transparency We’re always there for you Seminar on prospects for Pattaya
Project news No 1
a supplement of real estaTe magazine
A name you can trust A list of member brokers actively supporting this publication starts on Page 24. Alternatively if you wish to consult a member company please visit the www. rebaes.com web site.
Welcome to the first issue of Transparency, the magazine produced by members of the Real Estate Broker Association – Eastern Seaboard (REBA-ES) in association with Real Estate Magazine for their clients and prospective clients. Property buyers seek openness and honesty in their transactions – that’s the code REBA-ES members follow. We’ll explain the “whys”and “hows” in these pages. Those familiar with property brokerage in Pattaya will be aware that it is unregulated to the extent that almost anyone can set up in business as an estate agent in the city. A person does not have to pass any examination or conform to any codes of practice to work as a broker here. REBA-ES was set up in 2006 by like-minded property professionals working in the city who felt that this lack of regulation was – and is – regrettable. They wanted to be able to tell their customers: l We adhere to a code of practice; l We are ethical in our dealings; l We know how the business of buying and selling properties works. REBA-ES does not claim that brokers who are not members
Contents of
of the association are in any way flawed. The association fully
this supplement
acknowledges that there are many reputable brokers who choose
is the copyright
not to be part of REBA-ES. The association is about telling the
of both the Real
public what its members are; not what non-members are not.
Estate Magazine and REBA-ES.
We decided to call the magazine Transparency because that’s what
No reproduction
REBA-ES and its members are all about. Many of them are long-
in whole or part
established in the city and public-facing staff members at each
without written
brokerage are independently tested on their market knowledge.
approval of both parties.
REBA-ES members look forward to serving you. Enjoy the issue.
is a supplement of
REALESTATE ine magaz
TRANSPARENCY • Issue 1
Mesiya (May) Watson
President, REBA-ES (Real Estate Brokers Association, Eastern Seaboard)
Transparency
www.rebaes.com
TRANSPARENCY • Issue 1
It’s about time! That’s what many professionals involved in real estate were saying back in May 2006 about the formation of the Thailand Real Estate Brokers Association – Eastern Seaboard (REBA-ES). Just a few months prior, several leading agents from the area had met to discuss the possibility and value of working towards a more professional real estate industry on the Eastern Seaboard. They approached Khun Paisan Bundityanond (Rabbit Resort) to ask if he would assist them in forming a local real estate group for the betterment of the profession. Original founder Khun Paisan, now REBA Eastern Seaboard’s honorary chairman and mentor, had extensive real estate experience in the United States and was the original founder of the Real Estate Brokers Association in Bangkok (REBA – Thailand). It was obvious to all from the beginning that joining the Government-supported national body REBA-Thailand was the best route for the real estate professionals throughout the area. So they decided to contact some of the more established agencies for a brainstorming session to see what might be of mutual interest and benefit to the area’s real estate professionals. REBA-ES’s first meeting was attended by 10 of the top local real estate companies and to everyone’s pleasant surprise all were more than eager to do their part in supporting each other as a local real estate service organisation. All were excited about the possibility of working together to make the Eastern Seaboard real estate industry more trustworthy and professional in the eyes of
Why REBA-ES was formed
clients and eight of those original companies went on to form, as charter members, the Real Estate Broker Association – Eastern Seaboard. Code of Ethics The association’s first task was to form a sub-committee to translate and analyse the Code of Ethics and Rules and Regulations of the national REBA body. These were considered to be good and very positive and the recommendation of the subcommittee was that the Eastern Seaboard group should abide by them in support of good real estate practices within the region. On the back of this it was decided that, to facilitate proper and organised real estate practices, REBA-ES would need to elevate the standards and knowledge of real estate agents and brokers
Clients of REBA-ES members can be confident that they are dealing with honest, reputable and properly trained real estate professionals
with proper education, testing and subsequent certification. Another sub-committee was formed with the aim of educating agency staff through scheduled seminars, training courses and examinations. Better training, though, was just part of the picture for an association whose goal was to act in an ethical and professional way. Resolving disputes The next step concerned resolving disputes and identifying and rectifying unacceptable real estate practices. The association needed a dispute resolution process that would be efficient, effective and offer assurance to members’ clients. So the group established a Professional Standards SubCommittee with its own dispute resolution board, which would allow members to successfully address most disputes and to help resolve the ones the business community would encounter. Since those early days a little more than six years ago the association has continued to campaign for improvements in the way the real estate industry conducts itself. Client confidence Client confidence is as important now as when the association was formed and acting in an ethical manner remains among REBAES’s top priorities. As the association says in its advertising ... clients of REBA-ES members can be confident that they are dealing with honest, reputable and properly trained real estate professionals. Because association members collaborate on many levels if individual members do not have what you seek it is likely that they know someone who does!
Receive a warm welcome at Bruno’s Restaurant & Lounge Bar Pattaya’s leading dining venue Bruno's Restaurant - the home of fine dining. Bruno's Restaurant has been a favourite among locals and holiday-makers since 1996. The recently refurbished Bruno's restaurant is now a modern contemporary design with a relaxing yet bright new interior. We offer a full international menu along with local Thai dishes to cater for all tastes. Our new walk-in wine cellar is the Piece de Reèsistance of Bruno's Restaurant and a real joy to experience. There is a vast range of wines to suit all pallets and all wallets, all carefully stored and kept to the correct temperature to ensure the wine is served perfectly every time. The Lounge Bar at Bruno's is a great place to meet friends and enjoy cocktails, spirits, beers and elegant bar food before dining. If you’re not dining then just relax in the lounge bar, which has free wi-fi for your convenience. Come to Bruno's and relax in our unique atmosphere while enjoying superb service and magnificent cuisine...
