’s European Research Group, said in the report. “While cities will grow in importance, a stronger focus on the use of all channels including online will also be seen to both speed and support expansion.” USS/SQ. FT/ YEAR

€/SQ.M/ YEAR

% CHANGE IN LOCAL MEASURE

Hong Kong (China)

Hong Kong

Causeway Bay

3,107

24,983

14.7%

USA

New York

5th Avenue

2,500

20,702

0.0%

France

Paris

Avenue des Champs-Élysées

1,601

13,255

38.5%

London

New Bond Street

1,047

8,666

15,6% 7.4%

Japan

Tokyo

Ginza

984

8,152

Italy

Milan

Via Montenapoleone

906

7,500

7.1%

Switzerland

Zurich

Bahnhofstrasse

874

7,236

2.3%

Australia

Sydney

Pitt Street Mall

850

7,042

0.0%

South Korea

Seoul

Myeongdong

732

6,063

6.4%

Austria

Vienna

Kohlmarkt

536

4,440

8.8%

SOURCE CUSHMAN & WAKEFIELD (LISTS ONLY ONE LOCATION IN EACH COUNTRY. FULL RANKING CONTAINED IN THE REPORT)

Should I invest in the countryside rather than in London property? 8

BRITS and other moneyed foreign investors would probably be asking that question as prices of real estate across Britain continues to rise. A report from real estate advisers Savills found that at this point, it would be more profitable to invest in prime arable land in UK based on a 10.7% rise in prices in 2012 to GBP £7,594 (USD $12,175) an acre. The good news does not stop there since it forecasts more price growth of up to 40% to GBP £10,631 (USD $17,044) per acre by 2018.

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Explaining why farmlands are considered safe havens, Savills Director Christopher Miles said, ‘Farmland is seen as a tangible asset. People invest in arable land for the same reason they invest in housing, it’s not a piece of paper or a derivative and people have confidence in it because it won’t disappear’. This is not the first time that arable land outperformed prime central property in the British capital. It happened before during the 1973 oil crisis, the winter of 1980 and the 1990 Gulf War.

NEWS DECEMBER 2013 – JANUARY 2014

BY THE NUMBERS

120

The number of days it would take for Metrospaces, a developer in Argentina, to finish the Chacabuco 1353 apartmenthotel real estate project. That means the project will be fully complete within the planned timeframe. It would be a significant milestone for Metrospaces because it would be the first project it would complete as a publicly traded corporation.

A survey by the National Housing Bank of 26 Indian cities found that 22 logged a drop in property prices for the 2nd quarter of 2013. The list includes Delhi, Mumbai, Pune, Bangalore and Chennai. Valium Capital warned that these indicators signal the endgame of speculation in the Indian real estate market. Another indicator of a looming bubble is that rent yield across India is only 2.7% versus 4.7% in the US, 4.5% in Japan, 8.6% in the Philippines and 9.3% in Indonesia. The only other major Asian country with rent yield on the same level as India is China, also at 2.7%.

For the first half of 2013, Middle Eastern buyers accounted for 9% of the European property markets. About 25% of the total market is from outside Europe. Almost half of the Middle Eastern investors prefer to buy properties in London, according to CBRE.

40%

Results of the online survey conducted by iProperty.com in Asia found that 4 in 10 Singaporeans want to invest in properties in Malaysia and Australia. Between the two countries, there was more interest in Malaysia at 39%.

Website offers Swiss ski chalets SKI enthusiasts and property investors will be happy to know that a new website, Skiing Property (www.skiingproperty.com) has opened to promote the sale of newly built and off-the-plan properties in famous French and Swiss ski resorts. The portal lists properties with full details and photos, plus it has a blog and glossary and a free downloadable guide to purchasing an alpine ski house at Flims in Switzerland and Courchevel, Meribel, Les Gets, Chatel, Tignes and Val d’Isere in France. The ski resort properties for sale are leasebacks and classic freeholds. The price range starts at EUR €225,000 (USD $302,200) for a leaseback apartment in Chatel to EUR €3.25 million (USD $4.36 million) chalets in Meribel. Julian Walker, director of Skiing Property, said, ‘Tight supply and controlled development, combined with huge lifestyle appeal will always be good long-term investments. At Skiing Property we focus solely on new-build and off-the-plan projects, which typically offer better capital appreciation than resale properties’.

The secret to Stockholm’s uninterrupted real estate market growth throughout the EU recession SWEDEN often tops international listing of quality of life measures that it is not a surprise that its capital city’s real estate market enjoyed continuous growth while many capitols in the European Union were suffering during that period of economic turmoil. Besides the city’s beauty and culture, plus low mortgage and crime rates, The Wall Street Journal attributed the attraction of property buyers to Stockholm to well-timed changes in Sweden’s tax system that benefit the wealthy. These include the abolition of the inheritance tax in 2005 and the wealth tax on personal holdings in 2007. The changes led Ingvar Kamprad, the billionaire founder of IKEA, to return home to Sweden after decades of living in tax haven Switzerland since the 1970s. Sweden has been logging consistent home price increases since 1996, punctuated only by a slight decrease in 2007 and 2008, data from Svensk Maklarstatistik said. Average current home price is USD $771,229, up from USD $633,986 during the market peak in 2007.

British Land purchases 50% of Southgate Mall for GBP £101 million TO GAIN MORE TENANTS, the United Kingdom’s second-largest real estate investment trust based on market value, British Land Co., announced it would buy half of the Southgate Mall for GBP £101 million (USD $157 million). It will buy the stake from Multi Southgate Ltd. The remaining half of the mall, located in the English city of Bath, is owned by Aviva Investors. The mall has 430,000 square feet of

spaces and 93% is rented out. Among the mall tenants that British Land will gain are Apple Inc. and Henness & Mauritz AB. It has 55 retail units, 25,000 square feet of office buildings and the biggest parking lot in Bath. The mall’s first phase was completed in 2009, while the final construction phase ended only this year. The buy-in is expected to be completed by the end of September.

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NEWS DECEMBER 2013 – JANUARY 2014

Singapore fund to target India property SINGAPORE'S sovereign wealth fund GIC Pte. is joining Ascendas Pte. to invest as much as S$600 million in commercial property in India, according to a company announcement. The venture has launched the Ascendas India Growth Programme to invest in business space in cities including Bangalore, Chennai, Delhi National Capital Region, Hyderabad, Mumbai and Pune. “The Programme builds upon our presence in India and offers an opportunity to share our expertise in developing and managing business space in the market,” Manohar Khiatani, president of Ascendas, said in the announcement. GIC will be the principal investor, the companies said. Investment volumes by states funds like GIC have increased 26%in the past year, Bloomberg reports. “The likes of Blackstone Group LP, Ascendas, Xander Group Inc. and GIC are among investors who are looking at putting together a string of commercial assets,” Shashank Jain, executive director of transaction services at PwC, told Bloomberg. “They are looking at a stable yield-generating asset portfolio.” GIC opened its first office in Mumbai in 2011 and has already invested in properties in New York City, Jakarta and London this year. Singapore-based Ascendas develops and manages business space in 25 cities across 10 countries, including Singapore, China, India, South Korea and Australia, according to the company.

Limited housing supply in Brisbane, Australia frustrates Chinese property buyers Because of cooling measures in China, Chinese investors are looking at overseas markets, but those who went to Brisbane in Australia went back empty handed due to limited supply of homes for sale. Some of the investors were willing to spend up to USD $13 million, but couldn’t find a house that would fit their requirement. The Brisbane market has been attracting foreign buyers because housing prices in the city rose faster compared to other Australian cities at 1.5% in August 2013, according to a report from RP Data. As a result, median home prices that month climbed up to USD $429,000. Besides Brisbane, here are the median prices for 7 other major Australian cities in the same month: Sydney

USD $587,000, up 0.6%

Melbourne

USD $507,000, up 0.2%

Adelaide

USD $380,000, up 0.7%

Perth

USD $499,500, down 0.2%

Hobart

USD $289,000, down 1.9%

Darwin

USD $495,000, up 0.7%

Canberra

USD $503,000, up 0.9%.

Asian firm seeks $1 Billion fund ASIA private equity firm RRJ Capital is seeking a potential $1 billion real estate fund, with a focus on China investments. The new fund for the Asian investment firm is initially looking to raise $500 million to invest in residential, retail, hospitality and elderly care homes, Richard Ong, the firm’s founder, told Reuters. With an expected close in the first quarter of next year, the fund will target a 25 to 30% return on investments. “We are very bullish on China’s economy and expect stable, good growth,” Mr. Ong told Reuters. “Depending on demand, we may expand the fund to up to $1 billion.”

The fund will avoid prime office space investments due to the market’s competitiveness and lower yields, Reuters reports. Global private equity firms have increased their Chinese real estate investments this year. Earlier this month, private equity giant Blackstone Group paid $400 million for a 40% stake in Chinese mall developer and operator SCP Company Ltd. Private equity investments in China’s real estate sector increased 53%to about $1.2 billion by early November, according to Reuters data. RRJ Capital focuses on private equity investments in China and South-East Asia. The firm was founded in March 2011 and closed its first fund in June 2011 with a fund size of $2.3 billion, according to the firm.

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BY THE NUMBERS

13.4%

This was the drop in new home sales in the US for July 2013, according to the US Census Bureau. It is the biggest decline since 2010 and came at about the same time that mortgage rates went up sharply.

40%

USD

$120.5 BILLION

After Hurricane Katrina battered 80% of New Orleans eight years ago, the US federal government allocated that amount to reconstruct the city. Today, New Orleans is one of the fastest-growing commercial real estate markets in the US, following a construction boom that built luxury homes, retail and office projects. In the first five months of 2013, commercial real estate transactions reached USD $424.7 million, 41% higher than the USD $301.1 million for the 12 months of 2012, according to data from Real Capital Analytics.

GBP

£250,000 BILLION

That is the amount (or USD $387,770), which Conservative MP for Daventry, Chris Heaton-Harris, claimed was lost in value of the home of one of his constituents due to the house’s proximity to wind turbines. Environment Secretary is preparing a report on the impact of energy infrastructure, particularly wind turbines, on property prices in the countryside where the turbines must be installed to harness wind power and make the energy project feasible.

NEWS DECEMBER 2013 – JANUARY 2014

INTERNATIONAL NEWS

IP Global Property Barometer includes Dubai

Newly opened Dubai airport

on hot list for the first time DUBAI is on the hot list, not because of the soaring temperature in the Middle East, but because of the continuous rise of real estate prices in the emirate. As a result, IP Global included the emirate in its Property Barometer for Q3 2013. With its inclusion, Dubai joins Chicago, New York, Boston and Seattle in the US; Melbourne, Sydney and Brisbane in Australia; Munich and Berlin in Germany;

and Tokyo in Japan as the best real estate markets for investors. Home prices in Dubai went up 11.9% since January 2013 and there is a potential for more growth in the market that is still 30% below the peak levels of 2008. IP Global Middle East Head and Director Paul Preston attributed the inclusion of Dubai to the continuous growth in number of expat workers in the UAE city, which drives up rentals consistently.

to impact Emirate’s real estate market over next 10 years

SAUDI-BASED airline Nasair and Hungarian budget air carrier Wizzair made UAE history by being the first air carriers to use the Al Maktoum International Airport, which opened on Oct 27. The new gateway is part of the Dubai World Central complex. Dubai officials hope the new airport would one day be one of the busiest airports in the world and help boost the emirate’s property market. Craig Plumb, head of research of Jones Lang LaSalle in the Middle East, echoes the same wish, saying that Al Maktoum "will definitely have a major impact on the Dubai real estate market over the next 10 years." He added, "It’s not just the airport itself, but all the additional infrastructure that will go with it." While the first phase of the airport can only handle about 7 million passengers, expansion would make it capable of handling up to 160 million travellers and 12 million tonnes of cargo annually. More passengers, mean more people going for vacation in Dubai, as well as more buyers of second homes and increased property investment.

Ever upwards: prices in Middle East property hotspots.

U S

H O U S I N G

M A R K E T

47% are vampire foreclosures, 20% are zombies The housing industry in the US is keeping up with the times by applying buzz words to recent developments. Riding on the popularity of the Twilight series and horror films, terms such as vampire foreclosures and zombie homes were coined by RealtyTrac, a real estate information company. The terms can be found in a new report used to describe various types of

foreclosed units. On one hand, vampire foreclosures refer to mortgaged homes seized by a bank, where the original owners still occupy the unit. About 47% of bank-owned homes across the US are of the vampire type. But in some cities like Houston, Miami, Los Angeles and Chicago, the rate could go as high as 65%. On the other hand, zombies are homes

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that the owner abandoned during the foreclosure process. About 20% of foreclosed homes are of the zombie type, said Daren Blomquist, vice president of RealtyTrwac. "The distressed inventory is artificially being held back so in the short-term, it’s helping boost the home prices and the housing recovery in general… But the red flag there is that eventually these homes are going to have to hit the market." Blomquist CBS News.

NEWS DECEMBER 2013 – JANUARY 2014

Drastic increase in flood insurance premiums for US homes FOLLOWING Recent flooding incidents in different parts of the US, the National Flood Insurance programme jacked up flood insurance rates across the nation. The hike could be up to six times current rates. That means flood insurance premiums for older homes in Treasure Island which have lowest floor six feet below base flood elevation currently charges USD $2,500 a year could go up to USD $15,000. The big leap is prices, besides the upward adjustment, is caused by the phase out if subsidies that have kept rates very low on older homes built before the redrawing to the flood maps. On the average, majority of homes in primary residences will have to pay 10% to 20% more, while owners of secondary homes, commercial properties and units

that suffered repeated flood losses will be charged about 25% more yearly. New policies could have premiums as large as USD $6,000 to USD $20,000 yearly. But resident, realtors and public officials of Tampa Bay are lobbying congressional leaders to stop or delay the new law that took effect on Oct 1. The approval by Congress of the Biggert-Waters Flood Insurance Reform Act in 2012 aimed to fill a USD $20 billion deficit in the flood insurance programme of the Federal Emergency Management Agency caused by large-scale disasters such as Hurricanes Katrina and Sandy that decimated the agency’s funds. There is, however, an amendment being pushed in the US House of Representatives and is expected to go to the Senate for a vote before the new law took effect in October.

European Golden Visas

Attracting Chinese Investors THE DEMAND is the result of an October 2012 change in Portuguese law, allowing anyone to obtain a residence visa with the investment of a minimum of €500,000, or USD $680,000, in residential or commercial property. The investment can be a single transaction or multiple purchases. It is clear that investors see the arrangement as a relatively cheap way to buy access to the 28 E.U. countries and their open borders. Real estate agents say that currently around 80 percent of their business with non-E.U. clients is with Chinese nationals. The remainder are of South African, Russian and Middle Eastern origin.

Other European countries have been adopting similar strategies, most recently Spain, where the property market has sunk to rock bottom as a result of the country’s financial difficulties. It introduced a broadly similar law on September 28. Owners are not obliged to live full time in their new residences and are allowed to rent them when they are not using them. But they are allowed to travel within the Schengen area for only six months out of the year; the rest of the time must be spent in their new E.U. country or outside the European Union. Agents see Chinese buyers prefering newly built homes and urban locations.

BY THE NUMBERS

31%

Is the increase in home value in the first half of 2013 in the Middle East. Property consultant Cluttons blamed the development in the region to the ongoing political turmoil and rising rents, which have caused Dubai home prices to go up to pre-crash levels. For a villa, the price hike was 21%, but apartment prices increased by 25.1% during the same 6 month period.

27.2%

According to Knight Frank’s Prime Global Cities Index, home prices in Jakarta, Indonesia rose 27.2% at the end of June 2013 when compared to 12 months ago. This is significantly higher than Dubai’s 21.6%. Besides gains made in home prices, Jakarta’s office property markets also improved 10.2% for Q2 compared to Q1, based on Jones Lang LaSalle’s Asia Pacific Office Index.

USD

$180

The Richmond Community College is charging that much for students who are enrolled in its 75-hour North Carolina Real Estate Pre-Licensing course, which started on Sept 9. The course prepares students to take the state licensure exam to enter the real estate business. For that amount, the course will cover basic real property law, property taxation, land use controls, brokerage relationships, real estate contracts and other industry-specific topics.

13.4%

USD

$11.2

BILLION

For 2013, that is the total revenue expected by the Sawmills and Wood Production industry in Canada, which is down 2% compared to the previous year. This is attributed to suboptimal production volumes, which lowered profit margins for the average industry company and has resulted in anemic growth in Canadian housing markets.

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COMMENTARY DECEMBER 2013 – JANUARY 2014

Financially Speaking Balanced investment and the path to retirement. By James Norman

hey say time flies when you’re having fun. Well if you’re 45 and wish to retire by 60, the harsh reality is you’ve only another 180 monthly pay checks remaining before you lose your salary income. Failing to plan effectively in your early years could result in having to work far longer than originally intended or having to rely on family hand-outs – neither option is ideal. Rest assured, it’s not too late to turn things around, at least I hope not. Within this article I’ll map out items to focus on in the early years to smooth the transition in to retirement, hopefully as early as possible. Just don’t make the mistake of leaving things too late.

Goals Before anything else, you need to understand what you want your retirement to look like. What age would you like to be financially stable enough to stop working, or at least slow down? Where do you wish to retire – and what is the approximate cost of living in this destination? Ultimately – how much do you want/ need to live off each year? To estimate your approximate retirement pool/nest egg (the money required to live off in retirement) multiply this annual figure by 20. This nest egg can consist of a number of asset – investments, cash, property and is designed to pay you an income to sustain your retirement. 14

Healthcare Do you have sufficient government sponsored healthcare? Will you be required to pay a proportion or even all of your healthcare costs in your chosen retirement destination? When it comes to long-term healthcare needs, it’s advisable to hope for the best, yet prepare for the worst. A separate savings fund dedicated to supplement any future healthcare needs is always advisable. Life Insurance Do you have the appropriate type and term of life, critical illness and disability insurance to protect yourself and your wider family in case you see a change in your health, both now or in the future? You are your biggest asset - so be certain to insure your ability to sustain an income. Why insure your car, house and other possessions but risk leaving yourself un-insured? Taking out this type of insurance whilst young and healthy also results in far cheaper monthly premiums. Risk Profile As you age, your attitude to risk will more than likely change. Those in their 20s or 30s are usually more comfortable accepting aggressive (aka risky) investment strategies as they have time to bounce back from their investment decisions should they fail. Those transitioning through their 40’s to 50’s and 60’s are typically more comfortable with increasingly conservative strategies yielding a lower potential return. Therefore, don’t leave any

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planning too late or you’ll have too much ground to make up and risk adopting an investment strategy that doesn’t suit your risk profile.

Make the Most of Your Options If you have a company or government retirement scheme that benefits from taxconcession or even matches your contributions – ensure you’re maxing this out. Are there any other tax-free or tax-beneficial schemes available? Anything you save in tax is free money.

Property this should be a part of any financial portfolio – as either a roof over your head, or a source of income as a buyto-let investment. Preferably both. Ensure you have sufficient equity in your property and that the date your mortgage repayments cease aligns with your chosen retirement age, if not long before. Cash Cushion you need an emergency fund. It’s advisable to have 3-6 months income in cash for that ‘rainy day’. It’s a fact of life that unforeseen circumstances do occur. Don’t take the risk of not being prepared. So where are you now? It’s likely that by the mid-point of your life, it’s time for a review of your finances. Regular reviews are essential to ensure you meet your goals, however the harsh reality is that most people do not do so. Semi-annual or even an-

COMMENTARY DECEMBER 2013 – JANUARY 2014

Asset Allocation - Performance Ranked By Year RANK

2006

2007

2008

2009

2010

2011

2012

2013

Emerging Markets

US Fixed Income

Emerging Markets

Gold

US Fixed Income

US Equity

US Property

Gold

Commodities

Gold

Hedge Funds

Emerging Markets

Commodities

US Cash

Gold

Emerging Markets

US Equity

US Property

US Equity

US Fixed Income

US Property

US Equity

US Cash

Emerging Markets

Hedge Funds

Commodities

Hedge Funds

US Property

US Cash

Gold

Hedge Funds

US Fixed Income

US Cash

Hedge Funds

US Cash

US Fixed Income

US Equity

US Fixed Income

US Cash

Commodities

US Cash

US Property

Emerging Markets

US Property

Emerging Markets

Gold

Commodities

nual reviews are advisable, preferably with a well-qualified financial advisor. Reviews should follow these steps:

ASSET ALLOCATION Probably the most important step of all is understanding the correct split between cash, property, fixed income, equity, commodities and collectibles. This will largely determine the long-term success of your portfolio and will pay a large part of helping you achieve your goals.

CURRENCY EXPOSURE If you’re an expat or expect to retire in another country, this is certainly an area of focus for a review. For example, if the portfolio of assets is intended to fund a retirement in Europe, you don’t want the portfolio to be heavily weighted to the Singapore dollar. Check that the currency exposure remains in-line with the currency of your future liabilities. If you’re unsure where you wish to retire, it’s wise to be well diversified across major currencies.

FEES How much are you paying to manage your investment assets? For example, if you have property that is rented out and being managed by an agent receiving a large fee, are there better, cheaper options available? Equally, are you managing your own investments poorly – could a well-qualified financial advisor add value by giving on-

going investment advice for a small fee? Not only may this yield a larger return, but by taking the burden away from you, this may allow you to focus more on your shorter-term goals, or at least sleep a little easier at night! Overpaying in fees for a sustained period of time or not seeking the correct advice can dramatically reduce your long-term performance and ultimately future income.

Remember the dream of sitting on that yacht in the Mediterranean or a lounging in your villa by the beach in retirement? Well, it could become a reality – but only if you plan. Well - plan, implement and review.

TAX Are you maximising all of the tax-efficient solutions available with your existing investments or are there alternative solutions available? Seeking tax advice could pay dividends over the long-term.

MONITOR YOUR PORTFOLIO PERFORMANCE Track this on an on-going basis and ensure it remains positive and in-line with your risk profile. Is there an excessive amount of volatility? If so, you may wish to re-visit the asset allocation. Are you working towards your goals? If not, you may need to increase the type and amount of investments within the portfolio.

‘The End Game’ focussing on the future, preferably by planning over a long period time is ultimately about ensuring your future happiness. In my experience, those that plan have the greatest likelihood of achieving their long-term goals.

JAMES NORMAN James has over 10 years’ experience in finance – having worked in foreign exchange, risk management, insurance, investment management and financial advisory. He holds a degree in Economics and Finance and is a licenced financial advisor in Singapore. James has a broad knowledge of retirement and education planning, tax efficient investments, life insurance, foreign exchange and estate planning and is regularly asked to provide market commentary for media publications. Feel free to contact James to arrange a free financial review. jn@thehenleygroup.com.sg +65 9668 3820

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COMMENTARY DECEMBER 2013 â&#x20AC;&#x201C; JANUARY 2014

H20 to riches

Water plays a vital role in nature, but did you realise its importance to property investment? By Scott Talbot

t is no coincidence that with every metre you come closer to a beach, river, lake or natural water feature, property values increase. At certain places in Australia, as you approach a waterway, property prices double within a matter of hundreds of metres. In Sydney, the iconic Harbour Bay remains the ultimate ideal of natural liquid splendor. In recent times, property values on Sydney Harbour have tripled far beyond the national average. No other reason can be attributed to this staggering increase other than the properties location and proximity to the waterfront. Luxury homes overlooking the bay have been in such high demand, with supply extremely limited, that prices have soared. Further along the coast in Melbourne, prime examples are St Albert Park Lake, Port Phillip Bay and the Yarra River, which bends its way through the city. All are focal points of nature and points of focus for homebuyers. Purchasers in the property market in Melbourne are constantly looking for the water view, how-

ever, will always find that a natural aqua feature brings with it a lofty price tag. One project in Melbourne that has attracted great attention, appropriately named Sanctuary, lies 10 minutes from the CBD, yet sits peacefully on the bend of the Yarra River, facing Hawthorn and the prestigious Kew suburbs. Stepping in to the Sanctuary, from the hustle and bustle of a prime city location, residents are greeted by traditional Australian natural fauna and bushland, and the picturesque river that bends its way through Melbourneâ&#x20AC;&#x2122;s most prestigious addresses, past the Crown Casino to the Bay. Within minutes of entering the complex, you feel like you are not even in Melbourne city. This calming essence that comes from the gentle lapping waves or rolling stream can be said of any property throughout the world that has the same feature. It applies in London and boutique apartments along the Thames. In Paris and renaissance era hotels with romantic views overlooking the Sienne. New York has its own wow factor of the Hudson.

When it comes to quality lifestyle for the owner/occupier, it is often viewed as a source of tranquility to be able to go for a walk along the riverside or canal, jump in the waves at the beach, or simply be able to gaze out from the window and see a water aspect as opposed to just another house, office block or even a city skyline. A conversation 10 years ago with a venerable Feng Shui master, who advises clients in Hong Kong and Singapore about all the intricate matters of location within a location, was highly enlightening to me. I still remember his wise words. One of his most important criteria when selecting an apartment from a project for one of his clients was the water view versus the city view. He also took into consideration angles, locations of doorways, the flow of energy, and some other matters that went well over my head. Notwithstanding, his ultimate decision always came back to a water view. If necessary, he would overlook some design flaw or imperfection in the interior in return for the apartment having an excellent water aspect. Waterside views

None more iconic or influential when it comes to property pricing

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COMMENTARY DECEMBER 2013 – JANUARY 2014

Brand new properties are cookie cutters. A familiar concept and one that is true in many ways.

The cookie investment recipe I’L L PU T T H IS IN TO A I N V E S T M E N T RE C I P E O F E QUAL PARTS

Investment recipe

Quality of finishes

I Size, design and VALUE

III

Location amenity; schools, shopping, transport and leisure Aspect; proximity to H20, or a postcard Manhattan skyline

IIII Whilst ingredients 1, 2 and 3 might be perfect and tick all the boxes, if the aspect is ugly and unappealing, it doesn’t matter how good those three points are, your investment (cookie) will not taste that great.

Baking the perfect cookie for your H20 View

I’d like to give everyone a tip from my own knowledge and expertise, that all real estate is like baking cookies. Cookie cutter developers punch out apartment and designs that are popular with the owner occupier, investor and rental markets. Then, they decorate them appropriately, without over capitalising, and to ensure their profit margins can be achieved. Brand new properties are cookie cutters. A familiar concept and one that is true in many ways.

What makes the difference from one cookie to another? - the design and decoration. Hundreds and thousands, icing, colourful smarties, the degree of detail to which it is decorated, and of course, the presentation and package it comes with. Putting the developers cookie cutter theory to one side, location, location, location, is the only other element that defines the difference between this cookie and that cookie. Water, in a prime location, will place local property in the top position for capital growth.

SCOTT O. TALBOT is the Managing Director of UCHK Consulting Limited and one of Australia’s most respected international businessmen, community leaders and philanthropists. He has over 25 years of experience in strategic property investment, business development, politics and philanthropy.

Whilst the cookie analogy is not scientific, I’m certain you understand the simple logic behind it. If the location is waterfront, you can be guaranteed regardless of any other shortcomings that your investment will grow faster than a property (a cookie), that is not located facing the waterfront, or has a water view or aspect. That being said, a beautiful city skyline is of comparable importance. You might as well have a basement apartment with no windows. So, as our cookie investment creation bakes in the oven, when you are browsing all the real estate listings across Australia, or the world, keep in mind as you do your best to stick to the recipe for delicious cookies, how good your investment tastes will ultimately rely upon the aspect and the wow factor of what you see when you gaze out of your living room window. Of course, not everyone can live on the ocean, but if there’s water, be it a lake, river, or even water fountain, make the investment and watch as your returns flow in. And lastly, I remember the words of my old Feng Shui friend. “You cannot lay Bricks without mixing the mortar with H20.”

UCHK Consulting outlines a clear path for existing and potential property investors to empower them to achieve phenomenal returns on their investments. For more information, or to speak to a qualified consultant in your area, please visit www.property.org.au or email info@uchkconsulting.com.

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UK Student Accommodation Investment – No.1 Asset Class

LARGEST STUDIO APARTMENTS CURRENTLY ON THE MARKET

10%

High Demand Prime Location

NET returns

Assured for 3 Years Hands-off investment fully-managed by R House Lettings

“The 2014 Knight Frank Student Property Index shows that total returns from student accommodation outperformed other property asset classes in the year to September. This has been the case since 2011.”

Due to its stable performance over the past 6 years and its ability to produce higher than average returns, UK student property has fast become a popular choice for investors looking to generate an income from the UK’s property market. The sector has performed so well, Knight Frank has stated, “The student accommodation sector has produced positive rental growth throughout every year of the economic downturn.”

New UK student accommodation investment Experience Invest has launched a brand-new student property investment in Liverpool, which will provide investors with 10% NET per annum assured for the first 3 years of the investment.

Investment highlights • 10% NET per annum assured for 3 years • Luxury self-contained studio apartments • 5% interest paid of deposited funds • Desirable location city centre, university district and China Town • Returns paid monthly in arrears

Located close to the City Centre, China Town and the University District, L1 University Living will appeal to students studying in the city’s top universities.

With 6 UK universities ranked in the world’s top 20 (QS World University Rankings 2013), and the number of students applying to study in the UK consistently increasing now is a good time to consider investment in the UK’s top performing property investment sector.

The city has 3 major universities, as well as other education institutions, with a combined current population of 53,000 students from over 100 countries around the world.

Tel: +44 (0) 207 321 5858 Email: info@experienceinvest.com www.experienceinvest.com

Experience Invest, 1 Northumberland Avenue Trafalgar Square, London WC2N 5BW, UK

For this academic year, Liverpool’s 4 main universities have experienced a substantial rise in the number of students attending courses.

