Thai Property Guide 2014 by Thai-Swedish Chamber of Commerce

Thai Property Guide

2014

About Thai Property Guide Five years ago TSCC took the initiative to inform and educate potential property buyers by publishing ‘The best practices’, a guideline for potential property buyers. This was followed by a new updated publication two years ago named ‘Thai Property Guide’ which was distributed in 3000 prints in Thailand and Scandinavia. Once more we publish a Thai Property Guide, this time in cooperation with EABC. We firmly believe that potential buyers are in need of an update. This time we have broadened the target group to include also other European countries that have an interest in buying a property in Thailand. Why a European Guide? We believe that not only Scandinavians but also other countries especially in the northern part of Europe have an interest in this guide. And as we see an integration of AEC towards an inner market 2015 we are also now in the middle of FTA negotiations between Thailand and EU, both of which will have an impact on Europeans interest in buying a property in Thailand. We see many European tourists coming to Thailand every year and the numbers are increasing. Many of them also gain interest to search for a second home away from home. They intend to stay here for several months sometimes longer in particular during the European winter. Some of them are retired or plan to retire in Thailand. Buying property in Thailand is however not easy and can have consequences in many ways, some of which may not be pleasant. The new Thai Property Guide is a continuation and extension of our previous work. The guide contains all different kinds of relevant facts and advice that the potential buyer is looking for. We have also added some examples from buyer’s experiences. Another part that is extended is a section with Useful Information about how to live in Thailand and what kinds of services are available to make life here comfortable for the whole family. The purpose is to give the potential buyers ‘turn-key’ information on investing in property and living in Thailand. Through the extensive work in producing the ‘The best practices’ and ‘Thai Property Guide’ we have gained a lot of knowledge and experience in the area and we are now very happy to share this with our European partners. We hope it will be of good use for anyone interested in buying a Property in Thailand.

Published with the support of:

Thai Property Guide 2014

Thai Property Guide

2014

About The European ASEAN Business Centre in Thailand (EABC) The European ASEAN Business Centre in Thailand (EABC) is a newly established platform representing the interests of the European business community in Thailand. Our main objective is to contribute to the improvement of the trade and investment climate for European companies in Thailand and to increase trade, investment and the establishment of European companies and businesses in Thailand. Through its constructive engagement with the Thai authorities and counterparts, EABC strives to work towards achieving a greatly strengthened Thai economy with sustainable competitiveness. EABC supports trade advocacy by playing an important role as an independent voice of European business vis-Ă -vis Thai authorities. It also acts as a focal point for market information for European companies both in Thailand and Europe, facilitating their market access.

Who we are EABC was established as a consortium with sixteen business organisations and chambers of commerce, both in Thailand and Europe , with a combined membership base of EABC and our Consortium partners of approximately 2,000 companies in Thailand. EABC is part of a strategy of the European Union to support the internationalisation of European SMEs and other European enterprises by enhancing market access; in particular to emerging and fast growing markets such as Thailand and the other members of ASEAN. With strong support from the European Union, as well as our partners, and extensive networks both in Thailand and Europe, EABC serves as the platform for business to interact with authorities and counterparts in Thailand in order to improve European trade and investment into Thailand, and to promote Thailand and ASEAN as potential markets for European companies. EABC provides a unified voice for European businesses in Thailand. Nine Advocacy Working Groups are actively functioning to facilitate constructive dialogue among interested European businesses. These economy-wide as well as sectorial Advocacy Working Groups are: Automotive, Energy and Energy Efficiency, Food & Beverages, Healthcare & Pharmaceutical, Cross Sectoral Issues, Information & Communication Technology (ICT), Intellectual Property Rights (IPR), Insurance and Transport & Logistics. These Working Groups are chaired by representatives of prominent European enterprises from their respective sectors, such as BMW, British Gas, Diageo MoĂŤt Hennessy, GlaxoSmithKline, DHL and Standard Chartered Bank. For further information about us, please visit www.eabc-thailand.eu

Our mission In the spirit of partnership and cooperation, EABC aims to enhance economic conditions to facilitate European companies operating in Thailand and those who wish to establish their presence in both Thailand and, further afield, in ASEAN. Our main activities include carrying out policy and advocacy work, providing support to European businesses with trade-related information and organising key events to foster opportunities for European businesses in Thailand. EABC is committed to working closely with European businesses, the Royal Thai Government, EU Member States Embassies, EU institutions and chambers of commerce as well as counterparts in Thailand, in ASEAN, and in Europe. We strive towards the establishment of an enabling, results-oriented dialogue to foster closer economic relations between Thailand and Europe, especially on key trade and investment matters.

EABC partners and associates: German-Thai Chamber of Commerce; Advantage Austria; British Chamber of Commerce Thailand; Belgian-Luxemburg-Thai Chamber of Commerce; Danish-Thai Chamber of Commerce; DIGITALEUROPE; EURATEX; EUROCHAMBRES; Franco-Thai Chamber of Commerce; Irish-Thai Chamber of Commerce; Netherlands-Thai Chamber of Commerce; Swiss-Thai Chamber of Commerce; Thai-Finnish Chamber of Commerce; Thai-Italian Chamber of Commerce; Thai-Norwegian Chamber of Commerce; and Thai-Swedish Chamber of Commerce

Thai Property Guide 2014

About the Thai-Swedish Chamber of Commerce (TSCC) The Thai Swedish Chamber of Commerce was formed in 1989 and inaugurated by the Swedish King Carl XVI Gustaf and Queen Silvia. Since then many developments of TSCC has taken place and today we are a modern and growing Chamber with around 120 members. With 24 years of existence we have established ourselves firmly in the international business community in Thailand. 2014 we are celebrating 25 years with many extraordinary activities of which the pinnacle will be a 3 days exhibition at Central World in October 2014. The Chamber conducts an essential role in the Thai-Swedish business and through our membership of the joint foreign Chambers of Commerce in Thailand we identify businessmen’s problems and opportunities and seek support in Thai Government policies to address these issues. This includes interaction and lobbying with for example the Board of Trade, Thai Customs Department, Immigration and Revenue Departments, Board of Investment giving access to top officials in the Thai administration including the Prime Minister. TSCC is also one of the partners in EABC – The European ASEAN Business Center in Bangkok Thailand. Through an active Chamber Event Committee, we secure interesting guest speakers from the top of Thai administration and political life. Also foreign guest speakers give our Members a constant update on current issues, local as well as global. We assist our members in various ways, mainly giving initial advice, referring to experts in different areas and recommend ‘ways forward’. We also organize projects to help in special areas that require more substantial advice. The Thai-Sweden Review is a combined twice yearly Magazine and Yearbook Directory distributed to all Members featuring interesting articles about business, trade and life style in both Sweden and Thailand. The Membership Directory provides details of all Members and other useful information. The Chamber website www.swecham.com is an interactive web site where we publish news about the latest Chamber activities and other useful information. The many useful links provide intelligence within business and trade. Part of the Chamber website is specifically devoted to featuring the Thai Property Guide. We have also a monthly E-News letter sent out to all members.

Young Professionals & Alumni We have seen an increased number of ‘Young Professionals’ coming to Thailand such as through internships, young entrepreneurs and students coming as exchange students to Thai Universities. In the opposite direction many Thai students have been traveling to Sweden to pursue a degree at Swedish Universities. Nordic Young Professionals is a Nordic cooperation where we target young people such as entrepreneurs, trainees, students or other young people coming to Bangkok and Thailand. Today we have the following different membership categories; Premium, Corporate and Individual.

Thai Property Guide 2014

Message from EABC Dear Reader We are delighted to collaborate with one of our Consortium Partners the ThaiSwedish Chamber of Commerce towards the development of this Guidebook on Thai Property. As the representative of European business in Thailand, EABC is acting to improve trade, investments and market entry conditions for European companies.

Rolf-Dieter Daniel President

Being a relatively new organization, EABC has established itself in a relatively short period as the major business partner for European businesses and the Thai Government. We are delighted to say that 2013 was a busy and also successful year for EABC. Our first ever European Business Position Paper launched in 2012 was very well accepted by European businesses and authorities alike, paving the way for the Free Trade Agreement now being negotiated between the European Union and Thailand. In September this year EABC launched its 2nd edition of its Position Paper 2013 to strengthen European-Thai economic relationship further. We see this as a major opportunity for European businesses to gain a level playing field, achieve new market opportunities and influence positive policy changes. EABC aims to act as your valuable link between policy makers on one hand and businesses such as yours on the other hand complementing and working closely with Thai authorities and institutions to improve market conditions. This is also reflected in our Events, Activities, Publications and Market Studies which seek to add value, providing a broader European network perspective as well as arranging specialized functions such as Advocacy seminars, workshops and various events for your benefit. Many of these activities we carry out in close cooperation with the EABC Partners and Stakeholders.

John Svengren Executive Director

If you are not already a Member of EABC we encourage you becoming a Member of the growing EABC community in support of European business interests in Thailand. See more and sign up as a Corporate Member online at www.eabc-thailand.eu

With kind regards

Rolf-Dieter Daniel President

Thai Property Guide 2014

John Svengren Executive Director

Contents Section 1: Property Sector ASEAN - European Perspective on Property Investment................ 14 Thailand and the Greater Mekong Subregion .................................. 16 Current Luxury Residential Market in Bangkok ............................... 18 Condominium Market in Bangkok .................................................... 20 Economic Growth in Thai Property Market ...................................... 22

Review on Property Market in Phuket .............................................. 24 Eastern Seaboard Property .............................................................. 26 Foreigner’s Acquisition of Land / Condominium Unit / Building in Thailand......................................... 29 Land Types and Titles ....................................................................... 32 Property Buyer’s Guide ..................................................................... 34 Inheritance of Condominium Units by Foreigners in Thailand ........ 36 Banking Regulations for Foreigners ................................................. 38

Thailand Home Loan Financing ........................................................ 42 Singapore – the regional hub for private banking............................ 44 Buyer Case: Satisfied Holiday Home Investor ................................. 46 Check list before buying a condominium unit ................................. 48 Check list prior to lease land and buying a house........................... 49 Key Relevant Authorities relating to Property in Thailand............... 50

Section 2: Useful information Lifestyle and Quality Living ............................................................... 52 Government’s Medical Hub Plan Focuses on Private Hospitals .... 55 Bangkok Hospital – Advanced and Caring Treatment in Thailand . 56 Protecting your interests................................................................... 58 Securitas brings expertise and innovation to the Thai market ....... 60 Rental Management System ............................................................. 62

Sansiri’s Take on the Resort-Style Home ........................................ 64 Serviced Apartment........................................................................... 66 the Cabinet Interior Design ............................................................... 68 Do it yourself - large selection of malls and shops ......................... 70 Choosing your kid’s school .............................................................. 72

Thai Property Guide 2014

Section 1 Property Sector Contributions in this section examines the Thai property market both in general and in particular as seen from the perspective of the foreign property investors. The legal advice was correct at the time of publishing, but investors should always engage their own independent lawyer to examine and advice regarding any particular investment.

ASEAN - European Perspective on Property Investment Residential property supply continue to expand in leading ASEAN countries - growing and more affluent middle class drives demand for better living By Christer Nilsson

sia was the largest regional construction market worldwide during 2012. It accounted for some 40 percent of global construction spending that year. While a breakdown for the ASEAN region is hard to come by, numbers from individual ASEAN member countries point to increasing investments in residential property stemming from urbanisation and more affluent citizens with purchase power. This trend with increasing domestic demand from a growing middle class will cause construction activity to steer away from non-residential projects to more infrastructure in the shorter term and residential buildings in the long term. The property market is growing by healthy but not excessive numbers in the most developed ASEAN countries.

Thai Property Guide 2014

Here we look briefly at Malaysia, Indonesia, Singapore, the Philippines and Vietnam. Malaysia was characterised by a rather cautious residential market 2012. This was caused by a slowdown in the general economy and also by the central bankÂ´s loan-to-value policy issued in 2010 which aimed to reduce how much of the propertyÂ´s value you could get a loan for. More recent regulations in order to reduce loan risk levels were launched in November 2013. By 2012 residential buildings had 38.8 percent of the total construction spending cake in Malaysia. This segment of the market is predicted to grow by an average 4.7 percent between 2013 and 2020. There is some concentration of new residence projects to the capital Kuala Lumpur and its surroundings in Klang Valley.

The southern neighbour Indonesia has a residential market driven by its growing middle class and demand from expats. Especially so in the capital Jakarta where new luxury apartment projects are launched with wealthy Indonesians and expats as the main client category in mind. IndonesiaÂ´s middle class go for less extravagant living, such as middlegrade apartments.

pore saw the addition of 12 000 units of new homes in 2012, mainly driven by low interest rates and creative product development in the property industry. The residential market share stood at 40.5 percent of the total construction spending in 2012, the growth rate for the residential segment is however expected to be rather low, 2.5 percent between 2013 and 2020.

Bank IndonesiaÂ´s 2012 loan-to-value policy which set a 70 percent of the house value loan limit will influence the market and shrink the purchasing power of property buyers. As of 2012 the residential market share of total construction spending in Indonesia stood at a comparatively low 13.8 percent and projected annual growth by 3.9 percent from 2013 to 2020.

Unless the Philippines government can improve the infrastructure, such as transit systems and highways, will the overall construction market be characterised by slow growth. Even though the residential market has more than half, 53.4 percent, of total construction spending during 2012, is general low growth forecasted, with the residential share predicted to expand only by 1 percent per annum up to 2020.

City state Singapore which is squeezed between Malaysia and Indonesia still has new housing units coming to the market. Despite its limited size Singa-

Vietnam, finally, has a property market that suffer from oversupply. The economy performs quite poorly, interest rates

have been high and real income has sunk. This has led to slowing demand for houses and apartments while construction went on, adding to the oversupply. By fall 2012 HCMC was reported to have 10 000 vacant apartments and around 1000 low rise houses vacant. Still estimates for the residential market are rather positive with an expected annual growth by 6.7 percent up to 2020. Residential market share of the total construction spending cake was 52.6 percent in 2012. Rules and regulations with regard to foreign ownership of housing property in ASEAN countries vary a lot and have not been covered in this overview. Generally speaking less red tape circumvent condominium ownership than what is in place for detached houses and even more so the land they stand on. Sources: regional reports by AECOM, Knight Frank, KPMG

Thai Property Guide 2014

Thailand and the Greater Mekong Subregion The Greater Mekong Subregion (GMS) is a natural economic area bound together by the Mekong River, covering 2.6 million square kilometers and a combined population of around 326 million. By Asian Development Bank

he GMS countries are Cambodia, the People's Republic of China (PRC, specifically Yunnan Province and Guangxi Zhuang Autonomous Region), Lao People's Democratic Republic (Lao PDR), Myanmar, Thailand, and Viet Nam. In 1992, with assistance from ADB, the six countries entered into a program of subregional economic cooperation, designed to enhance economic relations among the countries.