Open For Lunch: 12.00 - 2.30 PM Dinner: 6.00 PM ‘til late
306/63 Chateau Dale Plaza, Thappraya Road, Pattaya, Chonburi Thailand 20150 Tel: 038 364 600-1 Fax: 038 364 602 Mobile: 081 861 5612 E-mail: reservations@brunos-pattaya.com www.brunos-pattaya.com
projects update (1)
For more details please contact any REBA-ES member
If Paradise is half as nice
As you can see from the architect’s drawing alongside Paradise Ocean View from the Global Tower Group really does sit right on the beach. The project lies just off the Sukhumvit Road heading north out of Pattaya and is ideally situated for speedy access to Lam Chabang and the industrial parks outside the city. Also the Regent School is a short drive away. One-bedroom units are available between 48-63 sqm; two-bedrooms range from 70-115sqm. Pricing starts at Bt89,000 per sqm. There is a maximum of 48 units planned. Facilities planned for the development include a rooftop area offering 360-degree views, spa, gym and a sauna.
Vineyard III is up for award Vineyard III – La Résidence from Bravo Thai Developments is a finalist in the Thailand Property Awards due to be announced in November 2012. This achievement means that the company has had each of its projects honoured in the awards in each of the past three years. Some 18 parcels of land are available on the site which lies out near Lake Mabprachan but it is likely that some buyers will seek a double plot. Prices on The Vineyard III – La Résidence start at Bt9.9m going up to around Bt20m+. Much depends on the degree to which buyers wish to influence the design. Construction work is already under way.
Matrix in the city centre City Center Residence is the latest project launched by the prolific Matrix Group developer. The 668-unit development lies between Third Road and Soi Arunothai so really lives up to its name. It will be within walking distance of many of the city’s hotspots yet far enough away to offer a quiet location. Initially offering price in the project was an attractive Bt55,000 per sqm. The condos will comprise studios plus one- and two-bedroom units ranging in size from 24.43 sqm to 68.5 sqm. Construction is projected to start in March 2013 with completion expected two years later.
projects update (2)
For more details please contact any REBA-ES member
CGR proves a high-rise hit
Centara Grand Residence Pattaya is a landmark threetower project from the Tulip Group which will sit directly on the beach at Na-Jomtien on an 18 rai plot. The project is a mix of two condominium towers coupled with a Centara Grand Resort and Spa hotel. It will house 318 luxury residences, 250 hotel rooms and sit within 70 per cent of green space. Included in the designs are a massive swim-through shark tank and cave walk. CGR Pattaya will be sited on 150 metres of beach frontage. One of the residential towers will have 46 storeys, the other 39 and all units will be ocean facing. A multi-million baht showroom complex is available for your inspection.
GFV4 builds on past success There are very few houses left available in the Green Field Villas 4 project which lies close to the wat near the top of Soi Nern Plub Waan and that’s hardly surprising given the success of the company’s previous trio of projects. The houses are built to European standards with many extras included and the winning exterior formula of providing a good communal clubhouse with pool area and top landscaping is finding favour once more among those seeking to put down roots a little way outside the city. There are just 28 units in the village and prices they start round the Bt6.5m mark for a bungalow.
TRANSPARENCY • Issue 1
Serenity will live up to name With prices starting at less than Bt1m Nova Group’s Serenity Wongamat is bound to attract interest. It will be built on 375 sq/wah, rise to eight floors and comprise 153 units. Some units on the upper floors will enjoy sea views and all residents will be able to look out to sea from the roof area which will be home to a 18m x 7m swimming pool. Other amenities include a koi pond and garden plus a fitness centre. Serenity will have studios and one- and twobedroom units and all will come with a furniture package included in the price. Unit sizes range from 21.49sqm to 24.51sqm.
global market overview
www.rebaes.com
Global downturn still here house price change (inflation-adjusted) country Brazil – Sao Paulo
YEAR-ON-YEAR q2 2011
q2 2012
q-O-q (%) q2 2012
19.50 15.56 2.38
Norway 5.93 6.26 2.98 India – Delhi
22.70 6.23 -1.09
Germany
-0.65 5.24 -2.02
Switzerland 2.19 4.86 -0.54 Canada 0.47 4.06 1.59 Hong Kong
20.64 3.01 6.85
Estonia 5.11 2.83 -0.41 Turkey 0.55 2.57 1.03 Latvia – Riga
-0.09 2.50 0.46
New Zealand
-3.98 2.41 2.09
Iceland 0.60 1.72 0.13 US (FHFA)
-8.76 1.12 0.96
Taiwan – Greater Taipei
11.87
-0.74 -0.82
US (S&P/Case-Shiller)
-8.57
-0.74 1.41
Indonesia
-1.29
-0.78 0.65
Israel Russia Japan – Tokyo
-1.52 1.44
-8.01
6.81
-2.08 -1.88
0.18
-2.18 -2.37
Finland
-0.35 -2.22 0.00
Romania
-4.90
-2.71 0.66 -2.85 2.45
Puerto Rico
-2.62
Lithuania – Vilnius
-0.92 -3.07 -1.73
Australia – 8 cities
-6.05
-3.20 -0.01
Singapore 5.27 -3.28 -0.77 UK (nationwide)
-5.30
-3.42 0.89
China – Shanghai
-4.84
-3.44 0.24
Thailand
-1.08 -3.59 -3.03
Bulgaria
-3.87 0.17
South Africa
-3.99
-3.95 1.10
Sweden
-1.53
-4.18 0.46
Slovak Republic
-6.49
-5.61 -1.34
Cyprus
-5.49 -7.68 -3.94
Poland – Warsaw
-5.41 -8.19 -0.86
Netherlands
-2.88 -10.12 -1.83
Portugal
-5.67 -10.95 -1.68
Greece
-8.53 -11.92 -4.15
Spain Ireland TRANSPARENCY • Issue 1
-10.65
-8.80 -13.18 -6.02 -14.84 -16.85 -2.91
= more than 1 percentage point increase in house price change = less than 1 percentage point increase in house price change = more than 1 percentage point decrease in house price change compared to same period of last year = less than 1 percentage point decrease in house price change compared to same period of last year