To access brochure visit www.experienceinvest.com

H2O THE

O P E R T G U I D E

Navigating the waters of marina property across the globe.

he figures are startling – amidst a global financial downturn, the world’s fleet of superyachts has grown by 25% to 4,600, at least according to Marina Projects, a U.K. consultancy firm which claimed that “owners of the world’s superyachts are running into a new problem as they set sail across the crowded seas: finding a place to park,” (Jason Chow, Wall Street Journal Asia). Superyachts (and smaller boats of many kinds) are being challenged to find berths across the world. In the Mediterranean, there are an estimated 3,000 superyacht berths, so not everyone is going

to get the opportunity to anchor at an established marina, at least if everyone stays in the traditional yachting playground of the Med. So superyacht owners are faced with some challenges - be satisfied with membership at one or more of the top marinas in the Med, downgrade to another destination of the not quite as rich or nearly as famous – or seek watery pastures new. Increasing numbers of superyacht owners are choosing option three, and those new destinations can increasingly be found in Southeast Asia, where the marina business is booming. With the growing and maturing ma-

rina business comes development of the surrounding land, and for those professionals who want a taste of the high-end yachting lifestyle, or a family that simply wants to enjoy being a stone’s throw from the ocean, the new condominium developments adjacent to the many marinas in the region are the answer to their lifestyle requirements. Thailand is one of the countries that is benefiting from the growth of the yachting lifestyle. Both government and private enterprise are focusing with great intensity on the high end of the tourism market. In Phuket, the USD $150 million Royal Phuket Yacht Club is just one of several

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H20 PROPERTY GUIDE NAVIGATING THE WATERS OF MARINA PROPERTY ACROSS THE GLOBE

I can see Southeast Asia becoming the world’s foremost yachting and marine leisure destination in the not-so distant future. 20

popular high-end marinas that attract a world-class clientele. Property development in Phuket has grown to service the market of those who are interested in the lifestyle choices offered by the yacht club. In September 2007, Singapore’s USD $5 billion ONE°15 Marina Club opened on the eastern end of Sentosa Island (the marina is named for its location one degree, 15 minutes north of the equator.) ONE°15 caters to a very wealthy crowd. Property Life will be looking at a few of the choices available to those who want to be part of the Sentosa Island lifestyle and we will also be taking a look at some of the property choices nearby the USD $30 million Marina at Keppel Bay, opened in January 2008. It has become apparent that Singapore has supplemented the jet set that lands at Changi International Airport with the smart set that disembark down gangplanks to enjoy shopping sprees in the high streets of one of Southeast Asia’s most popular tourist destinations. In the 60s, the Philippines became the first Asian country to enter sailing competitors in the Olympics. Today, the

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members-only Manila Yacht Club keeps racing at the forefront. The club plays host to the annual President’s Cup Regatta (begun in 1993), co-host to the China Sea Race (won by a MYC racer in 2008) and regularly sends teams to the major regattas in the region. The fame of the yacht club has also attracted property developers who have been quick to seize the opportunities presented by those who want to bask in the reflected glory of this successful marina. Of course it is not only Singapore, Phuket and the Philippines that have seen major developments of marinas and the property surrounding them. Yachting clubs from Indonesia and the Malaysian archipelago to Hong Kong are also basking in the warm glow of increasing interest in clubs, marinas and the property that surrounds these attractive developments. There’s another reason for the increasing Asian interest in yachts and all things yachting. The rapid increase in the number of high net-worth individuals among the Chinese has led to a visible consumption of passion toys (covered by Property Life’s sister publication Investment Life in the

feature

H20 PROPERTY GUIDE NAVIGATING THE WATERS OF MARINA PROPERTY ACROSS THE GLOBE

November / December launch edition). This naturally includes yachts. But there’s a reason so many new marinas are being built specifically in Southeast Asia - many Chinese are now buying yachts and keeping them in Southeast Asia where their wealth does not attract as much attention. Governments are taking note of this trend, and are actively positioning themselves to attract more marine tourism— from both local and from international yachtsmen. This trend will continue, “as Southeast Asian governments realise the economic gains that can be derived from developing this industry,” said Joanne Cooney, managing editor of SEA Yachting magazine. “I can see Southeast Asia becoming the world’s foremost yachting and marine leisure destination in the not-so distant future.” With the renewed focus on yachting and other water-based leisure activities, as well as increasing opportunities for investment, property choices in the region are also growing exponentially. The rise of Southeast Asia has by no

means threatened the popularity of marinas in other regions of the world. Marinas in both the Mediterranean and the Caribbean remain extremely popular berths. The Med remains a firm favourite with the yachting fraternity. The distance from Miami to Bermuda takes those in search of berths half way across the whole length of the Mediterranean Sea, and along the shores of eight countries. With the entire Med as their playground, including three continents and 22 countries, it is no wonder that the mega rich berth their floating pleasure domes at stylish yacht clubs and marinas in countries, including France, Italy and Spain. At each of these destinations property development continues to deliver exciting new opportunities for investment only a stone’s throw from the superyachts berthed in these traditional playgrounds of socialites from across the globe. The Caribbean is filled with choice for those wanting a taste of the high seas. From yacht charters, to berths across a multitude of islands for the superyachts owned by the mega wealthy, the area is a

feature

paradise for those who long to feel the sigh of salt water under the keel of their chosen craft. Of course, with the development of the islands the establishment of new yacht clubs and marinas, as well as the upgrading of existing facilities has continued unabated. It would be beyond the scope of the Property Life feature to provide readers with a taste of the property possibilities of all the many destinations in this region. Both the British and American Virgin Islands have long been favourites with the yachting fraternity and are probably emblematic of the sorts of destinations offered across the region. We have selected St Thomas as an example of the sorts of property and investment opportunities that exist. With that taste of what you can expect on the coming pages, let’s weigh anchor for some of the most beautiful spots on the planet – and explore the sorts of property investment that can be found in some of the most popular yachting destinations in Southeast Asia and beyond. Bon voyage.

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Invest in British history

From only £10,000/USD $15,391

10.4 % projected yields

Education investments are a contemporary, ethical alternative that provide a secure teaching platform for future generations. Scarisbrick Hall would like to offer investors the opportunity to be a part of the school’s expansion, development and growth. The opportunity will be for investors to purchase shares in the historical grade 1 listed building, the hugely successful Beautiful Beginnings Nursery, TCM (Teaching, Coaching and Mentoring) extracurricular activity division, state of the art sporting facilities, international boarding facilities and the new 6th form college.

Investment highlights: Grade 1 listed historic investment Min. £10,000/USD $15,391* investment for share purchase £34.5M to purchase 49% shares Min. 3-year investment - dividends paid on and after year 3 10.4% p.a. projected yields Asset secured investment Sipp approved investment Excellent yields over a medium to long-term period *Price based upon an exchange rate of 1.54 USD

REQUEST YOUR FREE INVESTMENT BROCHURE NOW www.buyassociation.asia/scarisbrick/propertylife Tel: +65 6534 9390

ASIA MAKING

waves The early years of the new millennium saw the popularity of boating and yachting in Southeast Asia plummet. Pirates in the Andaman Sea and severe climatic events damaged the reputation of the area. A global financial crisis placed yacht owners under enormous pressure and the super wealthy stayed in the traditional happy hunting grounds of the Mediterranean and the Caribbean. Marinas across the region felt the bite as finances suffered.

However, the last five years have seen something of a Renaissance in yachting and Marina services. Regional government initiatives have made coastal waters and the high seas safer and local governments have woken up to the fact that "if you build it (and add world-class services) they will come." Private individuals have pointed the bows of their megayachts and smaller vessels towards Southeast Asia and have indeed filled the berths of Marinas across the region. Along with the reinvigorated marina scene came developers keen to leverage a newfound interest in the integrated marina lifestyle. In this section of our H20 feature we look at some of the most popular marinas in Southeast Asia and some of the property investment opportunities that can be found along mainland coastlines and amongst the islands of the many archipelagos that are spread across the seas of the region.

MARINA AT KEPPEL BAY

PROPERTY GUIDE DECEMBER 2013 • JANUARY 2014

LONGITUDE103° 48' 0" E/ LATITUDE 1° 22' 0" N

THE SINGAPORE

Recipe for Success Private club amenities, a wide range of properties and easy access to vibrant city life at Singapore’s elite marinas. BY STEVE MALLACH MARINA AT KEPPEL BAY SINGAPORE LOCATION

Keppel Bay, Singapore DESCRIPTION

Award-winning marina NO. OF BERTHS

168

LONGITUDE 103° LATITUDE

48’7” E

01° 15’9” N

he USD $30 million award winning Marina at Keppel Bay features world-class berthing facilities with state-of-the-art floating concrete pontoons for 168 yachts including individual berthing systems for mega yachts up to 280 feet. The Marina is billed as the crown jewel in Singapore’s southern shores and the

exclusive home of choice for international luxury yachts. Located along Singapore’s southern shores on the privately owned Keppel Island and home to the Royal Yachting Associationaccredited Keppel Bay Sailing Academy, Marina at Keppel Bay enjoys close proximity to the Central Business District and is near entertainment hotspots such as the Resorts World at Sentosa and VivoCity, Singapore’s largest entertainment and retail hub. With a wide dining and entertainment selections, the clubhouse includes a members-only waterfront bar The Wine Glass and a number of fine gourmet restaurants. Set amidst beautifully landscaped grounds with waterfront views, the marina offers luxury yacht charter services as well as exclusive entertainment and corporate event venues. Marina at Keppel Bay won international Marina of the Year 2013-2014, as well as

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Winner of Best Environmental Initiative at the Marine13 International Conference and Exhibition held in Sydney, Australia earlier this year. The Marina, which opened in 2008 on Keppel Island, was recently recognised for its environmental initiative, City Reef, a highly rated integrated plan that has now attracted over 40 aquatic species to the marina. Marina at Keppel Bay was constructed based on an open concept which allows water to flow freely through the entire basin during the change of tides, with nutrients and plankton being carried through the waters as currents flow. As a result, the marina is now home to a vibrant aquatic community of more than 40 different species of marine life. In a program that will impress those with a love for the sea and its aquatic life (we assume this means the vast majority of yacht and boat owners) Marina at Keppel Bay

H20 PROPERTY GUIDE NAVIGATING THE WATERS OF MARINA PROPERTY ACROSS THE GLOBE

feature REFLECTIONS

takes an active role in minimising hazards that could potentially impact the environment. Along the pontoons, the reticulated vacuum sewer pump-out system discourages boaters from discharging their black and grey water into the waters. These initiatives, among others, reinforce Marina at Keppel Bay’s commitment to environmental protection.

Reflections at Keppel Bay DEVELOPER

Keppel Bay Pte Ltd

CORALS

ADDRESS

Nos. 1-33 Keppel Bay View, S098402 NUMBER OF UNITS

1,129 TYPE OF UNIT

99 years leasehold housed within six sky towers and 11 fan-shaped villa apartment blocks. 1,129 Luxury homes, ranging from two bedroom to four bedroom apartments to spacious penthouses and the exquisite 13,300sq feet super penthouse, all providing breathtaking ocean views, lush greenery and fairways. The price of units at Reflections at Keppel Bay range from USD $2,400 to USD $2,500, per square foot depending on unit type and view.

FACILITIES

The usual amentities one would expect from a world class marinaside development can be found at Reflections, including olympic-length pool and a Jacuzzi pools, built in BBQ's, tennis courts and a clubhouse.

Reflections at Keppel Bay is Daniel Libeskind’s first Asian residential masterpiece. An architectural feat, six glass towers at alternating heights of between 24 and 41 storeys rise like beacons of light at the water’s edge. Along the extensive 2460-feet shoreline are 11 low-rise villa apartment blocks of six to eight floors. Together, they make up the 1,129 meticulously designed luxury homes. A recipient of numerous international and local accolades, Reflections at Keppel Bay was awarded Gold at the prestigious FIABCI Prix d’ Excellence Awards 2013. Located just minutes away from the Central Business District and within walking distance to Singapore’s largest shopping mall - VivoCity and entertainment hot spot, St James Power Station, homeowners can indulge in a variety of dining and leisure options. Across from Reflections at Keppel Bay is Sentosa Island, home to Resorts World Sentosa and Universal Studio Singapore theme park.

All homeowners of Keppel Bay enjoy complimentary 10-year membership and five-year subscription at Marina at Keppel Bay. Located on the private Keppel Island, the award-winning Marina at Keppel Bay enhances the premier and intimate waterfront lifestyle experience for Keppel Bay residents with its premium berths and fine dining as well as a host of other waterfront amenities and facilities.

materials and designer wares. The apartment size ranges from one bedroom at 600sf to four bedroom at 3,000sf with the penthouse units spanning from 5,000 to 8,000sf. The price of Corals at Keppel Bay average $2,200psf, depending on unit type and views. FACILITIES

Top class amentities at Corals include one would expect from a world class marin, 50 metre pool and hydro spa, BBQ pavillions, tennis court and clubhouse. built in BBQ's, tennis courts and a clubhouse and gym.

“Our lives are complex; our emotions are complex; our intellectual desires are complex. I believe that architecture … needs to mirror that complexity in every single space that we have, in every intimacy that we possess.” — Daniel Libeskind

Corals at Keppel Bay DEVELOPER

Keppel Bay Pte Ltd ADDRESS

1 to 21 Keppel Bay Drive Singapore NUMBER OF UNITS

366 TYPES OF UNIT

Apartments are available as 99-year leasehold units. Corals at Keppel Bay comprises 366 premium waterfront residences in 11 low- to medium-rise blocks. Each apartment is crafted using the finest

Internationally celebrated architect Daniel Libeskind lends his creative vision to yet another waterfront home. Contemporary in style and fluid in design, Corals at Keppel Bay offers luxurious living spaces with spectacular views of the sea, the historic King’s Dock alongside the development and the lush central garden.

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feature

H20 PROPERTY GUIDE NAVIGATING THE WATERS OF MARINA PROPERTY ACROSS THE GLOBE

All homeowners of Keppel Bay enjoy complimentary 10-year membership and five-year subscription at Marina at Keppel Bay. The development is also close a number of urban attractions such as VivoCity, Singapore’s largest shopping mall and Sentosa Island, home to Resorts World Sentosa, Universal Studio Singapore theme park as well as golf courses and picturesque parklands present the best of luxury urban marina living.

ONE°15 Marina SINGAPORE LOCATION

Sentosa, Singapore DESCRIPTION

Exclusive Marina

MARINA AT KEPPEL BAY Scenic berths for a wide variety of pleasure craft and property options nearby. SOURCE Marina at Keppel Bay

NO. OF BERTHS

270 wet berths including 13 mega-yacht berths 60 dry berths LONGITUDE 103° 50.40´ E LATITUDE

1° 14.50´ N

In September, 2007, Singapore’s ONE°15 Marina Club opened as part of a massive USD $5 billion development of the eastern end of barrier island Sentosa. Found one degree and fifteen minutes north of the equator ONE°15 Marina Club is part of an emerging upscale luxury neighbourhood that is styled to become one of the world’s most integrated waterfront lifestyle communities and lifestyle destinations. ONE°15 offers world-class marina facilities and a comprehensive range of luxurious private club amenities catering to both boaters and non-boaters alike. Besides being the first marina in Singapore capable of berthing megayachts of up to 200 feet in sheltered waters, ONE°15 is an exclusive resort-style marina club with luxurious club amenities including a spa, gymnasium, restaurants and bars, members’ and kids’ lounges, conference/ meeting rooms and deluxe hotel rooms. Singapore has traditionally been a major hub for commercial shipping and the islandnation is recognised as having the facilities and know-how to meet the servicing needs of any vessels that put into port. ONE°15 Marina have taken up the challenge of matching the professionalism and dedication of Singapore’s commercial harbor operators. All the berths at ONE°15 Marina have been designed to allow the yacht owner the option of using the yacht as a home away from home.

There are a limited number of transient berths available for visiting yachts measuring from 40ft to 100ft. Priority is given based on ‘first reserved, first served’ basis. The purchase of a membership with the Club does not guarantee permanent or longterm berthing in the marina. There is a waiting list for long-term berths measuring between 30ft to 100ft. PROPERTY AT ONE DEGREE 15 NAME OF DEVELOPMENT Marina DEVELOPER

Collection

Lippo Marina Collection Pte Ltd

ADDRESS 13

– 17 Cove Drive

NUMBER OF UNITS

124 (31 units of Penthouse)

Mediterranean styled marina living in Sentosa Cove. This luxurious development has 40 private berths for its residents. The Marina Collection has views of the waterways and Tanjong Golf Course. Property in The Marina Collection is open to foreigners and permanent residents. Completed in 2011, the property is marketed to both families and individuals. The Marina Collection offers 124 luxurious units. Residents also have the integrated marina ONE°15 Marina Club, Singapore’s first casino in Resort World Sentosa and Sentosa Island entertainments within minutes of the development. COMPLETED 05 FACILITIES

October 2013

The Marina Collection boasts a five lane lap pool, as well as a childrens / wading / leisure pool and Jacuzzi. BBQ pits, gym and clubhouse

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round off the offering. What sets the Marina Collection apart os the complimentary membership of the One Degree 15 Marina Club and the docking station.

The development is easily accessible to and from the main island of Singapore. Changi International Airport is around half an hour’s drive away, depending on traffic conditions and the Marina Collection also close to the Harbourfront MRT Station and the Vivocity shopping mall. Educational institutions such as River Vallet High and American College are also extremely close. UNIT TYPE & SIZE

3 Bedroom apartments: 1,873 sqft – 2,099sqft 4 Bedroom apartments: 2,185sqft – 2766sqft 4 Bedrooms + Studio: 2,788sqft – 3,272sqft Penthouses: 3,369sqft – 4,693sqft

According to PropertyGuru.com a three bedroom condo at the Marina Collection (with a panoramic sea view) would cost around S$5.5 million. One of the undoubted benefits for both families and single professionals of buying a property in or near Sentosa Cove is the extensive nightlife and family friendly entertainment that can be found in the vicinity of Sentosa Island. Residents at the Marina Collection have easy to access to the following: Sentosa Cove Adventure Cove S.E.A. Aquarium Resort World Sentosa One Degree 15 Universal Studios

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Sentosa Resort and Spa NAME OF DEVELOPMENT Berth DEVELOPER

by the Cove

Ho Bee Group

ADDRESS 228

Ocean Drive, 098616

NUMBER OF UNITS

200

One of the first residential developments on Sentosa Island Berth by the Cove features private berths for luxury boats and although it has been overtaken by larger and more opulent developments it remains extremely popular with a wide variety of foreign nationals and locals. The addition of the berths is a definite plus and boasting rights come free with each of the units. 99-year leasehold units are available. There are 200 lavishly appointed 2, 3, and 4 bedroom apartments, as well as luxury penthouses. Conceived as a tropical haven oriented around the theme of water and greenery, the homes feature a backdrop accentuated by lush tropical gardens, free flowing waterscapes and intimate courtyards. Two bedroom: 1012 – 1292 sq ft, three bedroom 1604 – 2067 sq ft four bedroom: 1873 – 2271 sq ft penthouses: 2939 – 6028 sq ft COMPLETED Oct 2006 FACILITIES

If there is one thing that all the residents at Sentosa based developments can expect it is top notch amenities. At Berth by the Cove both Jacuzzi and spa are part of the offerings, as are waterside BBQ pavillions, waterfalls and a viewing deck. However what made Berth by the Cove one of the most sought after properties in the area is without doubt the priavte berths.

According to PropertyGuru.com, prices at Berth by the Cove range from a four-bedroom unit at S$3,8 million (1,900 sqft / 177 sqm ) to S$ 9,650,000 for a 6,030 sqft / 560 sqm four-bedroom unit. These prices are dependent on unit type and views. The property is located within the vicinity of Sentosa Island. It takes only a few minutes drive to the Harbour MRT Station. Vivocity is just a few minutes drive away, as is Orchard Road. Marina Bay environs and the Singapore central business district are all within easy reach, either by private car, cab or public transportation (MRT and bus). BERTH BY THE COVE AMENITIES

1 Lap pool 2 Easy access to Mount Faber Park 3 Nearby Schools include American College and River Valley High School 4 Recreational activities at Siloso Beach and 18-hole Sentosa Golf Club 5 Selection of restaurants and eateries on Sentosa Island BUYING PROPERTY IN SENTOSA:

Sentosa Cove is the only place in Singapore where even non-Singapore PR status foreigners may purchase homes, subject to obtaining government approval. Of course there are landed homes in Sentosa as well, which attract great interest from both local and international non PR buyers. Foreigners granted approval to buy a landed home in Singapore, including at Sentosa Cove are required to use the property for their own occupation and are only allowed to own one landed home in Singapore. Recent bungalow transactions at Sentosa

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Cove include a house sold on Paradise Island for USD $15.5 million or USD $1,898 per square foot on land area of about 8,170 sq ft. The six-bedroom property, spread across two storeys and an attic, was bought by a European who is a Singapore permanent resident. Buyers these days are mostly Singapore Permanent Residents with their business and family based on the island. Many of these buyers are in search of properties to live in, rather than as investment assets. Because they have a genuine reason to live in Singapore, they are able to justify paying the Additional Buyer’s Stamp Duty (ABSD is paid by certain groups of people who buy or acquire residential properties on or after 8 Dec 2011) as part of their property cost. On the other hand, a foreigner investing around the world but not based in Singapore, may find better value (sans ABSD) in other property markets elsewhere in Southeast Asia Effective Jan 12, 2013, non-PR foreigners pay 15% ABSD for any Singapore residential property purchase - up from 10% previously. PR’s now pay 5% ABSD on the first purchase and 10% on subsequent ones. Increasing number of PR’s are purchasing properties in the Sentosa area due to the fcat that the government no longer allows them to purchase landed homes in Good Class Bungalow Areas (GCBAs) on mainland Singapore. Prior to this rule change (in 2012) PRs could buy a landed home in a GCBA with up to 15,000 sq ft land area.

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H20 PROPERTY GUIDE NAVIGATING THE WATERS OF MARINA PROPERTY ACROSS THE GLOBE

tial use because besides the fantastic deals, they also offer the same convenience as the city centre. On the other hand, Singapore’s central business district is more popular for investors due to the numerous developments in the area. Prime districts such as 9, 10 and 11 are likewise of interest because of the investment opportunities on offer.

PROPERTY BASICS AVERAGE PRICE

USD $17,709

RENTAL YIELD

2.41%

RENT PER MONTH USD $4,276 CAPITAL GAINS TAX

SOURCE WWW.SINGAPOREEXPATS.COM/

N/A

BUYING PROCESS

SOURCE GLOBAL PROPERTY GUIDE

COUNTRY INFORMATION OFFICIAL NAME

Republic of Singapore

CAPITAL CITY

Singapore

CURRENCY

Singapore Dollar

LANGUAGE

English (official), Mandarin (official), Malay (official), Tami

TOTAL AREA

716.1 km2

POPULATION

5,353,494 (July 2012 est.)

TIME ZONES

UTC +8

DIALLING CODE

+65

GDP (Nominal; USD $270,020 billion 2012 IMF estimate) GDP PER CAPITA (Nominal; 2012 IMF estimate)

USD $50,323

HUMAN DEVELOPMENT INDEX

0.895 (Very high)

SOURCE WIKIPEDIA

WHERE TO BUY Singapore may be the world’s second priciest real estate market, but buying a property here is really a good option especially if you want to achieve maximum returns. Besides being a traditionally safe haven for investors, Singapore also offers low interest rates and favourable tax system which is good news for those who plan to settle here. Add to that is its excellent economic condition and wellestablished political and social management. So for those who want to either live or invest in the city-state, here are the several areas to consider. Less pricey properties are found in the suburbs and city fringe. These are the ideal locations if you want a property for own residen-

There are two types of properties foreigners can purchase in Singapore: non-restricted and restricted. Restricted properties are those that require approval from the government, which may include land, landed properties and Housing Development Board flats (HDB). The Residential Property Act, however, regulates all foreign ownership in Singapore. It allows foreigners to purchase apartments in non-condominium developments without the need of government approval. To obtain approval to purchase land or landed properties, a form is available for download at the Singapore Land Authority Web site (www.sla.gov.sg). In order to protect your interests, engage the services of a professional estate agent or specialty attorney. ❶ Option to purchase agreement requires 1% of the purchase price and is usually prepared by the seller’s agent or attorney. This agreement allows 14 days consideration before proceeding with the purchase. ❷ Offer to purchase agreement is prepared by the buyer’s agent or attorney and is an alternative to the option to purchase agreement. ❸ Inspections are stated in the option to purchase agreement which allows the buyer to have a professional inspection of the property before completing the sale. ❹ Close of sale is under the jurisdiction of the attorneys and usually takes eight to ten weeks to complete. All transactions of land rights must be via deeds executed before a land deed official at the local office of the Pejabat Pembuat Akta Tanah (PPAT), where the land is located, and must be registered in the regional office of the National Land Agency. Although there is no regulation regarding language, it is recommended having contracts and agreements drawn up and executed in Bahasa Indonesia (or two languages) to prevent

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potential arguments that the local partner did not fully understand the content.

GETTING IN VISA REQUIREMENTS All travelers need a passport valid for at least 6 months, following the departure date from Singapore. Passports must have blank visa pages. It is also advisable to confirm whether a transit visa is required for any connections. Visitors from the following countries will require a visa: Afghanistan, Algeria, Bangladesh, Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan, Egypt, Georgia, India, Iran, Iraq, Jordan, Lebanon, Libya, Morocco, Myanmar, Nigeria, China, Pakistan, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, Yemen, Hong Kong, Macao, Palestine Please check with the Singaporean visa authority for verification at www.ica.gov.sg. AIRPORTS AND AIRLINES For foreign travellers, the easiest way to get into Singapore is by air. The city-state’s only international airport, the Changai Airport, is considered to be one of the best and most luxurious in the world as indicated by the 390 awards it received since 1991 including the 23 ‘Best’ awards in 2011. Apart from these, the airport also serves more than 100 airlines, over 6,000 flights a week to more than 220 destinations. Major Airlines Singapore Airlines Air Asia Air Canada Air China Air Macau Air Madagascar China Airlines Delta Airlines Lufthansa Malaysian Airlines Qantas Scoot Silk Air Srilankan Airlines Thai Airways Tiger Airways Turkish Airlines ValuAir Vietname Airlines

PROPERTY GUIDE

TIGHT SQUEEZE Like all of Hong Kong property, space is at a premium at the Aberdeen Marina.

DECEMBER 2013 • JANUARY 2014

HONG KONG MARINAS LONGITUDE 114° 10' 0" E / LATITUDE 22° 15' 0" N

BUSIEST YACHT DESTINATION IN THE WORLD

onsisting of over 200 islands and over 733km of coastline, Hong Kong should be able to provide more than enough berthing space for luxury and super yacht owners. Because most of the islands in the region are uninhabited, yacht marinas have been centered around popular Kowloon Island and jam packed Hong Kong Island. The various

yacht clubs in Hong Kong undergo continuous upgrading to provide additional berths and accommodate larger yachts in their facilities. Apart from the Hong Kong Marinas being some of the busiest in the world, the coastline and ports also need to deal with the overpopulation issue which causes many Hong Kong residents to live in houseboats. These houseboats can be seen covering

much of the coast but are anchored away from the exclusive yacht clubs in the area. The various berthing locations in and around Hong Kong are mainly owned by clubs or resorts where members have permanent berths and access to the club or resort facilities. Visitors to these Marinas need to reserve berths through the club and should have access to the club and other facilities for the duration of their stay.

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BY ELISE KRAUSE

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H20 PROPERTY GUIDE NAVIGATING THE WATERS OF MARINA PROPERTY ACROSS THE GLOBE

THE ABERDEEN MARINA CLUB

MARINA CLUB DISCOVERY BAY

LONG: 114° 09’ 7” E / LAT: 22° 14’ 6” N

LONG: 114° 01’ 4” E / LAT: 22° 17’ 5” N

With 170 wet berths and 157 dry berths, the Aberdeen Marina club can accommodate a variety of different boats from luxury yachts to power boats. However, this destination borders on being a superyacht location and cannot berth yachts exceeding 100 feet in length. All wet berths provide a water and electricity supply, 24 hour security, telephone connectivity, fueling station, waste pump-out facility as well as an outdoor barbeque area for the use of all berth holders, including guests. Full boat maintenance, repair and haul-out services are available from the clubs qualified and experienced staff. The Aberdeen Marina Yacht Club has 7 different dining opportunities, with the exclusive “Horizon” serving the finest authentic Chinese dishes. Set on the 9th floor of the Marina Tower, panoramic views of the city accompany your dining experience. The Yacht Club also has a deli, café, and the Portside Restaurant which provides relaxed all day dining options.

This yacht club is set within a natural bay offering protection to berthed vessels refuge from the wind and the sea, especially during typhoon season. There are 220 walk-on wet berths available accommodating vessels up to 120 feet. Temporary berthing is available, depending on availability and the acceptance of a pre-submission of a temporary berthing form. Access to amenities and facilities must be requested on the temporary berthing application form. The Anchorage Restaurant and Bilge Bar offer a variety of dining options and serve only fresh, natural produce with no MSG added. Additional dining options are available around the area as well as on nearby Pen Chau Island.

GOLD COAST YACHT AND COUNTRY CLUB

LONG: 113° 59' 31.2" E / LAT: 22° 22' 15.6" N

This technologically advanced marina has developed a yacht basin that is typhoon proof and can accommodate 200 vessels with a maximum length of 230 feet. Typhoons rage through the region between May and November each year, making sailing extremely dangerous for those yachts caught in the open ocean. Finding typhoonproof berths during these 6 months of the year is essential in ensuring the safety and security of all sailing vessels. The Gold Coast Yacht club boasts a fuel station, water and electricity connections, holding tank pump, satellite television, telephone connectivity as well as 24 hour security. The club provides 3 different dining options covering a variety of different global cuisine options. Guests to the Marina need to book berths well in advance or need to become members of the yacht club to enjoy full access to all the facilities including the country club and sports & recreation areas.

HEBE HAVEN YACHT CLUB LONG: 114’ 15.42" E / LAT: 22’ 21.52” N

Hebe Haven Yacht Club welcomes international yachtsman and has even made special arrangements with the immigration department to dock directly at the marina rather than visiting the immigration centre first. Unfortunately, this stunning natural bay falls short of the super yacht category and can only accommodate yachts up to 72

GIVE ME SHELTER Hong Kong's marina's are largely free from the threat of adverse weather conditions. Seen here Hebe Haven.

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feet in length. Six of the 53 berths have been set aside for guests only. The dining room inside the club provides fun menus with themed evenings as well as regular a la carte options. The dishes cover a wide range of categories catering for a range of tastes and palates. The variety of sailing activities, courses and programs makes Hebe Haven Yacht Club a dream vacation destination for sailors and holiday makers alike.