With support from ADB and other donors, the GMS Program helps the implementation of high priority subregional projects in transport, energy, telecommunications, environment, human resource development, tourism, trade, private sector investment, and agriculture. Substantial progress has been achieved in terms of implementing GMS projects since 1992. Priority infrastructure projects worth around US$10 billion have either been completed or are being

implemented. Among these are the upgrading of the Phnom Penh (Cambodia)Ho Chi Minh City (Viet Nam) highway and the East-West Economic Corridor that will eventually extend from the Andaman Sea to Da Nang. The subregion embraces flora and fauna that have expanded northward along the Malay Peninsula into Thailand, encroached upon the high mountains from the Himalayas, or advanced along the broad river valleys as dry deciduous forests similar to those of India. Ten million years of changing sea levels have left a rich legacy of unique life forms that have evolved in isolation on the Cardamom and Annamite mountains of Cambodia, Lao PDR, Thailand, and Viet Nam. These resources provide both income and sustenance to the great majority of people in the subregion who are leading subsistence or near subsistence agricultural lifestyles. The land yields timber, minerals, coal, and petroleum, while water from the many rivers supports agriculture and fisheries and provides energy in the form of hydropower. The coal reserves of the subregion are abundant, and the oil and gas reserves considerable. Most of these are in Myanmar, Thailand and Viet Nam. These abundant energy resources are still relatively underused. Increasingly, modernization and industrialization are emerging from a process of transition and transformation. The Mekong countries are gradually shifting from subsistence farming to more diversified economies, and to more open, market-based systems. In parallel with this are the growing commercial relations among the six Mekong countries, notably in terms

Thai Property Guide 2014

of cross-border trade, investment, and labor mobility. Moreover, natural resources, particularly hydropower, are beginning to be developed and utilized on a subregional basis. The rich human and natural resource endowments of the Mekong region have made it a new frontier of Asian economic growth. Indeed, the Mekong region has the potential to be one of the world's fastest growing areas. Strategy GMS Strategy and Future Directions The new GMS Strategic Framework 2012-2022 has been adopted at the 4th GMS Summit in Nay Pyi Taw, Myanmar in December 2011. The new Strategic Framework (SF) is anchored on the corridor-development approach, which provides the spatial and thematic focus to the program going forward. The new framework expands the GMS Program from conventional infrastructure to

3multi-sector investments designed to foster economic corridor development, involving stronger cross-sectoral linkages, better consideration of regional economic developmentâ&#x20AC;&#x2122;s spatial aspects, more local stakeholder involvement, and more effective monitoring and evaluation. Sector Activities Significant progress has been achieved in terms of implementing GMS projects since 1992. Priority infrastructure projects worth around US$11 billion have either been completed or are being implemented. Among these are the upgrading of the Phnom Penh (Cambodia)Ho Chi Minh City (Viet Nam) highway

and the East-West Economic Corridor that will eventually extend from the Andaman Sea to Da Nang. A significant amount of resources has been mobilized for the GMS Program. For the 41 GMS projects that ADB has assisted, GMS governments have provided about US$3.3 billion. ADB has extended loans amounting to US$3.8 billion. ADB has also generated US$4 billion in cofinancing for these investment projects. A total of US$208 million of grant resources have been mobilized, of which US$94.1 million have been provided by ADB, to finance technical assistance focusing on human resource development, tourism, environment, trade and investment.

Source: Asian Development Bank This article was first published by the Asian Development Bank. Links, in chronological order for the three chapters: http://www.adb.org/countries/gms/overview http://www.adb.org/countries/gms/strategy http://www.adb.org/countries/gms/sector-activities

Thai Property Guide 2014

Current Luxury Residential Market in Bangkok Bangkokâ&#x20AC;&#x2122;s luxury residential market has continued to grow on the back of increased demand from affluent Thais. Reasons for buying include changing lifestyles, increased preference for luxury and branded product, both for own-use and investment. Foreign investors still represent 20% to 25% of the luxury market.

By CBRE Research

Thai Property Guide 2014

ith the best hotels, restaurants and shopping centres all located in the heart of the city in Central Lumpini, Sukhumvit and Sathorn, the central areas have become the most desirable to live in. The change in lifestyle has also led Thais across all age groups to adopt condominium living and seek to be in the heart of the city with access to retail and leisure amenities, hence boosting the demand for

luxury CBD condominiums. Similar lifestyle reasons and the fact that Bangkok at its most expensive is significantly cheaper than Singapore and Hong Kong has produced a discernible trend in foreigners buying second home lifestyle residences in the heart of Bangkok at a fourth of the price of Hong Kong and Singapore. Luxury and ultra luxury condominiums in Bangkok can be defined

by their price per sq.m, quality of product in terms of design and specification and location. Prices for luxury condominiums average between THB 150,000 to 199,000 per sq.m. and ultra luxury prices are above THB 200,000 per sq.m. With increasing affluence, simply labelling a product as ‘luxury’ is no longer sufficient; these claims must be meaningful and substantiated. Some pre-requisite factors for luxury developments include a prime central location with good surroundings and environment, exclusivity with limited units, a large enough land plot to create a landmark building and extensive facilities. The common areas and arrival lobby must be reasonably sized and fitted out with interior decoration which is comparable to the standard of a five-star hotel. Design is equally important. Unit types and sizes must meet buyers’ expectations and superior design and specifications are a must. Most importantly, developers must also seek to understand what buyers want in terms of room functionality and sizing. It is important to get all these factors right in the luxury market today. As of Q3 2013, there were 11 new luxury and super luxury projects launched in the CBD, comprising a total of 3,097 units. The average price per sq.m. of newly launched projects is THB 188,000 per sq.m. Most of the projects are located in Sukhumvit, followed by Silom/Sathorn. Of the newly launched units, 52% has already been sold, with 2 projects reportedly sold out upon launch. The limited number of new launches in the CBD coupled with the sales rate indicates the strength of the luxury market. The newly launched supply accounts for only 3% of the total completed condominium supply within the CBD. Compared to London or other key global markets, Bangkok is still much cheaper and offers value for money. Buyers who are the target market for luxury and super luxury projects in London would certainly be prepared to pay THB 200,000 to 300,000 per sq.m. in Bangkok as long as the unit and project meets the high standards and requirements and is well located at a prime address. CBRE Thailand believes prices will gradually grow further and break the THB 300,000 per sq.m. mark in the future. However, price rises will be gradual over time and cannot be pushed up rapidly. CBRE Thailand believes the luxury condominium market will continue to have a favourable outlook. Developers of luxury condominiums will be more cautious when Thai Property Guide 2014

According to CBRE Thailand’s Residential Sales Services, the ratios of condominium buyers in Bangkok are Thai 78% and foreigners 22% as of H1 2013. 64% of the foreign purchasers bought condominiums for the investment purpose while the other 36% were for their own use. Below is the breakdown of foreign buyers’ top 5 nationalities. Foreign Purchaser Profile in H1 2013 Based on CBRE Sole Agency Projects in Bangkok RANK NATIONALITY % 1 Singapore and HK 17.6 each 2 Taiwanese 16.8 3 British 7.6 4 Chinese 7.1 5 Canadian and Australian 4.2 each Source | CBRE Thailand By CBRE Thailand 26 November 2013

Thai Property Guide 2014

By CBRE Research Figure 2: Condominium Supply, Demand and Vacancy Rate in Downtown Bangkok, 2003-2017F

Figure 1: Newly Completed Bangkok Condominiums, 2003-2017F

No. of Units

Midtown

Downtown

50,000

Total Supply

Total Occupied

Vacancy Rate

140,000 120,000 100,000 80,000 60,000 40,000 20,000 0

n the Bangkok condominium market, we see a clear split between the downtown market and the midtown/ suburban market with different market dynamics, sizes and quality emerge. The downtown market consists of projects at higher prices while the midtown/suburban market is a mainly a mass market made up of one bedroom units. New supply has continued to increase with approximately 17,000 units completed in the downtown and midtown markets this quarter.

20% 2017F

2015F

0% 2013F

40%

2011

10,000

60%

2009

20,000

2007

30,000

100% 80%

2005

40,000

2003

CBRE Thailand still sees strong local demand as there continues to be many wealthy Thais who have been looking but have not yet decided to buy as the existing products do not match their requirements in terms of quality standards, particularly when compared to their previous purchases overseas such as in London or New York. In addition, we see renewed interests from overseas investors with the market growth potential driven by the AEC and Myanmar market. With the uncertain global outlook and fluctuation of stock market and other investment products, many cash rich investors both Thai and foreigners looking for a prime downtown asset which is more stable in prices and long term capital appreciation.

Condominium Market in Bangkok

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013F 2014F 2015F 2016F 2017F

launching new projects and will ensure that they have studied the market well, understand the buyers’ requirements and develop a good product. At the same time, the number of new luxury project launches will be less as it is more difficult to identify suitable development sites, particularly within the CBD. Hence, the luxury market is likely to see a pickup in re-sale activities.

Total midtown and downtown supply is now approximately 350,000 units where the majority of supply is in the midtown area and the market for downtown condominiums is now a low volume high value market. The number of new launches in the downtown area has decreased by approximately 40% on last quarter and over 90% of the units in the new launches in the downtown area are priced above THB 150,000 per square metre.

of demand for downtown Bangkok condominiums with an increasing proportion of Asian buyers. We have concerns about the midtown and suburban condominium market. The Bank of Thailand has warned banks to be more cautious in their lending to this sector but as yet has not lowered the loan to value requirements and the government has not imposed additional transaction taxes like Hongkong and Singapore. There will be a record level of midtown and suburban condominium completions this year. Developers will be competing to clear unsold inventory with speculators who wish to resell before completion and the need to make final payment, in many cases 80-90% of the total price.

Figure 3: Future Supply of Expatriate Apartments (single ownership/ multiple family), 2004-2014F

Units

Existing Supply

Figure 4: Supply, Demand and Occupancy Rate, 2004-Q2 2013

Units

New Supply

Demand

Supply

Occupancy Rate

100%

14,000 12,000 10,000 8,000 6,000 4,000 2,000 0

90% 80% 70% 60% 50%

2004 2005 2006 2007 2008 2009 2010 2011 2012 Q1 2013 Q2 2013 2013F 2014F

2004 2005 2006 2007 2008 2009 2010 2011 2012 Q1 2013 Q2 2013

13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000

The amount of unsold inventory in the downtown continues to fall significantly and prices are rising for the best quality downtown completed projects and for the best located new downtown launches.

prices have to convince buyers that their projects really do offer a higher quality and only the best located, best designed projects with high specifications will succeed. There is a renewed interest from foreign investors accounting for just over 20%

Developers who want to achieve high

Figure 5: Achieved Rents by Area and Grade (single ownership/multiple family), Q2 2013 Silom/Sathorn

THB/sq.m.

Central Lumpini

Sukhumvit

We expect that this will result in a slowdown in new launches and an exit of speculators from the market. A market dominated by end users will mean that new projects will have to be both attractive and affordable. This is likely to result in a mixed performance for new mid market/suburban condominium launches and a big push by developers to clear unsold inventory in both completed and under construction developments. In Q2 2013, the total apartment supply (single ownership, multifamily developments) in the downtown area of Bangkok was 11,727 units, up 0.4% Q-o-Q but down 0.3% Y-o-Y. Only one new apartment was completed which was in the Sukhumvit area. The occupancy rate increased from 91.0% in the last quarter to 93.3% this quarter, up 2.3% Q-o-Q and up 5.0% Y-o-Y. The number of expatriates holding work permits in Bangkok increased by1.1% Q-o-Q and 10.0% Y-o-Y. Japanese expatriates made up 25% of the total for the whole of Thailand.

Riverside/Rama III

550 500 436 406 391 362

450 400 350 300 Q2 2013

Q1 2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

250

Achieved apartment rents in Q2 2013 slightly increased from the previous quarter. The Central Lumpini area still posted the highest achieved rents with Grade A rents of THB 436 sq.m./ month, an increase of 2.9% Q-o-Q and an increase of 5.0% Y-o-Y. Thai Property Guide 2014

Economic Growth in Thai Property Market By Christer Nilsson

Overall property output in Thailand 2013 will finally range between 110,000 and 115,000 units, according to a statement made by Samma Kiatsin, director-general of the Real Estate Information Center (REIC) when he spoke at the 60th anniversary of the Government Housing Bank during the fall 2013. His estimate include both condominiums and houses. It is a fairly similar rate to the number recorded annually in recent years.

f we look ahead at 2014, REIC predicts continuous growth between 5 and 10 percent, following the governmentÂ´s + 2000 THB Billion infrastructure project. That will push residential property demand in vicinities near the mass transit systems that are part of the massive project. The 2013 growth has been driven mainly thanks to strong demand for condominiums nearby the skytrain system in Bangkok. Demand is expected to widen from central business districts to the outskirts of Bangkok once the new mass transit routes are finished. REIC's study found that the number of new condos sold in 2013 is likely to be between 70,000 and 75,000 units. That is an increase by 11 to 19 % compared to the 63,000 units sold 2012. Sales of townhouses and single detached houses sales will reach 40,000 units in 2013, predicts REIC.

An oversupply and higher construction costs should lead to fewer condominium projects launched during 2014, according to REIC. The centre points to continuing labour shortage as a factor that meant property developers could not construct and deliver homes to their customers on time, forcing them to limit their 2014 project launches as well. Housing prices are likely to rise by 10 to 15 % in 2014 as costs for labour, land and construction material go up. Finally some price comparisons. During 2013, the average price of a detached house is 5.91 million or about 25 % higher than the year 2009 price average of 4.72 million THB. For townhouses the rise over the same period is 36 % up to an average sales price of 2.25 Million THB 2013. Condominiums, finally, have risen in cost by 48 % in the four year period. The average 2013 condominium price per square metre is around 100,000 THB. Source: news reports from REIC

Property Developers in the SET 100 List as of 17 November 2013 RANKING YE 2012

Revenue

Net Profit

Revenue by Q3 2013

Sansiri Public Company Limited

30,086.78

3,018.53

20,067.86

Pruksa Real Estate Public Company Limited

27,140.74

3,898.14

25,263.91

Land & Houses Public Company Limited

26,714.47

5,635.73

20,777.46

AP (Thailand) Public Company Limited

17,503.04

2,329.26

11,624.29

Quality Houses Public Company Limited

15,213.48

2,385.67

15,646.79

LP.N. Development Public Company Limited

13,482.52

2,216.79

10,272.79

Supalai Public Company Limited

11, 649.39

2,743.52

5,998.15

Property Perfect Company Limited

9,299.44

233.81

7,961.58

SC Asset Corporation Public Company Limited

8,426.93

1,108.02

6,790.61

THB Million Source: The Stock Exchange of Thailand (SET)

Thai Property Guide 2014

Review on Property Market in Phuket By Nick Anthony and Tom Travers, Indigo Real Estate

huket has been building luxury resort tourism since the Amanpuri was completed and sold villas back in 1988 but it has not been until the last ten years that the demand has really taken off, laying the foundations for the future of Phuket as a luxury and dynamic destination with long term sustainability. The luxury villa estates with 5-star resort operations, facilities and management such as Amanpuri, Trisara, Andara and Sri Panwa have shown that branded full service residential estates achieve higher pricing, gain stronger sales momentum and have been more sought after in the secondary market, offering original purchases high capital appreciation. www.amanpuri.com www.trisara.com www.andara.com www.sripanwa.com

Thai Property Guide 2014

High end Real estate sales in 2010-2013 have approximately totalled a very strong USD300mn, perhaps one of the strongest periods for super high-end homes. The demand is International and most sales have been for very high-end branded property, both apartments and villas. In 2013 demand is quieter at the top end however resales have been around USD35mn. The main sales were at Amanpuri phase three, Andara apartments and resales, a number of stand alone villas.

No Debt Phuket was fortunate during the crisis as buyers pay all cash with no bank debt so there have been few distress sales. The market is made principally of end users and longterm investors and an increasing number of permanent residents escaping capital cities from all over the world continue to choose

Phuket as their Asian base, to do business, raise a family, retire or simply invest. There are strong rental demand allowing owners to make a positive return from rentals and given little distress the sale prices are generally highish and our luxe owners not very keen to sell.

Resort Property Branded real estate with full hotel facilities and flexible ownership structures continue to be the strongest properties, as evidenced in 2010 by sales at Andara, Aman, Malaiwana and Trisara. Buyers get quality build products, well capitalized operations, a club type membership with like-minded international owners and the peace of mind that they can be away from Phuket and the property is maintained, rented out and a reasonable yield returned. Solid property management is important

with peace of mind from security and gated access. Waterfront property still trades at a premium of as much as 150% with access to boats and a beach club highly sought after by buyers. Comparing managed properties such as Andara and Trisara resale prices in 2013 are up as much as 200% on purchase price (tripled prices) from 2007, one of the few real estate markets where new builds have appreciated in value, unlike Europe or the USA.