There is no end to the global housing market downturn is in sight, except probably in the US, according to a survey of global house price trends by the Global Property Guide. Asia is weakening, and house price falls in the worst-hit European crisis countries are dramatically accelerating. Good news: The US housing market seems to be recovering. The Federal Housing Finance Agency’s (FHFA) seasonally adjusted purchase-only house price index in the US rose 1.12 per cent year-onyear in Q2 2012, in sharp contrast with the 8.76 per cent decline during the same period last year. On the other hand, the S&P/Case-Shiller seasonally-adjusted home price index fell by 0.74 per cent, but this was the lowest annual decline since Q3 2010. Bad news: Europe is sinking deeper. There were alarming pricefalls year-on-year in Q2 2012 in Ireland, Spain, Greece, Portugal and the Netherlands (each down more than 10 per cent after inflation). Poland and Cyprus seem also to be slipping into the abyss. In the worst-affected European countries, house price declines were significantly greater this year, than during the same period last year. House prices fell in 15 of the 22 European countries for which house price data is available. Momentum: Twenty housing markets performed more poorly year-on-year in Q2 2012 than in the same period last year, while 19 countries performed better, again in inflation-adjusted terms. Conclusion: Of the 39 countries for which quarterly house price figures are available, house prices fell in 25 countries, rose in only 13, while one country (the US) posted mixed signals during the year ending in the second quarter of 2012. Inflation-adjustment: The Global Property Guide’s statistical presentation uses price changes after inflation, giving a more realistic picture they claim.
Nominal figures can be misleading, as suggested by the fact that year-on-year in Q2, nominal house prices rose in more countries (21 countries) than fell (18 countries). Looing specifically at Asia the guide findings suggest that housing markets are heading down as Asian countries are now feeling the pinch of the global economic downturn. In Singapore, house prices dropped 3.28 per cent year-on-year in Q2 2012, and by 0.77 per cent during the latest quarter, after a 5.27 per cent increase during the same period last year. The turnaround was due to government housing market curbs, exacerbated by the worldwide economic downturn. Thai figure down 3.59% In Thailand, the housing price index for single-detached house including land fell 3.59 per cent during the year to Q2 2012. In Shanghai, China, the second-hand housing price index declined by 3.44 per cent yearon-year in Q2 2012, according to Ehomeday. In Tokyo, Japan, house prices fell 2.18 per cent year-onyear in Q2 2012, in contrast to the 0.18 per cent rise year-on-year in Q2 2011. Likewise, house prices in Taiwan dropped 0.74 per cent yearon-year in Q2 2012, in contrast with the 11.87 per cent rise the previous year. In Indonesia, the residential property price index dropped 0.78 per cent year-on-year in Q2. In Hong Kong, house prices rose by 3.01 per cent year-on-year in Q2 2012, but this was a sharp slowdown from the 20.64 per cent annual increase during the same period last year. Housing prices in India rose 6.23 per cent year-on-year in Q2 2012. This was also a sharp slowdown from the 22.7 per cent annual rise during the same period last year. Housing prices fell 1.09 per cent during the latest quarter. The slowdown in the Indian housing market is partly due to its slowing economy.
special feature
TRANSPARENCY • Issue 1
Always there for you
Let’s be frank and admit to ourselves that one of the cornerstones of modern living is about getting the best possible quality for the lowest possible price. Maybe it has always been that way. Sometimes we struggle to look beyond the bottom line. But this is short-term thinking and, when talking about a major outlay such as buying a property, it is entirely possible to be penny wise and pound foolish (make that setang wise and baht foolish). How so? Well, look at three of the possible options when buying a property: You can go direct to the developer; buy at a mall booth or consult a broker. Let’s take each in turn... Direct to the developer: Any developer can only sell you what he has on his books. Off course the bigger the developer is, the wider his choice is likely to be and the chances of you finding what you want are greatly improved. But I don’t know any developer who will recommend you to a competitor down the road who is building exactly what you want. It simply isn’t going to happen – and why should it? It just doesn’t make good commercial sense. Another potential benefit of going direct is the possibility of negotiating a lower price. If a developer does not need to pay commission to an agent or broker there may be some “wriggle room” on price. But will they always offer the best price? Read on ...
In today’s market many avenues are open to buyers of new build. Among them: they can deal with the developer direct; they can buy from a mall booth or they can consult a broker. As with most things in life each has its pros and cons ...
Mall booths: These have grown more and more popular in recent years. Malls extract a top price for their floor space so the overhead for any booth is high. They need to turn over plenty of units to make a profit so at the outset they bid to negotiate the best possible commission structure and they may even secure some of the costs towards the setup, running and materials for the booth from the developers to allow them to be price competitive. Limited choice For easy maths let’s say a booth operator can negotiate a 8-10 per cent commission from the developer. Not all developers will agree to this so the choice for clients is likely to be limited to developers prepared to offer the greatest commission. To seal a deal a booth has quite a few per cent to work with when deciding where to pitch the price. This manifests itself either by offering “cashback” out of his commission or lowering the price. The mall booth ends up with four or five per cent of the deal – maybe less if the volume of units bought is high – and everyone is happy. Or are they? I have known a few instances where buyers have negotiated a best price with the developer directly only to visit a mall later and find they can get exactly the same unit for an even lower price from a booth. A daft situation for all parties and one that I know several developers are looking to address.