Property Options in Hong Kong Due to the lack of space and increasing foreign investment in both commercial and residential property, Hong Kong has the most expensive real estate in the world. For the first time, government has begun placing restrictions on foreign investment in an effort to curb the extreme property prices which have become unaffordable to local residents in the area. However, these restrictions apply mainly to limiting or excluding foreign investment in new developments rather than existing structures and foreign property owners still retain the same rights of ownership as citizens. It is advisable to opt for existing real estate when considering purchasing a holiday or residential property. The cheapest properties are most often found on the 4th floor or floors containing the unlucky number four as this is associated with death in Can-

H20 PROPERTY GUIDE NAVIGATING THE WATERS OF MARINA PROPERTY ACROSS THE GLOBE

tonese language and tradition. All property in Hong Kong is owned by the government and can only be purchased on a land tenure basis for lease periods lasting anywhere from 50 to 999 years. The lease can be resold to a third party within the tenure period depending on specific clauses that form part of the final sale agreement.

PROPERTY BASICS AVERAGE PRICE

USD $20,660/sqm

There are five basic steps that need to be completed before transfer of land tenure can take place:

RENTAL YIELD

RENT PER MONTH

USD $6,198

1 Signing of a provisional sales agreement by

CAPITAL GAINS TAX

N/A

all parties concerned in the transaction.

3 Signing over of the mortgage deed.

5 Settling the remainder of the purchase price.

The process seems rather simple and can take up to 3 months which is a relatively short when compared to the time it takes to finalise property purchases in other countries. Even though a local real estate agent can take care of the necessary paperwork and negotiations, it is essential to employ the services of a lawyer in Hong Kong to supervise all the legal procedures and matters involved. The lawyer and estate agent will work between these steps to ensure that all necessary investigations and inspections into the property are completed before the final transfer of property.

Types of Property in Hong Kong Once again, due to the lack of space in Hong Kong, landed property is in short supply and high demand. Luxury apartments and condos are the popular choice for international buyers offering everything from fully serviced, luxury accommodation to tiny studio apartments. The surrounding habitable islands do have some landed property at a much lower cost than purchasing property on the main island of Hong Kong. All islands are about 1 hour away from the main island by boat. Foreigner property owners are allowed to rent out their property subject to the local tax regulations.

BUYING PROCESS

OFFICIAL NAME

Hong Kong Special Administrative Region of the People’s Republic of China Capital: Hong Kong City

CAPITAL CITY

Hong Kong City

CURRENCY

Hong Kong Dollar

LANGUAGE

Chinese, English

TOTAL AREA

1,194 sq km

POPULATION

7 million

TIME ZONES

HKT (UTC+8)

DIALLING CODE

+852

GDP (Nominal)

USD $381.663 billion

GDP PER CAPITA (Nominal)

USD $52,687

HUMAN DEVELOPMENT INDEX

0.906

4 Signing the final sales agreement with a further 5-10% deposit.

The New Territories are mostly for those looking for residential areas. The place was built from rural agricultural land.

COUNTRY INFORMATION

2 Payment of 5% deposit of final sale price.

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Foreigners are allowed to buy condominium units in Hong Kong and rent it out without restriction, except Afghans, Albanians, Cubans, North Koreans and mainland Chinese, except if they are permanent residents of other countries. The only place where freehold property is allowed is at St. John’s Cathedral. Land leases are for 50 years. A 5% down payment is required for a property being sold upon signing of a preliminary sales and purchase agreement. Upon signing of a formal agreement, another 5% is paid. The remaining 90% balance is paid at the closing, which could be six to eight weeks later.

GETTING IN

SOURCE GLOBAL PROPERTY GUIDE

WHERE TO BUY Hong Kong SAR is divided into 3 regions, namely: Hong Kong Island, Kowloon and The New Territories. Hong Kong Island, where skyscrapers, 5-star hotels and large malls are found, also has quiet villages behind the ridge to the South of the island, favoured by wealthy residents, mostly expats. Kowloon has lower skylines because of building height restrictions when the airport was still nearby. Buyers seeking luxury developments are advised to go around Kowloon, including Kowloon Tong where many actors and celebrities live. For property buyers who want to be near high-end shopping malls, the place to look for is near Tsim Sha Tsui, while those who want to live near electronic shops should opt for Sham Shui Po.

VISA REQUIREMENTS Citizens of specific countries/territories could enter Hong Kong for tourism or business-related activities, ranging from 14 to 180 days without the need for a visa. Those entering Hong Kong from other parts of China are required to pass through an immigration checkpoint. Residents of Macao and Taiwan had visa-free or visa-on-arrival access good for short visits, but Chinese residents are required to go through a more rigorous process to enter the SAR. AIRPORTS AND AIRLINES Hong Kong’s main gateway is the Chek Lap Kok Airport located on Lantau. The territory also has the Shek Kong Airfield for the PLA Air Force and 5 heliports and 170 helipads. Being an international hub, the Chek Lap Kok Airport has many air carriers landing and flying out of this gateway. The airport is the hub for these airlines: Air Hong Kong – www.airhongkong.com.hk Cathay Pacific – www.cathaypacific.com Dragonair – www.dragonair.com Hong Kong Airlines – www.hongkongairlines.com Hong Kong Express Airways – www.hkexpress.com UPS Airlines - www.ups.com/aircargo/

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PROPERTY GUIDE DECEMBER 2013 • JANUARY 2014

ROYAL PHUKET MARINA LONGITUDE 7° 57’ 51” N / LATITUDE 98° 23’ 27” E

ANDAMAN SEA

Dream destination for property seekers BY JONALYN FORTUNO

or the past decades, Thailand has constantly been on the list of the most popular tourist destinations around the world. And because tourism industry has greatly augmented the country’s economy, it has become a major economic factor in the country, bringing in roughly 6.7% in 2007’s GDP. Recently, Thailand’s capital– Bangkok was given the title the world’s most visited city, beating Paris, London, New York and Singapore. But it’s not just Bangkok that brings hordes of tourists into the country, the Thai island of Phuket is renowned for drawing tourists from around the world. The largest island on the coast of Thailand, Phuket is recognised for offering every class of tourist something to meet their specific needs. From great cuisine, worldclass resorts and shopping facilities, stunning stretches and coastlines, lush rainforest, to historical sites, Sino-Portuguese architectural displays and temples.

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H20 PROPERTY GUIDE NAVIGATING THE WATERS OF MARINA PROPERTY ACROSS THE GLOBE

The wealthiest province in Thailand, Phuket has built on a history of tin mining and rubber tapping in the 19th century to become a 21st century tourism dynamo. The early 1970s saw the island transform itself with the opening of Sarasin Bridge. As tourism grew exponentially, so too did its contribution to the local economy. Eventually, it became a major source of income alongside the rubber and tin industries. It also paved the way for more construction and infrastructure projects as well as investment.

Property in Paradise The active real estate market is the largely result of the island’s strategic location in the Andaman Sea - one of the world’s tourism hotspots (and favourite sailing destination). The island attracts more than 5.3 million tourists annually and accommodation options have grown exponentially - much of it situated on the west coast. Regular visitors might want to choose from a wide array of properties, including villas, condominiums, apartments, penthouse and luxury resorts - with average price tags for a typical villa starting at THB 13 million (USD $405,110) to THB 40 million (USD $1,246,494). The average price for typical condos with 2-3 bedrooms is THB 5 million (USD $155,811). There are a variety of recognised estate agents in the region such as Hunter Sotheby’s International Real Estate (see the front cover of this magazine for one of their exclusive properties on Phuket), Phuket One Real Estate, Tropical Homes and Knight Frank. Two of the four marinas in the region have ventured into the real estate market by offering accommodation for sale and rent. One is Asia’s most sophisticated hightech yachting haven, Royal Phuket Marina (RPM), also awarded as the ‘Best Waterfront Development in Asia’. This marina has captured the interest of Hollywood jetsetters such as Kate Moss, Paula Abdul and Kevin

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OPTIONS Although the beachfront is becoming crowded there are still plenty of real estate options on Phukut, including marina developments. © SUPERKIMBO / FLICKR; OPPOSITE PAGE: REINHARDLANNER / FLICKR

Spacey and royalties like Britain’s Princess Eugenie and Prince Henrik of Denmark.

Marina Royal Phuket Marina has all the features that make it a dream destination for anyone who want a taste of premier marina lifestyle. The marina is widely recognised as comparable with the best on offer in Europe and the Caribbean, thanks largely to its creator, Gulu Lalvani, who said that his vision ‘was to create an Asian yachting paradise, with boating available all year round. Royal Phuket Marina is the answer to this vision’. This 30-hectare marina is perfectly situated near the renowned Phang Nga Bay, making it a perfect destination—not just for the sailing fraternity but also for scuba divers and beach-lovers who flock to the area to enjoy its natural wonders. The Mediterranean-style marina has 350 berths for vessels of up to 35 metres long, regularly checked by its professional concierge and maintenance services. Other services available include electricity supply, 50-tonne travel lift, fuel dock and a CCTV system installed in the dock. RPM is relatively cheap compared with other marinas. Fees for a 10-metre vessels stand at USD $396, inclusive of berth and fuel, while for 15 metres, it is USD $648. Costs are USD $ 1,008 and USD $2,086 for 20-metre and 30-metre vessels, respectively. RPM also has an infinity-edge pool, spa and beauty centres, international restau-

rants and cafes, shopping sites, boutiques and stores, as well as top fitness and health centres.

Brief market overview Phuket is the second-most established market after Bangkok. It is a firm favourite of savvy investors who recognised early on the significance of the growing number of visitors (landing at both marina and airport) to the region’s real estate market. The strict Thai policies governing foreign ownership of property can prove a challenge for those wishing to cash in on this vibrant market. Foreign nationals are restricted from owning land, but are granted the right to freehold title in buildings such as condominiums. There are rumours that the government is likely to consider an appeal by the Joint Foreign Chambers of Commerce and real estate consultants to loosen the regulation of foreign ownership. The policy has not deterred foreign buyers from investing in Thai properties. Developers such as Supalai, SC Asset, Sansiri and Land & House are all active players in the Thai market for tourism-focused developments.

Property in the Marina Royal Phuket Marina is Southeast Asia’s first and only marina to offer sleek private yacht berths from the doorstep of its uxury residences which comprise of over 400 condominiums, penthouses and waterfront

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H20 PROPERTY GUIDE NAVIGATING THE WATERS OF MARINA PROPERTY ACROSS THE GLOBE

luxury villa estates. It is also noteworthy for boat lock and non-tidal deepwater basin. Prospective buyers of units in the Royal Phuket Marina will part with between USD $165,000 - USD$317,000. But if budget is tight, one could always opt to rent. Of the 100 units in the RPM complex, at least 40 are to let with three kinds of rental agreements on offer: daily, weekly and monthly. For daily rent, two-bedroom units range from USD $253 to USD $474, while three-bedroom apartments costs USD $316 to $569. Monthly rental rates range from USD $1,899 to USD $7,915. RPM Sales Director Kanittha Prasopsirikul said that the rental formula has proved so successful that the development would be launching a third phase – with a guaranteed annual return of 7%.

Developments in the pipeline Traditionally, property development projects were aimed at affordable mass market, but the region has experienced a shift in the profile of buyers. Developers are today looking at the higherend of the market, driven by potential buyers from Russia and China. Recently, the growing middle-income households in Asian countries are also joining the investment wave. These buyers are not only on the lookout for retirement houses or holiday homes but also for ROI. Projects like Amari Residences which, according to Amari Estates & Italthai Group CEO Yuthachai Charnachitta will provide rental yield guaranteed at 6% annually are very attractive. The Amari units in high-end Patong Bay are by no means cheap. Land prices average USD $2,579 per sqm and a one-bedroom unit costs USD $223,148, two-bedroom units USD $481,122 and USD $2.19 million for three-bedroom pool villas. Other noteworthy developments in the pipeline include Hong Kong-based New World’s Rosewood’s branded villas and the Minor Group’s Anantara Luxury Villas project where units are priced between USD $3 million and USD $5 million. Phuket’s largest developer, Laguna Property, has one and two-bedroom apartments with sizes from 40 to 88 sqm and prices begin at USD $117,162. The dramatic shift to upscale properties is an indication that the Phuket real estate market is sailing on a sea of positive sentiment. Its expanding leisure maritime industry, which also influences the rate of tourist arrivals, only further cements Phuket’s cachet as one of Southeast Asia’s property investment hotspots.

PROPERTY BASICS AVERAGE PRICE

USD $3,282/sqm*

RENTAL YIELD

6.29%

RENT PER MONTH USD $2,065 CAPITAL GAINS TAX

37%

COUNTRY INFORMATION OFFICIAL NAME

Phuket Island

CAPITAL CITY

Phuket Town

CURRENCY

Thai Baht

LANGUAGE

Thai language

TOTAL AREA

540 km2

POPULATION

231, 206

TIME ZONES

GMT +7

DIALLING CODE

+6676

GDP (Nominal; USD $424.985billion 2013 IMF estimate) GDP PER CAPITA (Nominal; 2013 IMF estimate)

USD $3,499

HUMAN DEVELOPMENT INDEX

0.690 (medium)

* DATA AVAILABLE IS FOR THAILAND, NOT SPECIFICALLY FOR PHUKET SOURCE GLOBAL PROPERTY GUIDE

WHERE TO BUY Phuket has about all the types of property in store to suit the buyers’ varying lifestyles. With its there’s-something-for-everyone market, buyers are sure to find a property that they could call home. But one should not just consider the emotional reward that it brings but also the financial reward that it is likely to deliver. West coast is usually the main focus of buyers as it is the most developed area in Phuket, and thus, a safe ground for investments. However, property prices can be a bit overwhelming as a result of robust demand. For more affordable properties but with the convenience of west bay, the east and south coasts are worth checking.

BUYING PROCESS The rather strict Thai property laws can be a bit challenging for buyers who want a piece of Phuket. As per the law, only Thai nationals can own a land while foreigners are only permitted to take up to 49% ownership for condo developments. But there are ways

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to get around the law, which is why it is advisable to hire a lawyer when planning to purchase a property. Moreover, real estate agents are also of great help. The buying process in Phuket follows a similar outline to the country: 1 Make an offer. Allow your estate agent and/or attorney to do any negotiations. 2 Transfer the funds to purchase the property to a Thai bank account so that the bank can record the transaction and issue a certificate called a Thor Thor 3, which indicates that the funds transferred are specifically for the purchase of the property. Thai residents can skip this step. 3 Through your attorney or estate agent, carry out a title search and land survey. The procedure is a legal requirement. 4 Hire a certified land/asset valuation firm or engineer to inspect the property for structural requirements, including plumbing and electricity. 5 Based on the results of the title search, land survey and inspection, negotiate the price and any work to be done before purchase. 6 Sign a contract to purchase the property, along with the seller.

GETTING IN VISA REQUIREMENTS All travellers need a passport valid for at least 6 months to get into Phuket. But for those who plan to stay in the region or anywhere else in Thailand, they are required to apply for a 60-day Tourist Visa from Thai consulate in their home country. The requirements for this type of visa include: ● passport or travel document with validity not less than 6 months ● visa application from completely filled out ● one recent 4x6cm photograph of the applicant ● air ticket paid in full ● financial means (USD $628 for solo traveller and USD $1,256 for family) ● consular officers reserve the right to request for additional documents as deemed necessary SOURCE WWW.PHUKET-THAILAND.ORG/

TOURIST-VISA-THAILAND

AIRPORTS AND AIRLINES With Phuket International Airport serving as the island’s gateway to international community and vice versa, tourist arrivals continue to grow in numbers annually. But this would have not been possible without the service of these airlines: ● Air Asia ● Nok Air ● China Airlines ● Dragon Room ● Korean Air

PROPERTY GUIDE DECEMBER 2013 • JANUARY 2014

ASIAN CHARM Langkawi is becoming an increasingly popular island destination.

ROYAL LANGKAWI MARINA LONGITUDE 99˚ 51’ 1” E / LATITUDE 6˚ 18’ 2” N

GATEWAY TO MALAYSIA’S EMERALD ISLES BY JONALYN FORTUNO

hile the focus of construction activity in Malaysia is on fast-developing Iskandar in Johor, the sun-kissed Langkawi archipelago of 99 islets has been quietly building a reputation as one of the world’s most idyllic getaways. Nestled on the northwestern shore of Malaysia, off the coast of Kedah, Langkawi is one of those tropical paradises that are largely untouched by modernisation and technology. Of the 99 islands – a number that can go as high as 104 at low tide— only four are inhabited, while the rest remain retreats of lush

tropical jungle foliage, unspoilt beaches and natural wonder. Such natural riches have not escaped the attention of UNESCO, which declared the archipelago Southeast Asia’s first UNESCO World Geopark in 2007. Although Langkawi Island is almost the same size as Singapore, it has only about 72,000 local inhabitants, compared to the city state of Singapore with a population of 5.31 million. One explanation for Langkawi’s relatively small population is piracy. In centuries past the island was a sanctuary for seaborne corsairs who preyed on traders and travellers in the vicinity. For fear of predation,

people avoided landing on the island. For generations, Langkawi remained uninhabited, guarded by sea, forest, mountain and of course the pirate menace. However, the oral tradition of the islanders suggests a different story. According to local legend, a Langkawi maiden placed the island under a curse for seven generations when she was wrongly persecuted for the crime that she did not commit. But when the curse was finally lifted, the island then started to prosper, or so the locals believe.

A growing tourism footprint But whether it was the lifting of the curse or

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H20 PROPERTY GUIDE NAVIGATING THE WATERS OF MARINA PROPERTY ACROSS THE GLOBE

the passing of the pirate menace, Langkawi is today leaving its mark on the tourism industry. The tide turned when Langkawi was proclaimed a ‘Duty Free Island’ in 1987. Development has since then transformed the island into a holiday getaway, blessed with a variety of natural charms. An ever-growing number of tourist arrivals at Langkawi International Airport has changed the fortunes of the island - although agro-based industries remain to be a significant economic driver. Such dramatic change was recognised by both foreign and local investors with the establishment of property developments and service industries that have sprouted on the island to meet the needs of the growing numbers of regional and international visitors. Companies in the hospitality, food and beverage industries have proliferated as have those active in the manufacturing industry geared to servicing the increasing numbers of seaborne craft visiting the sheltered bays and harbours of the island. The Malaysian government has also allocated large sums for the development of the once barren island, further fueling growth. The growing number of tourists— which soared to three million last year— is also mirrored by the growth of the island’s real estate market. Property investors are particularly attracted to the Southeast coast of Langkawi which is the commercial hub of the island, with a number of business facilities, retail operations and resort hotels. There are also a variety of properties available to investors, including condo units, luxury villas and hotel type resort units. Much of the current buyers interest is directed at vacation villas and apartments. Another thing that makes the island’s market appealing is the low cost of living. According to Andrew Dempsey of Langkawi Real Estate, the starting price of a standardsize townhouse (usually 2 bedrooms) is USD $80,718 while rental yields during peak season could be as high as USD $3,228 per week. The average price for bungalow land in highend Langkawi developments stands at USD $9.42 per square foot, making it a tremendously attractive option for those in search of an investment in the island lifestyle. Langkawi is progressing and developing in leaps and bounds, especially considering that modern development only began in ear-

ROYAL LANGKAWI 2008's 'Best Asian Marine/ Yacht Club' is proving an increasingly popular rest and revictualing point.

nest around 26 years ago, and a significant portion of its land is still untouched. But the promise of a retreat still boasting classic “desert(ed) island’ credentials is an enormous plus for the tourism industry. A significant number of the adventurous tourists are arriving by boat or sailing yacht, taking shelter in numerous coves and bays and enjoying the natural beauty of the emerald seas, sweeping vistas and solitude in equal measure. For those who want to rest up, refuel and recharge their own batteries in a slightly more modern setting, there is always the option of stopping off at the Royal Langkawi Marina.

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Royal Langkawi Marina With the archipelago’s year-round balmy weather, it acts as a magnet for those yachts cruising the waters of the Andaman Sea. The Royal Langkawi Marina exerts the strongest pull for Captains, crew and guests who want to experience a touch of luxury on terra firma. Of the three professionally operated marinas on the island, the 200-berth Royal Langkawi Marina is the most well known, following its big win in 2008 as ‘Best Asian Marine/Yacht Club of the Year’ - a first for Malaysia. Besides its excellent berthing facilities for sailboats and megayachts, Royal Langkawi Marina is conveniently located at the island’s main town, Kuah, which means that tourists could easily breeze into souvenir shops and unwind at the island’s finest local restaurants after a long day at sea. More importantly, Immigration and Customs is just a stone’s throw away. When it comes to berthing fees, monthly costs range from USD $421 to $463, depending on vessel size.

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Developments Developers are more than happy to help Langkawi put its name on the tourism map alongside other island destinations in the region and have been extremely active in drawing up investment plans. Apparently inspired by the success of developer Laguna Developments Langkawi Sdn Bhd—noted for its indemand 70 luxury low-rise apartments featuring two to four-bedroom layouts priced from USD $167,886 to $778,694—several other developers also plan to break ground with upscale projects in the near future. The Altai Hu Group, for one, is on its way to making its largest contribution yet to a Malaysian real estate market. Its latest USD $20 million project would comprise of high-end hotel residence style apartments and ocean-view villas, each containing 30 and 35 units, respectively. This project would be completed by 2016. "The leisure villas market, unlike the residential market, is a high-end market, with a very different supply and demand model than the housing market. Buyers are more likely to hesitate before purchasing a residential home due to the many price point considerations; but for the market of vacation properties, most buyers will purchase villas on an impulse buy and will not likely be affected by mortgage or other factors," said Altai Hu Group Vice Chairman Tonu Hu. Another developer, Tradewinds Corp BHD, is also set to expand its presence in the island’s property market. Known for its commercial property related projects, Tradewinds is now planning a residential development at Telaga Harbor Park – the proposed USD $311 million Perdana Quay project. Should the project proposal be approved, at least 60 hectares of land will be set aside for the construction of waterfront holiday villas, lake homes and other luxury residential properties, according to Business Times. These developments could go a long way in helping the island attract more investments from the wider global market. Combine this growing interest in Langkawi with Malaysia’s increasingly relaxed rules governing foreign ownership of land and property, it is likely that more developers and investors will be casting their eye over the island known locally as "The Jewel of Kedah."

PROPERTY BASICS AVERAGE PRICE

USD$2,629/sqm

RENTAL YIELD

4.87%

beach road to eat and party as well as shop at the night market. Pantai Cenang has also its fair share of high-end resorts but mostly housed an array of budget to mid-range hotels.

RENT PER MONTH USD $1,282 CAPITAL GAINS TAX

BUYING PROCESS

N/A

REGION INFORMATION OFFICIAL NAME

Langkawi the Jewel of Kedah

CAPITAL CITY

Kuah

CURRENCY

Malaysian Ringgit

LANGUAGE

Bahasa Malaysia (official language), English

TOTAL AREA

47,848ha (main island of Langkawi- 32,000ha)

POPULATION

approximately 64,000

TIME ZONES

HKT (UTC+8)

DIALLING CODE

+852

GDP (Nominal; USD $340,002billion 2013 IMF estimate) GDP PER CAPITA (Nominal; 2013 IMF estimate)

USD $11,513

HUMAN DEVELOPMENT INDEX

0.769 (high)

SOURCE GLOBAL PROPERTY GUIDE

Buying property in Langkawi can be a long process due to the Malay Reserve legalities that restrict foreign buyers from buying parcels of land in areas— particularly in beachfront, which are supposed to remain in the hands of Malays. But with the help of legal experts, this can be circumvented. In other areas, however, foreigners could easily get ahold of property and follow the same procedure as that of the mainland. The easier way is to avail of the Malaysian My Second Home programme which allows buyers to own any kind of property with a minimum value of USD $80,802. The standard procedure for property purchase is to hire a lawyer who would provide legal guidance throughout the transaction including the drafting of Letter of Offer/Acceptancewhere a 3% deposit is required if both parties agreed — and Sale and Purchase Agreement in which the buyer shells out another 7% deposit upon signing. After which, the buyer is given three months to pay-off the balance. Within the given period, the property also undergoes examination and valuation to ensure that it is in good condition. Stamp Duty is also settled at the Stamp Office for the speedy registration of the transfer of land title at the Land Office Registry.

GETTING IN

* DATA AVAILABLE (GDP AND HDI) IS FOR MALAYSIA AND NO SPECIFICALLY FOR LANGKAWI

WHERE TO BUY Both developers and buyers should take advantage of the investment opportunities that the island has to offer, given that for the most part, it remains underdeveloped. Perhaps, the ideal starting point is on the island’s southern coastline where all developments projects are slanted, particularly in Kuah and Pantai Cenang. Kuah, the island’s capital, is the favourite investment site of property players as reflected by the new developments in the area. Besides being the entry point for international and domestic tourists, Kuah also boasts an array of new luxury hotels, business complexes, boutiques and shopping centres, and private villa residences with excellent amenities near Kuah’s marina area. Although Kuah is the commercial hub, Pantai Cenang has a livelier feel, especially at night where most of its tourists would swarm at the

VISA REQUIREMENTS Passports are the main requirement for entry to the region. But in some instances, visa is required, depending on your length of stay and nationality. Besides this, foreign visitors should also comply to the customs and immigration formalities such as filling up a Disembarkation Card (IMM. 26) upon arrival. AIRPORTS AND AIRLINES While there are other modes of transportation available to get into Langkawi, air travel is the most popular especially for international visitors. Airlines that fly in and out of Langkawi International Airport include: Malaysia Airlines – www.malaysiaairlines.com Silk Air – www.silkair.com Air Asia – www.airasia.com Firefly – www.fireflyz.com

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PROPERTY GUIDE DECEMBER 2013 • JANUARY 2014

BALI MARINA BENOA LONGITUDE 115° 12’ 48” E / LATITUDE 8° 44’ 28” S

INVESTMENT OPPORTUNITY ON THE ISLAND OF THE GODS BY JONALYN FORTUNO

lthough Bali may appear as a tiny dot on a map of Indonesia’s many islands, its significance is larger than physical size would indicate. This is after all, the ‘Island of the Gods’. For a small island, Bali’s contributions to Indonesia are immense. It outperforms the relatively larger islands in the Indonesian archipelago in terms of economic performance as reflected in the revenue that it injects into the country’s coffers every year.

HEAVENLY Tourists arrive by sea in numbers. But beware, private berths are limited at Bali Marina Benoa.

This is a performance that is largely fuelled by Bali’s role as the largest tourist destination in Indonesia, accounting for around one third of the annual national tourism revenue. For visitors, it’s easy to see why Bali is consistently voted one of the world’s best holiday destinations.

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Stunning beaches, breathtaking mountain scenery and picturesque terraced rice fields compliment a vibrant culture and highly developed art scene. Bali is a place that caters for all types of tourists, from yoga devotees and beach bums to art lovers and nature aficionados. However, the island’s tourism industry has not always been robust. In the 1990s, certain segments of the local population rallied against green-lighted tourist developments. The conflict continued until 2002 when two simultaneous bombings took

H20 PROPERTY GUIDE NAVIGATING THE WATERS OF MARINA PROPERTY ACROSS THE GLOBE

place in Bali’s tourist hotspot, Kuta. While the industry was on the road to recovery in 2005, more bomb explosions occurred, causing huge loss of life and a precipitous drop in tourist arrivals. Despite the tragedy, the industry was able to recover and by 2007 numbers of tourists were again showing robust growth. Bali also received a number of international travel awards that further boosted tourism activity. "One of the reasons for the robust tourism activity was the ongoing construction of major infrastructure projects, such as the massive renovation of Ngurah Rai International Airport and the new toll road and underpass," the head of the Bali Tourism Agency, Ida Bagus Subhiksi, said. But while state-of-the art airports are certainly a selling point, accommodation plays an important role in bulking up visitor numbers. To feed a growing tourism industry, Bali offers an enormous range of accommodation - from bungalows and budget hotels to private luxury villas. In the last five years, there has been a noticeable shift to luxury accommodation with room rates ranging from USD $535 to USD $800, as well as the rental of luxury villas to groups. Budget travellers can still find a selection of less expensive apartments which cost for about USD $310 to USD $365 per month. These budget accommodations are scattered around Ubud, which piqued tourist interest when one of the scenes in the Hollywood hit Eat, Pray, Love was filmed in the area. But for those who want to stay close to the water, they might as well book a reservation from the selection of hotels that line Tanjong Benoa beach. The option starts at USD $43. And at that price point, tourists get to be near the action-packed, adrenalinepumping watersports including jetski rides, banana boating, scuba diving, parasailing, snorkeling, glass bottom boat excursions and a whole lot more.

Bali Marina Benoa Conveniently located at the centre of the island, Bali Marina Benoa is just a 12-kilometre drive from Bali International Airport. It is probably one of the busiest commercial harbours in Indonesia, albeit not the largest, as it only has about 20 slots, and most of them are already occupied by long-term live aboard residents.

STILL ROOM TO STRETCH OUT Bali is the largest contributor of tourism dollars in the Indonesian archipelago. Property investment is growing.

What makes Bali a first mate’s choice is that it is cyclone-free which means that there’s zero possibility that your yacht would be blown to one of Indonesia’s other 17,000 islands while you are exploring the mainland. Visitors to the marina can also expect standard services such as water supply, fuel, internet access, laundry, rental car and 24hour security. The marina also offers excellent amenities such as restaurants, spas and shopping hubs. Bali Marina charges at least USD $25/ day for a berth and another USD $5/day landing fee to tie up dinghies, while discounts are offered for year-round stays. But this is a low price to pay for the chance to experience the unparalleled beauty and relaxation on the Island of the Gods.

Market overview To further enhance what the marina has to offer, there are ongoing plans for its enlargement to accommodate more ships that are over 300 metres in length. According to Bali Discovery, the government plans to transform the southern part of Benoa into the largest cruise port in Indonesia now that more international cruise ships are berthing at the marina.

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If this development becomes reality, it would only further strengthen the island’s tourism industry. And when tourists come in numbers, they increase activity in the real estate market, with an attendant increase in valuations. Bali’s prominence as a holiday destination has created a shift in market demand that is supported by the growing number of wealthy tourists who accounted for around 34.39% of the overall arrivals (as of May 2013). Consequently, opportunities for profitable investment in the luxury end of the Bali property market have increased. Proof of this is the extremely high occupancy rate of over 1,000 upscale villas in the island. But there are visitors who do not want to settle for rental properties as indicated by the volume of property sales to foreign buyers particularly Australians. The restrictive Indonesian property laws have done little to dampen the enthusiasm for Bali property. If anything the appetite of foreign buyers who continue to snap up homes and beachfront villas (at an average price of USD $2.43 million) is increasing. These buyers are also responsible for driving up land prices in some of the most popular areas of the island such as Seminyak and Petitenget which are now valued at USD $213,857 per 100 square metres. A 2012 report in the New York Times quoted Paradise Property Group listing agent Shane Walsh who noted that that prices for upscale beachfront properties rose by 30% during that year, while land prices in popular tourist spots were up 20%. The price of villas also increased by 10% during this period.