Limited Supply Phuket has tough low density codes, tough height restrictions limiting building to below 80m from sea level, increasingly limited build-able prime land on the west coast and importantly few resales keeping supply tight. There are only a few remaining house plots available but in 2014 the first large luxe estates since 2008 with Kajima & Anantara just launching approx 20 ultra luxe villas). At Natai, Bangkok developer Charn Issara group (Sri Panwa) will develop 2 x 120mn baht homes, 18 pool villas and a hotel on 20 rai. Location to be announced. There have been three small plot transactions in Q3 2013 and also renewed interest in bigger plots with prices between 24 and 30mn baht a rai for home sites and firm bids at 16mn baht per rai for 20 rai sized plots. Newly completed Iniala is magnificent and 6 star. This will drive further the Michelin set to Phang Nga and a great small surprise. www.iniala.com/villas-suites/villa-bianca# The offer of large 5 star hotel sites such as ritz carlton next to Tah Sai will ensure movement north as Richard Li completes, I would expect, the golf course and phase one by 2020.

By the numbers Russian guests are now our leading source market. We expect increasing wealthy Russian buyers as more Russian language specialists now work in Phuket hotels, restaurants, and real estate agencies. Aeroflot now flies direct to Phuket from Moscow three times a week from December 29 using Airbus A330s. There are few wealthy buyers, yet with steady demand within the USD300k-500k bracket. The Australian market with its resource boom and direct flights by Virgin and Jetstar is driving new buyers to Phuket and they are now one the biggest Phuket visitor by numbers at just over 10% of arrivals. High end buyers, particularly Perth-based mine owners have discovered Phuket and we are seeing increasingly more buyers coming to us after having owned prior in Bali. China recently voted Phuket as its second favourite destination after Paris. They are Flocking to Phuket and are about 15% of arrivals. With group tours and zero baht travel reduced in 2014 it will become more a segment of individual travellers and higher end visitors. A proposed 500 baht incoming passenger Government tax in 2014 would also limit low end travel.

2020 Outlook Within 5 hours of this small Island of Phuket lies around 30% of the world’s population, with virtually no competition for quality, architecturally inspired, tropical resort Villas. A direct shuttle gets us to Shanghai/Beijing/ Seoul/Taipei and Bombay and within 2 hours lies all of Thailand, Singapore, Malaysia, Vietnam and parts of the Indonesian archipelago. This is a population base of around 220 million residents.

Asian buyers with strong stock markets, better business fuelled by Chinese growth and a back to Rest & Relaxation (R&R) mentality has meant buyers have started buying big villas again.

In Saigon for example, (as with most Chinese major cities), which has direct flights to Phuket, the city is log jammed with traffic and smothered in pollution. It is looking like many other under-infrastructure, over-populated Asian city where the long term expats and wealthy local nationals seek a quality place to escape to. With huge population growth over the next 20 years in all major Asian cities this pollution and city degradation will only get worse.

Hong Kong and Singapore remain our core markets of high end property, although British, German, Dutch and Scandinavian buyers continue to arrive in Phuket to get away from overtaxed, cold European countries.

These families, investors, chuppies & expat baby boomers are looking for quality of life and a healthier family environment with fresh air, good food and a safe haven. Phuket and Phang Nga provinces offer the

2014 Outlook As we enter the fourth quarter (2013) we see very positive momentum.

full package with world class infrastructure, excellent schools and a fabulous tropical lifestyle plus some of the best beaches in the world. Phukets growing conservation movement with support of WWF, IUCN and SEEK, a local Phuket based CSO that I am co-founder of is working with the Governor of Phuket to create a protected wetland and marine reserve from layan Beach, at the North end of Bangtao all the way up past the JW Marriott to the tip of Phuket, incorporating the Sirinarth national park. This wetland conservation zone could be extended with support into Phang Nga further creating a discerning traveler niche. Combined with the new Phuket airport extension, a green sustainability drive across the region that are country pilots and renewable energy plans that could see Phuket effectively off grid the future is indeed bright.

1,000 new buyers… Imagine the pressure on high end property in Phuket with the arrival of a mere 1,000 new luxury buyers/investors from HK and the Euro zone plus now new markets such as India, China and Russia and you have a powerful concoction. Indigo Real Estate expects that the impact of this increasing demand on local property prices will continue to underpin the market, with rising costs of land and construction again it is expected that a positive capital returns regime will continue in 2014. Politically and economically despite floods and political stalemating (Thailand not USA) the macro situation is steady. Everybody loves Thailand.

Indigo Real Estate Indigo was formed in 2002 by Nick Anthony and Tom Travers and specializes in high end Phuket property, land sales and development consultancy. The Thailand property report awarded Indigo “BEST THAILAND AGENCY” in 2008 & 2009 and highly commended in 2010/2013. Nick Anthony : nick@indigore.com Tom Travers: tom@indigore.com wwwindigore.com

Thai Property Guide 2014

Eastern Seaboard Property Pattaya Property – Build and They Still Come

launched, built and delivered is now the order of the day in Pattaya.

By Cees “KC” Cuijpers

A few less experienced and thinly financed local players have met with adversity, unexpected market shifts and stiff competition. Some have scrambled to reorganize and retool. But gone are the days of flat out failures and bloodlettings so prevalent in the late 90’s. Project busts have been replaced by buyouts and consolidations. No investors are losing their money, and in fact some have actually benefitted from changing leadership and capital gains

he past decade, and particularly the past few years, in the Eastern Seaboard Property market have been, in a word, “dynamic”. Trends come and go, but it’s those that persevere that are important.

Locals holding their own Reputable and increasingly experienced local developers like Nova Group, Matrix, Heights Holdings, Tulip Group and new-kid-on-the-block Kingdom Property have taken their lumps and come out the other side much wiser and more versatile players. They continue to offer innovative new products to an ever more demanding market. Pattaya must be the capital of “lagoon style” swimming pools. The numbers of new launch parties are now rivalled by the number of title transfer celebrations. Projects

Thai Property Guide 2014

Big boys coming to town Traditionally, the Chonburi Coast’s property market has been the exclusive workshop of these foreign-owned and run local developers. For whatever reason, big listed Thai firms had shied away from the Pattaya market with only a handful of projects popping up along the shoreline.

Nowadays I sport a satisfied smile when I see the recent trend of publicly listed Thai mega-developers showing up here in Fun City. It gives me a warm and fuzzy feeling to know they are just finding out what we Pattayans have known for years … the Chonburi Coast is the place to be. The Bangkok Big Boys like Raimon Land, Sansiri, Q-House, Major Development and LPN are “Johnny-come-latelies” to this party, but coming they are … and in full force. The arrival of these property giants also reinforces the confidence of local players when we know legions of market researchers have all concluded we are in the right place at the right time. None of these big developers wants to wake up in the morning with a mob of angry shareholders carrying torches in their lobby. The research has been done and confidence is displayed with big red construction cranes filling the blue skies over Pattaya. It is very satisfying indeed to see well financed, SET listed expe-

rienced property developers sinking their teeth into a big tasty piece of the Pattaya property pie

Bangkok Beach The arrival of the Bangkok Big Boys is accompanied by another continuing trend here in Pattaya, the weekenders. Anyone who lives from Naklua down to Bang Sare knows what I’m talking about. The traffic starts to swell on Friday afternoon, jamming all major thoroughfares for a 48-hour period, only to subside late Sunday afternoon. The weekly Bangkokian invasion has become a ritual. This phenomenon started shortly after the floods a couple of years ago. Bangkok residents fled south to escape the rising waters and discovered that little sister had grown up. If you want to see evidence of this, go to The Glass House restaurant early on a Saturday or Sunday afternoon. What you’ll see is table after table chockfull of thirty-something BMW-driving Bangkok citizens enjoying seafood and sunshine. As population density rises and frenetic business activity intensifies, Bangkokians wait with great anticipation for Friday so they can escape the concrete beehive. Anyone who has made the 90 minute trip knows that feeling … as soon as you see that Pattaya skyline … blood pressure decreases … heart rate slows … teeth unclench … ahhh Pattaya; escape at last!

A tree with more than one branch But Pattaya has become more than just a waterfront enclave for European snowbirds or harried Bangkok office workers; growth is rampant in several other market sectors. The burgeoning industrial estates to the north and east of Pattaya have insured hundreds of families are pouring into the province, all in search of family style housing for purchase or rent. Occupancy and rental yields for investors remain high as housing supplies race to catch up with demand. Several award-winning estates have completed recently and more are on the way to fill the void. When East Pattaya lands a major multi-purpose shopping complex this residential side of town will take on an independent life

of its own. A Central Mall type facility on Sukhumvit Road would certainly do the trick.

soon as the last patch of asphalt dries. It seems we just can’t seem to catch up with our popularity.

And, as one local journalist pointed out in his series of articles, “Goin’ South”, the communities of Na Jomtien and beyond are the new darlings of all the developers. A simple drive down the extreme south end of Jomtien Second Road will shock and amaze anyone who hasn’t been there in the last six months. Epics skyscrapers and resort complexes appear as if by magic. All the way down to the sleepy fishing villages of Ban Amphur and Bang Sare, skylines are changing. Concrete truly never sleeps here on The Chonburi Coast.

All manner of new infrastructure projects are on the drawing board like high-speed rail and airport links. We’ll just have to do what we always do here in Pattaya; wait and see … and take advantage of them when they come.

New red light district Unfortunately, the rapid expansion on the Chonburi Coast has uncovered some pretty serious shortcomings in local infrastructure. After suffering years of construction on Thappraya Road in Jomtien, the six lane finished product immediately became full of vehicles pouring in and applying their brakes as there were just too many cars. The long awaited Jomtien Second Road was completed and instantly generated traffic lights and traffic jams. The widening of Pattaya Beach Road has meant we now have three lanes of bumper-to-bumper traffic instead of two. New roads fill up with cars, motorbikes and buses as

Tell any social scientist or city planner about our infrastructure woes and they will grin and say, “That’s the price you pay for growth”. If we didn’t have these kinds of problems, we’d know we had stopped growing. The silver lining to the infrastructure cloud is … the “build it and they will come” philosophy is still working splendidly. Urban sprawl, changing skylines and straining infrastructure; sounds like a real city doesn’t it? If I had but one message to convey about Pattaya over the past decade it would be just that; Pattaya has transformed from a boozy little beach town into a legitimate seaside resort. We’ve built it and they are still coming.

KC@TownCountryProperty.com M. +66(0)86-666-7238

Thai Property Guide 2014

PROFESSIONAL x PRACTICAL x PROMPT x PROACTIVE LawPlus provides top quality legal services to leading international and local corporate clients. The objective of the Firm is to provide clients with accurate and pragmatic legal advice in a timely manner, while adding value to the client's business activities at a reasonable cost. With our in-depth knowledge of the Thai economy and the clients' industries and our understanding of local practices, we strive to make our advice practical and valuable to the client. Our clients include multinational financial institutions, global investment funds, regional and international telecommunications companies, leading manufacturers and service providers in the automobile industry, US and European food and drug companies, top tier computer hardware and software manufacturers, international film and music production companies, department stores, real property developers, engineering consultant and construction companies. We work very closely with trademark and patent agents worldwide on registering and protecting trademarks, patents and copyrights for our Thai and foreign clients. Our experiences on real property and construction include: x

a US bank on the termination of a thirty-year property lease with a Thai company;

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a Thai construction company on construction contracts with the National Housing Authority of Thailand;

a group of seven foreign investors on investment in a large-scale property project in Hua Hin;

a BVI company on acquiring a luxurious villa in Phuket;

two BVI companies on purchasing two condominium apartments in Phuket;

a Japanese company on long-term leases of real properties for subsidiaries in Thailand;

a Korean company on sale of lands in an industrial estate in Chacheongsao;

a Malaysian hotel group on acquisition of properties and a long-term lease of land in Phuket;

a British client on purchase of a THB15 million condominium unit in Bangkok;

a Hong Kong client on a 28-year lease of a high-end residential unit in Bangkok;

a British company on acquisition of land for manufacturing plant expansion. Unit 1401, 14th Fl., Abdulrahim Place 990 Rama IV Road, Bangkok 10500, Thailand Tel +662 636 0662 Fax +662 636 0663 Contact: kowit.somwaiya@lawplusltd.com

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Foreigner's Acquisition of Land / Condominium Unit / Building in Thailand By Worachai Bhicharnchitr, Vickery & Worachai Ltd.

A. Acquisition of Land Ownership under the Land Code Under the Land Code, foreigners are generally forbidden to own land in Thailand. A â&#x20AC;&#x153;foreignerâ&#x20AC;? as defined under the Land Code can be either foreign natural or juristic person. In addition, the following juristic persons shall also be treated as foreigners according to Sections 97 and 98 of the Land Code: (a) A Thai company (whether private or public) registered in which either (i) more than 49% of its total registered capital is held by foreigner(s), or (ii) more than one half of the total number of shareholders are foreigners. Any share certificate to bearer issued by the limited company shall be deemed as it is held by the foreigner; or (b) A Thai registered limited partnership or registered ordinary partnership in which either (i) more than 49% of its total capital is invested by foreigner(s), or (ii) more than one half of the total number of partners are foreigners; or (c) An association or a co-operative in which either (i) more than on half of the total number of members are foreigners, or (ii) its operations, either particularly or mainly, have been made for the benefit of foreigners; or (d) A Foundation with objectives focusing particularly or mainly on the benefit of foreigners. In the past, foreigners may acquire land ownership in Thailand under Section 86 of the Land Code by virtue of the provision of treaty entered into between Thailand and other countries. Nevertheless, the treaty thereof was terminated in 1970 and since then, Thailand has no longer made any treaty with any country to allow a foreigner to acquire land ownership in Thailand by virtue of a treaty. Presently,

only foreigners who had already acquired their land ownership prior to the treaty termination may continue to own such land. Currently, the foreigners, either individual or juristic person, as the case may be, may apply for acquisition of land ownership in Thailand under the Land Code and other applicable laws in three cases as follows: 1. Under Section 93 of the Land Code, by receiving inheritance as a statutory heir, provided that the total area of the land so acquired combining with the land already acquired or to be acquired in other manner by such foreigner shall not exceed the areas as specified by law, for instances: land for residential purpose not exceeding one (1) Rai (or 400 square meters) per household, land for commercial purpose not exceeding 1 Rai, land for industrial purpose not exceeding 10 Rais, and land for agricultural purpose not exceeding 10 Rais per household. 2. Under Section 96 bis of the Land Code, by bringing money into Thailand for investment of not less than Baht 40,000,000, which shall be maintained for not less than five (5) years consecutively, in any of the following businesses or activities: -

purchase of bonds of Thai government, Bank of Thailand, State Enterprises and/or bonds which the Ministry of Finance secures the principal or interest;

investment in a property mutual fund or a mutual fund for resolving financial institution problems;

investment in share capital of a juristic person who is granted or eligible to be granted for investment promotion from the Office of the

Board of Investment (BOI) under the Promotion of Investment Act; or -

investment in an activity as declared by BOI to be an activity eligible to be granted promotion of investment.