Consult a broker: In a supplement dedicated to an association of real estate brokers you would expect this option to emerge as “the winner”. And yes, that is the aim of this article. But let’s look with as much non-partizanship as I can muster. Impartial advice The first big plus a buyer has to consider is the impartiality of advice you are likely to be given. Certainly a broker wants to make a sale and earn a commission but they are not tied to a limited number of developments or projects to achieve it. A developer will only sell his products; a mall booth is likely to favour those that offer the best commissions to him. But a broker is free to call upon his knowledge of the market overall and, after listening to your requirements, make his recommendations. So, with a broker, you are likely to gain the bigger independent picture. We care about ... A spokesman for REBA-ES told me: “Every association member has put down roots in the city and our longterm futures are here; our families and homes are here. We care about the city; we care about providing correct information, we care about offering the best advice, and are the aim is that to ‘always offer the best possible options and deal to match the buyers’ requirements’. We thrive on customer satisfaction.” Of course, once someone buys into a project their property becomes,
www.rebaes.com
in effect, second hand which is where the broker really comes into his own. “Would a developer or mall booth operator sell or rent your property? Very unlikely! However, entering into a relationship with a fully qualified broker who has an established office and can offer a full range of before and after services, has to be the best option,” added the spokesman.
We do our due diligence Many potential property buyers (before they decide to buy) contact established real estate brokers to obtain information such as where to and where not to buy, do’s and don’ts, pros and cons and the like, before going to either mall booth or direct to a developer. Why is this? “This is simply because the buyer client is, or has not been, able to obtain required vital information required from a mall booth (which can be manned with in experienced staff), or a developer,” said the spokesman. “There are many potential pitfalls to buying property in Pattaya, and it is important to ask and seek the answers to a range of important
questions…such as: “Who is the registered land owner? Is the land title deed free of debt? Has the EIA and building permit been issued? What is the registered capital of the development company? Is financing required or secured? Does the developer have a proven track record?” Broker network A major plus of an association member broker is the unrivalled, established network and working partnership within member companies. REBAES members meet monthly, share market information and we have access to probably the biggest property listing database in the country. We are in a position to consult with other members to source and offer the right properties to match our clients requirements.” REBA-ES puts a lot of store in on-going training and several member companies boast a range of qualifications. But there is little regulation of what it takes to be a broker here unlike, say, in America. “We would definitely like to see this change,” said the spokesman. “We would like to see brokers licensed. That would be a big step towards improving brokerage standards in Pattaya. “REBA-ES members don’t claim to have a monopoly on dealing in a fair and ethical fashion. But these qualities are certainly among our great strengths.” Dave Buckley
A good agent ... l Will have the dependability that stems from basing their business in an established office. l Will not just sell to you but be there to help you through the legal processes of completing the purchase. l Will help you rent the property out if it has been bought for investment purposes. l Will aid you to sell the property further down to line and be familiar with it. l Wants an ongoing relationship with you and will still be around to help with future purchases or sales. In short, always there for you!
TRANSPARENCY • Issue 1
Good experience “Our members want our clients to experience a high level, professional service. All of us have been around long enough to remember the bad old days, and even today we still hear of folk who have received incorrect advice and had terrible property buying experiences. “Post the Asian financial crash of 1997 buying off-plan was considered a no-go area. We have dedicated ourselves to improve the total real estate experience and restore confidence in the business. We believe we have played a big part in a turnaround in thinking, even more so since the association was established six-plus years ago. “When consulting a REBA-ES member our clients can be assured that we have a proven track record and established standard business practices. All the principals of our member companies have gained years of valuable experience (either with our own companies or in past employment) with the longest established and recognised real estate companies in Pattaya.
“We can assist and recommend in the vast amount of related after-care services, including lawyers, insurance services, financial advisers, visas, building contractors, decorators, maintenance services and the like. “My point is we are not just about selling you a condo or a house then walking away. Many clients become personal friends and, by giving them a great service, we have found that they will not only stay with loyal to us for the long term, but also, very importantly, recommend our companies and services to friends, family and acquaintances. “It is highly unlikely you can obtain most of these services and build up personal relationships from mall booths and developers.”
pattaya property outlook 2012-13
What’s hot and what’s
TRANSPARENCY • Issue 1
In August REBA-ES co-hosted a leading edge seminar with AREA (the Agency for Real Estate Affairs) in Pattaya. The target audience was property professionals and investors keen to gain an insight into the market. Head of AREA, Dr Sopon Pornchokchai presented the findings.
Dr Sopon Pornchokchai, PhD, D.FIABCI, CRS MRICS, President, Agency for Real Estate Affairs.
F
indings in a recent survey conducted by the Agency for Real Estate Affairs suggest that the outlook is bright for Pattaya’s property market – provided the developers continue to pitch their offerings correctly both in terms of quality and price. The figures were unveiled at an afternoon seminar held at the Eastern Grand Palace Hotel. In an upbeat and entertaining presentation Dr Sopon Pornchokchai of the much-respected Agency for Real Estate Affairs (AREA) research company gave a balanced view of the market in the city and other parts of the Eastern Seaboard to the 100+ members of the audience.