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H20 PROPERTY GUIDE NAVIGATING THE WATERS OF MARINA PROPERTY ACROSS THE GLOBE

The tourism industry has become indispensable to the growth of the real estate market, and the Bali economy as a whole. Developer PT Tirta Wahana Bali International has recently submitted a proposal to construct further luxury tourist facilities on the island to ensure that the tourist revenue keeps flowing in. The proposed developments, which are currently being reviewed by the local government, would include a Disneyland-like theme park, apartments, hotels, villas and entertainment centers near Benoa Bay. With new developments under consideration, the island is almost certain to provide new opportunity for real estate agents and developers who will not pass up a chance to take part in a robust and growing market. Of course, for private investors the opportunity to profit in paradise through increased rental income opportunities may be too much of a temptation to resist.

GDP (Nominal; 2013 IMF estimate)

USD $867.468 billion

GDP PER CAPITA (Nominal; 2013 IMF estimate)

USD $3,499

HUMAN DEVELOPMENT INDEX

0.629 (medium)

SOURCE WWW.WORLDATLAS.COM/WEBIMAGE

COUNTRYS/ASIA/BALI.HTM * DATA AVAILABLE (GDP AND HDI) IS FOR INDONESIA AND NO SPECIFICALLY FOR BALI

WHERE TO BUY Whether you are a savvy investor who want a slice of Bali’s growth or a holiday home buyer that seeks the countryside’s comfort, Bali has a property tailored just for you. Anyone who wants to take advantage of the region’s booming real estate and tourism industry should head directly to tourist-populated areas such as Semanyak, Legian, Kuta and Oberai as they make another lucrative addition to one’s investment portfolio. But for those who wish to escape from the stressful city life, the paradisiacal side of Tanjung Banoa, Sanur and Nusa Dusa provides a peaceful ambiance that’s a welcome change from the bedlam of metropolis. They are also the ideal place to spend one’s golden years.

BUYING PROCESS PROPERTY BASICS AVERAGE PRICE

USD $2,544

RENTAL YIELD

7.05%

RENT PER MONTH USD $1,794 CAPITAL GAINS TAX

20%

SOURCE GLOBAL PROPERTY GUIDE

COUNTRY INFORMATION OFFICIAL NAME

Bali

CAPITAL CITY

Depensar

CURRENCY

Indonesian Rupiah

LANGUAGE

Indonesian (official), Balinese

TOTAL AREA

5,632 sq km

POPULATION

3,891,428 (2010 est.)

TIME ZONES

UTC +08

DIALLING CODE

+6236

Can foreigners own an Indonesian property? The answer to this is ‘it depends on the title of the land on which the property sits’. There are two fundamental rulings foreign property ownership in Indonesia: the Basic Agrarian Law of 1960 (UU Pokok Agraria Tahun 1960) and Government Decree #41 of 1996. The Basic Agrarian Law is Indonesia’s main law concerning land ownership and includes a section about ownership by foreign individuals and institutions. According to it, a foreigner who resides in Indonesia is allowed to own a residential property built on land with a ‘Hak Pakai’ (right of use) title. Further, Government Decree #41 of 1996 stipulates that the maximum period for ‘Hak Pakai’ ownership is 25 years, which can be extended for another 20 years. On this basis, a foreign individual is legally allowed to buy, for example, a house that is built on a single parcel of land, but they must convert the title of the property to a ‘Hak Pakai’ title to comply with the laws. Another option for foreigners is to use a local name-holder for the property, with whom the foreign buyer enters into contracts. If using a local nominee, the following documents should be signed with your nominee prior to the purchase:

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Mortgage Agreement. Cost: 1% mortgage value for Notary; 1% of total mortgage value for BPN land affairs office

❶ Power of Attorney. This grants exclusive rights to mortgager to release the mortgage ❷ Financial Loan Agreement ❸ Power of Attorney for all rights to the land ❹ Statement Letter ❺ Statement of Indemnity (for nominee). ❻ Power of Attorney for IMB ❼ Statement Letter ❽ Lease Agreement All transactions of land rights must be via deeds executed before a land deed official at the local office of the Pejabat Pembuat Akta Tanah (PPAT), where the land is located, and must be registered in the regional office of the National Land Agency. Although there is no regulation regarding language, it is recommended having contracts and agreements drawn up and executed in Bahasa Indonesia (or two languages) to prevent potential arguments that the local partner did not fully understand the content.

GETTING IN VISA REQUIREMENTS All tourists are required to bring the necessary travel documents such as visa, passport and return ticket when disembarking anywhere in Indonesia. Non-ASEAN nationals are also required to get Visa-on-Arrivals—which costs USD $25 per person for a 30-day stay— upon arrival to Bali. For security purposes, tourists are also obliged to register themselves with the police. But for those who are staying in private accommodation, just hand over the passports to the staff as they would usually take care of it. AIRPORTS AND AIRLINES As the country’s third busiest airport, Ngurah Rai International Airport is largely responsible for promoting Bali tourism—and Indonesia as a whole— through providing efficient access for the international market. Here’s the list of several airlines servicing the airport: Air France Air New Zealand Ltd Awai`r Airlines Bouraq Airlines British Airways Cathay Pacific Airways Ltd. China Airlines Continental Airlines Singapore Airlines Malaysia Airlines Lion Air Korean Air Eva Air

PROPERTY GUIDE DECEMBER 2013 • JANUARY 2014

MANILA YACHT CLUB LONGITUDE 120° 58’ 95” E / LATITUDE N 14° 33’ 66” N

RISING PROPERTY HUB IN RESURGENT PHILIPPINE CAPITAL BY JONALYN FORTUNO

DAWN OF A NEW AGE The Philippines is today attracting a large number of property investors © HYWELL / FLICKR

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H20 PROPERTY GUIDE NAVIGATING THE WATERS OF MARINA PROPERTY ACROSS THE GLOBE

nce touted as the ‘Sick Man of Asia’, the Philippines has risen from its deathbed, following a slew of developments on the heels of strong economic recovery that has revived the interest of global players. The country has all the resources necessary to embark on the path to growth, but headwinds caused by the global financial crisis have caused the Philippines to flounder. The country has only lately been able to generate some forward developmental momentum. The economy exceeded the 6% expectation when it 6.6% growth in 2012. Financial markets also recorded robust growth, boosted by investment upgrades. But the news of 2013 has been the real estate market. Bouyed by foreign investment in the fast-expanding business process outsourcing (BPO) industry the real estate market is booming. The hive of the real estate activity is the country’s capital, Manila - the gateway to the rest of the country. Setting up investment projects in this city is a lucrative venture as it plays host to millions of international tourists annually. Though Manila may not be their end destination, its status as a transport hub increases its attractiveness as an investment destination. Manila is also home to one of the oldest yacht clubs in Asia, a fact that has not escaped developers.

Manila Yacht Club The origins of the Manila Yacht Club can be traced as far back as 1927 when five yachtsmen gathered together to draft the by-laws that govern the club. However, the facilities and the clubhouse were only completed

the latest undertaking will have a significant impact on the local yachting community and the ability of the Club to host international regattas in 1947. Aside from being the oldest in the country, Manila Yacht Club (MYC) is the most prestigious of the yacht clubs in the Philippines. It is also strategically situated in one of the world’s greatest natural harbours, Manila Bay. MYC boasts a dining hub, which serves Chinese, Spanish and Filipino cuisine and a number of other attractions, both inside the club and nearby. The only drawback for yacht Captain’s is the mooring which operates under the first come, first serve basis; but some gracious berth owners sometimes offer their slots to visiting yachts.

Property Inspired by the Manila Yacht Club, and a newly resurgent property market a new marina club project worth USD $2.5 billion is

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in the pipelijne courtesy of giant property developer Alphaland Corp which is recognised for its high-end leisure developments. The 300-berth marina project sited at Manila Bay aims to cater to the ‘aspirational market’ by providing top amenities such as swimming pool, spa, beauty salon, pool with a bar and lounge, banquet-style restaurants and bars, screening room, karaoke lounges and a fitness centre, reports The Philippine Daily Inquirer. It would also offer boats for lease to members, which is groundbreaking (especially in the region), given that yachts clubs would normally only accept members who have their own boats. According to the project’s marine consultant/designer Joe Goddard, the latest undertaking will have a significant impact on not just the local yachting community and the ability of the Club to host international regattas but also to the property prices which are likely to rise substantially. Manila Bay may see another development if Philippine billionaire Henry Sy pushes through his plan to reclaim around 300 hectares of land worth USD $1.26 billion. Similarly, Solar Entertainment Corp owner William Tieng is also eyeing a reclamation project which would make use of 148 hectares land in Manila Bay. With these mega projects, the Philippines is on the cusp of cementing its status as one of the fast-rising markets and investment hotspots in Southeast Asia. Metro Manila is also well-positioned to attract interests from substantial real estate players in the region. As the Manila-based COL Financial Group analyst Richard Laneda put it, ‘Metro Manila will always be full of opportunities. Portions can get saturated but the region will never run out of demand’.

H20 PROPERTY GUIDE NAVIGATING THE WATERS OF MARINA PROPERTY ACROSS THE GLOBE

PROPERTY BASICS AVERAGE PRICE

USD $2,807

RENTAL YIELD

7.06%

RENT PER MONTH

USD $1,982

CAPITAL GAINS TAX 32.00%

COUNTRY INFORMATION OFFICIAL NAME

Republic of the Philippines

CAPITAL CITY

Manila

CURRENCY

Philippine Peso

LANGUAGE

Filipino (official), English, plus dialects: Tagalog, Cebuano, Ilocano, Hiligayon or Ilongo, Bicol, Waray, Pamgango, Pangasinan

TOTAL AREA

300,000 km2

POPULATION

103,775,002 (July 2012 est.)

TIME ZONES

UTC+8

DIALLING CODE

+63

GDP (Nominal; 2013 IMF estimate)

USD $272.207 billion

GDP PER CAPITA (Nominal; 2013 IMF estimate)

USD $2,792

HUMAN DEVELOPMENT INDEX

0.654 (medium)

SOURCE GLOBAL PROPERTY GUIDE

WHERE TO BUY Residential investors should consider tapping the real estate market in the Philippines while the boom is still in its midst. What makes the country a ‘more investor-friendly destination’ is that it has about one of the cheapest yet attractive properties as well as less restric-

tive policies in Southeast Asia. And with the recent investment upgrades that it received, the Philippines is certainly set to grow big. So where in the country should a homebuyer head? Luxury residential properties in Makati CBD are popular for expats who are accustomed to getting all the best amenities on offer. Similarly, cities such as Bonifacio Global City and Mandaluyong are receiving much interest, thanks to the range of BPO industries that they currently housed.

BUYING PROCESS Foreigners cannot own land in the Philippines (unless married to a Filipino) but can purchase condos/apartments. Businessmen and other investors can enter into a contract with Filipino colleagues for part ownership and divide the property. Purchasing a condominium or apartment in Philippines is more or less the same as it is in any country—always hire and follow the advice of a registered real estate agent and/ or specialty attorney. (1) Make an offer and place a deposit of typically 10%. (2) Let the attorneys and estate agents draw up the offer contracts. (3) Hire a qualified inspector or engineer to inspect the property’s structure. (4) Submit a formal offer letter, taking into consideration the results of the inspection, which is signed by both the buyer and seller (created by your attorney). (5) Contact the Land Authority for an official Title Deed search to be sure the property does not have any liens or monies owing and is free for sale/purchase. (6) Close the sale with a formal purchase agreement and submit to the Land Authority for approval (may take 6-8 weeks).

GETTING IN VISA REQUIREMENTS All tourists wishing to stay longer than 21 days need a visa. The following are the minimum requirements for applying a temporary visitor’s visa: Passport/Travel Document Valid for at least six (6) months beyond the intended period of stay in the Philippines; Visa application forms; 2 Passport Photos; Proof of bona fide status as tourist or businessman; Confirmed tickets for return or onward journey to the next port of destination; and Payment of Visa Fees.

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The following are allowed to enter the Philippines without a visa for a stay not exceeding fifty-nine (59) days: Holders of Brazil passports; and Holders of Israel passports. The following are allowed to enter the Philippines without a visa for a stay not exceeding seven (7) days: Holders of-- Hong Kong Special Administrative (SAR) passports; British National Overseas (BNO) passports; Portuguese Passports issued in Macao; and Macao Special Administrative Region (SAR) passports. Nationals from most other countries who are traveling to the Philippines for business and tourism purposes are allowed to enter the Philippines without visas for a stay not exceeding twenty-one (21) days. Please check with The Philippines visa authority for verification at dfa.gov.ph. AIRPORTS AND AIRLINES Air transportation is the only way to enter the Philippines and the provinces are wellconnected by the major airlines. Major Airports: Bacolod - Silay International Airport, Silay, Negros Occidental Clark International Airport, Mabalacat City, Pampanga Francisco Bangoy International Airport, Davao City, Davao del Sur General Santos International Airport, General Santos, South Cotabato Iloilo International Airport, Cabatuan, Iloilo, Kalibo International Airport, Kalibo, Aklan Laoag International Airport, Laoag, Ilocos Norte Mactan - Cebu International Airport, LapuLapu, Cebu Ninoy Aquino International Airport, Pasay, Manila Puerto Princesa International Airport, Puerto Princesa, Palawan Subic Bay International Airport, Morong, Bataan Zamboanga International Airport, Zamboanga City, Zamboanga del Sur Major Airlines: Philippine Airlines Cebu Pacific AirAsia Philippines

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PROPERTY GUIDE DECEMBER 2013 • JANUARY 2014

The playgrounds of the

Caribbean & Mediterranean

sia is fast becoming an alternative playground for owners and operators of superyachts and other pleasure boats. However, the traditional berths of the rich and famous on the Med and in the Caribbean have maintained their popularity. The effects of the global financial crisis seem to be fading, at least amongst the yachting elite and the manufacturers of luxury watercraft. In October of 2013 twenty-five superyacht sales were reported globally, five more than in the previous month, six more than in October 2012. The highest October figure since at least 2008. The tally did not include any of the very big and high-priced superyachts The largest yacht sold was the 1995, 52.12m Feadship motor yacht Battered Bull, which was asking USD $19,900,000. The largest yacht launched was seriously big – the 91.5m PA164 from Oceanco.

The established ports, marinas and yacht clubs in traditional destinations are facing competition from new entrants. Turkey, for instance has embarked on a new infrastructure programme and new marinas are opening all the time – the latest plans include marinas for Dalaman on the Mediterranean coast and Oren on the Aegean coast (close to Bodrum and Istanbul). The development of new marinas is driven by the proven economic benefits that these developments bring to host countries, including massive investor interest in property both in, and alongside the yacht clubs and marinas themselves. If we set sail for either the Mediterranean or Caribbean what sorts of choices are available for the astute property investor in the areas surrounding the traditional superyacht berths? Property Life looked at a few of the investment opportunities in these regions.

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The effects of the global financial crisis seem to be fading, at least amongst the yachting elite and the manufacturers of luxury watercraft.

PROPERTY GUIDE DECEMBER 2013 • JANUARY 2014

YACHT HAVEN GRANDE ST. THOMAS, U.S. VIRGIN ISLANDS LONGITUDE 64° 55’ 3” W / LATITUDE 18° 20’ 1” N

SUN, SEA AND SUPERYACHTS BY ELISE KRAUSE

he Marina on St. Thomas in the US Virgin Islands has been transformed to become the premier destination for luxury, super and megayachts in the Caribbean. The Caribbean has long been known as a shopper’s paradise and the newly developed Yacht Haven Grande is truly heaven for shopaholics. Over 40 high-end boutiques, designer brands and distinguished upscale shops, covers over 80,000 feet of duty free retail space. But Yacht Haven Grande is not just about the shopping. Exceptional restaurants, coffee shops, cocktail bars and entertainment activities are available along the marina and in the nearby town of Charlotte Amalie. Chandlery and everything necessary to maintain, service or repair the mega yachts are also available. Accommodation for staff and crew are available for reservation. Every necessary service from catering

Yacht Haven Grande 5304 Yacht Haven Grande, Suite 100 St. Thomas, USVI 00802 Telephone: (340) 774-9500 Fax: (340) 774-5045 Website: www.yachthavengrande. com General Manager: Kevin Lussier Email: klussier@igymarinas.com

LIMITED OPPORTUNITY Many investors would like to enjoy the returns from a rental property on St. Thomas - however, that ship has sailed. There are very few residential opportunities remaining. Retail and commercial property may offer value. © EUTROPHICATION & HYPOXIA / FLICKR

and laundry to florists and private tours are provided to enhance the comfort and enjoyment of all Yacht Haven Grande visitors. The facility provides 46 berths and can accommodate yachts of up to 656 feet long and 18 feet wide in the concrete side-to slips. US customs offices and officials are available to assist with the docking procedures as well as reporting by the Master of the vessel. The nearby US Virgin Islands Hotel and Tourism Association will be able to provide necessary travel information for all new arrivals to the marina:

Property Options on St. Thomas Island Due to the development of the waterfront marina, there is no residential property of any kind for sale directly on Yacht Haven Grande. However, there are still some retail and commercial property purchase and rental investment opportunities still available in the area. In addition, holiday rental properties are available from luxury landed property to apartments that need to be reserved in advance.

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While there are purchase opportunities available in the nearby town of Charlotte Amalie, the supply is very limited and most real estate agencies have zero sales listings, focusing rather on rentals. The rest of St. Thomas Island provides more purchasing opportunities although the demand for luxury real estate still outweighs the demand. New developments are ongoing, providing investment options, although most of these fall just short of fulfilling the requirements for luxury accommodation. The nearby islands of St. Croix and St. John also provide property purchasing avenues. St. Croix is the largest of the 3 islands, St. John the quietest and St. Thomas the busiest. As all three islands fall under USA regulations and property laws, there are very few restrictions with regard to property purchases. US citizens may seriously want to consider purchasing real estate on one of these islands as they will receive exactly the same advantages as purchasing property in the United States. Purchasing property in the USVI will require the employment of a title company to ensure that the property or real estate being purchased has a clear title. In other words, no other person holds any rights or titles to the property over and above the seller. While this may seem like an ordinary requirement for a property purchase, there are cases where titles have been disputed after the sale of a property. Every property will need to undergo inspections by the local authorities before any negotiations for purchase can be entered into. It is recommended that prospective buyers check the property listings to ensure that both the investigations and inspections have been conducted before entering negotiations to speed up the buying process. Potential buyers will need to hire a US attorney at law to ensure that all legal documents and regulations are adhered to. It is best to select an attorney residing and practising in the US Virgin Islands who will have a better knowledge of the local, national and international law affecting foreign property purchases.

Why USVI Property Investment? As an island, there will always be a limited supply of property available on the Virgin Islands which makes for a sound investment choice. As one of the busiest and safest areas in the Caribbean, commercial and retail property are guaranteed to provide stable returns and long-term investment values.

REGION INFORMATION OFFICIAL NAME

Virgin Islands of the United States of America

CAPITAL CITY

Charlotte Amalie

CURRENCY

United States dollar (USD)

LANGUAGE

English

TOTAL AREA

346.36 km2

POPULATION

106,405

TIME ZONES

UTC-4

DIALLING CODE

+1-340

GDP (Nominal; 2012 IMF estimate)

USD $3.778 billion

HUMAN DEVELOPMENT INDEX

0.894

WHERE TO BUY As the US Virgin Islands gradually recovers from the 2008 fiasco, its housing market has gained some pace since 2011 when land prices in some areas rose significantly. St John, for one, saw a 33.8% rise in land values, while its luxury market also registered a positive trend in 2012. The same trend was observed at St Thomas where sales volume and average median price increased by 48% and 6%, respectively. The uptick, however, could be attributed to the island’s attractively low property prices which have declined significantly compared to the level seen in 2007. Nevertheless, the improved sales could only mean that the island remains appealing to the property buyers. Indeed, St Thomas is long considered to be the favourite spot of savvy investors as it is the most commercially developed islands in the county and a prime tourist destination. The same thing can be said for holiday home buyers who are also attracted to the island due to wide array of properties on offer, ranging from hillside homes to luxury villas in the exclusive neighbourhood of Botany Bay.

BUYING PROCESS The US Virgin Islands is covered by the US property laws, and thus, follows the same guideline in terms of purchasing a property: Arrange Financing The first step is to either get pre-approval for a mortgage or loan, or to assemble any paperwork that shows you have the purchasing power to invest in property. No real estate agent or property seller will give an investor the time of day without proof that they have to means to go through with a purchase. Get a Lawyer After selecting a property, contact a real estate attorney. Although this is not required, and real estate agents in America are certified and able to provide legal contracts, it is nevertheless always recommended that you have an attorney to at least review all contracts you sign.

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Offer Make an offer that is contingent upon the results of an inspection and/or formal survey, and then hire a licensed professional to carry out the inspection or survey. If there is anything wrong with the property, you can either withdraw the offer or renegotiate the terms. Search At this point, a title search is performed to ensure that the property is truly free and clear to be sold. Contact your mortgage lender if applicable, as they will require copies or originals of the survey/inspection reports and title search be put in the bank’s name. Close Your real estate agent will arrange a meeting called the closing which will include the sellers, a bank representative, a public notary, you the buyer and your attorney if desired. All contracts are signed, deposit money is paid to the seller, and the remainder of the balance owed is also paid.

GETTING IN VISA REQUIREMENTS Non-US citizens should bring their passport and visa when travelling to the county. As the entry requirement in Virgin Islands is the same as US, it pays to check the latter’s regulations for foreign travellers: The need for a visa depends on your citizenship and reason for your visit to the USA. There are visitor, study, work and immigration visas available. In some cases, no visa is required for short-term visits for holidays or pleasure. In other cases, a visa application is a simple form to send to the US Consular and a reply will be received within a week or two. However, there are some cases in which a visa application may take several months to approve and may even require an interview. It is best to consult the nearest US Embassy or visit travel. state.gov for further information specific to your needs. AIRPORTS AND AIRLINES Tourists can choose to travel by sea or air when planning a trip to the Virgin Islands. The latter, however, is the fastest and most convenient way to reach the island particularly if you’re from a foreign country. Major Airports Cyril E. King Airport (St Thomas) Henry lsen Airport (St Croix) Airlines American Airlines Continental Airlines Delta Air Lines United Airlines US Airways Spirit Airlines Cape Air Leeward Islands Airways Air Sunshine Seaborn Airlines Inc. Bohlke International Airway Island Airline

PROPERTY GUIDE DECEMBER 2013 • JANUARY 2014

ACI MARINA SPLIT, CROATIA LONGITUDE 16° 25’ 46” E / LATITUDE 43° 30’ 7” N

A HAVEN FROM BUSTLING CITY LIFE BY ELISE KRAUSE

round 293 AD, the Greek emperor Diocletian, ordered the construction of majestic palace, later to become the capital city of Dalmatia on the ruins of the Greek Aspalatos. The Croatian city of Split was developed around this landmark. ACI Marina Split is set in the most beautiful part of this city and provides a natural haven from the prevailing Southerly winds as well as rough seas. The Marina, sporting the longest promenade on the Adriatic Sea, has become a playground for the rich and famous, providing over 350 berths accommodating luxury and megayachts up to 80m in length. All berths are equipped with water and electrical supply and repair and maintenance shops. Fuel top up stations are located nearby. Other amenities include grocery stores, restaurants, coffee shops, bars and laundry services. Web: www.visitsplit.com E-mail: touristinfo@visitsplit.com

Two lighthouses can be viewed upon the approach to ACI Marina Split – a green lighthouse at the head of the main breakwater and a red lighthouse set inside the port. Navigation into the port is relatively simple with reefs that have been clearly marked with green buoys. The bell tower of the Cathedral of St. Domnius is a prominent landmark and can be seen on approach along with Cape Sustipan and Marjan Hill on the West. Yacht charters and rentals are available all year round providing everything from full concierge service, chefs, crew, unique tours and private transfers. Luxury hotels and private villas are available for accommodation within the port and the city of Split. Alternatively, holiday homes or apartment purchases are an option for international visitors.

Purchasing Property in ACI Marina Split Although multiple restrictions apply to property ownership in Croatia, foreigners

are able to purchase a holiday home or an apartment on the ACI Split Marina. These properties can be used as buy-to-rent options and are considered a sound investment given the current property market climate of the country.

There are two ways to go about purchasing property: Corporate Many of the restrictions that apply to individual property ownership in Croatia are removed when purchasing property through a Croatian corporation. This is the recommended route and provides the added benefit of being able to rent or invest further in the property. Alternatively, an enterprise can be established for the purchase and commercial use (renting or further investment) of property

Individual If there are no plans to rent or invest in the property, an individual purchase is advisable even though the process can be tedious and can take up to 12 months to receive the necessary permission before the transaction can be completed.

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The following fees are included for both the abovementioned real estate purchase methods in Croatia: 1 Administrative fees - HRK 50 for application, HRK 100 for the decision on acquiring real property and HRK 20 for any addition to the application. 2Croatian Real Estate Transfer Tax (RETT) or property tax, is 5%. 3Value added tax (PDV) purchase of newly constructed real estate land is separately taxed at 5%. 4Real Estate Agent’s fee range from 2% - 6% + VAT. 5Legal fees of 1.5% of the purchase 6Turnover tax for buying or selling land is 5% *All costs exclude PDV (VAT) at thecurrent rate of 23%.

Property in ACI Marina Split It is rare to find historical property for sale on the Split Marina itself and apartments as well as holiday homes are quickly snatched up by locals as well as international buyers. However, the choice of properties increase as you move away from the Marina and into the city centre. Holiday homes and apartments are also popular on the many islands surrounding Split and are a great alternative to property purchases in the marina itself.

PROPERTY BASICS AVERAGE PRICE

USD $ 3,375

RENTAL YIELD

4.56%

RENT PER MONTH

USD $ 1,537

CAPITAL GAINS TAX

N/A

SOURCE GLOBAL PROPERTY GUIDE

COUNTRY INFORMATION OFFICIAL NAME

Republic of Croatia (Republika Hrvatska)

CAPITAL CITY

Zagreb

CURRENCY

Kuna (HRK)

LANGUAGE

Croatian (official language)

TOTAL AREA

56,594 km2

POPULATION

4,284,889 (2011 est.)

TIME ZONES

CET (UTC+1) CEST (UTC+12)

DIALLING CODE

+385

GDP (Nominal; 2012 IMF estimate)

USD $57.102 billion

GDP PER CAPITA (Nominal; 2012 IMF estimate)

USD $12,971

HUMAN DEVELOPMENT INDEX

0.805 (very high)

SOURCE WIKIPEDIA

WHERE TO BUY Due to the economic uncertainties that continue to beleaguer some of the most notable European countries, including France, Italy and Spain, much of buyers’ interest is drifting to Croatia which has recently experienced an upturn in market activity, thanks largely to its outrageously low property prices. Holiday homebuyers should take advantage of the bargain prices on offer, particularly in the country’s capital, Zagreb, where price of flats were reported to have fallen by 5.5% during the year to September 2013. Indeed, they would be surprise by how far a million dollar bucks would go when hunting for holiday homes. Besides Zagreb, among the most popular locations that draw attention include the Adriatic coast (which according to The Independent is a hotspot), the region of Dalmatia noted for its exclusivity, and Kvarner and Highlands which offers excellent retirement home properties.

BUYING PROCESS The rather restrictive Croatian property rules are the main obstacle that set non-EU nationals back from landing on their dream property. But this can be circumvented through the reciprocal agreement between the buyer’s home country and Croatia. Under this agreement, foreign buyers are only given permission to own a Croatian property so long as Croatian nationals would be given the same privilege in former’s home country. Besides this, non-EU nationals are also required to get the approval of the Ministry of Foreign Affairs which takes around 12 months to process. But there’s an alternative and much easier option; make your purchase through a Croatian corporation. Nevertheless, once all these legalities are resolved, the buying process follows the standard guideline: Once the price has been agreed on, both parties sign a pre-sale contract which stipulates all the conditions made along with the details of the property. A 10% deposit is also expected of buyer, but in some cases, it could go as high as 15%, depending on the contracting parties. After which, the lawyer would then structure a binding agreement to be signed by a notary which usually takes around 30

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days to process. Once settled, the buyer would have to pay the outstanding balance so that the lawyer could formally transfer the legal title under the buyer’s name. This application is also subject to the approval of the Ministry of Foreign Affairs. SOURCE WWW.CROADRIAINVEST.COM

GETTING IN VISA REQUIREMENTS As Croatia is now an official member of European Union (EU), nationals who belong from any EU country would only have to bring a valid passport or national identity card to gain entry. On the other hand, non-EU nationals are required to obtain a visa at a Croatian embassy or consulate in their home country. Upon arrival, they are also required to register with the local police as per the standard protocol. AIRPORTS AND AIRLINES Although one could opt to travel via sea or land, air travel is of course, the fastest and most convenient way to get into the beautiful country of Croatia. There are about 8 major airports in the country, but only five cater to international flights: Airports Zagreb International Airport Rijeka International Airport Split International Airport Dubrovnik International Airport Zadar International Airport Major Airlines Croatia Airlines easyJet Ryanair Germanwings Lufthansa Norwegian Air Shuttle Austrian Airlines Vueling Airlines Aeroflot Monarch Airlines British Airways SmartWings Turkish Airlines SAS Iberia Qatar Airways S7 Airlines Eurolot Condor Flugdienst SOURCE WWW.CENTREFORAVIATION.COM

PROPERTY GUIDE DECEMBER 2013 • JANUARY 2014

PUERTO JOSÉ BANÚS MARINA LONGITUDE 04° 57’ 2” W / LATITUDE 36° 29’ 1” N

COSTA DEL SOL COCKTAIL BY VITTORIO HERNANDEZ

arbella, situated on the Mediterranean Sea between Malaga and the Gibraltar Strait and on the foothills of the Sierra Blanca, is a thriving commercial seaport and tourism destination. Puerto José Banús can be found on the world-renowned Costa del Sol, where pristine beaches, diverse landscapes, estuaries, bays, dunes and perpetual sunshine have been drawing tourists to the region for more than two centuries. As a sun-drenched escape from the harsh winters that blanket Europe, Marbella and Costa del Sol offer a tropical climate without the distance and expense involved in having to travel to the equator.