The land to be acquired under this Section must be used for residential purpose of the foreigner himself/herself and his/her family only in a way that is not contrary to moral, custom or good living of that local community and the total area thereof shall not exceed one (1) Rai. The land must be located in Bangkok Metropolis, Pattaya City, or Tessaban (Municipality), or in the area specified as residential zone in other provinces according to the law governing Town and Country Planning and shall not be located in a military safety zone according to the law governing Military Safety Zone. In addition to the above conditions, the permission from the Minister of Interior Ministry must be granted to the foreigner prior to acquisition of the land ownership which the foreigner shall also fully comply with the applicable rules, procedures and conditions prescribed in the Ministerial Regulations relating thereto; or 3. Applying for acquisition of land under other applicable laws such as the Promotion of Investment Act, the Industrial Estate Authority of Thailand Act, or the Petroleum Act. For instances, the foreign promoted companies may be granted permission by BOI to own land for industry or factory sites including for residences of their executives or experts in order to carry on a promoted business to the extent as BOI deems appropriate. And foreign investors may be permitted by the Industrial Estate Authority of Thailand (IEAT) to own certain lands for their industrial use in industrial estates. Thai Property Guide 2014

B. Acquisition of Condominium Ownership under the Land Code

of the application for condominium registration relating thereto.

A foreigner, either natural person or juristic person as defined under the Land Code in any of the following prescribed categories, may acquire ownership in a condominium unit in Thailand:

The foreigner shall utilize the condominium unit so acquired in compliance with the condominium rules and in a way that is not contrary to the local customary or good living of local community.

1. Being a foreigner (natural person) who is permitted to have residence in Thailand under the immigration law;

C. Registration Fee, Tax and Stamp Duty

2. Being a foreigner (natural person) who is permitted to enter into Thailand under the investment promotion law; 3. Being a foreign juristic person which has been registered under the laws of Thailand according to Sections 97 and 98 of the Land Code; 4. Being a foreign juristic person who is granted an investment promotion under the investment promotion law; 5. Being a foreigner, either natural person or juristic person, who brings foreign currency into Thailand or withdraws money from a bank account of a nonresident or from a foreign currency account to make payment for purchasing of condominium unit in Thailand. Pursuant to the current Condominium Act, total foreign ownership ratio in a condominium shall not exceed 49% of the total spaces of all units in that condominium at the time

Thai Property Guide 2014

In accordance with applicable laws, the registration fee, relevant taxes and stamp duty in respect of the sale / transfer of ownership of immovable properties (land, condominium etc.) shall be liable by the seller, unless otherwise agreed by the seller and the purchaser relevant thereto. Government Fee Registration for sale of immovable property with the Land Department shall be subject to payment of government fee on the date of such registration at the rate of 2% of the official appraisal price. Specific Business Tax (SBT) The sale shall be subject to SBT in case the seller is a natural person holding the property ownership for less than 5 years, or juristic person regardless of the period of holding the ownership thereof. The current applicable rate of SBT is 3.3% of the official appraisal price or sale price, whichever is the greater (inclusive of municipal tax of 10% of SBT).

Stamp Duty The seller shall be responsible for payment of stamp duty in connection with the transfer of immovable property at the rate of 0.5% (Bath 1 stamp duty for every Baht 200 or the fraction thereof) of the official appraisal price or sale price whichever is the greater. However, if such sale is subject to SBT and SBT has been paid to the government, this stamp duty shall be exempted. Withholding Tax (WHT) In case the seller is a juristic person, the seller shall be subject to deduction and payment of WHT at the rate 1% of the sale price or official appraisal price, whichever is the greater. If the seller is a natural person, partnership or bodies of persons, the seller shall be subject to WHT to be calculated in accordance with the rules and methods under the Revenue Code. The WHT shall be calculated based on the official appraisal price of the property after deduction of expenses according to the standard deduction based on the number of years of ownership as follows: Expenses (% of the official appraisal price) 1 year 2 years 3 years 4 years 5 years 6 years 7 years 8 years or more

Number of Year(s) of Possession 92% 84% 77% 71% 65% 60% 55% 50%

The net income after the above standard deduction of expenses shall be divided by the number of year(s) of holding of the property in the sellerâ&#x20AC;&#x2122;s possession. The result amount derived from the above computation shall be used in calculation of personal income tax with regard to the progressive rate provided by the Revenue Code. Thereafter, computed income tax shall be multiplied with the number of the year(s) of possession by the seller, which the result thereof shall be the applicable amount of WHT. In this circumstance, the final figure of WHT so calculated shall not be more than 20% of the sale / transfer price. The number of years of possession for purpose of the above calculation, either division or multiplication process, shall not exceed 10 years. The current progressive personal income tax rate is scheduled as follows: Net Income (Baht) 1 - 300,000 300,001 - 500,000 500,001 - 750,000 750,000 - 1,000,000 1,000,001 - 2,000,000 2,000,000 - 4,000,000 4,000,001 and more

Tax Rate 5% 10% 15% 20% 25% 30% 35%

In case the property is inherited or unsolicited gift, the expense deduction for the sale or transfer thereof shall be made at the rate of 50% of the official appraisal price instead of the above expense standard deduction. And if such property is in the rural area, other than Bangkok and Pattaya, WHT shall be computed only for the sale/ transfer price at the amount exceeding Baht 200,000.

The WHT shall not apply to the sale / transfer of the property that is given to children, or is appropriated by the government.

D. Acquisition of Building Ownership There is no restriction on acquiring ownership against building/ house/ structure on any piece of land so leased by foreigner. Thus, a foreigner, either natural person or juristic person, is then able to lease land and construct a building/house/structure thereon. However, such lease agreement has to specify clearly that the ownership of building/ house/ structure shall belong to the foreigner or not become the fixture to the leased land. A foreigner can then own a structure erected on the land and may register such ownership (with proof) in its own name.

D. Other Rights on Land / Immovable Property through the Provisions of the Civil and Commercial Code (CCC) Other than the acquisition of ownership over the land / condominium unit under the Land Code, there are also some other rights for the foreigners to possess and/ or use land, condominium unit, and/or any other immovable properties in Thailand through and subject to the provisions of CCC, for instances: Leasehold Foreigners may freely lease land, condominium unit and/or other immovable property practically for a maximum period of 30 years (or the life time of either

party), with possible renewal for the lease for another 30 years. Lease for the period not exceeding three (3) years may be entered into by a simple lease agreement without being registered with the Land Department. The lease for the period of more than three (3) years shall be subject to registration with the Land Department. Failure to comply with such registration, the lease shall be enforceable and binding the parties only for a period of three (3) years. Possessory Right A person may acquire possessory right by holding a property belonging to another peacefully and openly with intention of possession for himself/herself or through another person possessing the property for him/her, for an uninterrupted and consecutive period of ten (10) years in case of immovable property, or five (5) years in case of movable property. Habitation Right (Arsai) A person who has been granted a right of habitation in a building shall be entitled to occupy such building as a dwelling place without paying rental. The right of habitation may be granted for a maximum period of 30 years (or for the life time of the grantee) with possible renewal for another 30 years. The right of habitation is not transferable even by virtue of inheritance. Superficies Right The owner of the land may grant a right of superficies in favor of another person by giving such person the right to own upon or under the land, buildings, structures or plantations. The right of superficies may be granted for certain period of time or for the life time of the owner or the superficiary, as the case may be. Unless agreed otherwise by the parties thereto, the right of superficies is transferable and transmissible by virtue of inheritance. Usufruct Right A person may be granted a right of usufruct over the immovable property to be entitled to manage, possess, use and enjoy the interest and benefit derived therefrom. For the usufruct of a forest, mine or quarry, the usufructuary shall have the right to exploit the forest, mine or quarry, as the case may be. The right of usufruct may be granted for certain period of time or for the life time of the usufructuary. The right of usufruct shall end upon the death of the usufructuary.

Thai Property Guide 2014

Land Types and Titles By Worachai Bhicharnchitr, Vickery & Worachai Ltd.

Land Types The land in Thailand may be divided into two main categories:

1. Land of the State, consisting of: (a) Islands formed in the lake or water-way in territorial waters, and beds of waterways left dry. (b) Domain public of the State, for instances: waste land and land surrendered, abandoned or otherwise reverted to the State according to the land law, property for the common use of the people, such as water ways, highways, lakes. (c) Property for the special use of the State, such as military building.

2. Land other than those stated above. Person, either natural or juristic person, may have the right to own or possess the land that is not the land of the State, subject to the conditions or restrictions under the applicable laws

Thai Property Guide 2014

and regulations. For instance, the foreigner cannot own land in Thailand unless specific permission from the concerned authorities is obtained, such as obtaining investment promotion from the Office of the Board of Investment (BOI) or foreign natural person may own land of not exceeding one Rai (1,600 square meters) for residential purpose according to specific conditions.

Land Titles In Thailand, there are various types of land titles that are used as common evidence of ownership, possession right and/or any other interests in land in different levels of right and/or security. 1. Land Title Deed (Nor Sor 4 or Chanote) This type of title is a certificate for ownership of land so registered at the local Land Office in the province where the property is located. This title contains a legal description of the land boundary markers that are carefully ascertained and referenced by satellite images. It grants the

holder the full right of ownership over the land, including the rights to use and dispose of it as well as to acquire its fruit, to follow and recover it from any person not entitled to detain it, and has the right to prevent any unlawful interference with it. It is therefore the strongest and most secure type of land title which is highly recommended. For the title evidencing the ownership of a unit in a condominium, it is called a â&#x20AC;&#x2DC;Certificate of Unit Ownershipâ&#x20AC;&#x2122;. This Certificate should be categorized in the same level of security as the Chanote title that is applied for the land. The Certificate contains the name of the owner, the position and size of the land, the location, area, and a diagram indicating the unitâ&#x20AC;&#x2122;s width, length, and height. It also includes the proportion of ownership in the common property. 2. Nor Sor 3 Gor (Confirmed Certificate of Use) This type of land title designates ownership of land with fairly certain boundaries and certifies that the person named on this certificate has the confirmed right to use

the land. However, it is not yet a full land title deed as is the Chanote but it could be upgraded to be the Chanote thereafter. The land owner under this certificate has the right to request the Land Department through the local Land Office to have the property surveyed and in such case, a final official measuring is required by the Land Department along with the placing of official markers prior to issuing the land title deed (Nor Sor 4 or Chanote) as replacement. This type of land title could then be implied that all requirements for issuance of land title deed have been made, but only the process of issuing the land title deed is still pending. The land with Nor Sor 3 Gor may be sold, transferred, or mortgaged. 3. Certificate of Use (Nor Sor 3) This land title is similar to Nor Sor 3 Gor with the exception that the Land Department has not yet completed measurement or recognition of the boundaries thereof. Although ownership of the land under this title is quite ascertained but since the measurement by the Land

Department is not yet made, therefore, the land boundary markers are normally placed by the land owners rather than the authorities. So the risk is that whether the land boundary and size are accurate or not. This type of title is then deemed having less legal strength than Chanote or Nor Sor 3 Gor. For the transfer of the land under this Nor Sor 3, prior to the transfer, a notice of intent shall be posted and the thirty days public notice is necessary before transfer of ownership or any change of status over such land can be registered with the Land Department. 4. Notification of Land Possession (Sor Kor 1) This document recognizes that the land possessor has notified the possession of such land to the concerned authority but the said document does not imply that there are any right associated with the possession and it is not evidence of the land title or having the ownership thereof). Legally, it is not transferable but

in practice, a person in possession of such land may transfer physical possession by delivering the land so possessed and the new possessor may apply for a new Sor Kor 1 instead. 5. Sor Por Gor 4-01 This type of property right is a title granted by the concerned authorities to Thai poor farmers for agricultural purpose in specific land reform area, usually found in rural areas. Residence is allowed on a portion of land. It is difficult for a foreigner to obtain an interest in this type of title. 6. Por Bor Tor The land with Por Bor Tor is normally inherited land right proven / recognized by tax payments at the Local Administration office but it has never been substantiated by the Land Department. The possessor only has a right to use the land, but can not register the right like usufruct or a lease. This type of title is one of the weakest types of land right that is the least recommended.

Thai Property Guide 2014

Property Buyer’s Guide By Sansiri

uying property in Thailand has never been as easy as it is today. There are many preconceptions about what type of properties foreigners can and cannot buy in Thailand, and how best to go about purchasing property in the Kingdom. However, various revisions to the Thai law over the years have gradually made the entire process easier. As a foreigner, it is important that you understand the relevant laws and various steps involved. This guide is intended to help you make informed decisions when purchasing property in Thailand, and aid you in steering clear of easily avoidable complications during the buying process. Why invest in property in Thailand? When investing in property in Thailand, the first step is to consider the intended purpose of your purchase. Common reasons for investing in property here are as follows: • • • • • •

Primary residence Rental income Holiday home Office or workspace Retirement home Capital appreciation investment

Thai Property Guide 2014

By keeping in mind reasons to purchase, you will be able to better decide which prospective properties suit your needs and requirements. Thailand is an incredibly diverse country, which provides a range of options for property investors, from city condominiums to resort homes. Factors such as location, easy access to transport, accessibility, proximity to amenities, unit size, décor and other considerations will vary in importance depending on your reasons for buying. However, the most important factor to consider before all others is the type of property you wish to invest in.

What types of ownership structures are available to foreigners? Freehold Condominiums The best purchasing option in Thailand for foreign buyers is freehold condominiums. Condominiums in Thailand have a special status as outlined by the Condominium Act B.E. 2522 (1979), allowing foreigners direct freehold ownership of the condominium unit, as well as common property co-ownership. Freehold ownership offers absolute ownership of the property and is the best form of tenure that foreigners can be granted in Thailand. Foreigners can buy up to 49% of the total floor area

of a condominium on a freehold basis. Therefore it is important to be aware of the condominium’s foreign ownership quota before purchasing. Sansiri offers buying opportunities in freehold condominiums in Bangkok and a range of key resort locations throughout Thailand. For more details, please contact our sales representatives. Leasehold Alternatively, foreigners may register the leasehold rights with the district Land Office. This may be the lease of a condominium or freehold land. Through this process, foreigners can effectively use land through a leasehold tenure and are permitted to own buildings or structures erected on that land. Thai law limits the duration of a lease to a maximum of 30 years, after which the lease term can be renewed as permitted under such law.

How to acquire property in Thailand? Reservation A reservation agreement is made between the buyer and seller to secure the booking of a unit and a down payment deposit by the buyer. Reservation requires a copy of the buyer’s national Passport. For foreign buyers who have

previously purchased a property in Thailand, it is necessary to ensure that the spelling of the buyer’s name in Thai is exactly the same as the name used for previous purchases. The down payment amount will vary depending on the project and the terms of the contract. For further information on the reservation process, buyers may contact the project’s sales representative.

• Purpose of funds transfer (purchase of a condominium in Thailand)

Payment Methods In order to buy a condominium in Thailand, there are several methods by which buyers can make a payment for the purchase of a condominium as follows:

Confirmation Letter When transferring or bringing a foreign currency into Thailand valued at less than USD$ 50,000 (or equivalent in other currencies), the bank will issue a credit note with a confirmation letter.

• Cash • Bank draft • Swift funds transfer

Foreign Exchange Transaction Form When transferring or bringing a foreign currency into Thailand valued at USD 50,000 or more (or equivalent in other currencies), the bank will issue a Foreign Exchange Transaction Form.

Payment Procedure The necessary information that the buyer needs to know for transferring a payment to Sansiri bank account or other bank account designated by Sansiri are as follows: • • • • •

Bank Account Name Bank Name Bank Account Number Bank Address SWIFT CODE

Source of Funds Declaration It is necessary that foreigners who buy a condominium in Thailand present a source of funds declaration and documentation to the Land Office when registering ownership.

Customs Declaration Form In cases where a buyer brings cash into Thailand for purchase condominium, you need to declare it to the customs officer and present a receipt from the customs to the Bank in order to issue a confirmation letter.