The findings presented were based on how the market would perform if no new projects were introduced. While that, of course, is not going to happen, the figures, nevertheless, gave a valuable insight into how condos, houses, townhouses and shophouses are currently performing. Long and the short For example, the findings suggested that if nothing new were added to the mix it would take just 2.8 months for all the property in the Bt1m-Bt2m price range to sell. But, at the other end of the price scale, properties offered at more than Bt20m would take 43.4 months to clear.
Perhaps unusually, properties priced at less that Bt1m would take four months to sell out – a little longer than those at the slightly higher price. Dr Sopon said: “Very expensive properties are not in good shape. In the past, maybe, now – no.” He said this was particularly bad news for property in areas like Phuket where high priced properties are selling very slowly. He added: “Too expensive or too cheap, the picture is not good.” Dr Sopon pointed out that in the first six months of this year a staggering 87 per of the new launches were condos, while the launches of new townhouse developments had almost dried
REAL ESTATE PROJECTS IN PATTAYA OFFERED FOR SALE AS OF JULY 2012 – BY type Source: AREA Units sold Period Type Number Total Average Percentage of Number of units Sold Left Value average / to go in of Total Sold Left value unit price Units Bt(m) month months projects Bt(m) OVERALL 10.0 1.6 17% 37% 63% 13% 2,280 28,789 4.613 3,961 6,241 76 14.8 2.1 2% 38% 62% 3% 2.354 3,246 527 852 1,379 17 Detached house 17.3 2.8 1% 49% 51% 3% 1.422 2,146 734 775 1,509 15 Semi-detached house 2.5 3.2 1% 21% 79% 1% 3.432 2,220 139 508 647 17 Townhouse 3.7 25.6 79% 33% 57% 80% 39,244 26,469 12,775 137,340 3.500 136 Shophouse Agency for Real Estate Affairs (AREA) is ISO 9001-2008 certified
in association with area (agency for real estate affairs)
not in property market
up in the same period. Of the 151 launches to the west of Sukhumvit (the beachside) 98 per cent were condos. Less that 1,000 condo units were introduced to the market to the east of Sukhumvit. Dr Sopon also joked about the trend towards smaller units saying: “If you stay alone, it can still feel very crowded.” He also touched upon subjects such as escrow accounts and the confidence they would give to investors; how he expected Bangkok and Pattaya and the area in between to merge into a giant metropolis; and the impact that flooding in Bangkok had had on the Pattaya market. Dr Sopon also addressed the
topic of infrastructure saying that an Expressway to the airport and the introduction of a skytrain are among major developments needed for Pattaya. Question time An open forum followed the survey presentation and Dr Sopon was joined on stage by leading property figures (see caption panel, left), who each gave a short presentation before taking questions from the floor. Miki Haim, the MD of Matrix Development, said that he felt “prices must go up because it is so full at the lower end of the market”. He also spoke about his belief in agents and the importance he placed on supporting them.
I asked the members of the panel if they felt that the 49 per cent limit on foreign ownership in condominiums might be raised. Nigel Cornick, CEO of Kingdom Property said he felt that raising the limit would definitely be a good thing that would ease uncertainty in the resales market. He said: “I think such a move would be in the best interests of everyone and I see no reason why it shouldn’t happen.” On this point Mark Welch of One Stop Real Estate added a note of caution, saying that if the foreign quota were raised the investor might lose out as it spell an end to units being made available at a lower price as part of the Thai quota. Dave Buckley
REAL ESTATE PROJECTS IN PATTAYA OFFERED FOR SALE AS OF JULY 2012 – BY PRICE Source: AREA Units sold Period Total Average Total Price Number Number of units Percentage of Sold Left Value average / to go in of Total Sold Left value average unit price Units range month months Bt(m) / month Bt(m) Bt(m) projects OVERALL 4.0 16.7 1% 45% 55% 5% 0.974 251 2,187 1,017 0.5-1 1,227 2,244 15 2.8 21.6 16% 29% 71% 37% 1.526 1.001-2 18,094 12,766 5,328 27,604 1,880 87 4.4 10.2 19% 35% 65% 28% 2.492 4,731 33,751 1,077 2.001-3 13,544 8,813 106 10.3 2.5 18% 36% 64% 15% 3.920 277 2,839 31,187 3.001-5 5,117 7,956 110 7.9 2.3 20% 32% 58% 10% 7.057 195 1,539 34,000 5.001-10 3,279 4,818 86 15.2 0.8 13% 39% 51% 3% 13.905 42 22,568 631 10.001-20 992 1,623 50 43.4 0.4 13% 50% 50% 2% 30.291 9 22,445 370 20.001+ 371 741 20
TRANSPARENCY • Issue 1
The panel of speakers at the Property Outlook 2012-13 seminar at the Eastern Grand Palace Hotel comprised (from left): Mark Welch, MD of One Stop Real Estate and REBA-ES board member; Nigel Cornick, chief executive officer of Kingdom Property; Miki Haim, managing director of Matrix Development; Khun Nuntiya Thonyingsakul from the Land Office and Dr Sopon Pornchokchai, AREA president. Facing: The event was well attended with more than 100 guests leaving few spare seats.