The port and the region in general attracts around 5 million mostly Northern European tourists per year, as well as visitors from Saudi Arabia and the United Arab Emirates. These visitors are attracted in part by the Puerto José Banús Marina, a luxury marina and shopping complex developed around a Mediterranean coastal village. The marina features pricey shopping malls, dining establishments and bars. The high-end character of Marbella is reflected in residential property prices which average EUR €613,000 (USD $829,795), while the national average is only one-third at EUR €221,000 (USD $300,00).

Who is José Banús? The marina was named after José Banús, a local property developer who was approached by renowned architect Noldi Schreck, acting on the orders of Prince Alfonso de Hohenlohe in 1966 to come up with an alternative accommodation plan for wealthy Spanish families. The original plan was a huge skyscraper, but José Banús proposed instead a sophisticated Andalusian village and marina. The complex opened in May 1970, becoming a playground for the rich and famous including the Aga Khan, film director Roman Polanski, Playboy founder Hugh Hefner, heart transplant pioneer Dr. Chris Barnard and Prince Rainier and Princess Grace of Monaco.

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H20 PROPERTY GUIDE NAVIGATING THE WATERS OF MARINA PROPERTY ACROSS THE GLOBE

Located 6 kilometres South-West of Marbella, the warm climate (average annual temperature of 18° C) in the city is a result of the protection offered by the coastal mountains of the Cordillera Penibetica range. The focal point Puerto Banús is the marina, which has berths for 915 boats, including that of King Fahd of Saudi Arabia. It offers berths for vessels from 8-50 metres across an area of 15 hectares, with depths of 3 to 6 metres within the marina and 7.5 metres at the entrance. With a mooring fee of EUR €2,069 euro (USD $2,800) per day, Puerto José Banús is the 4th most expensive luxury superyacht marinas in the world. Outside the marina is a shopper’s paradise with a remarkable number of expensive luxury boutiques for famous fashion brands such as Christian Dior, Gucci, Bulgari, Versace and Dolce & Gabbana. Marbella is known for the quality of life made possible by the swelling coffers of local government, which are filled by local thriving businesses which record huge profits provided by the royalty and celebrities who frequent Puerto José Banús. Most of these visitors stay onboard their yachts or homes. Some have made Marbella their second home—including actors George Clooney, Antonio Banderas, Joan Collins and James Bond actor Sean Connery.

PROPERTY BASICS AVERAGE PRICE

EUR €3,630

RENTAL YIELD

3.92%

RENT PER MONTH

EUR €1,423

CAPITAL GAINS TAX

18.00%

SOURCE GLOBAL PROPERTY GUIDE

COUNTRY INFORMATION OFFICIAL NAME

Marbella

CAPITAL CITY

N/A

CURRENCY

Euro (EUR)

LANGUAGE

Spanish (official)

TOTAL AREA

114.3 km2

POPULATION

140,473

TIME ZONES

UTC +1 UTC+2 (DST)

DIALLING CODE

+34 95

GDP (Nominal; USD $1,356 trillion 2013 IMF estimate) GDP PER CAPITA (Nominal; 2013 IMF estimate)

USD $29,409

HUMAN DEVELOPMENT INDEX

0.885 (very high)

* DATA AVAILABLE (GDP AND HDI) IS FOR SPAIN, NOT SPECIFICALLY FOR MARBELLA SOURCE WIKIPEDIA

Rising competitor

WHERE TO BUY

However, Puerto José Banús may soon have competition. In 2011, Qatari Sheikh Abdullah Ben Nasser Al-Thani announced a EUR €400 million (USD $541 million) investment into La Bajadilla, located east of Marbella, according to British newspaper The Daily Mail. The development would have a 200 metre quay for cruise liners, a five-star hotel and bars, restaurants, retail outlets and supermarkets. Al Thani became Prime Minister of Qatar in June 2013. Previously he was Minister of Internal Affairs (2005 to mid2013). He is also the owner of the Malaga Football Club. The new marina is considered now the most important urban development in Marbella’s history – and is causing ripples of worry for Puerto José Banús – as well as attracting the interest of property investors across the globe.

Home prices in Spain went on a downward slide when the Spanish economy moved deeper into recession due to weak demand and tighter austerity measures put in place by the government.

As a result, the general price index went down 10.8% in June 2012, compared to the same period in 2011. At the same time, house prices in Spain tumbled down by 30.4% from their peak level in December 2007. Nevertheless, the dropping prices are good news for property hunters, particularly to those who want to purchase a property in Marbella. It should be noted that this city is one of the retirement hotpots in the country, thanks partly to its pleasant weather, idyllic environment, marinas and excellent infrastructure. Among the most popular destinations for foreigners are Puerto Banus, Nueva Andalucia and San Pedro. Although they come with high price tags, it’s more than made up for by the higher quality of life that these areas could offer.

BUYING PROCESS

One good thing for property buyers in Spain is that foreigners could buy and resell all kinds of properties – whether residential, commercial or land – with no limits.

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However, owning a property does not give automatic rights to live permanently in Spain if the buyer is not from a European Union country. To obtain permanent residence for people outside the EU, a bank account with a Spanish bank and with a minimum amount of USD $150,000 must be opened, plus one must own a business in Spain. When buying property, after agreeing on a price, ask the seller for proof of ownership of the property and if it is free of charges. Then check the deeds in the Registro de la Propriedad (Property Registry) to check if there are any outstanding mortgages. Under Spanish laws, debts are charged to properties and any outstanding mortgages are passed on to the buyer. If the property is debt-free, the Property Registry will issue a Nota Simple as confirmation, then the buyer and seller will sign a preliminary contract, the Contrato privado de compraventa. The buyer is then requested to pay a 10% deposit of the purchase price, which the estate agent will hold in a bonded client account. Buyers are advised to deposit it in an escrow account which neither party can get until the sale is closed. Pay the balance of the purchase price and all fees after signing the Escritura de compraventa, which is equivalent to the Deeds of the property. A notary is required to witness the deed of sale, but the buyer should also get expert, independent advice to protect his interest. Be prepared to pay about 7.1% of the property value as the cost to register the property. The transaction should normally be completed in 20 days with 4 procedures. SOURCE GLOBAL PROPERTY GUIDE

GETTING IN VISA REQUIREMENTS EU residents could enter Spain without a visa. Most non-EU foreigners need a visa to enter the country. To acquire a visa, apply one with the Spanish Consulate in your home country before you leave for Spain. The consulate will grant you any of the following types of visas, depending on your purpose: student, worker, tourist investor. Those who are on short visit, students or diplomats are usually given Temporary stay visa, while those who will work or seek asylum will be given Residence visa. SOURCE EXPATICA

AIRPORTS AND AIRLINES Marbella does not have its own airport but tourists could still reach it via air travel if they would disembark to the nearby international airports: Malaga-Costa del Sol Airport – www.aena-aeropuertos.es Gibraltar International Airport – www.gibraltarair.gi Major airlines Helitt Lineas Aereas Norwegian Ryanair Vueling British Airways EasyJet Monarch Airlines

PROPERTY GUIDE DECEMBER 2013 • JANUARY 2014

PORT CAMILLE RAYON, GOLFE JUAN, FRANCE LONGITUDE 7° 04’ 50” E / LATITUDE 43° 34’ 00” N

SUPER YACHT DESTINATION WITH A PERSONAL TOUCH BY ELISE KRAUSE

ort Camille Rayon is set on the Gulf Juan along the Bay of Cannes and was first established by Camille Rayon, a hero of the World War II Resistance. Although he is renowned for his activities during the war, disrupting operations along the South Coast of France, his legacy lives on in his continued efforts to serve his nation by instigating the development of facilities for luxury yachts around the globe. Camille Rayon is today recognised for making the largest contribution to the construction of yacht berths and moorings around the world, including Quai Des Milliardaires (Billionaires’ Quay) in Port Vauban, Antibes. Among the many ports littering the French coastline, Port Camille Rayon is among the most popular as a luxury yacht destination. The port was renovated and refurbished in 1989 and sports over 833 floating and fixed docks that can accommodate yachts of up to 75m in length. All regular amenities are available such as water & electricity, gas, fuelling station and waste removal. Additional local services include chandlery, a shipyard, wi-fi, a vast array of restaurants and shops as well as super yacht specialist liaison, Olivia Lara-Rayon, daughter of Camille Rayon. Berths are available for sale and for rent. Luxury hotels, holiday rentals and holiday homes are available on the marina, further inland or in nearby Cannes. Cannes is just a short 10 minute drive from the marina or via a 30 minute boat cruise. The tourist information centre is located a short distance from the port:

Tourist Office Boulevard des Frères Roustan Phone 04 93 63 82 58 Fax 04 93 63 13 66

Property in and around Port Camille Rayon Unlike most luxury yacht destinations, the Gulf Juan coastline is littered with exceptional properties for long term lease, short term holiday rental or for purchase. However, it is important to note that most of the properties on the Port Camille Rayon cannot be purchased outright but are leasehold. The prices of these properties are mainly dependent upon the period remaining on the long term leasehold property. On the other hand, the French Government welcomes international real estate purchases from foreigners and has regulated the market to ease the purchasing process with few restrictions that apply. All real estate agents are required to have professional qualifications and will be able to provide you with the specific fees, documentation and other details related to purchasing property in the South of France. Once a sale price has been negotiated, a ‘comprise de vente’ (initial sale agreement) is prepared by a notary, signed by both parties and a deposit of 10% of the purchase price paid. Both parties have a cooling down period of 7 days to withdraw from the sale. After a period of 10-12 weeks of investigation into the property, a ‘acte de vente’ (final sale agreement) is signed and the following fees become due with the remainder of the purchase price.

● Transfer fees: 6-7.5 per cent ● Notary fees: 1-1.5 per cent ● Legal fees: 1-1.5 per cent (for the appointment of a solicitor) ● Property registration fee: 0.6 per cent for properties less than five years old, 1 per cent for others ● Surveyor’s fee (optional) ● Mortgage fees (if applicable) ● Foreign exchange costs (if applicable) ● Estate agent’s fees of up to10 per cent may be applicable when buying Finally, don’t forget that there will be costs for registration, VAT, land registry and stamp duty. A wide variety of property types are available for purchase in the region including apartments, landed property, grandiose French villas and even castles or palaces. Property purchased by foreign investors can also be rented out although capital gains taxes will then apply to title holder.

The Real Estate Market Property prices, especially in the South of France have skyrocketed over the last 2 and ½ decades with an average increase of 80% since 1997. However, this should not scare away investors as the market continues to grow and increases of up to 10% per year are predicted for the next few years. These increase are specific to some regions in France and the continuing popularity and exclusivity of the Port Camille Rayon should ensure continued growth in the real estate sector.

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PROPERTY GUIDE DECEMBER 2013 • JANUARY 2014

PORT DE SAINT TROPEZ, FRANCE LONGITUDE 6°37” 21’E / LATITUDE 43°16” 5’N

OPULANT INDULGENCE BY ELISE KRAUSE

he soul of St. Tropez is embodied in a small French fishing village that has today became a prime destination for opulence and indulgence after Brigitte Bardot starred in And God Created Woman in 1956. The streets of this little town are now filled with couturiers, extravagant restaurants, private beaches and occupies a special place in the hearts of the rich and the famous. The variety of cafes and bistros that line the waterfront provide front row seats for people watching. Port de St. Tropez has been split in two, the old harbour and the new marina which provides over 780 berths and can accommodate yachts with a maximum length of 100m. All the usual amenities such as the provision of water and electricity, a fuel dock, pumpout, security, laundry, waste disposal are available. The St. Tropez Tourisme offices are situated just off the Marina in a quaint and charming building with professional staff members to take care of the thousands of tourists that flock to the town every year. Address: Old Harbour, Quais Jean Jeures Email: info@sainttropeztourisme.com The port is considered to be the best equipped in Europe and has a dedicated staff led by a Mr. Tourret who tirelessly work to ensure that all needs are seen to professionally and quickly. The capitainerie remains open 24 hours a day, 7 days a week during the bustling summer months and for shorter periods during the quieter winter months.

capitainerie@portsainttropez.com www.port-de-saint-tropez.com

Purchasing Real Estate in St. Tropez Supply in this very exclusive luxury category of real estate is very limited while demand is incredibly high with properties flying off the listings faster than the ink can dry. Local real estate agents have some listings for purchase from time to time but potential buyers or investors are more likely to find the best villas, apartments and holiday homes listed with international agents such as Sotheby’s and Christie’s.

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The further you venture out along the French Riviera or inland from the Cote De Azur, the more and more varied property becomes. Rolling estates and French Chateaux’s are becoming more and more popular among international buyers. The French property market is booming, especially the luxury segment in this area. Even the recent recession that was felt worldwide seemed to have little effect on the continual increase in property prices which has averaged 80% over the last two decades. While this may mean that purchasing real estate in St. Tropez is a sound investment choice, it may also mean paying more

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H20 PROPERTY GUIDE NAVIGATING THE WATERS OF MARINA PROPERTY ACROSS THE GLOBE

than a property’s actual book value, however market forces dominate. With over 7,000 properties in the area currently listed at above USD $1 million, the Cote De Azur is second on the list after London for offering the most desirable prime real estate on the planet.

Real Estate Regulation in France for Foreign Buyers The French government welcomes foreign property purchases. However, French property laws can be convoluted, especially where succession is concerned. It is essential to employ the services of an independent French solicitor before beginning property negotiations. After the initial agreements have been entered into, a period of 10 to 12 weeks will be set aside for the solicitor as well as the government notary to make all the necessary enquiries into the property and history of ownership. If there is any doubt as to the succession and current title holder for the property, all transactions will be frozen until the matter is resolved. Two types of property purchase are used in France: en Indivision – Ownership of the property is split between two parties (usually married spouses). Upon the passing of one spouse, the percentage owned by that party will devolve to the protected heirs and not to the other party. en Tontine – The property is wholly owned by one spouse, upon whose passing, the entire property will succeed to the surviving spouse. Upon dissolution of marriage, this can be problematic as to defining the division of the asset between the two parties.

French language

TOTAL AREA

643, 801 sq km

POPULATION

65, 951,611 (as of July 2013)

TIME ZONES

GMT/UTC +1 (ST) GMT/UTC +2 (DST)

DIALLING CODE

+33

GDP

USD $2.609 trillion (5th)

GDP PER CAPITA

USD $41,141

HUMAN DEVELOPMENT INDEX

0.893 (Very high)

SOURCE GLOBAL PROPERTY GUIDE

WHERE TO BUY The French real estate market may be a bit shaky at the moment, but homebuyers should not be discouraged as France remains to be one of the best when it comes to holiday homes. Also, it has its marine leisure industry which, according to International Boat Industry, is the world’s second largest. A thriving boating industry bodes well for the real estate market. The following French areas are worth the visit: Cote d’Azur It is one of the most popular investment hotspots for luxury real estate market due to its appeal to the affluent tourists and homebuyers. Expensive properties dominate the area however patience and diligence will be rewarded. It’s worth checking out Golfe Juan, boasting magnificent views and the beautiful marina of Port Camille Rayon. French Riviera Popularly known as an artist’s haven because of its glamour and romantic scenery. This picture-perfect, sun-splashed region is noted for its blue waters, warm weather and crowded beach towns. According to RightMove, the French Riviera is one of the most luxurious and extravagant places in the world. But besides casinos and beach resorts that usually surround the French Riviera proper, there are also certain villages such as Beaulieu, Menton and Cap Ferrat that offer a tranquil atmosphere with picturesque cottages to match. Apart from these, the French Riviera is also home to the ‘best-known fishing village in the world’ which is the Saint Tropez. This also happens to house one of the busiest ports in France, Port de Saint Tropez, which would certainly be of interest to yachties.

PROPERTY BASICS AVERAGE PRICE

EUR €14,696

RENTAL YIELD

2.99%

RENT PER MONTH

EUR €4,397

CAPITAL GAINS TAX

33.30%

COUNTRY INFORMATION OFFICIAL NAME

Republique of Francaise or French Republic

CAPITAL CITY

Paris

CURRENCY

Euro, CFP franc

LANGUAGE

BUYING PROCESS

Buying a real estate property in France can be quite straightforward once you’ve come to grips with the formalities that a buyer has to follow. Seek out estate agents or a Notaire as well as lawyers for advice. There are no restrictions on foreign ownership. When it comes to the buying process, it is basically divided into the following steps: 1 Hire an attorney – In France, a Notaire is usually hired to assist both the buyer and seller with the drafting of relevant documents and authenticate the transactions made. However, it is ideal to still enlist the help of an attorney. It should be noted that

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the Notaire’s only obligation is to ensure that a sale has been made in compliance to French law, but he or she would probably not detail any problem. A lawyer would guide you through the paperwork and provide legal advise on the merits and demerits of the property. He will also examine legal documentation, particularly the complex inheritance laws. 2 Signing of initial contract – There are two options involved in the initial contract of sale (compromis de vente) which constitutes a commitment to sell or buy. One is promesse unilatérale de vente (observed in the North) which requires a 5% to 10% penalty if the conditions therein are not executed accordingly. This also allows the buyer to sue the seller for specific damages if the latter backs out. The other is promesse synallagmatique de vente (common in the South), which ensures the commitment of the purchaser to complete the sale. Under this option, the seller is also given the right to compel the purchaser to buy the property. 3 Pay the deposit – After signing the compromis de vente, the purchaser is required to pay an initial deposit of 10% of the property’s price. 4 Notary investigates title – Pre-completion searches are done after the signing of contract and paying the initial deposit. These include land registry searches, local authority searches, planning permission searches and the like. 5 Signing the deed - Once everything is in place, the Notaire will lay out and read the final dead of sale. Afterwards, both parties as well as the Notaire will sign it, followed by the turnover of keys and payment of balance. However, it usually takes at least six to eight weeks before the buyer receives the proof of ownership paper and copy of the deed.

GETTING IN VISA REQUIREMENTS The type of visa that you need to apply for depends on the duration of your stay in France. For instance, if you only intend to stay for at least 90 days, then you should get a shortstay visa. Longer stay on the other hand requires a long-stay visa. If your country is part of the European Union or European Economic Area, you can freely enter France at stay at any length of time. AIRPORTS AND AIRLINES As France is one of the most popular tourists destinations in the world, international airports are available in all major cities while regional airports are accessible from almost any part of the country. Among the most important international airports that serve as a gateway for tourists around the world are: Charles De Gaulle Paris International Airport Paris Orly International Airport Bordeaux International Airport Lyon Saint-Exupery International Airport

PROPERTY GUIDE DECEMBER 2013 • JANUARY 2014

MARINA DI PORTOFINO LONGITUDE 9° 12’ 42” E / LATITUDE 44° 18’ 10” N

WEALTH HAS ITS PRIVILEGES BY VITTORIO HERNANDEZ

uring the 19th century, the Italian port city of Genoa was renowned for its massive shipyards and steelworks so it may be somewhat that transformation into one of the most beautiful marina parks in the world – the Marina di Portofino has taken less than 200 years. Genoa’s connect to sailing and maritime industries is not without historical importance because this city, the sixth largest in Italy and capital of the Liguria region, is the birthplace of Christopher Columbus, the purported discoverer of America. The city offers to visitors a borderline humid subtropical and Mediterranean climate with an average daytime temperature of 19° C and 13° C at night.

Potential for tourism The marina’s beginnings go back to the late 19th century when the British discovered its potential for tourism based on clear waters, a balmy climate and the (then) lush Mediterranean vegetation. Since December 2005, the Portofino Town Council has entrusted the management of coastal water surrounding the town to the Marina di Portofino Company. www.propertylifenews.com

H20 PROPERTY GUIDE NAVIGATING THE WATERS OF MARINA PROPERTY ACROSS THE GLOBE

The Marina manages four port services; mooring, maintenance of port water quality, maintenance of equipment and VHF services. When requested, it can also provide visiting yachts with drinking water, electricity, WiFi service, used oil collection and video surveillance. Marina di Portofino has 16 moorings that could accommodate medium-sized boats. To reach the marina, boats coming from Sant Margherita Ligure would pass Paraggi Bay, or if arriving from Genoa, could make for the lighthouse on the promontory to reach the inlet’s entrance. Vessel find owners will Marina di Portofino an expensive place to park. At EUR €2,100 (USD $2,819) daily, it is the 3rd most expensive luxury superyacht marina in the world. Marina di Portofino can accommodate yachts up to 18 metres only. A 10-metre yacht is charged a fee of EUR €56 (USD

PRICEY PORTOFINO Visitors and property owners can enjoy old world charm and modern convenience - if they are willing to accept the hefty price tag.

Upon mooring in Portofino, guests enjoy dining at the more than 20 restaurants within the marina, located mostly along Piazza M. Olivetta, Molo Umberto, Calata Marconi and Vico Pozzo Nuovo. For those who want to stay in a hotel, the area has six - Hotel Splendido, Hotel Nazionale, Hotel San Giorgio, Hotel Splendido Mare, Piccolo Hotel and Hotel Eden.

One of the prettiest harbours $75) during high season and EUR €28 (USD $37) during low season. Prices increase steadily with boat size - for 18-metre yachts, the charges are EUR €160 (USD $215) for low season and EUR €80 (USD $107) for the high season. High season is from April 16 to October 15 and low season is from October 16 to April 15. The fees include water and electricity charges, but exclude VAT.

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Forbes magazine describes Marina di Portofino as “arguably one of the prettiest harbours” in the world, where only the wealthiest can afford to moor. With only 16 berths, privacy is guaranteed. It’s not surprising to hear that the marina is the favourite playground of famous film director Steven Spielberg, Coldplay front man Chris Martin, pop singer Rihanna and Russian billionaire Andrey Melnichenko who owns the 119-metre Philippe Starck-designed boat called “Superyacht A”. Portofino’s reputation as an expensive destination is confirmed by data from the website Numbeo.com which lists average rent for a one-bedroom apartment in the city centre at EUR €700 (USD $940) monthly, while apartment prices in the city centre average EUR €4,500 (USD $6,038) per square metre. The high cost of living in the area is reflected in the online diary of a recent visitor to Portofino who sought the famous gelato (ice cream) at Portofino Eiscafe. However, to his surprise, he found the ice cream “hellishly expensive” with a single flavour portion almost twice the price in other parts of Liguria. For ice cream loving tourists, sans superyacht, Marina di Portofino is worth a taste, but making a meal of the experience will prove extremely costly.

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H20 PROPERTY GUIDE NAVIGATING THE WATERS OF MARINA PROPERTY ACROSS THE GLOBE

PROPERTY BASICS AVERAGE PRICE

EUR €6,188 (USD $8,383)/sqm

RENTAL YIELD

3.84%

RENT PER MONTH

EUR €2,376 (USD $3,219)

CAPITAL GAINS TAX N/A

COUNTRY INFORMATION OFFICIAL NAME

Italian Republic

CAPITAL CITY

Rome

CURRENCY

Euro

LANGUAGE

Italian

TOTAL AREA

301,338 sq km

POPULATION

approx. 59.6 million

TIME ZONES

CET (UTC+1) Summer (DST) CEST (UTC+2)

DIALLING CODE

+39

GDP (Nominal; 2012 IMF estimate)

USD $2.068 trillion

GDP PER CAPITA (Nominal; 2010–2011 IMF estimate)

USD $29,598

HUMAN DEVELOPMENT INDEX

0.881

SOURCE GLOBAL PROPERTY GUIDE

WHERE TO BUY There are plenty of choice locations when it comes to buying real estate in Italy, says the website International Living. The portal identified the regions of Tuscany and Abruzzo on top of its recommended places. Tuscany us where Florence, Siena, Pisa and other Italian cities that abound with landscapes featuring hilltowns and cypress trees. But the website warns that Tuscany is one of the most expensive regions for property buyers, although it tipped looking outside the region’s heartlands for real estate bargains. One such

place is Lunigiana, which borders Liguria to the West and Emilia Romagna to the East. A second region is Abruzzo, which features medieval hilltowns and villages, amid backgrounds of mountains, olive groves, vineyards and pine forests, cobbled streets, small churches and medieval watchtowers. The website recommends looking into Casoli and Sulmona. A Place in the Sun similarly names Tuscany and Abruzzo, and adds the countryside such as Bagni di Lucca and Puglia as good place where to buy houses in the hills or restored farmhouses.

BUYING PROCESS Italy does not have any restrictions on foreigners buying property in the country. However, money from outside Italy remitted for purchasing property must have official documentation so that in the future, if the owner wishes to sell the property, the money could be repatriated. Foreigners are advised to hire a real estate lawyer to protect the buyer’s interest since the market is potentially biased against the purchaser. Upon finding a property, make an offer and pay 1% of the purchase price as a sign of good faith but be sure to specify a time limit for the offer. If the seller accepts, a preliminary contract is drawn up, containing vital details of the transaction. Closing the sale would take six to eight weeks since the notary public has to perform due diligence. After the notary has done the title search and the final balance is paid and the deed of sale signed, he will issue the buyer a copy of the deed and present copies of the deed to the tax office and Land Registry. Government duties must be paid for the sale to be officially registered.

GETTING IN VISA REQUIREMENTS Non-EU nationals who enter Italy must enter through an

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official border crossing point and hold a valid passport and entry or transit visa. They are subjected to checks by border, customs, currency and health authorities. Those staying beyond 3 months must have a residence permit. AIRPORTS AND AIRLINES Italy has 38 airports across the country. The five busiest based on passenger traffic are the Leonardo da Vinci-Fiumicino Airport in Rome, which handles 37 million passengers yearly, Milan Malpensa (18.5 million), Milan Linate (9.2 million), Bergamo (8.89 million) and the Venice Marco Polo (8.2 million). To Rome alone, there are 12 airlines that service this route. These are: Emirates - www.emirates.com/ph/English Cathay Pacific - www.cathaypacific.com KLM - www.klm.com/travel/nl_nl/index.htm Qatar Airways - www.qatarairways.com/ph/en/ Delta -www.delta.com Etihad Airways - www.etihad.com/en-ph Korean Air - www.koreanair.com Singapore Airlines - www.singaporeair.com Thai Airways - www.thaiair.com Air China - www.airchina.com.cn Kuwait Airways - www.kuwait-airways.com China Eastern - www.kuwait-airways.com China Airlines - www.china-airlines.com Saudia - www.saudiairlines.com/portal/saudiairlines

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PROPERTY GUIDE DECEMBER 2013 • JANUARY 2014

CAMPBELLS COVE - CIRCULAR QUAY LONGTITUDE 151° 20’ 97” E / LATITUDE 33° 85’ 66” S

HIGH FEES AND PROPERTY RENTAL COSTS BY VITTORIO HERNANDEZ

PRETTY AT A PRICE Campbell's Cove is undeniably picturesque, but will the view compensate for escalating investment costs?

mages of Sydney, including the harbor bridge and world-famous Opera House have served as centerpieces of marketing campaigns and Hollywood blockbusters for decades and are some of the most iconic landmarks in the world. Located on Australia’s SouthWest Coast, Sydney is New South Wales’ state capital. The city was established in 1788 and built on hills surrounding Port Jackson – today more commonly known as Sydney Harbour.

As Australia’s premier city, Sydney attracted 10.5 million foreign and domestic visitors in 2012, boosting the economy of New South Wales’s by USD $11.7 billion. Known for its consistently high rank in quality of life surveys, Sydney is home to Campbell’s Cove Circular Quay, located between the iconic Opera House and the Sydney Bridge. This location makes Campbell’s Cove Circular Quay one of the most picturesque superyacht berthing facilities in the world and a coveted front row seat for the

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famous Sydney New Year’s Eve fireworks display. The marina is ideally located for large sail powered superyachts with rigs breaking the 50 metre mark - too tall to fit under the Sydney Harbour Bridge. However, ship owners could tack away from Sydney if plans to hike berthing fees by 3,700% are implemented.

Threat: Most expensive harbour in the world Being a premier port, berthing fees in

H20 PROPERTY GUIDE NAVIGATING THE WATERS OF MARINA PROPERTY ACROSS THE GLOBE

to the Park Hyatt Sydney, Australia’s top hotel, unbroken views of the main harbor and proximity (around 5 mins walk) to Sydney centre. Currently, owners of superyachts berthed in the Quay are considered guests of the Hyatt and are given access to 5-star services and facilities. However, a double whammy threatens prospective property investors looking into the yacht market to fuel buy-to-rent options. Aside from the threat of higher berthing fees, Global Property Guide forecasts a 15% to 20% increase in prices by 2014. The average price for property in Sydney is USD $8,717/sqm, while rental is USD $3,592. Rental yield is currently 4.94%.

RECORD BREAKER If proposed changes to the structure of berthing fees are accepted, Sydney will join an elite club of hyper expensive ports.

Sydney are considered reasonable at a current flat hourly rate of USD $250, reduced from USD $670 in 1996. However, Sydney port could become one of the most expensive in the world due to changes planned by port authorities. The switch from hourly rates to a flat per passenger rate of USD $18, announced in November 2012 and initially planned to take effect by end 2013 could see yachts skip this marina. Fees for megayachts could skyrocket to USD $119,000 from an average of USD $3,000 daily (12 hours of docking), reported the Cruise Ship Law Blog. The blog quoted John Lee of the Transport and Tourism Forum who said the move to charge per head is logical since it would accurately reflect the cost of bigger ships, although he finds the proposed rate too high and suggested bringing it down to USD $6 per head.

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Info for foreign buyers Under the proposal, the fee would further rise to USD $24 per passenger in 2014-15 and USD $30 in 2015-16. The port authority would charge cruise ships for a minimum of 1200 passengers even if the actual number were less.

Doubly whammy At present, real estate agents selling condo units, homes and office units have no difficulty convincing prospective buyers of the marina’s attractions, including proximity

Foreigners who are interested in buying properties at Campbell’s Cove should be aware that Australian law mandates all applications to buy residential real estate need approval from the Foreign Investment Review Board - which normally takes 30 days to process an application. Basic requirements for approval are the buyer must be the holder of a Temporary Entry Visa and the unit to be purchased must not exceed the general cap of USD $300,000 and bought either off plan or when newly completed.