Remarks In cases of transferring funds from a foreign currency into Thailand, please take note and keep in mind that the name of the beneficiary in the Foreign Transaction Form¹ must be the same as name of buyer, as specified in the Sale and Purchase Agreement. • The total amount of transferred funds must be not less than the net price (Thai Baht) of the condominium unit as specified in the Sale and Purchase Agreement. • In the transfer instructions, please clearly specify the purpose of the transaction as, “For the purchase of a condominium in Thailand.” Final Points of Consideration Although Thai property law is much easier to understand these days, it is recommended that foreign buyers consult a lawyer to assist with their property purchase in Thailand, particularly in cases where land is involved. As condominium purchases are relatively straightforward and standardized throughout the local real estate industry, selecting a property developer with a known track record and history is also important to avoid investment risk. The details above outline some of the key preliminary steps for purchasing property in Thailand.

Thai Property Guide 2014

Inheritance of Condominium Units by Foreigners in Thailand By Pornchai Srisawang and Chaiwat Keratisuthisathorn First published in Bangkok Post, November 1, 2013

ondominium units are valuable properties that owners often wish to see passed on to their heirs upon their death. In Thailand, there are a significant number of foreign condominium owners, many of whom are uncertain about property inheritance laws. This article will explore some of the pertinent issues surrounding inheritance by foreigners of foreign-owned condominium units.

The Condominium Act The Condominium Act B.E. 2522 (the Act) and its amendments allow foreignersâ&#x20AC;&#x201D;both foreign natural and juristic personsâ&#x20AC;&#x201D; who meet certain qualifications to purchase and own condominium units in Thailand. But the Act stipulates two unwavering legal requirements: First, foreign ownership in a condominium project must not exceed 49% of the total floor area of all units combined (51% of the total floor area of all units must be owned by Thais), as specified in Section 19 bis of the Act. Second, every foreign individual purchasing a condominium unit must qualify for foreign ownership, as prescribed under Section 19 of the Act. The following foreign persons are qualified for foreign ownership, so long as the foreign-Thai ownership quota is not exceeded, under the relevant Subsections 1, 2, and 5 of Section 19: (1) Foreign individuals who hold a Permanent Residence permit; (2) Foreign individuals who reside in Thailand under the laws governing investment promotion; (5) Foreign individuals who bring foreign currency into Thailand or withdraw money from a non-resident bank account or foreign currency bank account. Additionally, the Act also states that when a foreigner, who falls under Section 19 (1) and (2), has acquired a condominium unit by legacy in the capacity of statutory heir or inheritor under a last will and testament or by other means, that foreigner is permitted to own the unit, provided that registering ownership of the condominium unit does not cause foreign ownership to exceed the 49% quota, as stated above. If such registration causes total foreign ownership to exceed the 49% limit, the foreigner will not be eligible to own the unit, and will be forced to dispose of it within one year from the date it was acquired.

Thai Property Guide 2014

Foreign individuals other than those stipulated under Section 19 (1) and (2) who have acquired a condominium unit by legacy must inform the competent authority in writing within 60 days and dispose of the unit within one year from the date of acquisition, regardless of whether the unit is under the 49% foreign ownership quota. To briefly summarize, a foreign individual may own a condominium unit in Thailand when he or she qualifies as a foreigner under Section 19 (1), (2), and (5). Foreigners who hold a Permanent Residence permit under Section 19 (1) or who reside in Thailand under the laws governing investment promotion under Section 19 (2) may inherit a unit that does not exceed the 49% foreign ownership quota without having to dispose of the unit, while other foreigners can inherit a unit but are required to dispose of the unit within one year. In our experience, foreign individuals in Thailand usually acquire a condominium unit by remitting foreign currency into Thailand under Section 19 (5). The question here is whether legal heirs or inheritors who fall under Section 19 (5), but who do not meet the requirements under Section 19 (1) and (2), can inherit the unit without having to dispose of it within one year. This issue was recently clarified by the Land Department, in response to official inquiries. Although the Condominium Act restricts foreign ownership to those who fall under Section 19, and only allows foreigners under Section 19 (1) and (2) to inherit a unit without having to dispose of it, attention

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must be paid to Sections 1599 and 1600 of the Thai Civil and Commercial Code (CCC), which is the principal law governing succession. This law shall also apply to foreigners’ inheritance.

Sharpener Accounting and Tax 54 Level 8, Suite 3802, BB Building, Sukhumvit 21 (Asoke), Klongtoey Nua, Wattana Bangkok 10110, Thailand T. +662 258 5471 thru 72 M. +668 1866 8200 E. veeruthai@sharpenerat.com W. www.sharpenerat.com

The Thai Civil and Commercial Code Sections 1599 and 1600 of the CCC rule that when a person dies, his or her estate shall devolve to his or her heirs. The estate of a deceased person includes his or her properties of every kind, as well as his or her rights, duties, and liabilities, except those which by law or by their nature are purely personal to him or her. Based on the above, if a deceased foreigner remitted foreign currency into Thailand, purchased a condominium unit, and was a qualified foreign individual under Section 19 (5) of the Condominium Act, his or her legal heirs (if also foreigners) would inherit the deceased foreigner’s rights, and would also be deemed to be foreigners under Section 19 (5). The foreign legal heirs would possess the same rights formerly held by the deceased person and would inherit the unit without having to dispose of it. After inheriting a condominium unit, the legal heir or inheritor under the last will and testament must register the unit with the relevant Land Office, and must present to the land official the death certificate of the deceased former owner, the last will and testament (or other documents showing the inheritance), a court order appointing an estate administrator (if any), a family tree, and any other requisite documents. Without a court order appointing an estate administrator, the registration of an inherited condominium unit will be subject to a 30-day public notice requirement. The registration will also be subject to a transfer fee and a specific business tax (if applicable), which is calculated based on the official assessed price of the condominium unit as determined by the Land Office. Inheriting a condominium unit will not be subject to personal income tax and stamp duty.

Thai Property Guide 2014

Banking Regulations for Foreigners By Christer Nilsson

Can a foreign national get a loan from a Thai commercial bank to buy property? In theory the answer is yes. Thailand´s state bank regulator, Bank of Thailand (BOT), has no regulation that ban Thai commercial banks to issue such loans to foreigners. However, for capital control policy, there is a limit for THB borrowing. If foreigners would like to borrow THB for consumption (including housing loans), there is a limit at 5 million THB.

Has TBA provided any guidelines or advise to member banks regarding issuing loans to foreign nationals for buying residential property in Thailand; have you got any general advice to a foreigner that approaches a Thai bank looking to finance his/hers residential property in Thailand; what experience does the TBA and its members have so far from dealing with foreign nationals as customers taking loans in Thailand, and finally, does the TBA have any opinion on BOT´s THB 5 million limit? “I would like to point out firstly that, as a general rule, I do not discuss business issues with our members, as that is an issue that is to be decided by each individual bank according to its business strategy and marketing plan,” states Dr. Twatchai.

In practise we found that commercial banks in Thailand hesitate to issue loans to foreigners for property purchase. But it is not a flat no. Ask around.

Association members have experienced cases when foreign business customers have failed to pay their loans. Private customers, with property as collateral, is a different case and the risk much smaller for the bank

In order to get the commercial bank´s view we asked Dr. Twatchai Yongkittikul, Secretary General,The Thai Bankers’ Association (TBA) a few questions about loans to foreigners:

“We do discuss general issues that may affect the industry as a whole. Such as when foreign nationals doing business in Thailand, who decide to close down their businesses when they encounter financial problems, are

Thai Property Guide 2014

leaving the unpaid loans behind without any back-up collateral or guarantor.” Age might be an obstacle when a foreign customer approaches a Thai commercial bank for a property loan. Banks might ask the client for an extra buffer, like a life insurance with a policy that covers outstanding mortgages if the client passes away before the loan is paid back. “For home buyers the bank may need a life insurance policy as a collateral. If the buyer is of high age he may have difficulty getting a life insurance policy if he does not already have one.“ Currency regulations vary with the times. BOT´s 5-million-baht roof is one example. “The 5-million baht limit for home loans is applied recently, I believe, as the BOT is concerned about the current exchange rate volatility and that the baht will appreciate when the QE tapers off. This leads to possible speculative motives in local currency borrowing. Any question related to foreign exchange transactions should be addressed to the Bank of Thailand’s call centre. I am afraid that the clerks at bank branches would not be able to explain,” ends Dr. Twatchai.

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Thai Property Guide 2014

SEB (Skandinaviska Enskilda Banken AB) 50 Collyer Quay #12-03 OUE Bayfront Singapore 049321 Singapore

Overview of SEB ^ ͕ Ă ^ǁĞĚŝƐŚ ĮŶĂŶĐŝĂů ďĂŶŬŝŶŐ ŐƌŽƵƉ ĞƐƚĂďůŝƐŚĞĚ ŝŶ ϭϴϱϲ͕ ƐĞƌǀĞƐ ŽǀĞƌ ϰϬϬ͕ϬϬϬ ĐŽŵƉĂŶŝĞƐ ĂŶĚ ŝŶƐƟƚƵƟŽŶƐ ĂŶĚ ŵŽƌĞ ƚŚĂŶ ĮǀĞ ŵŝůůŝŽŶ ƉƌŝǀĂƚĞ ŝŶĚŝǀŝĚƵĂůƐ ƚŚƌŽƵŐŚ ŝƚƐ ďƌĂŶĐŚ ŽĸĐĞƐ ŝŶ ƚŚĞ EŽƌĚŝĐƐ͕ ĂůƟĐƐ͕ ^ŝŶŐĂƉŽƌĞ͕ ,ŽŶŐ <ŽŶŐ͕ ^ŚĂŶŐŚĂŝ͕ >ŽŶĚŽŶ͕ EĞǁ zŽƌŬ ĂŶĚ ŽƚŚĞƌ ĮŶĂŶĐŝĂů ĐĞŶƚƌĞƐ around the world. Private Banking Singapore Ɛ ƚŚĞ ůĞĂĚŝŶŐ WƌŝǀĂƚĞ ĂŶŬ ŝŶ ƚŚĞ EŽƌĚŝĐƐ͕ ^ ŽƉĞŶĞĚ Ă ĨƵůůǇͲŇĞĚŐĞĚ ƉƌŝǀĂƚĞ ďĂŶŬ ŝŶ ^ŝŶŐĂƉŽƌĞ ŝŶ ϮϬϬϱ͕ ƉƌŽǀŝĚŝŶŐ Ă ĐŽŵƉƌĞŚĞŶƐŝǀĞ ƌĂŶŐĞ ŽĨ ƚĂŝůŽƌͲŵĂĚĞ ŝŶƚĞƌŶĂƟŽŶĂů ǁĞĂůƚŚ ŵĂŶĂŐĞŵĞŶƚ ƐĞƌǀŝĐĞƐ ĨŽƌ ƉƌŝŵĂƌŝůǇ EŽƌĚŝĐ ŝŶĚŝǀŝĚƵĂůƐ ƌĞƐŝĚŝŶŐ͕ ǁŽƌŬŝŶŐ Žƌ ŝŶǀĞƐƟŶŐ ŝŶ ƚŚĞ ƐŝĂ WĂĐŝĮĐ ZĞŐŝŽŶ͘ Ɛ ƚŚĞ ĮƌƐƚ EŽƌĚŝĐ ƉƌŝǀĂƚĞ ďĂŶŬ ŝŶ ƚŚĞ ZĞŐŝŽŶ͕ ^ WƌŝǀĂƚĞ ĂŶŬŝŶŐ ^ŝŶŐĂƉŽƌĞ ŽīĞƌƐ ŝƚƐ ĐůŝĞŶƚƐ ĂĐĐŽƵŶƚ ĨĂĐŝůŝƟĞƐ ŝŶ ^ŝŶŐĂƉŽƌĞ͕ >ƵǆĞŵďŽƵƌŐ ĂŶĚ ^ǁŝƚǌĞƌůĂŶĚ͘ ƉĂƌƚ ĨƌŽŵ Ăůů ƚŚĞ ƚƌĂĚŝƟŽŶĂů ƉƌŝǀĂƚĞ ďĂŶŬŝŶŐ ĮŶĂŶĐŝĂů ĂĚǀŝƐŽƌǇ ƐĞƌǀŝĐĞƐ ĂŶĚ ŝƚƐ ĐŽŵƉƌĞŚĞŶƐŝǀĞ ƌĞŐŝŽŶĂů ĞƋƵŝƚǇ ďƌŽŬĞƌĂŐĞ ŽīĞƌŝŶŐ͕ ^ WƌŝǀĂƚĞ ĂŶŬŝŶŐ ^ŝŶŐĂƉŽƌĞ ŽīĞƌƐ ŝƚƐ ĐůŝĞŶƚƐ ĚĞĚŝĐĂƚĞĚ ĂŶĚ ŝŶĚŝǀŝĚƵĂů tĞĂůƚŚ ^ƚƌƵĐƚƵƌŝŶŐ ĂĚǀŝĐĞ͕ ŵŽƌƚŐĂŐĞ ƐŽůƵƟŽŶƐ͕ ĚŝƌĞĐƚ ŵĂƌŬĞƚ ĂĐĐĞƐƐ ǀŝĂ ŽƵƌ ĐƟǀĞ dƌĂĚŝŶŐ ĚĞƐŬ ĂŶĚ ŵƵĐŚ ŵŽƌĞ͘ /Ŷ ^ŝŶŐĂƉŽƌĞ ŽƵƌ ƉƌŝǀĂƚĞ ďĂŶŬĞƌƐ ƐƉĞĂŬ ĂŶĚͬŽƌ ƵŶĚĞƌƐƚĂŶĚ ŶŐůŝƐŚ͕ ^ǁĞĚŝƐŚ͕ EŽƌǁĞŐŝĂŶ͕ Danish, Finnish and Mandarin.

Merchant Banking Singapore ^ DĞƌĐŚĂŶƚ ĂŶŬŝŶŐ ^ŝŶŐĂƉŽƌĞ ƉƌŽǀŝĚĞƐ Ă ĨƵůů ƌĂŶŐĞ ŽĨ ĐŽŵŵĞƌĐŝĂů ďĂŶŬŝŶŐ ĂĐƟǀŝƟĞƐ ǁŝƚŚ ĞŵƉŚĂƐŝƐ ŽŶ ƚƌĂĚĞ ĮŶĂŶĐĞ͕ ƐƚƌƵĐƚƵƌĞĚ ĮŶĂŶĐĞ͕ ĐĂƐŚ ŵĂŶĂŐĞŵĞŶƚ͕ ƐŚŝƉƉŝŶŐ ĮŶĂŶĐĞ ĂŶĚ ƚƌĞĂƐƵƌǇ ƐĞƌǀŝĐĞƐ ĂŝŵĞĚ Ăƚ ƚŚĞ ŶĞĞĚƐ ŽĨ EŽƌƚŚĞƌŶ ƵƌŽƉĞĂŶ ĂŶĚ 'ĞƌŵĂŶ ĐŽŵƉĂŶŝĞƐ ĂŶĚ ƚŚĞŝƌ ĐŽƵŶƚĞƌƉĂƌƚƐ ŝŶ ƚŚĞ ZĞŐŝŽŶ ĂƐ ǁĞůů ĂƐ &ŝŶĂŶĐŝĂů /ŶƐƟƚƵƟŽŶƐ ŝŶ ƐŝĂ͘ ƉĂƌƚ ĨƌŽŵ ^ŝŶŐĂƉŽƌĞ͕ ^ ŚĂƐ ƌĞŐŝŽŶĂů ŽĸĐĞƐ ŝŶ ,ŽŶŐ <ŽŶŐ͕ ^ŚĂŶŐŚĂŝ͕ ĞŝũŝŶŐ ĂŶĚ EĞǁ ĞŚůŝ͘ Contact Persons

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Thailand Home Loan Financing Looking for opportunities to finance your Thailand property investment via home loan? You may have, or will, come across several obstacles and difficulties locally when wanting to raise finance for a purchase. Chances are slim among the public listed Thai banks that are unwilling to lend to foreigners, even though allowed to. However, there are a few other ways to try, in Thailand via MBK Guarantee or via United Overseas Bank Limited (UOB) in Singapore. By Joakim Persson

Thai Property Guide 2014

MBK Guarantee “According to the Bank of Thailand, Thai Banks may not lend to foreign residents but for a few exceptions which in general rule out the large part of buyers,” states MBK Guarantee Ltd (Part of the MBK Group PLC, Bangkok) MBK Guarantee states they are pioneering the way forward to allow foreigner-friendly finance options to the investors within Thailand’s real estate market. They lend to foreigners against condominiums and land (villa's, houses or hotels etc. are no longer accepted as previously). The MBK Group have more than 30 years of experience in Thailand’s tourism industry and therefore is perfectly adapted and positioned to deal with foreigner requirements. “The most noticeable difference is that, since we are not a commercial bank we are not restricted by the Bank of Thailand loan limit of THB 5,000,000 to foreigners and therefore, there is no cap unto the amount of finance we can lend.”