in the news
www.rebaes.com
Free Public WiFi is planned True Internet, the broadband arm of True Corporation, is embarking on a three-year, Bt100m project to build a free public WiFi network in Pattaya, according to a report in the Bangkok Post. The company’s wireless network will cover 80 per cent of the city in the first year and 100 per cent by 2015. Mayor Itthiphol Khunplome said the free citywide public service will boost tourist numbers by 7-10 per cent from the current annual average of 5.5 million. At present, 1.4 million people use public WiFi, both pay and free, due to the proliferation of smartphones and tablets. Pattaya has signed a three-
year agreement with True Corporation for the public WiFi project, with an option for renewal every three years. Previously, CAT Telecom built a fibre-optic network for Pattaya, while TOT now provides WiFi along the city's beaches at a speed of 256 kbps. “This collaboration will serve the needs of tourists and residents alike, both Thais and expats,” said Mr Itthipol. Some 70 per cent of Pattaya’s 5.5 million tourists are foreign travellers staying three days and two nights and using 30 minutes of internet at a time, he added. Non Ingkutanon, True Corporation’s general manager
l Pattaya is on track to accommodate a record 8m hotel guests this year, the highest-ever for a Thai resort says a report.
for wireline broadband service, said Pattaya will be the first city upcountry for which True will provide a public WiFi service at a speed of 2 Mbps. “We’ll also roll out public WiFi service in other cities soon,” he said. True has one million WiFi subscribers, giving it a 60 per cent share of the market, he added. Charoen Limkangwanmongkol, the chief commercial officer at True Online, said the company performed a Bt1bn expansion of its broadband network in Chonburi province this year. The company expects to break even by 2017, he said.
Giant water parks on the way Four projects in the tourism sector worth Bt2.23bn that received Board of Investment (BoI) privileges are poised to open this year and next, according to the Bangkok Post. The first is a Hong Kong investment of Bt550m by the Kidzania Group, the world's fastest-growing edutainment brand, to set up Kidzania this December at Siam Paragon. Kidzania is a role-playing activity where children aged 4-12 can try out different adult occupations. The project is a Bt900m ThaiRussian joint venture to set up Ramayana water park in the Sattahip district slated for next year. The third is a Bt620m project by Pacific Shore Development to set up Amazon Falls Water Park. This joint venture between Hong Kong and Malaysia will be in Pattaya and is slated to open next year. The last is a Bt162m project by Siam World Art Co to set up a cultural centre with investment from South Korea. The centre will be located in Pattaya exhibiting sculpture, paintings and ThaiKorean culture. BoI secretary-general Atchaka
Sibunruang said the board expects higher investment in the tourism sector, especially theme parks that will enable Thailand to compete with Hong Kong's Disneyland, Singapore's Universal Studios and Malaysia's theme parks. Amazon Falls will be the first water park in the world to use cartoon presenters. The Ramayana is billed as the largest water park in Asia Pacific. Once these two open, they should attract investment in other areas, she added. From 2007-12, a total of 23 projects applied for investment promotion in the tourism sector,
Promotional picture for Ramayana water park. Dr Atchaka.
totalling Bt3.48bn. Three projects totalling Bt1.47 billion baht were for theme parks, four projects totalling Bt707m were cultural centres, 12 projects worth Bt417m were hiring boats for tourism, and three projects totalling Bt215m baht were tourist boat parking areas. Dr Atchaka said the BoI is revising its promotion policies. The tourism sector will still be given a prominent place, but some adjustments might be made in terms of providing incentives for projects the government prioritises, such as theme parks and water parks. Up until now no globalscale theme park producers such as Disney or Universal have shown interest in investing in Thailand, said Dr Atchaka. Malaysia and Singapore provide many incentives to attract tourism projects, such as racing arenas, she said. In the past the BoI provided incentives for a variety of tourism businesses, such as racing arenas, open zoos and electric hoists, but have not received any interest from business operators, said Dr Atchaka.
313/27 M.10, South Pattaya Rd. Chonburi 20150 Tel: 038 415 490 - Fax: 038 414 693
Siam Properties is one of the oldest real estate companies in Pattaya, our history reaches back as far as 1995. We operate two offices, our staff come from 6 different countries and we speak 5 languages. Siam Properties represents ALL MAJOR NEW PROJECTS, we have been working with the premium developers for many years. If your favourite project is already sold out contact us – we might have a RE-SALE of exactly the same unit you desire. In our huge database we have condos and houses of the SECONDARY MARKET in all locations and price ranges in Pattaya. No matter if you buy off-plan, new or on the secondary market, we will accompany you through the whole process (contracts, payments, documents, etc). We also have great AFTER-SALES SERVICE (decoration, extensions of the building, renting out etc). As members of the Real Estate Broker Association - Eastern Seaboard we are bound by Rules and Regulations to guarantee fairness and transparency for our customers. If you want an experienced, honest, fair agent with huge knowledge of the property market, Siam Properties is the right choice for you. Our service is absolutely FREE for buyers, so feel free to pick up the phone and call our Hot Line (Eng/Thai)
089 499 10 00
Heiner (Eng/German)
081 861 19 07
Vera (Eng/Rus)
089 245 28 90
Alex (Eng/Rus)
089 939 98 21
Do you have a house or condo for sale/rent? Please call us and let us do it for you!
www.siamproperties.net
info@siamproperties.net
Contact us to find the best properties for sale and rent at the best prices You will be sure to receive INDEPENDENT, IMPARTIAL and HELPFUL advice Make the next move, be the right move with
RIGHTMOVE PATTAYA 369/1 Moo 9 Units 8 & 9 PS Bowl (TOPS Supermarket) Pattaya 2nd Road Central Pattaya
who’s who in reba-es
NT Realty Asia 215/15-18 Second Road T: +66 (0)38 426 242 or (0)38 425 836 F: +66 (0)38 426 243 E: info@nt-realty.com W: realestatethailand.com Philippines office: 11 Malabanias Road, Angeles City, Pampagna 2009 T: +63 (0) 45 892 5719 Principals: Tim Bunker, Peter Randall (directors) and Paul Sutton (regional manager) Memberships: REBA (Thailand), REBA-ES, RETS (Thailand), NAR About: NT Realty Asia are the longest established real estate agent in Pattaya. For more than 28 years – first as Northern Thai and now as NT Realty Asia – we have been offering the very best condos for sale and for rent, as well as a variety of houses for sale and for rent in the city. The change of name better reflects our mission to be a pan-Asian company. We are proud to be founder charter members of the Real Estate Broker Association – Eastern Seaboard.