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H20 PROPERTY GUIDE NAVIGATING THE WATERS OF MARINA PROPERTY ACROSS THE GLOBE

PROPERTY BASICS AVERAGE PRICE

USD $8,717

RENTAL YIELD

4.94%

RENT PER MONTH

USD $3,592

CAPITAL GAINS TAX 45.00%

COUNTRY INFORMATION

Vacation home: Those who plan to purchase purely for vacation purposes will be delighted to know the wide range of properties available. The cities of Gold Coast, Townsville and Sunshine Coast are top choices in Queensland; the Sydney suburbs of Manly and Mosman; and suburbs within picturesque Mornington Peninsula south of Melbourne. For a wine connoisseur, there’s Barossa Valley, North-East of Adelaide and Swan Valley, North-East of Perth.

OFFICIAL NAME

Commonwealth of Australia

CAPITAL CITY

Canberra

BUYING PROCESS

CURRENCY

Australian Dollar

LANGUAGE

English

TOTAL AREA

7,692,024 sq km

POPULATION

22,015,576

TIME ZONES

UTC+8, +9:30 and +10

DIALLING CODE

+61

Organise a team of professionals The buyer must find a solicitor (licensed to deal within the state where the property is located); a good mortgage broker with experience in helping non-residents; and though not necessary, an accountant to help structure the financials and save on tax.

GDP (Nominal; USD $1,542 trillion 2012 IMF estimate) GDP PER CAPITA (Nominal; 2010–2011 IMF estimate)

USD $66,371

HUMAN DEVELOPMENT INDEX

0.938

Seek FIRB approval All applications from foreign citizens are put before the Foreign Investment Review Board (FIRB), which generally takes around 30 days. An approval can only be granted on a specifically nominated property. Contracts, therefore, with foreign citizens must contain a clause that going ahead with the purchase is conditional upon getting FIRB approval

SOURCE GLOBAL PROPERTY GUIDE

WHERE TO BUY Australia’s property market is as varied as its colourful landscape. However before making any purchase, buyers should decide for the reason of the purchase, as it will help them decide which area (city centres, residential suburbs, or touristy sites) and what type of properties to buy. Investment. Residential suburbs, especially those within 10 kilometres of cities’ CBD and have good transport network, are the places to go. According to Matthew Bell of Australian Property Monitors, the suburbs of Hawthorn (Brisbane), Mentone (Melbourne), Mona Vale (Sydney), Halls Head (Perth) and Thebarton (Adelaide) offer buyers good investment potential because of their proximity to city centres and plenty of commuting options. Second home: Those planning to send their kids to Australia’s universities can opt for places close to these institutions such as Central Canberra (Australian National University), Camperdown, Newtown and Darlington (University of Sydney), Parkville and Carlton (University of Melbourne), and St Lucia and Indooroopilly (University of Queensland)

Apply for a loan Mortgage must be preapproved before looking for a property, so the buyer will know if he or she is eligible for a loan and how much can be borrowed.

Find a property Now is the time to visit Australia and search for a property. The other option is to use a buyer’s agent. Price negotiation Rule of thumb: Australian properties usually sell for up to 10% less than their list price. Hence, it would be really useful to hire an agent as he/she could negotiate the price. Mortgage approval When a property has been chosen— and both parties agreed on the price— contract of sale is then forwarded to the mortgage broker or bank to proceed with the formal approval. Exchange contracts and pay deposit The contract can be exchanged after the loan has been formally approved and the solicitor gives a go ahead. A deposit of 10% is needed, although the amount is negotiable. Make sure the contract has the clause ‘subject to FIRB approval’ and 30 days must be allowed for an FIRB decision. Settle This occurs when the property actually changes hands and loan is advanced. This will be handled by the solicitor is conjunction with the bank and mortgage broker.

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GETTING IN VISA REQUIREMENTS Citizens of Brunei, Canada, Hong Kong, Japan, Malaysia, Singapore, South Korea, Taiwan and the USA are eligible to enter Australia by applying for an Electronic Travel Authority (ETA; subclasses 976, 977 and 956). This can be applied for over the Internet, through travel agents and through airlines. On the other hand, passport holders of the 27 member-states of the EU, the European Free Trade Association states, and the four European microstates are eligible for the eVisitor visa, which is free of charge. Citizens of Argentina, Bahrain, Brazil, Chile, Croatia, Kuwait, Maldives, Oman, Qatar, Saudi Arabia, Turkey and the United Arab Emirates can apply for an Electronic Tourist Visa (e676). Citizens of countries not mentioned above can apply for tourist visa (subclass 676), which will allow them to visit Australia for holiday or recreation or to visit family and friends. For more information on visa application, visit www.immi.gov.au/visitors/ AIRPORTS AND AIRLINES Air travel is virtually the only way of getting into Australia. Here’s the list of international airports and several airlines which tourists should be familiar of: Airports Adelaide International Airport Brisbane International Airport Cairns Airport Darwin Airport Gold Coast (Coolangatta) Airport Kingsford Smith Airport Perth International Airport Port Hedland Airport Townsville International Airport Tullamarine Airport Major airlines Virgin Australia Qantas Skywest Airlines Airnorth Tasair Airlines of Tasmania Regional Express Airlines V Australia Maroomba Airlines OzJet Gold Airways Skytrans Airlines Aegean Airlines

PROPERTY GUIDE DECEMBER 2013 • JANUARY 2014

DUBAI MARINA YACHT CLUB LATITUDE 25° 18’ 51” N / LONGITUDE 55° 21’ 24” E

AN OASIS OF PRIVILEGE BY STAFF WRITER

stablished in 2003, Dubai Marina is one of Dubai’s most successful architectural and engineering feats. Carved along a 3km slice of the Persian Gulf coastline, sparkling waterways dotted with expensive yachts weave their way around impressive highrise developments. Set in the heart of ‘new Dubai’ and the marina itself is the Dubai Marina Yacht Club, which has rapidly gained a reputation for opulence, an extensive array of services and access to one of the most exciting cities in the region. The private yacht club features a purpose built clubhouse forming the centrepiece of four distinctive marinas. Arrayed along the length of a 3.5km canal,

the marinas provide sheltered berthing for over five hundred yachts, in a unique, ultra modern five-star setting. Central to the yacht club experience is the award winning Club House, which forms the heart of the four marinas, arrayed along the length of the 3.5km canal.

ON THE UP After being in the doldrums during the 2008 - 2010 period, Dubai is back in the game with property prices increasing steadily - and the Marina is seeing huge amounts of investment activity.

Visitors have a choice of casual or fine dining restaurants, a sports lounge, or the tranquility of the club lounges. Members have access to a library and chartroom, cigar lounge, private bar and terrace, and the Al Dana conference lounge. Members of the Dubai Marina Yacht Club gain the right to berth their yacht in any of the four marinas on a permanent basis. Joining fees are applicable on a onetime basis at the time of joining (i.e. there are no recurring membership fees), and vary depending on the registered size of the yacht, as well as if joining as an individual or company. A yacht owner may have multiple yachts berthed under an individual or company membership.

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H20 PROPERTY GUIDE NAVIGATING THE WATERS OF MARINA PROPERTY ACROSS THE GLOBE

Berthing for yachts from 8m to 50m AFour separate marina locations to suit individual preferences B State-of-the-art berths, with Bellingham Unifloat© floating concrete docks C Long term and visitor berthing available D Potable water and electricity at berth* (16A to 125A, single & three phase power available) E Full berthing and dockside assistance from a dedicated dock-team E Comprehensive security - security gates, sophisticated access card system, random patrols, as well as extensive CCTV camera coverage

ate steamed ahead 21.7% over the past year as new mortgages surged, luxury brokerage Knight Frank said in a report, putting it on top of the 55 markets the firm analysed. Among the new mega-projects is Mohammed Bin Rashid City, a multibilliondollar undertaking to be built in less than a decade. Highlights include 1,500 villas, a 350,000-square-meter water park and the world’s largest crystal lagoon. According to Standard Chartered bank, the recent price movements have been driven by real demand, as well as by stronger economic fundamentals, rather than the type of speculation that fueled the 2008 boom.

F Assistance with all Coastguard ‘Permission to Sail’ procedures G Registration of vessel services H Fuel-dock: Petrol and Diesel I Full service yard with 50 ton travel-lift/ straddle carrier J Black water pump out station

Property in or near the Dubai Marina Apartments in the second largest manmade marina on the planet boast stunning views across the bay and easy access to the City, making it readily apparent why property in this part of town are in high demand. According to Jones Lang LaSalle’s latest report on the Middle East, 2,800 new units are expected to be developed in Dubai Marina in the next two years. When Dubai Marina welcomed its first residents, there were just three completed towers. Today, the situation is very different; the area is now a thriving hub of entertainment, commercial and residential activity. Some of the world’s most stylish and impressive architectural developments take centre stage in a rapidly evolving urban setting. Although excessive speculation in offplan developments damaged the Dubai property market in 2008 - 2010 period, the city is back in the game. Prices in the emir-

PROPERTY BASICS AVERAGE PRICE

USD $4,010

RENTAL YIELD

6.63%

RENT PER MONTH

USD $2,660

CAPITAL GAINS TAX

N/A

REGION INFORMATION OFFICIAL NAME

Emirate of Dubai

CAPITAL CITY

Dubai

CURRENCY

Arab Emirate Dirham (AED)

LANGUAGE

Arabic (official)

TOTAL AREA

4,114 km²

POPULATION

2,106,177 (Jan 2013 est)

TIME ZONES

UTC+4

DIALLING CODE

+971

GDP (Nominal; USD $82.11 billion 2008 IMF estimate) GDP PER CAPITA (Nominal; 2005 IMF estimate)

$16,350

SOURCE GLOBAL PROPERTY GUIDE

WHERE TO BUY Following the uptick in the transaction volumes for the commercial and real estate markets, Dubai is clearly well on its way to full

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recovery. Reports point out that the positive trend is backed up by the much improved market sentiment and strong economy which rose by 4.4% in 2012. Jones Lang LaSalle also noted that there seems to be a ‘broad-based recovery’ in the residential market as the upturn in prices and rental values continue to spread across the districts. Homebuyers need not worry though because there are still those areas that remain reasonably priced such as Satwa and Garhaud. But for those who are into upscale properties, then Al Barabi, Jumeriah, Palm Island and Umm Seqiem are worth the visit. SOURCE THE NATIONAL

BUYING PROCESS Dubai property laws are very considerate when it comes to foreign ownership. Unlike in any other countries, foreign buyers here could freely own a property, albeit only in designated areas. But that’s good news, still, considering that the restrictive foreign rules are the usual obstacles for offshore buyers. The buying process is also relatively easy and straightforward. All you need to do is pay a 10% deposit once a property has been chosen and both you and the seller agreed on the price and signed the Memorandum of Understanding contract. Next is the valuation wherein the property is inspected and assessed that it is in good condition. Once everything is in place, the buyer would then pay the balance and have the transfer of land title processed at the land department. This takes several weeks to complete.

GETTING IN VISA REQUIREMENTS Most tourists are required to bring a visa when travelling to the emirates. However, the authorities also permit citizens of some countries to obtain their visa upon arrival provided that they would only stay for a month and hold passports with entry stamps from other nations. For more information about entry requirements, visit: www.dubai.com/v/visa_requirements AIRPORTS AND AIRLINES The main gateway for foreign tourists travelling to the emirates is through Dubai International Airport. Besides being the major airline hub in the Middle East, it is also the home base of several international airlines: International Airlines: Emirates Fly Dubai Emirates SkyCargo

FEATURE DECEMBER 2013 – JANUARY 2014

Grande Design I n this issue of Property Life, we have been examining the ways that Marina and waterside living are transforming both property values and how many buyers treat aspirational property purchases. Many of owur readers do not live in or near a Marina, or any type of H2O based attraction, yet both they and their families would also like to enjoy a waterside lifestyle. For those professionals living in apartment developments there is always the option of the complex pool. However, poolside living has its drawbacks - a lack of privacy for one, and the task of packing large supplies of essentials for a trip that (if measured vertically) is usually less than 150 metres. So for those who want to avoid the social stigma attached to leaving wet footprints in the elevator what are the choices? We were excited to get wind of an option available to high net worth individuals in the market for an apartment in Mumbai, India. For these buyers, an option to purchase a property with a pool on the balcony, or rather a swimming pool that acts as a balcony was available. An apartment complex called Aquaria Grande in Mumbai seemed ready to provide residents with what has to be close to the ultimate in lifestyle enhancing architectural additions – a pocket sized swimming pool on every balcony. This was a design that seemed not only bold and architecturally exciting, but a real challenge

Many of our readers do not live in or near a Marina, yet both they and their families would also like to enjoy a waterside lifestyle.

to engineer, - and if the truth be known, more than a little concerning. In fact Gizmodo writer Jesus Diaz called the swimming pool-studded design a “deadly accident waiting to happen.” Our immediate thought was that one mis-

placed cannonball and it’d be curtains. If this was being marketed as close to reality one has to ask - why is one of the figures in the artists sketches walking on a very narrow balcony which is at the same level as the pool edge? A single misstep and momentum would very swiftly see you become a rapidly receding downward plummeting dot. Although the people actually in the pool would have a cool and fabulous view of your wildy thrashing form as it passed by their balcony pools at some speed. The architecturally striking complex was designed by Hong Kong-based Architect James Law and his firm Cybertecture and will be developed by Indian real estate company Wadhwa Group. However, we are both saddened and relieved to report that the design has been significantly toned down. The realities of gravity, the tensile strength of concrete and human stupidity have now all been factored into the new design of two condominium towers. The new design is without a doubt attractive, however it does lack the slightly breathless disregard for physics of the old design – and aquatic fun now seems to be limited to Jacuzzi time for the owners of the apartments at the top levels of the buildings. In the opinion of the editorial staff at Property Life the world is an undeniably safer, but almost infinitely sadder and more mundane place without a touch of whimsy, courtesy of James Law and Cybertecture.

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CONVERSATION DECEMBER 2013 – JANUARY 2014

Expert Opinion The PropertyGuru Interview

he property landscape in Southeast Asia is one of the most rapidly evolving in the world. New legislation and regulation across the region is seeing global investors eyeing the market with renewed vigour. When Property Life was searching for the ideal source of information for an update on this changing landscape, we immediately thought of PropertyGuru co-founder Steve Melhuish. Founded in 2006, PropertyGuru is Singapore’s leading property portal and a flagship website of PropertyGuru’s Asia Network (the region's leading online property group - used by 11 million home buyers every month). Over the last decade, the company has expanded its offering to include very successful websites that focus on the Malaysian and Thai markets. PropertyGuru also runs CommercialGuru.com.sg, which was launched in August 2010. Our conversation with Steve Melhuish took us from the shores of Singapore to the newly reinvigorated London market by way of Iskandar as we asked him to give his thoughts on the trends that are shaping the Southeast Asian, and global property market.

He is particularly bullish on the Philippines; “This is a country with strong fundamental economic growth dynamics, very strong population growth, combined with a very young and employed population and increased urbanisation – all of which is going to drive domestic property demand. You’ve got something similar happening in Indonesia, Malaysia, in fact these same drivers are in place in most, if not all of Southeast Asia’s developing markets and these are long-term trends.” “If pushed, I’d back the Philippines, for the reasons I’ve already mentioned, however I’d also include the fact that you have strong government in control, manufacturing for the local market is also working very well and of course the growth of tourism.” Melhuish also points to remittance as an indication of the health of the property market and the economy as a whole. “The traditional way that remittance works would be for the international worker

Southeast Asia PropertyGuru data shows that property markets in the Southeast Asian region are vibrant and growing. Melhuish is convinced that this is due to population dynamics and sound fundamentals. "You've got a region that will see population growth in the region of 4 million people per annum, urbanisation going from 40% to 65% in next 40 years, developing economies and emerging middle classes all driving property demand.

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to go to a company like Western Union and simply send money back to the family in the Philippines. Today, we’re seeing these people use this money to buy property in the Philippines – and this property is being rented out to professionals in places like Manila. “We’re also seeing an uptick in property investment in properties like student accommodation, accommodation for young professionals near to the BPO (business process outsourcing) centres.”

CONVERSATION DECEMBER 2013 – JANUARY 2014

“It’s simply a smart way of investing for the future – you’ve got returns in the region of 10 – 15% last year (2012) and you’ll probably see the same thing this year.” When asked about what was driving property-purchasing behaviour in Southeast Asia, Melhuish emphasised that each country has its own particularities, however high liquidity and low interest rates combined with the relatively high property prices in Singapore are some of the reasons that local buyers are looking for value elsewhere. He also mentions that security is an issue which continues to play a part in purchase decisons, “If you look at rapidly growing areas, where interest is high, for instance, Iskandar, then security is going to play an important part in the decision to purchase – especially if you’re looking at retirement property which a lot of people seem to be doing.” Melhuish also mentioned commutes, educational opportunities and, especially in Asia, the proximity of the property to the traditional family home. There are indications that with ever increasing air links and decreasing costs, this factor may be decreasing in importance as part of the purchase equation when it comes to the purchase of foreign property.

Global Trends Melhuish said that the disruptions to the housing markets across the world have meant that an increasingly mobile global workforce is simply pulling up stakes in relocating to where the grass is seen as a more attractive shade of green. “When I was recently in London I spoke to some of the larger estate agents in the city and they were all extremely bullish about the resurgent London property market, which

they all claimed was driven by local buyers. The question I asked was whether this was local demand from Londoners or British buyers or was it fueled by Russian, Greek and Spanish citizens living in London? “The answer was that the disruptions to the property market across Europe is causing very smart, talented professional people to come over to London and buy property. Singaporeans and Chinese buyers are also extremely active in that market, perhaps for slightly different reasons.” According to Melhuish, Southeast Asia and Asia in general are also changing. “In the old days the foreign buyers were Europeans who, for instance liked going to Thailand on holiday, Brits, Americans – but what we’re seeing now is huge numbers of buyers from Southeast Asia buying properties in other countries in Southeast Asia – if you look at Singapore now the dynamic has shifted and we’re seeing Indonesian, Malaysian, Chinese and Indian buyers. Australia remains a strong draw for Malaysians, Singaporeans and Chinese.”

Singapore investors PropertyGuru has been active in the Singapore market for seven years now and Melhuish is confident that the psyche of the Singapore buyer is resilient enough to weather the storms that have characterised the global market in the past few years. “When we look at the Singapore property market it’s clear that those in it for the long haul will probably be fine – if you have the patience and view property as a longer term investment you’re going to see superior returns. The fundamentals of the Singapore market, including land scarcity will remain factors in the simple supply and demand equation for the foreseeable future.”

The sceptics are a bit happier. However, my big concern is that it may be a case of ‘too big, too fast’

“The Singapore government has done an outstanding job of building the economy and I don’t doubt that they have a structured multigenerational plan."

Iskandar Iskandar remains a hot topic for investors in Singapore and across Southeast Asia. Melhuish was quick to point out that the Malaysian government is without a doubt delivering on what they have promised in terms of the area and that this attitude has attracted some heavyweight international investors. “The infrastructure is being established – you’ve got lighting, you’ve got restaurants, the basics are all in place. The relationship between Singapore and Malaysia has never been better and we’re seeing some real progress because of this. Even though there are bound to be tensions along the way the path is much clearer than it has been in the past. “All the skeptics are at least starting to be a bit happier. However, my big concern is that it may be a case of ‘too big, too fast’. Whilst there is this evolving infrastructure, including health and education – you’ve got Pinewood Studios, warehousing facilities, small and medium sized enterprises, commercial and office space, I still have a big concern that in order to support the long-term infrastructure and industry you are going to need a talent pool and population growth. I don’t see that moving as fast as I see other investment – so there’s a bit of a lag.” “Also I have a concern when valuations start to outstrip other, more established high end areas, such as Mt Kiara in KL and I also see a trend towards the development of the so called ‘shoebox developments’ – investment in these sorts of developments will not adversely affect Singaporean buyers should things not go according to plan due to the wealth differential, but when a Malaysian family investments their savings in a property like this in the expectations that a Singaporean will rent the property – well, let’s just say that I’m not convinced that this is going to happen.” PropertyGuru is aiming for an IPO within the next 18 months, depending on the capital market. Having now established itself in Singapore, Thailand, Malaysia and Indonesia, PropertyGuru will also be looking to expand to other countries in the region in future and we look forward to the company’s continued success and contribution to the property landscape of the Southeast Asian region.

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12-MONTH PRICE CHANGE Prime property price change by city, to Q3 2013

*DATA TO Q2 2013

-10

-5

0 5 10 15 12-MONTH % CHANGE

SOURCE KNIGHT FRANK RESIDENTIAL RESEARCH MILLER SAMUEL/DOUGLAS ELLIMAN, KEN CORPORATION

lthough Jakarta continues to steal the limelight as Southeast Asia’s hottest property market, a recent Knight Frank report shows that Bangkok has aspirations to be the region's top performer. Southeast Asian property markets are being powered by global interest, led by China. However, investors from the Eurozone and the United States are also interested in the growing number of ultralux developments that are beginning to spring up around the region. “With the Eurozone crisis abating, economic confidence improving - particularly in influential markets such as the US, the UK and Germany - and the financial markets offering little return, the appetite amongst the world’s wealthy for luxury bricks and mortar is growing,” said Kate Everett-Allen, who is responsible for the production of Knight Frank’s international indices. Property Life spoke to senior representatives of two new luxury Bangkok condominium developments to get their opinions of the vibrant condo market in the Thai capital.

CONVERSATION DECEMBER 2013 – JANUARY 2014

Super Luxury Condo

Trend Fuels Market Super luxury condominium developments are changing the Bangkok skyline. Recent market reports show that these developments are fueling the rising popularity of Bangkok as both a property investment and lifestyle destination.

Property Life (PL) spoke to Dr. Suriya Poolvoralaks (SP), Managing Director of Major Residences Co. Ltd, a subsidiary of MJD, the developer of the luxurious MARQUE Sukhumvit condominium project – one of Bangkok’s new breed of signature ultralux condos. PL Firstly many thanks for taking the time to chat to us. To start can you give us your insight into real estate investment in Thailand and the growing strength of the Thai economy – which has been identified as one of the prime drivers of the property market in the country? SP “The Thai property market has expanded in recent years due to the real demand from expatriates working in Bangkok, investment from newly rich Thais as well as foreign buyers. "The upward trend on foreign property ownership in Thailand is driven by legal restrictions in their domestic markets and factors such as cooling measures in Singapore and Hong Kong, limited development space, the relatively stable property prices in Thailand, especially Bangkok, and the attraction of the city as a weekend getaway. "The economy has a lot to do with the attractiveness of the country as an investment destination. Thailand’s economy is growing steadily thanks to well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong industrial agriculture export. I believe the economy will grow further with the formation of the Asean Economic Community in 2015.” PL There seems to be increasing interest from Singapore based property buyers in Thai real estate, could you give us your thoughts on this phenomenon?

Dr. Suriya Poolvoralaks

Sees two types of buyers - some are looking for a weekend getaway and others in search of superior rental returns.

SP “After the global economic crisis in 2008, the investment of foreign buyers in Thai property market slowed down. Foreign demand has started to return since 2009. The renewed demand comes mostly from Asian countries including Singapore, Hong Kong, mainland China, Taiwanese and Japan. The proportion of Singaporean buyers as a percentage of all foreign buyers for condominium market grew from less than 5% in 2010 to 20% in the first quarter of 2013.

Singapore is one of the leading overseas markets to Thailand properties, according to CBRE Thailand, with Singaporeans accounting for 18% of total foreign buyers to Thailand properties in the first half of 2013.” "In our experience there are two types of Singaporean buyers in Thailand property market, firstly investors who expect rental return or the profit from capital gain and end-users who prefer to have a condominium in Bangkok as their second home, especially since Bangkok is popular among Singaporeans as a weekend get-away destination either for travelling and shopping. "In recent years, Thailand has earned itself a reputation as an attractive destination for affluent Thai and international buyers. The condominium sector has emerged as the fastest growing sector in Bangkok and has seen steady price growth. At the same time, we are also seeing an increase in property investment in tourist destinations like Pattaya and Hua Hin, where five-star hotel brands and world-class golf courses are appealing to high-end property investors.”

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CONVERSATION DECEMBER 2013 – JANUARY 2014

PL Let’s talk briefly about Bangkok in particular. The city been named the most popular tourist destination in the world by Mastercard. Do you have any thoughts on property trends in the city and also in other areas of Thailand? SP “Even though property prices in Bangkok have doubled over the past year, it is still considered low compared to other cities in Asia like Singapore and Hong Kong, where prices are at least five times more. Furthermore, I think among the ASEAN nations, Thailand has a strong advantage as business and investment hub due to our strong economic growth. I believe we are second only to Singapore in terms of our financial stability and development. "Rental yields in the condominium sector have been increasing strongly over time with many property investors enjoying rental yields of 6 – 10% per annum. In particular, the Sukhumvit area has shown the highest price appreciation in recent years. With continued redevelopment, the sky train and new major retail and office developments. Many properties in the area enjoy high capital appreciation – we are expecting MARQUE Sukhumvit to enjoy 15-20% capital gain. PL Are you seeing most of the demand for high-end condominiums in Bangkok from local or foreign buyers? SP “Although there is no doubt that there is a large supply of condominium projects in Bangkok, there has been a pent up demand for super luxury residences amongst both local and foreign buyers. Some of the luxury demand stems from foreign buyers expanding their regional investment in light of the approaching implementation of the AEC in 2015.” PL Can you give us some insight into what separates this development from the competition? SP “MARQUE Sukhumvit is an ultra-luxury project located in one of the most exclusive addresses in Bangkok. This project will be the most sought after condominium for elite families and investors. The 50-storey building, standing at 222 metres will become an iconic landmark as it is the tallest condominium in Sukhumvit Road, and it sits on the largest plot of land available on this street at 53,819 sqft.” PL Many investors seem cautiously optimistic that the worse of the property crisis is behind us, yet many industry experts

High end of the market Ultralux design and finishes are attracting both regional and international interest in Bangkok's new generation of condominiums.

sound a note of caution that we’re not going to see a sustained recovery any time soon. Has Major Development seen any changes in buying behavior that would indicate that the financial crisis is having any lasting effect? SP “The situation certainly affected the Thai property market to some extent. Amongst the effects that we noticed was that right after the economic crisis, local financial institutions tightened their lending policies. At the same time, bank of Thailand has been keeping a very close eye on the possibility of speculation bubble in Thai property market. Because of these measures, it is unlikely that we will see a severe property crisis in Thailand. "Foreign demand had significantly declined in 2008 when the crisis hit the kingdom. Since then, we have seen this demand slowly coming back, driven primarily by demand from Asian countries. "The Thai property market has not experienced the full impact of the economic crisis due to the strong local demand that supported the market during this period. In fact, the Bangkok land price has increase significantly in the past few years, especially in prime areas. "Although the country has experienced decrease in the GDP growth in the 2nd half of 2013, the fundamentals of the country are still

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strong. Although we have seen over-supply problem in the mid-end and low-end condominium markets in certain locations, there is still strong demand for luxury condominiums and single detached houses in Bangkok.” PL Almost the entirety of Southeast Asia seems to be concerned to a greater or lesser extent about the property ‘bubble’. Cooling measures are in place in many countries and yet there is growing interest in Bangkok property investments – could you give us your insight? SP “There wouldn’t be a bubble in the Thai property market at the moment. Both the central bank and commercial lenders are taking a more cautious approach on lending.” PL Tell us a little about the Southeast Asian trends that you believe will be shaping property investment during 2014. SP “Although there has always been a large number of short stay serviced apartments and hotel branded apartments such as W Hotel, St. Regis and Marriott, I think there will be a significant change in the long stay and housing markets in the next years leading up to the AEC. I believe with the AEC in place by 2015, there will be a substantial increase in demand for high end and super luxury residential among foreigners who will come to work and live in Thailand. "At the same time, I think that Thai investors and developers will also be looking to venture into other developing countries, such as Myanmar or Vietnam, to purchase homes or the opportunity to create new properties.”

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FEATURE DECEMBER 2013 â&#x20AC;&#x201C; JANUARY 2014

B A N G K O K

R I S I N G

High End Condo Property Increasingly Attractive

angkok is attracting more attention from regional property investment buyers, especially those in the market for upscale developments as developers strive to meet the expectations of an increasingly discerning investment clientele. These investors are expecting apartment developments of comparable quality to those found in other regional property hotspots such as Hong Kong and Singapore. The good news is that architects and interior designers are increasingly rising to the challenge. Both of these professions are moving away from traditional thinking to bring in more modern designs in line with global best practice and paying more attention to detail. The increasing number of high quality condo developments in Bangkok is at least partly due to both expatriate demand and increasing domestic demand from Thai nationals. Foreign investment is being driven by the fact that expat housing allowances are still alive and well in Bangkok. Foreign executives are looking for developments that have the same levels of finishes and amenities that this highly mobile market has come to expect from other markets in Southeast Asia. Property Life (PL) spoke to Mr Thanawan Chaiwatana (TC), Managing Director, Magnolia Finest Corporation Ltd about condo trends in the Thai capital city and how the companyâ&#x20AC;&#x2122;s new development - Magnolias Ratchadamri Boulevard, is exemplifying the new approach of developers to a maturing market and appealing to investors across a variety of subsections of that market.

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FEATURE DECEMBER 2013 – JANUARY 2014

PL Many thanks for the opportunity to talk. Firstly can you give us some insight into the difference between Magnolias and the run of the mill condo development? TC “Magnolias Ratchadamri Boulevard is the last remaining condominium address on the exclusive Ratchadamri Road. It is poised to be Bangkok’s most sought-after residence for those demanding the absolute best in uncompromising luxury. "Located in the heart of Bangkok’s central business district, Magnolias Ratchadamri Boulevard is surrounded by five-star hotels such as the Grand Hyatt, Four Seasons and St. Regis; luxury shopping centres, and landmarks like the Erawan Shrine, Lumpini Park and the Royal Bangkok Sports Club. It comprises 316 one and two-bedroom residences and penthouses and duplex penthouses; a 5-star hotel, the Waldorf Astoria Bangkok – which will be the first Waldorf Astoria in Southeast Asia; and an exclusive shopping mall. "The interior design of the residences has a modern classic theme, and employs the highest quality fittings and furnishings throughout featuring such signature brands like Bulthaup, Franke, Donbracht, Siemens, Hansgrohe and Kasch. Luxury amenities include a private club for residence owners, concierge services, library and 700-metre pool with jacuzzi, among others. "We believe that the central location with access to all of Bangkok’s amenities, including globally competitive shopping malls and a combination of luxury, convenience and designer interiors is exactly what the Bangkok property investor is looking for in an apartment purchase.” PL What was the design inspiration behind Magnolia’s? TC “Art, history and innovative building technologies are woven together to create a provocative architectural design. The building is carefully sculpted to introduce two layers of a three-dimensional architectural ‘petal’ that sensuously spirals along the tower’s full height and the podium’s full length, as if springing up from the ground like a Magnolia flower to reveal the inner life of the building. The intertwining of the petal’s curved line represents a constant connection to the heart of people, and the heart of Bangkok. "The design of the building deconstructs the typical tower and podium typology to render not a tower, but instead an elliptical skyscraper that balances the lyrical nature of a ‘petal’ with tectonics as it moves vertically between ground and sky.