MBK Guarantee allows THB financing for up to 60% of the Purchase price or Valuation (whichever is the lower) and over a maximum tenor of 10 Years. Condominium interest rates are at Thanachart Bank’s MLR + 2% with a competitive lender arrangement fee of 1.25%. Terms can range between 3 – 10 Years and 50% Balloon payments are optionally available. They have solutions available for multiple locations, be it on Phuket, a top-notch penthouse condo in Bangkok or an investment opportunity in Pattaya. “Whether you are a developer, foreigner or Thai individual, finance can be provided against all sorts of collateral and typically, an aim would be to inspect and individually asses each and every building before approval can be granted. Once granted, only a valuation report will be required in the future to re-finance.” As a lender they look closely at what properties/collateral can be found suitable to finance.

Type of properties: freehold condominiums for owner occupation and investment purposes in Thailand can be purchased with the loan.

Liquidity is the the first and foremost factor. And in determining the liquidity of an asset location is absolutely key; a prime location will almost always be easily liquidated or easily sell-able.

UOB will appoint a valuer to assess the market value of the property. If this valuation is lower than the purchase price, borrower will have to pay the difference in cash before any loan can be disbursed. The maximum loan amount you can borrow is up to 70% of the purchase price or valuation price (whichever is lower).

Furthermore all these factors are important in the assessment as there needs to be a good clear exit strategy in times of loan default: sea view, facilities, build quality & specifications, parking/ transport/accessibility, governmentsupplied water and electricity, attractions/conveniences, risk for natural disasters, price Sq.m./w, and property/land restrictions & allowances. Also noteworthy: ”The thought processes one goes through to buy a property are also, part of the same thought processes a lender will go through in order to determine liquidity. A condo unit may be in a great location, offer decent rental yields and good facilities but, if there are low sales on the building, it may suggest low liquidity and therefore, would perhaps see a decline or, lower loan to value granted.” Doing background checks on the client is also mandatory according to MBK Guarantee. The lender is not just comfortable with lending 50% against the value of property; the ability to repay the loan should also be satisfactory. In essence: Who is the client? Where will the money come from to repay the loan? What evidence is available to show client is a good standing citizen? And finally; What property is the client looking to buy? This lender can even offer Cash Back to foreigners who have purchased property in Thailand. “Our client base ranges significantly from an overseas resident, to local investors (both Foreigner and Thai) with an extensive property portfolio around Thailand. An investor client will sometimes come to us with a list of Condominium title deeds and ask what finance can be achieved against these units as they were all paid with by cash unknowing to the fact, finance could be made available. MBK Guarantee Ltd

has over 100 Condominium buildings already pre-approved where we can effectively tell the client that cash back for x amount within a matter of weeks could be achieved.”

UOB Singapore - International Home Loan Thailand UOB can offer financing of up to 70% of the purchase price or valuation price (whichever is lower) when you purchase your dream home in Thailand. UOB International Home Loan - Thailand is open to foreigners aged 21 and above with a minimum income of SGD 100,000 per annum.

Taking up a UOB International Home Loan - Thailand to purchase a residential property, means that the borrowers installments over the repayment period will be calculated based on one’s full loan amount. The first installment will commence one month from the date of disbursement of loan. Repayment can be stretched up to 20 years (provided that the applicant with the highest income is aged 65 years and below at the end of the loan tenure), giving greater financial flexibility and control over your cash flow.

With ‘monthly-rest installment plan’, borrowers will enjoy more interest savings as the principal amount is reduced every month. Loan currencies: Singapore Dollar or US Dollar. Interest rates offered: Loan in SGD 1st year: S$ Prime + 0.75% = 5.75% p.a 2nd year: S$ Prime + 1.25% = 6.25% p.a Thereafter: S$ Prime + 1.75% = 6.75% p.a US$ Prime is currently at 5.00% p.a. Loan in USD 1st year: US$ Prime + 2.75% = 6.00% p.a 2nd year: US$ Prime + 3.25% = 6.50% p.a Thereafter: US$ Prime + 3.75% = 7.00% p.a US$ Prime is currently at 3.25% p.a. A processing fee of 1% of the loan amount subject to: SGD Loan Min SGD 1,000 and max SGD 5,000 USD Loan Min USD 1,000 and max USD 5,000

Thai Property Guide 2014

Singapore – the regional hub for private banking It’s not a secret that Singapore is increasingly becoming Asia’s, or even the world’s, some say, wealth management centre of choice. Assets managed by Singaporean private banks have more or less doubled in the last 4 years and looking back to the year 2000, assets under management have grown by a staggering 1200% to approximately USD 600 billion. By SEB Private Banking Singapore

Thai Property Guide 2014

“T

his is the reason why SEB in 2005 chose Singapore as its private banking centre for Asia”, says Fredrik Lager, General Manager of SEB Private Banking in Singapore. SEB has had a presence in Singapore for almost 35 years and now operates additional fully fledged offices in Hong Kong, Shanghai, Beijing and New Dehli. “We have followed the rapid increase in wealth in this part of the world for years and decided to cater for the Nordic community in South East Asia, both private and corporate, at a very early stage”, Fredrik Lager continues. Although difficult to calculate exactly, many private banking research groups estimate that international wealth management is a USD 9 trillion industry. Whilst Switzerland is still the world’s largest international private banking centre with approximately USD 2.8 trillion in assets under management, Singapore is the world’s fastest growing private banking market.

Mr. Fredrik Lager, General Manager, SEB Private Banking Singapore There are no signs to suggest that Singapore’s attractiveness as a premier private banking centre will slow down in the coming years. On the contrary, many industry experts predict that Singapore will be the world’s largest private banking hub by 2020,

Facts about Singapore Capital City: Singapore Area: 716 km2 Population: 5,399,200 (2013) Ethnic groups: Chinese 74%, Malay 13%, Indians 9%, Others 4% Official Languages: Chinese (Mandarin), English, Malay and Tamil thus surpassing Switzerland in terms of private assets under management. So, what is it that makes Singapore so attractive in the eyes of the world’s wealthy? “One major reason is that the country’s regulatory and legal systems are regarded as among the best in the world. Another reason is its strategic location in South East Asia. A third reason, I believe, is the fact that Singapore is an English speaking nation”, says Fredrik Lager. As the global marketplace moves towards greater transparency, Singapore has introduced strict legal measures to battle all forms of money laundering. For example, the island-state has signed a significant number of new information exchange agreements with other countries. Furthermore, as of 1 July 2013, tax evasion in the client’s home jurisdiction has become a predicate offence under Singapore’s amended anti money laundering legislation. “The times when clients placed their wealth in secret number accounts, hoping that the assets would be sheltered from the prying

eyes of tax authorities, are gone and will never return”, according to Fredrik Lager. “These days clients are much more demanding and determined to ensure that their assets are structured in a legal, yet tax efficient, way. This is why Wealth Structuring is an integral part of SEB’s private banking offering. Clients want to sleep good at night knowing their assets can stand up to scrutiny if necessary, whilst at the same time knowing that the bank / client confidentiality is as strong as ever.”, Fredrik Lager continues. In line with continued growth in Asian economies, Singapore’s private banking industry is destined to grow in the coming years. According to a recent report by the London-based research firm, WealthInsight, assets managed by Singaporean private banks could more than quadruple from today’s level by 2016. “Singapore is a country shaped through the need for trade and services and as such offers the ideal base for private banking. Naturally SEB wants to be part of this development and at the same time ensure that our clients receive an exceptional service at all levels”, Fredrik Lager concludes.

Government: Parliamentary Republic; - President: Tony Tan - Prime Minister: Lee Hsien Loong Ruling Party: PAP – People’s Action Party Next Election: 2016 (General Election) GDP per Capita: 52,051 USD (nominal, 2012 est.) Major Industries: Electronics, financial services, oil drilling equipment, petroleum refining, pharmaceutical manufacturing, processed food and beverages, rubber products and ship repair No. Of financial institutions Insurance Companies/brokers: 268 Banks: 164 Fund Management Firms: 204 Securities Dealing: 113 Financial Advisors: 59 Futures Brokers: 56 Corporate Finance: 38

Thai Property Guide 2014

Buyer Case: Satisfied Holiday Home Investor By Joakim Persson

r Dan Enstedt, President and CEO of Saab Asia Pacific, is responsible for Saab’s operations in all countries within Asia east of India and all the way to Australia and New Zealand. He works and lives in Bangkok at the Swedish defence and security company’s regional office. Mr Enstedt has invested in a residential home at the mixed-use development NishaVille in the village of Huay Yang, along the Gulf of Thailand in southern Prauchap Kirikhan province. The awarded seaside resort enjoys a discreet setting, with a temple and a national park as neighbours on opposite sides as strong guarantee that this also remains intact. ”I own a house since five years within the NishaVille residential development (Apr. 100 kilometres south of Hua Hin). The villa is situated fronting a perfect, pristine beach with an incredible sea view.

Thai Property Guide 2014

Our plan, after retiring, is to spend time abroad during November to March, since we want to have sun and a warm climate! Thailand was then the perfect choice. Mr Dan Enstedt, President and CEO of Saab Asia Pacific ”The main reason to buy a property abroad was to prolong the summer. I find that Sweden is fantastic and we have a house in Lysekil [southern costal area]. Before investing in the house in Thailand, we owned a property in Spain. However we quite soon found that during the period November to Mach it was pretty cold and rainy there. ”Our plan, after retiring, is to spend time abroad during November to

March, since we want to have sun and a warm climate! Thailand was then the perfect choice. The climate is fantastic, cost of living low, it is secure, offers fantastic beach life, great golfing and cuisine etc. “We actually bought a house only 500 metres from NishaVille 7 years ago, and enjoyed it very much. The reasons we moved to this five-star property are: - High quality restaurants on site

Construction guarantee for 5 years High level of security Upkeep of resort: clean and tidy Good services/facilities (home delivery of groceries, leisure activities, massage and spa, yoga etc.) Professional staff

“The benefit is also that we rent the house when we are not there. This is taken care of by the resort (no worries for us.) NishaVille ensures that everything is one hundred per cent in order whenever we return and that means we get a good amount of money each quarter. “I think it is important before investing in a property to really ensure that it is the right choice for you personally. This is one of the largest investments for most people during their lives. I think one should do the following before buying: - Test-stay in the area before buying - Talk to people living there and get their views - Decide if you want to let (is there any service that can offer such a service in an uncomplicated way?) - How sound is the owner’s association? - Decide what is of importance to you (peace and tranquillity, party/

entertainment, beach/swimming facilities, golf, restaurants etc.) Are there other Westerners in the area (important in order to find new friends that you can spend time with during many years to come.)

“We have owned this house for 5 years and are really satisfied. I look forward to retiring when I have the opportunity to spend 4-5 months here in paradise when it’s cold, rainy and dark back in Sweden.

“Also I am lucky, living and working in Bangkok. I go down every six weeks and spend a long weekend at the resort. It’s wonderful to get a break from Bangkok now and then. “Last but not least; the economy is important when buying a property, but it is an investment also for one’s soul and well-being and getting a better life. Don’t forget that aspect!”

Thai Property Guide 2014

Check list before buying a condominium unit By Christer Nilsson

Ask residents.

Contact the Condominium Association in the project. It will have records of what percentage of units are foreign owned.

Check cost of metered services like water and electricity if supplied by the building. Ask for cost of changing to own meters. Ask residents.

ead the Condominium Act. Read the Condominium regulations which is a legal document deposited at the Land

Check availability of cable TV, choice and options like satellite dishes. Ask residents.

Office

Does the committee meet as stipulated in the regulations.

What kind of common facilities, like fitness and swimming pool are available? Is there any charge?

Get the minutes of the AGMÂ´s and the minutes of the Committee meetings.

Are facilities open to non residents? Are the committee members approachable and helpful?

If there is a view, is there a risk it could be blocked in the future?

Speak with as many non-committee member residents as possible.

Parking spaces. Are there enough common parking spaces for residents, that are not allocated?

Ask for the audited financials. Ask about major maintenance projects, for example sewage and drainage, water and filtration, roof, roads, gardens, painting the outside of building and corridors, elevators. Have the projects planned for the previous year(s) been completed? How about any work in progress? Is there a sinking fund? Is it sufficient? Ask residents.

Is insurance coverage enough? Ask residents. What are the yearly maintenance fees? Check the security and safety procedures. Check fire escape routes, training of residents and related staff. How often is evacuation training done - if at all? Make sure that the security and safety procedures are well known among the staff. Check that security personnel are smart, courteous and at their stations. Is there 24 hour coverage by English speaking staff? Is the building secure or can just anyone walk in and go where they please? Is the perimeter secure? Is there CCTV and does it work? Ask for demo. Are tapes stored and for how long? Is the garbage room clean and tidy? How often is garbage collected? Check availability of (IDD) telephone (and data) lines and the cost for these services.

Thai Property Guide 2014

How long to wait for an elevator during high season? How many units are currently unoccupied? How many units are currently offered for sale or rent? Try to check the prices. If the management offers to rent condominiums on the ownersÂ´behalf, how much do they charge and exactly what service is on offer? Ask residents.

Check list prior to lease land and buying a house By Christer Nilsson

hat is the track record of the developing company?

Who is financing the project? What is the developing companyÂ´s registered share capital. How much is paid up? Confirm there will be a separate sale, purchase and maintenance agreement for the house and that the ownership will be registered in the name of the purchaser at the relevant authority. Who is responsible for paying building and land tax? Indicate what services will be provided. How much is the monthly or yearly maintenance service fee, and how long will the maintenance contract last?

Is the land connected to main utilities such as water and electricity? Has the area been subject to flooding? If yes, when, is it recurring? How many kilowatt for the area and for each house? Is there enough water to cover the area in case of governmental water stop? Tanks, storage.

May the buyer assign an independent building surveyor to inspect upon completion? How many houses in the project have been sold? Who will pay the common fees for unsold houses? Confirm that the seller will be responsible for payment of withholding and business tax on the transfer date.

How many houses are being built in the project? Could the view be blocked be new construction?

What is the payment schedule? How much deposit is payable?

Ask for track record of the construction company and the developer.

Can the purchaser assign the purchase to a third party before the house is completed?

What standard will the houses be built with?

Is the project insured?