One Stop Real Estate Co Ltd 219/14 Moo 9, Soi Yamato, Soi 13/1 Pattaya Beach Road T: +66 (0)38 710 699 and (0)38 710 725 M: +66 (0)819 454 845 (Mark Welch) E: info@1stop-pattaya.com W: real-estate-thailand.com Principal: Mark Welch Memberships: REBA-ES, REBA (Thailand), NAR, CRS, RETS (Thailand) About: Founded in September 2001, One Stop provides a complete package of real estate and related services. As one of the city’s older, well-established real estate companies, we have gained an unrivalled and valuable reputation for honesty and integrity. Add this to our vast knowledge and experience and our clients can always be assured of receiving a high level of professional service. Our comprehensive listings include the most fantastic villas and condos available, all of which can be viewed on our user-friendly website.
Pattaya Realty 219/1 Tipp Plaza, 2nd Road T: +66 (0)38 412 301-2 M: +66 (0)89 833 6175 or (0)89 832 7226 E: info@pattayarealty.com W: pattayarealty.com Principal: Stuart Daly Memberships: CIPS, REBA (Thailand), REBA-ES, RETS (Thailand), NAR About: Pattaya Realty have been providing real estate consultancy services to local and international clientele since 2001. Our services include: Property Sales, Rentals (short and long Term), Property Management Services. Consultation, free valuations, new building projects, off-plan development purchases, development land sourcing and acquisition, corporate personal relocation, business and commercial premises procurement, construction/maintenance services. Home seekers, home sellers and property investors will all benefit from our knowledge and expertise.
ACI Enterprise Co Ltd ACI Ocean Properties 672/20 M5 Soi 18, Naklua Road, Wongamat Beach T: +66 (0)38 41 6060 M: +66 (0)81 762 2627 E: info@aci-enterprise.com W: aci-enterprise.com and pattayaoceanproperties.com Principal: Markus Probst Memberships: CRS, NAR, REBA (Thailand), REBA-ES, RETS (Thailand) About: Since 2003 we have the pleasure of providing our customers with professional property sales & rental and high-end design & construction services. Interested in sea view properties and looking for the best deals in town? ACI can present a comprehensive database for you, combined with sound investment advice to ensure you have all information for the right decision. If you are looking for a high quality builder for modern design, remodelling and renovation, call Markus at 081-762-2010 and get inspired at www.aci-enterprise.com. We look forward to be of service to you.
TRANSPARENCY • Issue 1
glossary of the trade organisations and accreditations The following are among the trade organisation memberships or qualifications held by some of the agents. Note that, in some instances, the qualification is with the individual employee – not the company overall.
Certified International Property Specialist – this is a members-only group which is for international practitioners of the National Association of REALTORS®.
CRS: Certified Residential Specialist (CRS) is the top professional designation awarded to REALTORS® in residential sales. Held by fewer than five per cent of all REALTORS®.
NAR: National Association of Realtors members can call themselves REALTORS®. NAR also functions as a self-regulatory organisation for real estate brokerage.
www.rebaes.com
Town & Country Property Co Ltd 63/10-11 Pattaya Tai Road, M10, Nongprue, Banglamung Pattaya City, Chonburi 20150 T: +66 (0)38 37 4136 F: +66 (0)38 37 4137 For any urgent matters after office hours: +66 (0)86 666 7238 E: info@towncountryproperty. com W: towncountryproperty.com Principal: Cees Cuijpers Memberships: CRS, REBA-ES, NAR About: Town & Country Property is one of Pattaya’s most respected real estate professionals. We specialise and focus on the Eastern Seaboard of Thailand (mainly Pattaya City and its suburbs). At Town & Country Property a dedicated team of real estate professionals provide high quality and value-added services to international and domestic buyers and sellers. We are not only a reputable agent but we have a strong arm in developments as well. Trust us: We know what it takes to cater to individual needs and requirements.
REBA (Thailand): This is the nationwide Real Estate Broker Association with affiliation to the international Council of Residential Specialists. REBA-ES is an affiliate of REBA (Thailand).
REBA-ES: The Real Estate Broker Association for the Eastern Seaboard are the main sponsors of this supplement. Members agree to abide by a code of ethics.
Five Star Villas & Condos Main office: Ground Floor Office, Tara Court Condominium 338/109 Pratumnak Road M: +66 (0)8 1938 8391 (English) or +66 (0)8 0091 6667 (Thai) E: robert@ fivestarvillasandcondos.com W: fivestarvillasandcondos.com Principals: Robert Watson and Mesiya (May) Watson Memberships: REBA-ES, REBA (Thailand), TREBS, RETS (Thailand), NAR, CRS About: Five Star Villas & Condos are one of the most qualified and experienced brokers in Pattaya. All Thai staff have graduated from the Real Estate School (Thailand) and English staff have undergone intensive training in valuation and hold the elite CRS designation as well as being a member of NAR. While also advising on – and selling – off-plan condos, Five Star see their main market as the resale of houses, pool villas and condos and continually work towards their mantra: “Exceeding our customer’s expectations”.