Efficient elliptical floor plates at the tower and a sensuous podium optimize stunning wide-angle city views for residents and hotel guests. Overhung floor slabs and sun shading devices help protect occupants from the heat and glare of sun. The tower meets the sky as an open flower, gaining energy from the sun with a roof of photovoltaic panels for penthouse residents’ hot water usage.”

The twisted petal’, designed to following the sun’s path and protect residents in the building from the very hot Bangkok sun...

PL Are buyers in Bangkok attracted to the idea of an integrated development like Ratchadamri Boulevard? TC “Yes, the demand for integrated developments is quite high. Buyers are very attracted to mixed developments as these offer greater convenience and amenities, as well as elevate the ‘wow factor’ especially when it comes to properties in the high-end segment. Magnolias Ratchadamri Boulevard exemplifies an ultra-luxury lifestyle, with its own exclusive shopping mall and the Waldorf Astoria Hotel, within the complex. "Integrated developments are a growing trend in major cities, including Bangkok. From the developers’ side, it makes business sense given the scarcity of Bangkok land plots in very good locations.”

PL Tell us more about the quality of life issues that influenced the design of the building? TC “Since the beginning, we’ve always wanted to achieve the perfect balance of beauty and livability. We work with a number of consultants – façade consultants, wind consultants, sustainability consultants – and they have all contributed to a design that is functional, beautiful and environmentally friendly. "We believe that one of the features of Magnolias Ratchadamri Boulevard that’s sets it apart from other developments is the elaborate sculptural sun shade known as the ‘twisted petal’, designed to following the sun’s path and protect residents in the building from the very hot Bangkok sun.” "We were interested in using well- known forms, materials, and architectural elements in a new way so that they become alive again, and for Magnolias Ratchadamri Boulevard, this sun shade takes its cues from Thai traditional architecture with its large overhangs and porches and re-imagines them for highrise living. The flowing twisting veil from not only provides deep shading and cooling, but it also opens up splendid views from within the tower onto the Royal Bangkok Sports Club and other dramatic city views.” PL Have any of the units been pre-sold or leased? TC “Since the project was officially launched in June 2012, we’ve enjoyed consistent successes in terms of both development progress and unit sales. Our sales performance has advanced as planned with a sales completion of 65% comprising unit sales values of over 3,100 million baht (approx. USD $98.7 million).” PL Tell us a little more about the planned Waldorf Hotel component of the development and the clientele that it will be attracting? TC “The Waldorf Astoria Hotels & Resorts is Hilton Worldwide’s preeminent luxury brand. The Waldorf Astoria name is synonymous with luxury and the pinnacle of elegance. It is regarded as the “greatest of them all”; the most exquisite of the brands hotels. "Magnolias Ratchadamri Boulevard is envisioned to deliver this very same promise, which is why we’ve chosen to partner with the Waldorf Astoria. In terms of the clientele, we’re targeting a mix of business and leisure travelers who want only the finest in service and sophistication.”

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FEATURE DECEMBER 2013 – JANUARY 2014

PL Why were DI Designs and the Beaumont Partners chosen as the architects for the development? TC “DI Designs and Beaumont Partners are recognised for their award-winning projects in Thailand, and these speak for themselves. The also know the market exceptionally well and their experience spans residential, hospitality and a wide range of mixed developments. Their design concepts are innovative and cohesive. We couldn’t have chosen a better partner for this ambitious, iconic project.” PL Can you give us some idea of the pricing for the various units, from single room units through to the 300 sq/m penthouse? TC “Our average price is today 200,000 baht per square meter, which is an increase of 15% compared to the average starting price of 170,000 baht per square meter in June last year.” PL How would you characterise the style of the interior design? TC “Magnolias Ratchadamri Boulevard’s interior design is Modern Classic. The simplicity of the plan, the distinctive architectural elements and sophisticated materials offer a perfect canvas upon which owners can create individual worlds, perfectly reflecting their own tastes.” PL In your opinion why are more and more individuals choosing these sorts

of luxury integrated developments in Bangkok? TC “The luxury development is less volatile to market conditions; and, if you think about mixed use developments, it’s not only the residential spaces that have premium value but the other components and amenities.” PL Will we be seeing more of these types of developments in Thailand and elsewhere in Asia? TC “There will certainly be more of these types of integrated developments because the demand is there, though there won’t be very many due to some constraints like finding the right location. For high-end or super luxury properties, you can only find a few truly extraordinary and luxurious locations in Thailand as well as other key cities.” PL Can you give us some insight into the split (by percentage) of domestic versus international buyers and where the majority of these international buyers are from? TC “Magnolias Ratchadamri Boulevard customers include Thais and foreigners, investors and end-users. We aim to achieve 75% sales completion by the end of this year. Currently, 50% percent of Magnolias Ratchadamri Boulevard’s customers are Thai whereas the remainder are foreigners; of which, 15% are buyers from Hong Kong, 10% from China, 7% from Singapore, and others countries make up the final 18%. This ratio of local and foreign buyers is changing as we’re now seeing more interest from for-

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eigners. At the end of the project, when we’ve sold out all units, we expect about 60-65 % ownership by foreign buyers.” PL What sort of returns can investors expect over the short, medium and long term? TC “The return would be about the same over the short, medium and long term, which is between 5-6%. The luxury market is very stable or perhaps more exactly less volatile. We don’t see the value going down to 4% but neither could we expect a sudden spike in value. But it would definitely increase gradually and deliver stable returns. "On Ratchadamri Road, the rental income is the highest in Bangkok – currently at least 800 baht per square meter. By the time our project is completed, rental would be about 1,000 baht per square meter. Rental demand is very high in this area so the price will consistently go up and stay at a premium rate. The long-term value is definitely good. There are so many exciting opportunities in Bangkok for business and tourism, as well as unprecedented growth in neighboring new frontiers like Myanmar. This is the best time to invest in property in Bangkok, and luxury property will remain as a safe haven for investors.” Property Life would like to thank Mr Thanawan Chaiwatana for his time and the fabulous addition to the Bangkok skyline.

There’s no place like home Villa Yin & Yang - Phuket Overlooking the Andaman Sea, the two sister villas are perfect accommodation for groups of 12 to 18 people at USD $3,345 per weeknight. http://www.flipkey.com

Dorothy’s adventures in the Land of Oz should certainly not be viewed as an example of vacation bliss, what with flying monkeys and falling farmhouses. However, the famous line “there’s no place like home,” uttered by Judy Garland after her journey down the Yellow Brick Road has a certain resonance even today.

Which of us has not longed for the comforts and calm sanctuary of home after a day at the proverbial salt mines of 21st century commerce? The attractions of a home base are even more pronounced when one selects a foreign vacation destination. Many travellers and vacationers in Southeast Asia are showing a marked preference for staying in properties like villas or even apartments in the region’s leisure hotspots. There are a number of reasons for this, not least amongst them value for money and convenience. For many it is personal recom-

mendations that carry the most weight when deciding on one of these properties. For property owners and managers these recommendations can make the difference between a full house and an underperforming rental property. This consumer feedback is one of the cornerstones of well-known travel site TripAdvisor’s success. TripAdvisor (the world’s largest travel site according to comScore Media Metrix) boasts an online community that adds significant value to the marketing efforts of property owners and managers by bridging the credibility gap that exists between marketing promises and the reality of a vacation destination. When TripAdvisor’s Vacation Rentals feature went live in Singapore and Malaysia in November of 2013, FlipKey, a wholly owned subsidiary of TripAdvisor that powers the company’s vacation rental database also began working with property owners and managers in the region in order to expand the inventory of vacation rental properties available to holidaymakers in Asia. FlipKey works closely with these clients to promote properties in various Southeast Asian destinations. Vacation hotspots such as Bali, Phuket and Koh Sumui are very popular at the moment according to Chris Chandler, Head of Business development, APAC at FlipKey. The numbers are already impressive - Malaysian and Singaporean property managers and owners (the first target audiences in the region, PropertyLife is assured that more will follow shortly) are flocking to FlipKey. At the moment there are 6,000 properties listed on the FlipKey database across Asia and this number is growing rapidly.

FlipKey leverages the enormously successful TripAdvisor model where travellers can find pictures and detail on hundreds of thousands of properties online in order to maximise a property owner’s return on investment. Potential clients can filter properties by date of stay, destination, size, and amenities/options. When a suitable property is found, travellers can quickly and easily arrange payment and/or contact the owner with more questions. According to a recent survey*, travellers give high praise to vacation rentals with the vast majority of respondents touting their holiday rental experience as “very good” or “quite good”. Travellers also cited extra amenities (such as private pools, kitchens, barbeques and/or extra bedrooms), followed by privacy and value, as the key benefits to choosing a holiday rental. TripAdvisor branded sites make up the largest travel community in the world, with more than 260 million unique monthly visitors**, and more than 125 million reviews and opinions covering more than 3.1 million accommodations, restaurants and attractions. Interestingly enough this is not TripAdvisor’s first foray into the wider Asian market. The company already provides a service to Mainland Chinese consumers under daodao.com. The TripAdvisor / FlipKey model is a win-win proposition for all involved. The aspiring vacationer wins through access to a database of peer reviewed properties with the comforts of home, courtesy of TripAdvisor and the managing or property investor now enjoys access to a wider market for their services and products by being part of a growing FlipKey database of upmarket properties in the region.

*Survey carried out on behalf of TripAdvisor by ICM Research in February 2012 on 2,000 travellers | **Source: Google Analytics, worldwide data, July 2013

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Terra firma or the high seas — is it all about the bank balance?

The Condominium vs Yacht debate

ingapore’s ultra rich residents and investors are demanding more from their properties than resort-like facilities and a sea view. The latest trend is to enjoy the convenience of a private berth for their new yacht. Sentosa Island remains the ultimate magnet for Singapore’s wealth, and cashedup buyers are looking for a home that will enable them to lead the ultimate elite lifestyle. This means garage and driveway space for their cars, wall for their art, a garden or patio area for entertaining and also somewhere – preferably on the property - to berth their boat. Recognising this, the Ho Bee Group launched The Berth by the Cove, the first waterfront condominium on Sentosa to feature its own private berths for residents’ luxury boats (for more information on The Berth by the Cove see the feature article on Singapore’s ONE°15 Marina on page 26). Yachts are the ultimate luxury statement for those who already have the designer wardrobe, statement jewellery, the cars and the Sentosa Island property. Cruising Singapore’s outer islands is the ideal way to unwind over a hot weekend, or to close a business deal. Berthed, a yacht is the ultimate exclusive venue, and certainly beats a dinner party at home as a way to impress friends old and new. Larger yachts give the owners the flexibility to take off whenever they want to Bintan

or to explore the incredible coastlines and islands around Malaysia, Thailand, or even further abroad. It’s an enticing-enough proposition that some skip the cars and property and jump straight to the yacht. An estimated 20 families are believed to currently live on boats berthed at ONE°15 Marina Club. Whilst this might sound like a cost-effective option, in actual fact, depending on how big your boat is, you could be looking at berthing fees ranging between USD $600 and USD $20,000 per month. And then on top of that, paying marina services of between USD $500 and USD $4,000 per month, as well as utilities, which can be anywhere up to USD $20,00 per month. In contrast, renting a three-bedroom

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apartment at the Caribbean at Keppel Bay condominium nearby will set you back about $6,500 a month, according to Singapore property portal Property Guru. Yachts, like cars, have never been touted a financial investment. They are, however, a fabulous investment in your lifestyle – a chance to experience the epitome of luxury both on land, and on sea.≠ Whether you choose to berth your yacht at the end of your yard, live aboard, use it to host parties, or charter it, as a fabulous, moving holiday home, there’s no doubt a yacht is the ultimate luxury lifestyle toy for the elite. Demand is swiftly on the rise, if the yearon-year growth of the Singapore Yacht Show is anything to go by. Now heading into its fourth year at Sen-

tosa Cove’s ONE°15 Marina Club, the show is attracting the biggest global brands looking to market to Asia’s growing pool of high and ultra high net worth individuals. This year, the show attracted more than double the number of last year’s exhibitors, including a significantly wider selection of boats in the entry-level 30ft-80ft category as well as the 57.5m superyachts available for either charter or sale. The proof is in the number of leads, and though the show’s organiser’s cannot disclose exact figures, we do know several yachts were brokered, and booked for charter as a result of the show. Managing director of organisers Singapore Yacht Events, Andy Treadwell, said the feedback from exhibitors, partners and those who attended the show was incredibly positive. “Everybody who participated is saying that the number and quality of visitors at this year’s show was way beyond their expectations. They all seem to have had significant leads, and significant sales. They all agree that the ONE°15 Marina Club here in Sentosa Cove is the perfect venue for a regional show, and Singapore is the ideal business hub for the future of yachting and boating in Asia,” Treadwell said.

There aren’t many markets in the world where interest in yachts is swelling. Asia demonstrated the largest regional growth in terms of superyachts delivered last year according to The (Super) Yachting Index July 2013, Camper & Nicholson. Over the past three years, the Singapore Yacht Show has seen strengthening sales in the 50-70ft category, evidence of more firsttime buyers entering the market. According to Maritime Port Association of Singapore in 2011, 774 recreational-sized speedboats were sold, where as in 2012, 952 were sold. Mark Cavendish, sales director at Heesen Yachts said: “We are very keen to develop the Asian market, because I don’t know how much business there will be in Europe in the next 5 to 10 years.” The fourth edition of Singapore Yacht Show returns to the ONEº15 Marina Club at Sentosa Cove from the 10th - 13th of April next year, welcoming back many of the world’s

Decision time

Power, privelege and playtime on the high seas? Or prestige, position and a parking space on dry land?

most exciting and revered brands looking to grow their Asia market. Among the line-up is the stunning Monte Carlo Yachts 65, a powerful 20m motor yacht showing in Asia for the first time. From her walnut and oak interiors, to fine fabrics from Armani Casa and Rubelli, the gorgeous yacht presents all the comforts of a modern home, including a lobby, flooded with natural light, a glamorous master bedroom, two cabins (with en suites) and a resort-like bow lounge from which to enjoy many sundowners. She is joined by the Princess 40, an impressive yacht exhibiting the timeless elegance the prestigious British brand is renowned for. The sleek Leopard 51 Powercat catamaran is also making her Asia debut. With stylish interiors across the three cabins a galley boasting all the modern appliances and expansive flybridge, she’s got you covered when cruising the surrounding islands. And after its Asia launch at the Singapore Yacht Show 2013, Italian yacht builders Wider will be back with their innovative Wider 42, a sassy vessel that can expand at the flick of a switch. With room to entertain 12 people comfortably, this Italian yacht is the ideal day cruiser to berth outside your seaside residence. Whilst show organisers will not disclose exactly how much these beauties will set you back, we do know that a recreation boat, perfect for fishing and day cruising, could sell for about S$80,000, (with a few optional extras). Meanwhile, a superyacht with several bedrooms complete with en suite, staff quarters and perhaps a swimming pool, suitable for cruising Southeast Asia, would start at about USD $4 million. With all the amenities of a condominium, and the added bonus of being able to cruise and discover the beauty of the world beyond the coastline, what’s drawing more and more people to yachts is clearly the chance to experience the very height of luxury, both on land, and at sea.

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FEATURE DECEMBER 2013 – JANUARY 2014

Iskandar

This was followed by logistics at RM4.81 billion (USD $1.49 billion), tourism (RM2.5 billion or USD $774 million), healthcare (RM2.59 billion or USD $ 802 million), education (RM.156 billion or USD $48.35 billion), financial services (RM0.6 billion or USD $185 million) and creative industries (RM0.4 billion USD $ 123 million). He added that the property sector also contributed to the development of Iskandar Malaysia, with the residential, retail and industrial segments collectively contributing cumulative investments of RM49.31 billion (USD $15.28 billion) as of Oct 31, followed by utilities at RM12.64 billion (USD $3.91 billion). Government investments, mainly in the infrastructure and public works and emerging technologies contributed

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RM8.31 billion (USD $2.57 billion) and RM1.03 billion (USD $319 million), respectively, to total investments.

Remains top investment destination Johor has maintained its position as the top investment destination in the country after recording the highest industrial investments at RM8.8 billion (USD $2.72 billion), as of August 2103. Mohamed Khaled said the amount was far higher than the investments received in other states, including Sarawak at RM5.6 billion (USD $1.73 billion), Selangor (RM3.49 billion or USD $1.08 billion) and Penang (RM1 billion or $309 million). “The economic indicators issued by the Malaysian Investment Development Authority (Mida) clearly prove domestic and

ohor Menteri Besar, Datuk Seri Mohamed Khaled Nordin, who is also Iskandar Regional Development Authority (IRDA) cochairman, recently said that 44%or RM56.32 billion (USD $17.46 billion) of the current investments had been realised. “To date, local investors have contributed RM84.61 billion or USD $ 26.23 billion (65%) to the committed investments, with the balance of RM44.81 billion (USD $13.89 billion) coming from overseas,” he added. Mohamed Khaled said manufacturing (including electrical and electronics, petrochemical and oleo-chemical and food and agro-progressing), recorded the highest cumulative committed investments at RM45.6 billion (USD $14.13 billion).

FEATURE DECEMBER 2013 – JANUARY 2014

News out of Iskandar shows that interest in developments and the region as an investment destination remains extremely high, even as cooling measures were announced to stabilise what many see as runaway prices. Johor is a beacon for attracting the sorts of investment that will have knock on effects for infrastructural, commercial and industrial development across the region, as well as providing an attractive alternative for those in search of housing at a lower price point than neighbouring Singapore. At time of going to press 1.00 MYR = 0.315 USD. Stats show that manufacturing leads with the highest investment total — property contributes RM49.31 billion.

foreign investors have strong confidence in the strength of the state’s economy,” he said. Mohamed Khaled, who is Permas state assemblyman, was speaking at the windingup of the debate on the 2014 Johor Budget at the State Legislative Assembly in mid November. He believed Johor’s success was in part due to the attractive investment promotion packages. Other aspects such as its strategic location in the trade route, diversity of economic resources, trained manpower and excellent infrastructure were also playing their part in attracting the interest of both local and international investors. Meanwhile, he said the state government would be more selective in accepting investments to raise the quality of employment opportunities, as well as income level for the people. Mohamed Khaled said in this regard, the main investment criteria outlined included investment with high value to add to the diversity of the state economy. “The diversity of economic resources in the state will avoid dependence on certain areas, such as manufacturing and properties. This is to ensure the state’s economy stays competitive when crisis hits a certain sector,” he added.

Property Prices stabilise Property prices in the southern Johor economic region, (Iskandar), are expected to stabilise following cooling measures an-

nounced in October’s budget. With growth averaging 8 percent annually, Iskandar has attracted over USD $40 billion of investment since 2006. Property and manufacturing account for 80 per cent of the total investment. Buoyed by foreign buying, especially by Singaporeans, property prices in some areas have quadrupled, however the cooling measures are expected to lead to a leveling off of these prices. Mohd Khaled Nordin, the chief minister of Johor, said that the two major steps taken by the government; increasing the minimum investment for purchase of property to one million ringgit and the introduction of a real property gains tax will stabilise the market. Ismail Ibrahim, the chief executive of the Iskandar Regional Development Authority (IRDA), said: “We expect the property sector more or less to stabilise. So once it stabilises, it is also a clear indication -- not only of a cooling off, but also we are beginning to tackle the unnecessary speculation that might take place all this while.” The authorities said interest from across the causeway should remain high if the Singapore dollar stays strong . Mr Ibrahim added: “We do not expect the price gap to close in the near-future or in the mid-term. Our position and offering is different compared to other regions, including our neighbour. For one, we never lack of space.”

Minimum investment and capital gains tax Beginning in 2014, foreigners can only buy property costing more than USD $314,000, and disposal of the property within first three years will be slapped with a 30 per cent tax. On the move to double the minimum value of properties that foreigners could buy to RM1 million from the current level of RM500,000 President of the Real Estate and Housing Developers’ Association, Johor (REHDA) Koh Moo Hing said it will not help drive up the house prices. “The developers in Iskandar Malaysia only need to raise the house prices to over RM1 million to enable the foreigners to buy them,” he said. Consensus is that the increase in the real property gains tax (RPGT) in Budget 2014 is unlikely to affect the current boom in property development in Iskandar Malaysia. Koh said the speculators, who were out to make quick profits, would be most affected by the increase. “The government’s move will make these speculators think twice about making quick profits.” Koh said although the RPGT increase will see knee-jerk reaction in Iskandar Malaysia, the phenomena was expected to be short-lived and will not be prolonged. “The boom in property development in Iskandar Malaysia will continue,” he said.

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FEATURE DECEMBER 2013 – JANUARY 2014

A ray of sunshine in the land of the long white cloud.

AUCKLAND PROPERTY he global financial crisis hit housing markets across the world like a freight train. In many countries the effects are still being felt and will be for the foreseeable future. In some Eurozone economies the combination of stricter measures to control lending, an oversupply of property due to aggressive development and loose lending practices prior to the crisis have resulted in plummeting prices which in some cases are reaching multi decade lows (some areas in Spain are good examples of this widespread trend).

Although property developers and agents in many of those areas are bemoaning the lack of growth and shouting from the rooftops that the good times are just around the corner they are not finding many buyers for that particular story – nor their properties. In the Southern hemisphere the global crisis led governments in Australia and New Zealand to tone down their cheery views and raise interest rates. However there is one particular country and one particular investment in the Southern hemisphere that has got investors in the region and even further afield extremely

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interested – property in New Zealand and in particular Auckland. The simple fact of the matter is that one of the most basic of economic forces is driving the Auckland property market upward – scarcity. Auckland (and other cities in New Zealand) simply does not have sufficient housing stock to satisfy demand. The availability of housing (both landed and apartments) in Auckland is as a result of a four year lull in construction activity – yet buyers are still extremely active due to the fact that New Zealand was largely insulated from the wider fallout of the global financial crisis.

Performance

FEATURE DECEMBER 2013 – JANUARY 2014

The current state of affairs is hardly a secret. Fresh buyers are flooding into the Auckland market in search of both new developments and second hand properties, aware that the opportunity for exceptional capital gains is there for the taking. In fact market experts like Tony Alexander, Chief Economist at the Bank of New Zealand recently stated that the Auckland market today resembles the market of the 90’s, when housing prices were driven upward by a migration boom - rather than the second decade of the noughties. Here’s the thing – the current shortage of homes is probably going to get worse before it gets better. Builders are throwing themselves at the new property development market with a vigour that hasn’t been seen in years, however there are only so many people in the construction industry in New Zealand. It appears that the country may be in danger of simply running out of people to build landed houses and apartments. The fact that migration is again on the rise and all these people landing on New Zealand’s shores is certainly not helping the shortage, but it is pushing prices up aggressively. In addition there is anecdotal evidence to suggest that many first time buyers that put off buying homes in the period 2008 – 2012 are now frantically trying to buy back that lost time (and are under pressure to do so due to increasing family size). Combine the above with the fact that Auckland is rapidly gaining a regional and indeed global reputation for those qualities that make living in a city a more pleasant experience and it is no wonder that property prices are spiraling. Take these facts for instance. Breathtaking scenery, world-class food and wine, sparkling harbours, island retreats, eclectic cultures, great shopping and spectacular arts and events – the sum total is a world-class big city with the added attractions of both natural and man made possibilities for an enhanced living experience. There seems to be consensus that Auckland is the hottest property market in New Zealand, with a very strong price appreciation forecast, the actual rental yields on average in Auckland are 6% - 8% - much more

attractive than say some of Australia’s capital cities where yields average about 4%-5%.

New Zealand is also attractive for a number of other reasons, including:

1 There is NO STAMP DUTY payable on New Zealand property (neither when buying or selling) therefore one’s purchase price is exactly that, the price is the price with no additional taxes.

4Rental yield growth of 4% & 6% respectively for 2 & 3 bed homes in Auckland in the year to Sep 2012 (Building and Housing Group – Ministry of Business, Innovation & Employment – Oct 2012) 5 Very Strong Capital Growth Predicted over the next 3-5 years 6 Freehold Property Ownership 7 World Class Universities

2 There is NO Capital Gains Tax 8 Housing shortages translating into strong tenant demand and price growth (REINZ) – shortfall of some 30,000 homes

payable on residential property in New Zealand – hence when one sells, all the profit or capital gain goes straight into the sellers pocket

9 Average annual population growth of 2.2% into Auckland

3 There are NO restrictions on resale – in other words, if and when it comes time to sell the owner can sell to whoever they like, they can sell back to a local, or someone in Timbuktu – this again is hugely important as it means the full scope of the market is available to the seller.

4 In terms of the Auckland market itself, the long term – 10 year – average property price growth has been 103% in the last 10 years (REINZ). Auckland has seen 14.8% property price growth in the past 12 months to June 2013 alone (REINZ June). Denise Casey of All Property Solutions spoke to Property Life about the property market in Auckland and offered the following insights:

1 Largest city in New Zealand – over 33% of NZ population (Statistics NZ) – population stands at about 1.5 million people now and growing 2 Predicted to be home to over 60% of NZ population by 2031 (Statistics New Zealand – subnational population projections) 3 14.8% capital growth in year to June 2013 (R.E.I.N.Z House price)

According to Denise, All Property Solutions Singapore & Malaysia are launching prime off-plan Auckland CBD developments and these have been extremely well received by buyers in Southeast Asia, including Singapore. One such development, Conrad Group’s ‘Park Residences’ has become a blueprint for the types of development that buyers in the region are particularly interested in, for a number of reasons. The development is in the heart of the business and retail district, only metres from Auckland’s Queen Street and minutes from the Viaduct Waterfront. The freehold residential “Park Residences” (scheduled for completion in June 2016) located at 35 Albert St, Auckland adjoins St Patricks Square and stands at 28 Levels high with most of the units having Auckland harbour views and will enjoy excellent light and outlook. The residences will consist of approximately 225 apartments and 26 retail units. Of which there will be a great mix of Studios, two room flexi rooms and high yielding dual key residences. The availability of a wide variety of different options is of particular interest to buyers. Priced from NZ$335,000 to NZ$990,000 with up to 8% gross rental yields the pricing is also in the sweet spot for many property investors.

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FEATURE DECEMBER 2013 – JANUARY 2014

Affordable Luxury Defined YOTEL prepares to enter the Singapore market.

ingapore has long been known as one of the most forward thinking of cities, it’s infrastructure is efficient, business services are world class and the shopping malls of Orchard Road can give any other retail district in the world a run for its money. However, those wanting to get under the skin of the city and explore its more avant garde side, a hidden city of pulsating nightclubs and cutting edge art scene might do well to consult a local – these are attractions that require a little more than a passing nod to the latest glossy tourist brochure or the wonderful marketing pages of the world wide web.

But the visibility of the chic and edgy might just be about to change and the change might come from a very unexpected quarter. Between January and September of 2013, 8.5 million rooms were let by hotels in Singapore at an average of just over S$222 per room*. That’s a lot of rooms and a lot of money. The hotels in Singapore range from the budget to the ultra deluxe. There are examples of world-class opulence and fabulous levels of comfort combined with top tier service levels. There are homegrown versions of the Japanese capsule hotel and formulaic, but reliable chains that will provide an uninspired, but perfectly acceptable nights rest.

However, chic and cutting edge is harder to pull off. When you make the claim that you’re going to be bringing something truly unique to the Little Red Dot and bringing it at a budget price then you’d be well advised to know your business and preferably boast a track record of success and a proven business model. There’s a company that has that track record. Visitors to Singapore can expect a little more choice and something out of the ordinary when they next make their holiday booking, because YOTEL is coming to town. YOTEL has announced that it will open for business in Singapore with a 600 cabin

ERGONOMIC SIMPLICITY The YOTEL 'cabins' are based on lessons learned from passenger jets giving designers valuable insight into making the most of smaller spaces.

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FEATURE DECEMBER 2013 – JANUARY 2014

property on Orchard Road. The hotel is due to open in 2018. YOTEL Singapore will be located at 360, Orchard Road, in heart of the city, perfect for both business and leisure visitors to Singapore. The management agreement has been made with Yat Yuen Hong Company Limited a wholly owned subsidiary of Hong Fok Corporation Limited. The chain was conceptualized by YO! founder Simon Woodroffe and YOTEL CEO Gerard Greene. Both were inspired by the comfort and convenience of first class travel and have translated the language of the luxury airline experience and Japanese influence into luxurious ‘cabins’ in iconic and cutting edge cities like New York. Gerard Greene, co-founder and CEO of YOTEL, said of the announcement: “Given that YOTEL is heavily inspired by Asian culture, it is fantastic that we are launching such an iconic project as our first project in Asia. The location is one of the best in Singapore and we have fantastic partners in Hong Fok Group who share our vision. YOTEL will bring a unique hotel experience to Singapore, it’s a perfect time for the city to embrace a new and exciting brand, a first for Singapore and the launch of affordable luxury for the hotel scene in Asia.” Speaking to Property Life, Greene said that the YOTEL model is designed for expensive, busy cities where land is expensive, resulting in a situation where there is a very clear difference between 5-star hotels and budget hotels. In the words of Greene, “YOTEL wants to be able to provide an experience that marries these two concepts – the best of both worlds that is now recognised as ‘affordable luxury’ in Europe.” He continued “using the YOTEL model we can bring the affordable luxury concept to people with a hotel of 600 rooms in a space that would usually only allow traditional hotels to provide 300 – 350 rooms, which makes this design very attractive to both developers and owners.” Greene emphasised that the YOTEL model relies on a holistic approach to design. During the planning phase of the hotels, three aircraft designers (including those involved in British Airways First Class, the designer of the A380 mockup interiors and the premier offerings from Virgin) were employed to bring their skills

BAGGAGE BOT May or may not be part of the Singapore operation. Above - simplicity does not mean a lack of elegance, the Times Square YOTEL in New York.

to the design of functional, yet comfortable spaces. “The YOTEL concept is about being a machine that is ergonomic and simply works for guests, rather than a machine in the sense of being impersonal. For us the whole process of design is holistic. Rather than having a designer come in and source a whole load of fluffy pillows from an interior decorating show and call that a designer hotel our approach is different. You can’t design a small room and then simply go and pick out furniture – the room itself is the

furniture, a piece of product design where ergonomics is key,” says Greene. According to Greene, the guiding principle behind the success of YOTEL is an absolute commitment to the soul of the hotel accommodation experience and a streamlining of the entire check in and room occupancy cycle. The YOTEL chain has been compared to the ipod of the hotel industry. In the words of Gerard Greene “if an ipod is used by my eight-year-old child and is also used by an investment banker then it proves the con-

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FEATURE DECEMBER 2013 – JANUARY 2014

cept that you can develop a product that is used across socio economic boundaries, and this is the future – being the hippest and coolest kid on the block is not the future.” The Singapore YOTEL will spearhead YOTEL’s Asian expansion. Although Greene did not provide a timeframe for the expansion plans, he did emphasise that Southeast Asia is a potentially explosive market for hospitality and is definitely part of the chain’s plans for expansion in the short and medium term. He said that his discussions with other owners across the region have indicated that the affordable luxury ‘mid market’ is where the above average returns on investment will be made. According to his sources, there are estimates that the ‘mid market’ is going to account for 50% of the Asian travel spend in the very near future. YOTEL seems to have hit the sweet spot with its operation in New York, and given their focused plans for Singapore, there is no reason to expect that they will not achieve the same levels of success in the Southeast Asian market. Guests are enjoying the idea of a bigger experience in a smaller space.