Thai Property Guide 2014

Key Relevant Authorities relating to Property in Thailand Department of Lands Acquired property must be registered with the local land office, under the Department of Lands. Location and contact info to the local land offices are listed at this website. All information is in Thai. http://www.dol.go.th/dol/index.php?option=com_frontpage&Itemid=2

Ministry of Finance; Treasury Department Land evaluation in Bangkok, the suburbs and regions http://www.treasury.go.th/main.php?filename=index

The condominium law English version of the condominium act 2008 http://thailaws.com/law/t_laws/tlaw0337.pdf

Department of Business Development DBD has public information about Thai companies. http://www.dbd.go.th/dbdweb_en/main.php?filename=index

Bank of Thailand The national bank website is a very useful tool if you need to keep abreast with currency rates and regulations as well as interest rates and a number of economic indicators that BOT publish on a regular basis. English language version available. http://www.bot.or.th/english/Pages/BOTDefault.aspx

The Board of Investment This government agency is responsible for various promotional programs for investors. English language version available. http://www.boi.go.th/index.php?page=index

EIA, Environmental Impact Assessment rules and regulations A comprehensive information document in English about EIA. EIA might be needed for large property projects/buildings. http://www.aecen.org/sites/default/files/environmental_impact_assessment_in_thailand.pdf

The Immigration Bureau This is where all visa formalities are dealt with. English language version available. http://www.immigration.go.th

Ministry of Labour The ministry of labour deal with matters related to work permits in Thailand http://www.mol.go.th/en/anonymouse/labour_law

Office of the Consumer Protection Board http://www.ocpb.go.th/ewtadmin/ewt/ocpb_eng/main.php?filename=index___EN

Thai Property Guide 2014

Section 2 Useful information For the property investor there are many other factors to consider than only the investment in the property itself. Quality of life in Thailand and other important information is of equal importance to the property itself and an inseparable part of the decision.

Thai Property Guide 2014

Lifestyle and Quality Living From cool to hot and humid, from mountain tops to turquoise tropical waters â&#x20AC;&#x201C; Thailandâ&#x20AC;&#x2122;s geography offers these contrasts and offers multitude sights and sounds, aromas and flavours, including its world-famous cuisine and hospitality. By Joakim Persson

n the broader sense the nation is enjoying recognition as the top value-for-money dream destination for travellers from all over the world. Thailand offers tremendous value for unique experiences, a huge variety of attractions, delightful cuisine and a full range of accommodations that greatly appeal to foreigners. There is also a strong Thai identity and the unmistakable welcoming of strangers with a warm smile does the job well. And it is usually genuine. The way of life in Thailand. This â&#x20AC;&#x201C; the Thainess - is now, highlighted also by Tourism Authority of Thailand in their 2014 action plan.

Ranking highly for expat living and retiring Then there are many additional bonuses making the Southeast-Asian nation, now about to head into unchartered and challenging waters with the upcoming Asean Economic Community in 2015, a preferred holiday destination but also a country to live and retire in for expatriates from far and near. Thailand enjoys top ranking in international comparisons and surveys, as Asia is maintaining its position as a destination

Thai Property Guide 2014

for improved quality of life and emerging as a buzzing social hub for expats. Southeast Asian countries are predominant in the top rankings as places with great opportunities and growth as well as warm, welcoming populations, a low cost of living, and excellent work environments. Thailand is now coming into its own; expats know this and are heading east to the Kingdom in search of opportunities, experiences, and a much higher quality of life than they can have in their native lands. The 2013 Expat Explorer survey reveals that Thailand, once again, takes the top spot in the Expat Experience league table for ease of setting up, integration and a better social life. It also emerges as a favourable destination for expats looking for both quality life and improved financial status. The country also ranks top for the Disposable Income criteria. Upon relocation, expats in Thailand are more likely to say they have greater disposable income, with nearly eight in ten expats (76%) witnessing an improvement compared with the global average (49%). Regarding the most cost-effective countries for expats to live in, based upon rela-

tive spend on a range of daily necessities, Thailand ranks 1st out of 37 countries, alongside other Southeast Asian countries such as Vietnam and Taiwan, thanks to a combination of relatively high earning expats residing in the country, coupled with lower spend required for everyday essentials. Expats report having to spend less than average on a number of important day-to-day expenses including housing, transportation and utilities. Notably, a higher proportion of expats in the country (68%) report spending less on personal tax rates following their move compared with the global average (31%). Accommodation costs, which often accounts for the biggest outgoing cost, is also reported as being cheaper in Thailand than in any other country in this year's league tables. Six in ten (63%) expats there spend less on housing compared with a global average of 19% of expats who say the same. Thailand leads the global ranking except for overall ranking when including Raising Children Abroad, due to insufficient data. (With all criteria included China takes the top spot, and Singapore comes third.)

Notably, Thailand was also named 9th Best Country for Overseas Retirement in 2013 by International Living, the self-proclaimed number one resource for helping people find the best places to retire around the world. The country is mentioned as “a mainstay on surveys detailing possible locations for spending one’s golden years.” The best retirement destinations, by InternationalLiving.com are based on eight categories including climate, affordability, and ease of integration, as well as real estate, special retirement benefits, entertainment, health care and retirement infrastructure. Well regarded for its retirement opportunities the ‘Land of Smiles’ scored highly in two important categories: cost of living, where its 97/100 rating was second best on the list to the Philippines, and entertainment & amenities, where a score of 96 placed it in the top 5. The report also brought attention to the inexpensive accommodation costs, as condo rentals can be had almost anywhere for just $500 (USD) per month.

The index also points to the diversity of lifestyle options awaiting retirees in Thailand: options for bustling city life, white-sand beaches and remote resort areas, or the slightly more temperate higher elevations in the north. It also indicates that Thailand looks to improve on special benefits offered to retirees, such as discounts on goods & services or duty-free imports of home furnishing, and the English proficiency of the locals. In the EF English Proficiency Index Thailand ranks critically poor at place number 55, one of the lowest proficiency scores of the 60 countries listed. Foreigners will find that any contact with administrations and authorities, will require the assistance of English-speaking Thai consultants or foreigners fluent in Thai that can bridge the language gap. Also within the business community it can be tricky to make oneself understood. Investing in property will often involve many steps where the language is Thai and not English. Foreigners may find the ‘SpeakThai Application’ useful, available for free at: mobile.tourismthailand.org/

Thai Property Guide 2014

Bangkok – top destination Thailand is known by many for its beach resorts, and Bangkok, the capital that topped the MasterCard Global Destination Cities Index for 2013. Visitors to Bangkok feel it is a truly cosmopolitan city that is a perfect mixture of the old and the new. Its distinctive character is the result of Thailand’s long-standing freedom while opening itself to all positive things beyond its borders. “In Bangkok, you can find the pinnacle of luxury living and the simplest of lifestyles existing side by side. No matter how the city has evolved over the centuries, it still retains things that have eternal appeal for foreign visitors. Moreover, Bangkok is an affordable place with modern infrastructure and an extensive transport system,” commented the former TAT Governor.

The finest things in life Having a penchant for luxury lifestyle and living? Luxury products, such as any international brand is readily available in Thailand these days, especially within Bangkok’s dramatically increasing shopping centres. There there is luxury living and luxury travel – where, while luxury-travel experiences and products have been well-established for decades, the options are strongly increasing, both regarding condominium projects, villa resorts and luxury hotels. Thailand has been seeing a surge in the developments designed for discerning guests seeking a comfortable, delectable ambience, high-quality individualised service and, extremely importantly, total privacy. Travellers to Thailand can quench their thirst for luxury with a stay in any of the many high-end, extravagant resorts and hotels, where the accommodation and service provide them with a rich experience that takes them away from their daily routines and hectic working lives and and transports them to a place of satisfaction. The same level of luxury and five-star service can today be had at certain private residences, mainly in Bangkok but also within select resort properties. Rooms and suites are spacious and plush, the grounds are manicured and lush, and comfort, sophistication and attention to detail are of the utmost importance. Combine this with tradition of excellence regarding hospitality and you have the perfect formula. Simply put – Thailand is excellent at offering luxury experiences these days,

Thai Property Guide 2014

and a place where one can truly live the good life in style. If you enjoy the delicate pampering of 5-star service, and absolutely insist on the finest things life has to offer, then The Land of Smiles will not disappoint.

Going rural – the real deal In contrast, the experience can go from luxury and pampering to laidback countryside, with its disctintively different culture (s) - and even language! Up in the Northeast one speaks ‘Isaan’ language. Upcountry one gets to explore ruins, the rural life with its agricultural roots, incredible food, beautiful outdoors sceneries, and a laidback slice of ‘Amazing Thailand’ – the real deal! Traditional farming is the way of life, while Isaan’s main cities are undeniably increasingly being modernized. The country has national economic and social development objectives of better income distribution nationwide, creating jobs in the rural areas, and creating a more balanced and harmonious society. Much is still to be done on this front.

Healthy living The healthy living and wellness trend in the west is also a plus for Thailand, which has grown into a leading wellness spa destination, providing a plethora of therapies and preventive medicine, earning itself the unofficial title of Spa Capital of Asia because of the unique way in which the country is able to deliver a relaxing atmosphere, warm hospitality and service, and therapists with the soft touch and welcoming personalities necessary for a rejuvenating, healthrenewing wellness-spa experience. Bangkok, Chiang Mai, Hua Hin, Koh Samui, and Phuket – major destinations for both health and leisure tourism – are all home to many wellness spas catering to Thais and travellers. Thai wellness specialties include an array of traditional treatments that make the spas there so special. Expert therapists have an innate understanding of the centuries-old techniques that they use, partly due to the overall connection to well-being that is part of Thai culture.

Lifestyle Thailand Mobile App 2.0 National parks are plentiful and the mention goes to Khao Yai National Park, a stunning diversity of flora and fauna located in the southwest part of the region just 250km from Bangkok. There are nearly 3,000 recorded species of plants, 320 species of birds, and 66 species of mammals, including such vulnerable or endangered ones as the Indian bison, the Asian elephant, and the Asiatic black bear. There are over 50km of hiking trails, kayaking and rafting trips, and nighttime wildlife-spotting excursions. Khao Yai is nowadays also a hotspot for residences and resorts.

Experiencing ‘Thainess’ Today’s travellers are choosing destinations and services that satisfy deeper needs for participation, creativity, community, and idealism. Thus, in 2014 TAT will emphasise the Charm of Thainess, especially the Thai Experience, Thai Way of Life, and Thai Culture. The Kingdom of Thailand offers a unique experience because of its people being at the centre of the journey. This is the humancentric aspect of ‘Amazing Thailand’ which deepens the emotional value of visiting the country or residing here as a foreigner; one that is linked to its people in their attitude, hospitality and spirit. Thainess in the culture, art, food and way of life as it has been embodied in the spirit of the people.

TAT is taking its ‘Lifestyle Thailand’ smartphone application to a greater height with a new fresh look, with the latest updates from over 300 participating tourism businesses and more experiential travel ideas. The app has been enhanced to meet the ever-changing demand from the savvy smartphone users looking for new travel ideas in Thailand, aimed at enticing tourists by attractive images and detailed descriptions of tourist products and activities, and enables the app users to create their own exclusive trip in Thailand. The Lifestyle Thailand mobile app features 10 travel experience ideas that cater to different tourist preferences including Chic for trendy jetsetters looking for shopping experiences and nightlife activities, Romantic for couples and honeymooners, Breezy for beach lovers, Thainess for devotees of Thai traditions, Adventure for travellers preferring adventure and sports activities, Wellness for health and beauty conscious tourists, Easy n’ Slow for those looking for a quiet place amid the lush nature of Thailand, and Family ideas that highlights family-orientated activities and locations.

Government’s Medical Hub Plan Focuses on Private Hospitals The continuous growth in tourism to Thailand since the late 1990´s has led to increased demand by foreigners for more and better health care, hospital and wellness services in the Kingdom. By Christer Nilsson

hai medical services are renowned worldwide, resulting in a rapid growth in related industries such as spa, Thai massage, Thai herbs, serviced apartments and health tourism. This trend has not been missed, neither by private operators in these industries nor by relevant state agencies. Thus the government has taken an important lead role and launched a medical hub plan, which will serve as a facilitator for private hospitals, helping them to improve their medical services to foreign visitors seeking health care in Thailand. In parallel government health services are upgraded to serve the Thai public better. Private medical services are important to the national economy. During 2012 it is estimated that at least one million foreign visitors

entered Thailand for health care, bringing in 140 billion baht. The government´s target for medical tourism is 10 percent growth per year, depending on the ability of private hospitals. To date, many private hospitals have been recognized and approved as meeting the standards set for the Hospital Accreditation of Thailand and international standards, such as ISO. As the number of medical tourists visiting Thailand rise, the government has granted visa extensions from 30 days to 90 days for nationals of six countries in the Middle East in the initial stage, so that they can stay in Thailand for a longer period for medical services. Visa extensions will later be granted to medical tourists from other countries. In developing Thailand into a regional medical hub, the government will emphasise four areas. In the first area, Thailand will be promoted as a wellness hub with full-cycle services. The second area is that the medical service hub will link with spa services and health tourism. The third area seeks to turn Thailand into an academic hub for health care. The fourth area seeks to develop Thailand into a pharmaceutical and health products centre. The government´s medical hub policy implementation timeline runs from 2012 to 2016 and it expects that the scheme will bring in 800 billion baht in earnings over that five year period alone. One objective within the policy is to encourage health establishments in Thailand to improve their services to higher standards.

By year and 2012 Thailand was home to 256 private hospitals all over the country and most of them have been internationally accredited as No. 1 in Asia, while 33 spas are classified as world class. These are key players in the health tourism industry who also give opportunities to related industries such as pharmaceutical businesses, medical tools, tourism, hotels and restaurants. The high demand also brings about greater job opportunities and employment rates in various fields. BOI has granted tax exemptions to health care providers such as rehabilitation centers, hospitals, health food producers and medical tool manufacturers. They are granted corporate income tax exemptions for three to eight years, and the BOI has also extended additional benefits to pharmaceutical businesses, as well as tariff reduction on imported medicine ingredients and medicine. These privileges respond to the government's policy to to advance Thailand's medical services not only to keep abreast with important key players in the region such as Singapore, Malaysia, India and South Korea, but also to be ahead of every competitor, since Thailand offers better value for money and more hospitable services. Through its medical hub policy, the Thai government will serve as a facilitator for private hospitals in helping them to improve their medical services to foreign visitors seeking health care in Thailand. Source: BOI publications 2013

Thai Property Guide 2014

Bangkok Hospital – Advanced and Caring Treatment in Thailand When thinking of moving to Thailand the level of medical care and the availability of international hospitals nearby are always important things to take into consideration. Bangkok Hospital is dedicated to maintaining the highest internationally accepted standards of medical practice by delivering quality patient care to each visitor. Our paramount objective is our patients’ complete satisfaction. By Bangkok Hospital

angkok Hospital is located all over Thailand as well as in Cambodia providing both visitors and long term residents a piece of mind regarding access to prime medical care. You will find a Bangkok Hospital in popular areas such as Hua Hin, Phuket, Pattaya, Rayong, Koh Samui and Chiang Mai (April 2014) but also at other locations throughout all of Thailand. Bangkok Hospital will not only provide you with emergency medical care but also offer day-to-day health care needs such as annual health check programs and dental care. When using the phone number 1719 in Thailand you will be connected to Bangkok Hospital. In Bangkok you will find our flagship Bangkok Hospital, which is one of the most technologically sophisticated hospitals in the world today. Founded in 1972, Bangkok Hospital has expanded into a state-of-the-art medical campus providing comprehensive care through multidisciplinary teams of highly trained specialists. At Bangkok Hospital you will find Wattanosoth Cancer Hospital – Thailand’s first private hospital devoted entirely to the prevention and treatment of cancer – as well as Bangkok Heart Hospital which is the only dedicated private heart hospital in Thailand and is regarded as one of the finest cardiac facilities in the country. With dedicated hospitals for cancer and heart disease, and over 60 specialized clinics and centers, we are a leading tertiary care facility providing award-winning, world-class healthcare services. Setting new standards in patient-focused care, we believe that the

Thai Property Guide 2014

personalized attention of our doctors, nurses and staff is essential to providing the highest quality care. With language coordinators speaking more than 32 languages we service patients from all over the world making sure the patient always feels comfortable at the hospital. In addition to our medical services, we pro-

vide a full range of concierge services for our patients, which include limousine transfer to and from any destination in Bangkok, accommodation arrangements, visa extension services, and even tours for patientsâ&#x20AC;&#x2122; families. Bangkok Hospital also provides medical evacuation services via a fleet of ground and air transport services. Bangkok Hospital is accredited by Joint

Commission International, a US-based organization widely seen as the gold standard for top-level healthcare service providers worldwide making sure that Bangkok Hospital always is on the forefront when comes to quality patient care. Other accreditations include accreditation from FIFA for our sports medicine â&#x20AC;&#x201C; the only FIFA accredited sports medicine center in this region.