Benchmark Asia Property Co Ltd 315/309 M12, Thepprasit Road T: +66 (0)38 304 133 M: +66 (0)81 792 9486 E: info@benchmarkthailand. com W: benchmarkthailand.com Principal: Gareth De Silva Memberships: CRS, REBA (Thailand), REBA-ES, RETS (Thailand), NAR About: Benchmark has clearly established a reputation as a leading real estate company in Pattaya and the Eastern Seaboard. We offer resiential and commercial real estate services; construction and renovation services; property management; investment consultancy; project management and marketing and land sales. We have been nominated for awards in the category of “Best Real Estate Agent in Thailand”. Choose Benchmark for integrity, trust, professionalism and, most importantly, for their well known friendly approach. Choose the best, choose Benchmark.
RETS (Thailand): Real Estate Training School (Thailand) – brokers seeking membership of REBA must have staff attend and pass their test.
TREBS: The Thailand Real Estate Broker School provides training for real estate professionals. The course includes real estate-related laws, broker law, broker ethics etc.
TRANSPARENCY • Issue 1
Siam Properties Pattaya Co Ltd Head office: 313/27 Moo 10, South Pattaya Road near Third Road T: +66 (0)38 415 490 F: +66 (0)38 414 693 E: info@siamproperties.net W: siamproperties.net Principals: Heiner and Porn Moessing Branch: Siam Properties Jomtien, Soi Welcome Jomtien 1 T: Mrs Dina 082 081 11 98 T: Mrs Qxana 082 065 55 68 E: jomtien@siamproperties.net Memberships: CRS, NAR, REBA (Thailand), REBA-ES About: Siam Properties was founded in 2001, but Heiner Moessing’s history in building and selling properties in Pattaya dates to 1995. Our staff come from six countries, we speak six languages. We have many interesting listings of pre-owned properties as well as all new projects. As a specialist for short- and longterm rentals we also take care of your investment properties and we offer a very good Italian coffee in our office!
who’s who in reba-es
www.rebaes.com
Property Consultants
Global Property Global Solidor Enterprise Co Ltd North Pattaya – 157/142 Moo 5, Naklua Road T: +66 (0)38 427 364 M: +66 (0)82 469 5551 or +66 (0)81 838 1390 E: info@global-solidor.com W: global-solidor.com Principal: Rainer Heinzmann Memberships: CRS, REBA (Thailand), REBA-ES, NAR About: Global Property has been a trusted partner with excellent service since 1986. With its vast experience and competent experts, Global Property offers you comprehensive advice with regard to all real estate matters. We have an extensive real estate portfolio all across Pattaya. If you are interested in buying, selling or renting a condo or a house, we provide all support you need. Our office is located in North Pattaya close to the dolphin roundabout on Naklua Road, next to our co-operation partners The German-Thai Group and ADIDAS and PUMA.
Alan Bolton Property Consultants The Avenue Pattaya, Unit C102, 399/9 Moo 10, Pattaya Second Road, Chonburi 20150 Thailand T: +66 (0)38 416 728-9 F: +66 (0)38 416 730 E: info@pattaya-property.net W: pattaya-property.net Principal: Alan Bolton Memberships: REBA (Thailand), REBA-ES, RETS (Thailand), TREBS About: Alan Bolton’s vision is one of providing a professional service with an emphasis on customer service, focusing on the individual needs of each client, with the objective of ensuring that every customer’s experience of buying, selling and renting will be remembered as a positive one.
Rightmove Pattaya 369/1 M9, Units 8&9 2nd Road, PS Bowl (TOPS supermarket) T & F: +66 (0)38 361 212 M: +66 (0)89 253 5607 E: info@rightmovepattaya.com W: rightmovepattaya.com Principal: Craig Turner Memberships: REBA (Thailand), REBA-ES, RETS (Thailand) About: Managing director, Craig Turner is a 40-year-old British national who has a wealth of knowledge and experience in the Pattaya real estate market. At Rightmove Pattaya, we specialise in providing professional and impartial advice on all aspects of the process of buying and renting property in Pattaya, Jomtien and the surrounding areas. We market new developments, re-sale properties and also land. Our team strikes a perfect balance of local knowledge and indepth real estate experience. They have a wealth of training in customer services and are committed to achieving the best possible results.
Arise Asia Co Ltd View Talay 5 Building C, 477/25 Thappraya Road Second Office: Pratumnak Hill Soi 6, No 415 T: +66 (0)38 075 610 M: +66 (0)85 228 8911 (Thanya) or (0)89 555 7177 (office) E: info@ariseasia.com W: ariseasia.com Principal: Thanyamai Totharong (Thanya) Memberships: CRS, NAR, REBA (Thailand), REBA-ES, RETS (Thailand) About: Arise Asia dedicates itself to the satisfaction of its customers through top of the line service. Our team is enthusiastic, and works tirelessly to get you the best results. Since 2004 we have been striving to help customers discover the benefits of living in Pattaya. If you are looking for property, whether seafront, residential or condos, we will find it for you. If you are looking for leased buildings or a business, we will work with you to get the results you need.
mydestination.com/pattaya TRANSPARENCY • Issue 1
Locally informed, Globally inspired Promoting the city like no other website can If your business not listed, correct that today Email david.Cradduck@mydestination.com or ring 084-562-7071
What You really want!
Fine Furniture Products Custom Kitchens Built in Furniture Home Office Bedrooms Living Rooms Carpets Interior Design Lighting Complete Renovation Developer Supplies
Visit our New Showroom on Sukhumvit
www.euro-design-furniture.com
YAL C
LIFF
pattaya
park
TO R O
soi