TIMES SQUARE YOTEL's New York operation does not lack for chic and trendy appeal. Singapore will follow suit with a uniquely Asian flavour according to CEO Gerard Greene

YOTEL’s intelligent use of space means visitors to the hotels can enjoy a well designed ‘cabin’ in which to relax, refresh, connect and sleep. Luxury bedding, rejuvenating monsoon rain showers, relaxing purple mood lighting and YOTEL’s ‘techno wall’ with flat screen TV, multi power points and iPod connectivity add to the allure. As in all YOTELs, super strength Wi-Fi throughout all the ‘cabins’ and public spaces will be complimentary in the Singapore venue (apparently good wi fi is now recognised as one of the most important reasons that guests prefer specific hotel operations). The Singapore hotel will have YOTEL’s signature elements of its flagship ‘city’ properties and will include a Club Lounge space with ‘Club cabins’ that double up as meet-

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ing and work spaces during the day, transforming to a restaurant/bar space in the evenings and weekends, and large outdoor terrace space with a pool and a gym. YOTEL also currently operates three terminal airport properties at London Heathrow, London Gatwick and Amsterdam Schiphol. The unique "in-terminal" hotels are located minutes from departures and arrivals, are bookable by the hour for a few hours or an overnight stay. Ideal for guests to freshen up on arrival, spend a long transit, or to stay the night before an early flight. Their experience with these airport terminal properties no doubt allows them great insight into how best to make full use of small spaces without negatively impacting on gust comfort. The YOTEL chain has broken the mold of what it means to being a budget outfit – and they’ve done it with a unique sense of style and what some believe is a total commitment to quality – albeit in spaces that are smaller than traditional hotel rooms and the formula should translate extremely easily into the Southeast Asian setting.

FEATURE DECEMBER 2013 – JANUARY 2014

Another US state becomes a

shale oil hot spot

North Dakota sneaks up on Texas in the oil stakes – and new modular housing investment opportunities follow.

he payoff of shale oil exploration in the United States is proving an irresistible lure for investors with the latest reports paint a rosy picture of the medium term future for both the companies that are involved in pulling the resource from the ground, refining shale oil and providing ancillary services such as housing for the growing number of oil workers. The International Energy Agency (IEA )has said the U.S. will surpass Russia and Saudi Arabia as the world’s top oil producer by 2015, and be close to energy self-sufficiency in the next two decades, amid booming output from shale formations. In its recent annual World Energy Outlook, the IEA reported that crude prices will advance to $128 a barrel by 2035 with a 16% increase in consumption supporting the development of so-called tight oil in the U.S. and a tripling in output from Brazil. U.S. output will plateau after 2020 and the nation will lose its top ranking at the start of the 2030s, the IEA said. “We do not expect this trend will continue after 2020s,” Fatih Birol, the IEA’s chief economist, said in London today. “It will come to a plateau and decline as a result of

the limited resource base of light tight oil.” Although Texas currently produces just over three times as much oil as North Dakota, drilling in the Bakken is planned to continue for decades to come, following the discovery in 2010 that oil reserves in North Dakota were 46% greater than previously thought. As a result, oil production has more than doubled in North Dakota in the last two years alone, entrenching North Dakota as the second largest oil producer in the US after Texas, according to the IEA. So North Dakota, as U.S. oil’s heir to the production throne is awash with not only black gold, but with investment opportunities in services, such as the provision of accommodation for oil workers. The massive influx of workers and money to the state has resulted in the lowest unemployment rate in the US (3.0% as at July 2013 according to the U.S. Bureau of Labour Statistics) and numbers mean opportunity. As happened in Texas a century before, oil production has triggered a massive housing boom in North Dakota. Robert Gavin, CEO of North Dakota Developments LLC, which is building hundreds of fully serviced, highend executive hotel studios for North Dakota’s oil workers at its Great American Lodge

site, observes,“The housing crisis in North Dakota has spurred planners, developers and investors into action, as we work together to meet the needs of the thousands of migrant workers who are looking for somewhere to live. It’s a strange situation here – we have cash-rich individuals with secure employment prospects, but who simply cannot find accommodation due to the rate at which the towns near the Bakken Formation have expanded.” The production numbers still lag behind those being generated in Texas, but North Dakota is catching up fast. Texas produced an average of 2.575 million barrels per day (bpd) of crude oil in June 2013, according to the Energy Information Administration. North Dakota produced an average of 821,000 bpd for the same month, making it the second largest producer of oil in the US. Intrigued by the possible property investment opportunities in shale oil housing Property Life placed a call to Robert Gavin to talk about the Great American Lodge and the current modular housing investment opportunity. Given that shale oil has become hot business in a number of different states

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FEATURE DECEMBER 2013 – JANUARY 2014

across the U.S. the question that needs to be asked is why North Dakota Developments has chosen this particular state for a housing development based on the modular model? After all, North Dakota is not known for its particularly welcoming climatic conditions, especially during the winter months – and designing adequate year round accommodation presents a challenge. Gavin agrees that there are challenges including the weather, however bureaucracy and escalating costs play their part in making North Dakota a trial for developers, however in the opinion of North Dakota Developments the potential returns are enormous. “Firstly, the weather is North Dakota is extremely cold for about 5 months of the year so you only have a seven month construction season, at best - which means everything has to be done faster and more efficiently to make the most of the time available. Secondly, many of the officials are farmers firstly and officials secondly, which means that bureaucracy can be disjointed between different third parties and slow at times. Finally, inflation for labour and materials is incredibly higher meaning that we have to be very careful when it comes to running development budgets. One of the ways we overcome this is to construct the hotel modules out of state and ship them in.” According to Gavin, shale plays are happening more and more both in the USA and across other countries in the world, but it’s only in North Dakota where there is a perfect storm of both the size of the oil field and industry alongside the exceptional and drastic lack of accommodation and housing in an area that was up until a few years ago, one of the least populated states in the USA. The demand for accommodation is a given for workers involved in all aspects of the shale oil extraction and refining business, however Gavin believes that it’s the quality of the accommodation which will be the competitive advantage of Great American Lodge. “Workers in the Bakken region are looking for somewhere they can call home for the 6, 12 or 18 months that they are out there working 100 hour weeks. “To this end we provide spacious executive studios with all mod cons, en suite bathrooms, plasma TVs and kitchenettes included. In addition to this, we also provide comprehensive facilities such as a full gourmet

SIMILARITIES Much like traditional oil operations (above) oil from shale in North Dakota is increasing the demand for modular housing solutions - like those provided at Great American Lodge (pictured here).

catering service, a gym, ATM and banking services, meeting rooms, TV lounge, pool tables and even an indoor basketball court so that both workers and their companies can enjoy a community style environment.” When asked about possible ROI, Gavin notes that North Dakota Developments are currently attracting an average of USD $6 million of investment per month from international investors in over 30 countries and all 5 continents. “We have a proven record of delivering projects and have offices both in the UK, Asia and USA. “Based on an independently verified, professional third party feasibility report, the realistic occupancy and nightly return projections will produce an annual ROI of circa 40% per year to the investors,” said Gavin.

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“We believe this is currently unmatched in the market at the moment and nothing comes close to this return for any similar property investment opportunities, which I believe is one of the secrets to our incredible success and international interest from investors from over 30 countries worldwide.” So will North Dakota ever knock Texas from its position as the US’s top oil producing state? Quite possibly, says Robert Gavin. “Given what we know about the level of reserves currently available in the Bakken, and based on the current price per barrel, North Dakota is estimated to hold around USD $2.1 trillion worth of recoverable oil. The oil industry is going to be here for the next few decades at least. Already we have seen some incredible investment opportunities arise and the years ahead are going to be even more interesting."

A PLACE TO CALL YOUR OWN

Island Styling in Southeast Asia BY STEVE MALLACH

“As a symbol of great possession, the privately owned island may yet supplant even the steamship.” - DWIGHT MACDONALD, 1st issue of Fortune Magazine, 1926.

he mega rich announce their arrival by berthing their luxury yachts at some of the most exclusive Marinas in the world. For those who have left this stage in the evolution of status behind true wealth lies in solitude. Which is why those ultra high net worth individuals with a hunger for peace and tranquility leave the marina behind and head for a berth of their own. Asia has become the playground of the wealthy and the availability of private islands in the archipelagos of the region has fed and appetite for exclusivity. However stocks are limited due to a variety of factors, including communities that have a deep connection to their land and governments that are committed to a path of both conservation, cultural sensitivity and the maintenance of their geo-political sphere of influence. These tasks

WEST NALAUT ISLAND OPPORTUNITY Part of the Palawan archipelago located in the South China Sea. The archipelago has experienced a 392% growth in tourism in the past 12 months. This island is ready for resort development. Price USD $8,000,000.

can become immeasurably more complicated by the presence of foreign owners and leaseholders on isolated islands. However, there is still choice due to the simply staggering numbers of islands that are available in the region, many of them uninhabited. Indonesia for instance is custodian of over 18,000 islands. Only a small handful are available for occupation at any one time, but the opportunities do exist. Thailand releases a trickle of islands onto the market at irregular intervals, but the Andaman Sea and the Gulf of Thailand have

both been international favourite for many years so these properties never remain on the market for long. The prices for Thai islands are also extremely high when compared to some of the bargains (relatively speaking) that are available in other parts of the region. The Philippines, home to some of the most beautiful island real estate in the world has well over 7,000 islands, some of them postage stamp size, others substantially bigger – and when it comes to islands proximity to sources of supply and size are the factors that cause enormous variations in price. The sensitivities surrounding land in the Southeast Asian region mean that there are very few opportunities for outright ownership of land, including (and perhaps especially) islands. So freehold is not usually an option, with leasehold being the most common form of ownership in the seas of Southeast Asia. It should however be said that property laws in

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FEATURE DECEMBER 2013 – JANUARY 2014

countries such as Indonesia and Thailand are evolving extremely quickly. The Philippines (home to such Pacific Ocean tourist gems as Boracay Island mentioned elsewhere in this magazine) is gaining a reputation as an investor friendly destination. In fact the Philippines is perhaps the exception to the rule of limited availability and there are several ways that Philippine law makes it relatively easy to take ownership of some of the most beautiful and pristine islands in the world.

CORAL ISLAND

Leasing A foreign national or their corporation can have a 50 years lease with the option to renew for another 25 years with the Filipino island owner. Islands in the public domain inside protected areas and forest lands are treated as special cases. For this property the law allows for a lease of 25 years with the option to renew for another 25 years. Filipino Corporation A foreign national can form a corporation with Filipino landowners, businesspersons and/or entrepreneurs. These corporations must be composed of a minimum of five incorporators. By law, a foreign national can own at most a 40% share of the company. The Filipino corporation can then purchase the island. Filipino Spouse A foreign national married to a Filipino citizen may be able to enter into a contract for the purchase of an island of no more than 5 hectares. The name of the foreign spouse cannot be on the title but on the contracts buying the property. Many foreigners are especially attracted to Palawan. This Philippine archipelago features roughly 1,780 islands and islets, rocky coves, reefs, balmy ocean breezes and some of the most unspoiled sandy beaches in the world. The region also harbors a vast stretch of virgin forests that carpet its chain of mountain ranges. With access to the right legal advice from a professional who has experience in dealing with sometimes labyrinthine bureaucracy, rules, regulations and legislation (the need for qualified legal advice for foreign nationals cannot be over emphasised) the process of owning island real estate can be considerably streamlined.

MEDIO ISLAND

When it comes to the islands on offer in Southeast Asia although buyers are not spoiled for choice due to the limited number of properties that come onto the market they are certainly able to choose from some of the most astoundingly beautiful real estate on the globe. Pristine white coral sand beaches, waving palm trees, endless horizons, spectacular sunsets and unspoiled marine life in a translucent sea are highlights of any holiday package to the tourist islands in the region. By purchasing a private island the lucky few will enjoy the Southeast Asian island experience taken to a new level of dazzling natural beauty. As with most things in life there is a small price to pay for immersion in a tropical paradise and this payment is due during the months of June to September when the annual monsoon season affects islands in the seas of the Southeast Asian region. The monsoon is characterised by warm, wet rains, sometimes-unruly seas and high winds. For western owners and visitors the timing of the monsoon is ideal – still leaving much of the year for exploration and enjoyment of the tropical island hideaways of the region.

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Want your own slice of paradise? Get your sunscreen, grab a straw hat and pick up your credit card. We’re going island shopping. CORAL ISLAND NAME

Coral Island

REGION

Philippines, Asia

LOCATION

Northern Palawan

DEVELOPMENT

Partially Developed

TITLE

Leaseholder

TYPE

Private Island

PRICE

USD $3,500,000

STATUS

For Sale

SIZE

62.00 Acres / 25.09 HA

Few islands in the Philippines have such an excellent resort potential as Coral Island, found in the stunningly beautiful region of Palawan. Perfect beaches, sweeping ocean views and exotic coral reefs are currently being enhanced by the development of a luxurious personal villa, with a cabana already in place. Coral Island is a 25 hectare island located 29 kilometres from the town of

FEATURE DECEMBER 2013 – JANUARY 2014

TEARDROP ISLAND

Taytay in Northern Palawan. The island measures approximately 700 metres north to south and 500 metres east to west. The coastline of Coral Island is largely composed of a steep rocky shore except for sandy beaches on the sheltered southern and south western side of the island. It is surrounded by fringing reef. The island has large hills with approximately ¼ of the island (8-10 hectares) being flat land at the SW portion. The flat land is behind the beach and extends back about 400-500 metres back to the edge of the hills. This flat land is ideal for resort development. MEDIO ISLAND NAME

Medio Island

REGION

Philippines, Asia

LOCATION

Northern Samar

DEVELOPMENT

Developed

TITLE

Leaseholder

TYPE

Private Island

PRICE

USD $3,000,000

STATUS

For Sale

SIZE

99.12 Acres / 40.11 HA

that would make it an ideal first class island beach resort. It is a 40.1123 hectare island of gently rolling hills, mostly of coconut vegetation and shrubbery. Medio Island is approximately 1,300 meters long (SW to NE), 550 meters wide at its widest point and some 330 meters at its narrowest portion. Its main or South beach of fine white sand and corals is about 300 meters long and 60 meters wide. The North beach on the opposite side of the island is approximately three quarters long compared to the main beach and is more secluded. The West beach on the far end has a small extended portion on the West side and is about as long as the main beach With their coral reefs, Medio and sister islands Rasa and San Andres are ideal for scuba, snorkeling, sailing, yachting, jet skiing, parasailing and marine life observation. ABOUT TEARDROP ISLAND NAME

Teardrop Island

REGION

DEVELOPMENT

Philippines, Asia Palawan Province, near Busuanga Non-developed

TITLE

Leaseholder

TYPE

Private Island

PRICE

USD $3,500,000

STATUS

For Sale

SIZE

74.00 Acres / 29.95 HA

LOCATION

Medio Island is in a cluster of islands known since the times of the Spanish treasure fleet as Islas Naranjos (Naranjos being the Spanish word for oranges). Naranjo Islands consist of six islands formed in a circle cluster with Medio Island at the center. The other islands are San Andres, Rasa, Darsena, Aguada and Escarpada. This group of islands lie within a volcanic belt that has been active for the last 5 1/2 million years and stretches from Southeastern Luzon to Southeastern Mindanao. Medio Island has many natural assets

DUMUNPALIT ISLAND

Teardrop Island, the pearl gem of Calamian Group of Islands in Palawan, Philippines, resting in the shadows of tropical forests surrounded by lush greenery, is a true oasis of tranquility. Dubbed as the most beautiful island in Palawan, it has a lovely stretch of white

sand beaches with crystal clear waters. The island is ideal for sunbathing, swimming, snorkeling, water ski, para-sailing, and game fishing. This island consist of 30 hectares of which 50 percent may be developed, while the remaining 50 percent which is rolling and mountainous can be reserved for wildlife conservation. Considered to be the most beautiful island in Palawan, this piece of paradise is situated in Palawan’s tourism belt, the Calamian Islands. RANGYAI ISLAND NAME

Rangya Island

REGION

Thailand, Asia

LOCATION

East of Phuket

DEVELOPMENT Developed TITLE

Leaseholder

TYPE

Private Island

PRICE

USD $160,000,000

STATUS

For Sale

SIZE

110.00 Acres / 44.52 HA

Located just east of the island of Phuket, Rangyai is the largest island currently available for sale in the region. The island is close to both Phuket and Coconut Island both of which are home to numerous popular resorts. Ranyai Island allows the prospective owner to capitalise on the development potential of this area. 110 acres in size, the island comes complete with fresh water sources, electric generator, and the availability of mobile phone signal. The island is located only 20 minutes from Phuket International Airport and just 10 minutes by boat from the nearest town. Much like its neighbour, Phuket, Rangyai Island is adorned by beautiful white sand beaches and lush tropical forests. www.propertylifenews.com

FEATURE DE CEM BER 2013

Clear skies for

investment in Boracay BY STEVE MALLACH

ver the last weeks the news coming out of the Philippines has not been uplifting, to put it mildly. Typhoon Haiyan is estimated to have caused between USD $6.5 billion and USD $14.5 billion in total damages, along with significant human cost. Even as the task of rebuilding gets underway there is at least one bright spot in the Philippines that continues to bask in the sunlit adoration of those who feel the call of pristine sand and salt air. That bright spot is the tourism friendly much loved strip of Oceanside real estate known to sun worshippers as Boracay island. On a slice of paradise that has recently been named ‘The World’s Best Island’ the typhoon damage has been minimal. This is due in no small measure to the island’s uniquely sheltered location. Aside from a short-lived power outage life on the island continued much as before the typhoon struck. On strip of land where approximately 70% of inhabitants make their living from tourism both guests and locals are thankful for the benevolence of the ocean surrounding the island. It also appears that Boracay’s reputation as a tourism hotspot is going to receive a shot in the arm. An airport is planned for the near future that will service flights coming from around the region. Locals specifically mention Hong Kong, Taiwan, Singapore, Korea and China as the origins of many of the flights that

will shortly be landing on the island airstrip. Talk is that the money for this new airport will be able to accommodate around three million Boracay bound tourists annually or about 10 times the current capacity of airports in the surrounding area. The development is no pie in the sky dream construction – TransAire Development Holdings Corporation, a subsidiary of San Miguel Corporation (SMC) is project managing and financing the Boracay Airport project. A report in the (very) local newspaper – the Boracay Sun highlights the increasing numbers of tourists from East Asia, particularly China and Korea as powering the tour-

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ist driven economy of Boracay. These numbers appear to be growing month by month. So the white sands of Boracay are going to become even hotter property in the very near future (the project is scheduled for completion in 2015). The sun and sea worshippers of Boracay have been provided with accommodation options aplenty in years past, however there is a new breed of luxury development that is finding a ready market with European and Asian investors. One of this new breed of ultra luxury developments is Aqua Boracay by yoo, a five star residential resort on Bulabog Beach – the less frenetic side of the island. Although with the ‘neck’ of the island less than a kilometer wide a pleasant 10-minute stroll through D’Mall (Boracay’s famous tourist shopping and entertainment district) will find visitors on the edge of White Beach the restaurant and henna tattoo strip that is the staple of Boracay tourist websites and brochures. Comprising 144 one and two bedroom apartments and penthouses Aqua Boracay is at the waters edge where international kite surfers play on some of the best H2O in the world. Those worried that the wind might prove to be annoying can be assured that at the midpoint of the year the wind swings around to provide a refreshing respite from the midday sun on the White Beach side of the island.

FEATURE D E C EMBER 2013

In September 2013 the development received the “Highly Commended: Best Condo Development (Resort)” accolade by the Philippines Property Awards. The prestigious award was given by a respected group of judges representing the development, hospitality and design industries in Philippines and South East Asia. “We are delighted to receive this prominent recognition from our industry,” says Marco Biggiogero, Chairman and co-founder of the Aqua Boracay Group. “As Boracay’s first branded resort residence, Aqua Boracay by yoo is helping to define this up-andcoming area, while setting a high standard for exceptional quality and lifestyle. Marco is upbeat (as he is about most things on Boracay if the truth be told) about both the development and the future of tourism. He’s been there for well over a decade so he knows every nook, cranny and nuance of this island and he sees tremendous upside potential as far as return on investment is concerned. In his opinion the new airport is going to send prices in Boracay rocketing into a region that would make any investor happy (capital gains in the region of 70% would not be out of the question once the airport has been completed – take note of Phuket which saw prices climb as steeply on completion of the local transport hub). As far as rental yields – a conservative estimate is around 6%. He’s also noted that the Philippine government is becoming much more aggressive in courting international visitors. The current ‘It’s More Fun in the Philippines’ advertising campaign is only one example of this newfound confidence in the appeal of the 7,000-island archipelago.

Designed to offer turnkey luxury (think concierge, guest services, housekeeping etc – no word on room service, but ask Marco to take you for dinner at the Italian restaurant on White Beach – it’s a decision you won’t regret), the yoo Studio designed residences offer modern, sophisticated interiors, completely furnished with high-end appliances, luxury designer fixtures and fittings, and state-of-the-art audio/visual systems. Floor to ceiling sliding glass doors, and the wrap around terraces (which significantly increase the feeling of space in the apartments) have also met with buyer approval. The residences maximise indoor-outdoor living with sliding glass doors that open onto spacious terraces offering exceptional views over the renowned sparkling waters that Boracay is re views of the crystalline waters. Owners will have exclusive access to Aqua Boracay’s onsite facilities including a yoo-designed clubhouse, two swimming pools, a fitness center and day spa and a convention center.

To learn more about Aqua Boracay please visit www.aquaboracay.com

Marco Biggiogero has said that Chinese investors have been particularly interested in the studio apartments (part of phase 3 of the development) due to the relatively low price of buy in (at around USD $200,000 they offer six different layouts of around 50 sq/m’s of fully furnished space – which compares extremely favourably with other market related options). Although Chinese investors are not alone in their preference for the Aqua offering – apparently recent events marketing the development in Europe, Singapore and Hong Kong were extremely successful. It appears that Boracay is becoming even more attractive as a holiday and investment destination. The ongoing infrastructure development and the carefully managed influx of tourist, combined with the relatively sheltered nature of the island might just be the correct ingredients needed for a truly delicious cocktail of fun in the sun and investment opportunity. The Managing Editor spent two days as a guest of Aqua Boracay.

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FEATURE DE CEM BER 2013

P E

R T

Bubbles THE MANTA UNDERWATER ROOM View of the underwater room with resident batfish offshore of the Tanzanian Manta Resort on Pemba Island.

P Have you got some spare cash lying about behind the sofa cushions? If so perhaps you might consider an investment in underwater property. 90

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olish architectural and deepsea engineering company Deep Ocean Technology has inked a deal with Ridgewood Hotels and Suites Pvt. Ltd. to build its space ship inspired semi submerged Water Discus Hotel just offshore of Kuredhivaru Island in the Maldives. The same sort of hotel was scheduled to begin construction in Dubai during 2012, however those plans appear to have been shelved. The Maldives appears to the hottest new spot for those in search of a more, shall we say ‘indepth’ experience of the bountiful ocean. The Maldives already has world class water villas where guests perch above the surface of the water peering down into the depths – however it seems that the surface is simply not enough for those who are insatiably curious about the creatures of the briny deep.

Huvafen Fushi has an underwater spa, Conrad Maldives Rangali Island an underwater restaurant and Niyama an underwater nightclub. Now visitors are going to be venturing metres down courtesy of the Polish Deep Ocean designers. Although the CGI type images available on the website and the marketing materials appear to be of a structure that is a marriage between the US rocketman ethos of the 50’s and a somewhat Jules Verne take on sub surface exploration there is clearly a pent up demand for these sorts of vacations and companies like Deep Ocean Technology seem to be actively courting investment. The Water Discus hotel has backing from Swiss company backing from a Swiss company and consists of 21 suites housed in two main discs – one above water, one below – with facilities that will include a bar and a dive centre. The upper part of the structure will allow guests to take advantage of the sunlight and the salt air 5 - 7 metres above the water’s surface. This disc will comprise a restaurant, a spa and a special recreation area. A multifunctional lobby built inside an enormous swimming pool shows the centre of the disc. Guests will be able to enjoy the voyeuristic experience of watching diving activities as they happen on the screens hanging on the lobby walls. The rooftop of the Water Discus Hotel includes seawater swimming pools (integrated with a training pool). Finally, there is also an exotic garden offering a moment’s rest before going back to extreme experiences. Venturing into the submerged section of the lower disc (located from 10 up to 30 metres beneath the surface of the sea), will allow guests to enjoy the varied sea life on offer in the Indian Ocean. The complex will to be located next to ZEN Resort, Kuredhivaru Island, Noonu Atoll. In a press release, Deep Ocean Technology

THE WATER DISCUS HOTEL Above - landing soon in the Maldives - 21 suites housed in two main discs – one above water, one below. Above right - The Manta Resort.

mentions the popularity of water-based activities in the region, such as the aforementioned Huvafen Fushi underwater spa, as an indication of an existing market for such ventures. “A lot of people have said it looks like something from a James Bond film,” said Podwojewski. “I’m a big fan of the movies, so perhaps that was an inspiration.” To garner underwater adventures, guests can dive straight in from the hotel’s airlock compartment. What’s available is also a three-passenger deep-sea submarine. During times of emergencies, the spaceship hotel will also slide to the surface from underwater. “”It’s a bit like a balloon underwater — when we let go of the water from the room’s huge tanks, the balloon will surface automatically. It doesn’t need to rely on electricity.” Padwojewski notes. Deep Ocean Technology is surprisingly coy about the timeframes involved in the construction of the Water Discus. However, there is an investors section on their website. Access to this content requires a login and perhaps more information will be contained inside this section of the site. Unfortunately repeated requests via the info link on site did not garner the requested login details. This writers Polish was not up to the task of getting a response from the academic institution where some of the chief designers (one assumes) earn their daily bread. While the Discus is certainly taking the concept to new heights (depths?) undersea

accommodation has been around for a while. The three-room Jules’ Undersea Lodge off Key Largo, Florida had its beginnings as the La Chalupa research laboratory, an underwater habitat used to explore the continental shelf off the coast of Puerto Rico. It must be said that the facilities are decidedly Spartan when compared to the vision of the Water Discus designers. The Jules Undersea Lodge features hot showers, a kitchen with microwave and refrigerator. For entertainment there are a selection of books, music and video material and some full size beds. Although described as ‘cottage sized’ one feels that the description fails to mention that there is a certain snugness about the accommodation. Guests of the Lodge explore their marine environment with scuba gear provided by Jules’ Undersea Lodge and are given an unlimited supply of tanks. Jules’ Undersea Lodge has the weight of history behind it. It is the first underwater hotel, as well as the first underwater research lab to have ever been made accessible to the average person. In another move that seems to take advantage of the craze for living under the ocean (at least for a short period of time) another option appeared. Just off the coast of Tanzania, The Manta Resort on Pemba Island has added a frankly amazing underwater bedroom to their 16-room offering. The new room, designed by Swedish company Genberg Underwater Hotels opened for business only a few weeks ago. This group is also the brains behind The Utter Inn, an underwater room in the middle of a Swedish lake. Around 250 meters offshore, the latest underwater structure is a three-story retreat from the cares of land based society, with a rooftop deck, a bathroom and a lounge area at sea level and finally the bedroom downstairs, where you can peak through the curtains at some odd looking neighbours. At night, spotlights under the windows attract and illuminate shy squid and octopus, which emerge from the depths to investigate the new additions to the neighbourhood.

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AFTERWORDS

FROM THE PUBLISHER.

So, that was 2013. What a cracker of a year.

Alexander Knight Managing Director and Publisher Panashco Media Singapore

Like every year in human history the rich tapestry of human experience is served up to us through multimedia equipped device that range from Mobile phones, to tablets and even the (dare I say) old school devices like laptops and desktops. At Panashco we’ve seen the launch of a new publication — Investment Life which compliments this great publication that you have in your hands. We’ve welcomed new contributors and strengthened our relationship with many others. We’ve installed a new Managing Editor, increased our contingent of sales staff, opened a sales office in Hong Kong and strengthened our presence in the Philippines. We’re also living through some interesting times. During my travels around Southeast Asia, Europe and even in the emerging markets of South America I’ve seen a newly buoyant mood amongst property investors and those developing property, although it must be said that the property market in the Eurozone still seems under a bit of a cloud. All told it’s been a very interesting and satisfying 2013. All that remains is for me to echo the sentiments of our Managing Editor and wish all who have been involved in Property Life during 2013 all the best for 2014. In the new year we’ll be welcoming in the Chinese Year of the Horse – according to some experts this will be a year of fast victories, unexpected adventure, and surprising romance. Although I’m not 100% sure about the romantic aspects of publishing (although I do love this industry) I can say with certainty that Panashco is in the hunt for wins and adventure is always a possibility in a region as exciting as Southeast Asia. So with that I would like to wish all of our readers, advertisers, contributors and members of the Panashco family the best over the festive season. May 2014 bring you all much joy and happiness.

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