Thai Property Guide 2014

Protecting your interests Insurance is not the most captivating of subjects, but as a foreigner owning property in Thailand, or simply living here, insurance can play an important part in protecting you, your family and your assets.

for you? Would you want to go home to be treated for a serious illness and are you entitled to national healthcare ‘back home’? Do you spend a lot of time traveling? • What kind of room do you expect to stay in should you need hospital treatment, and will the room and board allowance on your policy allow you to stay at the hospital of your choice? Room costs in Thailand range from THB 2,000 to THB 60,000 a night – both being extreme ends of the scale.

JLT is an international insurance broker and part of the Jardine Matheson group. We have been in Asia since 1836 and in Thailand since 1978, and this guide will share some of our knowledge and experience with you.

• Do you have a chronic illness? Many insurance policies will exclude ‘chronic illness’, which can be something as simple as eczema or asthma, or as serious as diabetes or hypertension.

Protecting your assets in Thailand: Property Whether you have personal property to protect or you are responsible for the safety of your company property, these key risks and insurance solutions should be considered and understood. Basic Property Insurance (Relevant to both Residential and Commercial) -

Buildings insurance: Only relevant if you own your property, this insurance pays for the repair and re-building of your property in the event it is damaged or destroyed. Be sure to check the ‘perils’ which are covered as some policies will exclude flood, windstorm, earthquake etc. Understand the perils that affect your area and then make sure the cover is included. Note that many ‘risks’ will have a sub-limit. For example your property may be worth THB 25m and you purchase cover for THB 25m but there is a sub-limit of THB 1m for flood damage. As you will guess, should your house be damaged by floods, you will only be entitled to claim up to a maximum of THB 1m.

Contents insurance: As the name suggests, this type of insurance is designed purely to protect the contents of your property, and so would be appropriate for those renting their home, or for those who own a managed property where the management company arranges the buildings insurance. As with so many insurance products, read the small print and note the sub-limits. Valuables such as art, electronics, jewelry and cash will normally only be covered for a fraction of the total sum insured. Equally importantly, note that most insurers will expect you to help protect yourself. You will be expected to have security to a certain level, and you will be

Looking after yourself and your family: At least you have your health? Thailand operates a very basic social security scheme. As such, foreigners in Thailand should ensure they have adequate medical insurance, or funds to cover medical treatment should it be needed. The cost of medical care varies hugely, with premium hospitals such as Bumrungrad or Samitivej charging many thousands of Baht for treatments that may cost a fraction of this elsewhere. You may also find yourself being prescribed a series of drugs, including antibiotics, for an illness that may not warrant such an aggressive approach. Find a doctor you trust, and seek a second opinion before taking medications you are unfamiliar with.

What do you need to know about medical insurance? There are many medical insurance policies you can choose from, ranging from the very basic to the fully comprehensive. Below is a check list of items to consider before making your choice: • Do you only require coverage in Thailand, or would a regional or worldwide policy be more suitable 58

Thai Property Guide 2014

• What are the limits for each segment of cover, and do you understand them? Many insurers will promote their policy with a high overall limit, but beware of ‘sublimits’ which can severely limit your cover. There is little need for a multi million dollar overall limit – its pure marketing. Consult your provider if you are unsure and don’t pay for something you will never use. • Are the limits on your policy set on an annual basis, a lifetime basis or a ‘disability’ basis (per condition)? Again, beware of clever marketing! • Do you or your family have preexisting conditions, and are these covered on your policy? Many insurance policies will exclude coverage for any conditions which you have suffered from in the previous 5 years.

loss in the event of a loss. Speak to your adviser to make sure you know what these measures are to avoid a rejected claim.

expected to take certain precautions against natural perils. These vary, but make sure you understand what is expected of you so you don’t face a rejected claim. Advanced Property Insurance (Mostly relevant to commercial property) -

Business Interruption: Business interruption is designed to help a company in the event that property damage causes a loss of revenue, or leads to increased costs to continue business activities. The two types of common cover are ‘Gross Profit’, when an insurer will pay the policy holder their lost profits for a period (for the time period and monetary sum insured) and ‘Increased Cost of Working’ when an insurer will cover the extra costs a business must pay to keep running (for example renting a temporary office). Like many insurances, BI cover requires you take certain action to minimize your

Terrorism & Political Violence: Most property insurances exclude losses arising from a terrorist attack, from political violence and from other events such as strike, riot, coup, war, civil war, mutiny, rebellion and other similar events. A separate policy can be purchased for these risks and if your property is in a central and high profile area then this should be considered given recent troubles in Thailand and the losses from these events. The cover costs both property damage and business interruption. The main policy wordings at the time of writing are:

• PV 1-6: Covers terrorism, sabotage, malicious damage, strike, riot, civil

commotion, insurrection, revolution, rebellion, mutiny and coup d’état (excluding war and civil war) • PV1-7: Same cover as PV 1-6 plus war and civil war -

Natural catastrophe insurance: Most policies will severely limit the amount that can be claimed for losses arising from an earthquake, flood or other natural catastrophe. Make sure you understand the risks affecting your property and then check your policy to see what is not covered. If required, a separate policy or a policy extension can be purchased.

This guide is written by JLT Thailand. Should you have any questions regarding the content or should you wish to discuss your requirements, please contact James Morrow: James_ Morrow@jltasia.com

Thai Property Guide 2014

Securitas brings expertise and innovation to the Thai market

ocation, location, location – a key factor in buying a home in Europe is just as important in selecting one here in Thailand. Once you have found your Thai home, the next important step is protecting your investment, your family and your valuables. Far too many Europeans wait until they or their neighbors are robbed to think of security, and the fact remains good security at the onset is often only a fraction of the losses they incurred. Many in Scandinavia and throughout Europe will be familiar with the Securitas alarm, and will most probably have fitted one in their homes. Securitas Thailand is now offering the same product to all home owners and small businesses. The basic alarm system is self-installed and includes a control unit with inbuilt siren, a keypad, a door contact, a passive infrared motion detector (usable even with small pets), and a camera built into the detector which has a flash for nighttime. When the detector is triggered by movement, the camera will relay a picture to the owner’s smartphone (through an app) and to the Securitas monitoring station who can also alert the owner and dispatch a response team. The response team is currently available in most cities where Securitas has a presence such as Bangkok,

Hua Hin, Samui, Phuket, Chiangmai and Pattaya. The basic alarm system can also be upgraded with additional door (and window) contacts or other equipment like smoke detectors, water leak detectors, and an outside siren. The basic alarm set is available for a mere 9,999 Baht (+VAT). The alarm is sold together with a mandatory 2-year monitoring contract. With over 80 years of experience in Europe, the Swedish Securitas company’s goal is for Securitas Thailand to be a leading security company in the Thai marketplace – and Securitas Thailand remains committed to bringing the same levels of security enjoyed in

Europe to Westerners and Thais alike. Now in its fourth year in Thailand, Securitas continues to drive what some believe to be a complacent local security market. Securitas Thailand’s commitment to Western standards (even in the heart of Asia) has made its traditional security manned guarding services sought out by embassies, highend factories, upper-class hotels and resorts, fine residential communities, western-oriented schools, airport businesses and shopping centres. Securitas Thailand has also embraced and supplemented its manned guarding services with the European security approach of mobile security patrols currently in the Eastern Seaboard and Chon Buri and in 2014 coming to Bangkok, Hua Hin and Phuket. Additional technical security systems such as CCTV, Access Control, and Fire Alarm Systems are all part of Securitas Thailand’s wide range of security and safety products currently available in the Kingdom. All technical security and safety systems are also maintained by Securitas professional technicians. Securitas Thailand – a European Company offering local Combined Security Solutions at International Levels.

Thai Property Guide 2014

Rental Management System ‘Klik’ is a complete holiday home rental management system that ensures you sustain the distribution and bookings for your home on channels like Agoda, Booking.com and Flipkey among others. By www.klikasia.com

ome owners in Thailand often dream of offering their second home for rent while they are not using it themselves, but reality is that it is much more complicated than they thought or were told by the property agent. A local company has now come to their rescue with Klik, a system which is easy to implement and simplifies communication and business procedures significantly. Klik is built from the ground up applying over a decade of experience in property management and marketing. The Co-founder Marc Ribail has first hand experiences in the holiday home rental market. “As a holiday home owner myself, I have experienced first hand the challenges of rental management systems in an industry that is characterised by a complex landscape of suppliers and intermediaries,” Marc says.

Marc Ribail, Co-founder of Web Marketing & Reservations Co., Ltd., the company marketing “Klik”

Klik is the first complete rental management solution available in Asia that offers channel management, marketing reporting, accounting, reservations, and maintenance modules all in one. The channel

management means that Klik synchronises with major booking platforms and online travel agents for an increased distribution across multiple channels, currently including Agoda, Airbnb, Booking.com, Eats & Retreats, Expedia, Flipkey, Homeaway, Pandabed, Roomorama, Travelmob, Wimdu, with more being added as the market expands. Starting at US$150 per property per year, the system is also very affordable with no per-booking fee. Being highly scalable, Klik is also particularly suited for estate and property management companies with an extensive portfolio. Klik’s integrative nature allows to record and connect data across listings, reservations, accounting and other modules to create real-time reporting, thus dramatically reducing the need for manual reconciliation and potential (costly) human errors. In addition, each villa or condo owner may have their own access to these real-time reports, developing trust and transparency with their manager. As Marc explains: “The demand and supply for holiday rentals is growing fast, which means owners and managers must now approach competition with an increased level of professionalism. As a result, we developed an integrated solution that allows property professionals to focus on the quality of their service while maximising marketing reach and rental revenue”. For more information, visit klikasia.com. Or contact Managing Director Marc Ribail Email: info@klikasia.com

Thai Property Guide 2014

Luxury. Space. Welcome to award-winning Mandala Condominiums, our completed residential development featuring Swedish designed apartments and penthouses with over-sized rooms, high ceilings and large garden decks with private pools. Our spacious, open-concept homes merge understated luxury with the best of indoor/outdoor tropical living.

Our development was built, and continues to be maintained, to exceed ISO 9000 international building standards, stop by and see how Mandalaâ&#x20AC;&#x2122;s building quality has stood the test of time. All units feature double-insulated walls for creating quiet and private living. The main indoor living room of open space is an incredible 24m x 5.8m These are many of the reasons Mandala was named Phuketâ&#x20AC;&#x2122;s Best Condominium Development in 2011 at the Thailand Property Awards.

Sansiri’s Take on the Resort-Style Home

With Thailand’s continued development, healthy economy and soaring popularity amongst foreign investors, the country’s property industry has been enjoying strong and steady growth.

By Sansiri

ver the last five years, housing demand throughout Bangkok, upcountry, and in beach areas has been climbing steadily. Resort-style residences have proven to be a particularly alluring option for homebuyers looking to invest in Thai property for either personal use or financial return. Sansiri, Thailand’s leading property developer, has taken the helm in exploring the lavish and environmentally immersive possibilities of this unique brand of home. The resort-style home provides the shelter and security of a regular residence, but with all of the perks, amenities and first class services you would normally associate with a luxurious holiday resort. Baan Plai Haad Wongamat and Baan Mai Khao Phuket are two of Sansiri’s latest beachside luxury resort condominiums. They offer a selection of room sizes; extensive facilities, including beachfront pools, fully-equipped exercise rooms and perfectly manicured gardens; a wide range of quality services, and 24-hour security. Furthermore, both projects boast stunning views and provide private direct access to the beach. With land prices throughout Thailand on the

rise, condominiums are an inherently affordable solution for homebuyers. Mr. Apichart Chutrakul, Sansiri’s Chief Executive Officer, explains the company’s approach to design, “When we design a project, we pay close attention to every single element and the finest details. We also use the context of the local community as

inspiration for the design.” Baan Mai Khao was developed according to the concept of ‘Barefoot Luxury’. It is a high-class getaway immersed in a serene natural environment, with every single aspect of the project’s design, from its architecture to its finishes, implemented to evoke wind, sunshine and sand. The project has a semioutdoor lobby with a gorgeous sea view, and the landscaped gardens are lush with local vegetation. Both interior and exterior architectural elements draw inspiration from Phuket’s signature Sino-Portuguese heritage. This meticulous attention to detail is something which is common to all of Sansiri’s endeavours. From its cost-effective one-million baht condominium units to its 100-million baht luxury estates, Sansiri—awarded ‘Best Developer’ at the 2013 Thailand Property Awards—prides itself on using only the highest quality production materials, and offering superior services that realistically take into account the broad needs of its customers.

Thai Property Guide 2014

Sansiri’s other Phuket resort-style condominium, The Deck, takes comfort to a whole new level—literally. Situated on the white sands of Patong Beach, The Deck’s rooftop relaxation area, complete with a 50-metre lap pool, Jacuzzi, and plenty of room to stretch one’s legs and bask in the sun rays, provides an incredible panoramic view of Phuket’s resplendent coast. Lush green trees, gentle breezes and a seemingly endless ocean horizon make for an unrivalled elevated living experience. In the exquisite region of Khao Yai, Sansiri has traded vertical height in favour of green open space. The Valley consists of three residential buildings that surround what is essentially a private oasis, comprising a river-like swimming pool and expansive verdant garden. The entire area rests under the natural shade of large flowering trees. As with all of Sansiri’s homes, The Valley has a host of state-of-the-art facilities, and residents are entitled to a wide array of specialised services. Finally, looking north to Chiang Mai, Sansiri has recently established Setthasiri San Sai. Embedded in the

mountainous region of Doi Suthep, this one-of-a-kind luxury project guarantees the freshest air, cool morning mists and some of the most stunning scenery to be found in Thailand. Setthasiri San Sai adheres to a grand, regal-like design that draws inspiration from traditional Lanna architecture. From the giant fully-equipped clubhouse to the finest details of the project’s structure, all elements are distinctly Lanna. The long walkway that runs parallel to the swimming pool is perfect for relaxing strolls, and there are plenty of intuitively calculated vantage points throughout the project

that offer exquisite views of Chiang Mai’s beautifully preserved natural environment. With land prices increasing uniformly throughout Thailand and more savvy homebuyers looking for that little extra incentive when purchasing property, it is no wonder that the luxury-style home has become such a sought after investment. Unlike with mature markets, such as those of the UK, USA and Australia, investing in a steadily emerging market like Thailand has the potential to maximise capital appreciation in the longterm. Increasingly popular holiday destinations like Chiang Mai, Khao Yai, Pattaya and Phuket each have a distinct charm that makes them uniquely attractive as homes away from home. One of Sansiri’s key strengths is effectively incorporating these innate cultural and environmental characteristics into the designs of its projects. With the company continuing to expand its operations in country and beach areas, property buyers can expect to see even greater innovation in, and diversification of, the resort-style home market. For more information on developments, please visit sansiri.com

Thai Property Guide 2014

Serviced Apartment First, we must define what is a serviced apartment and what can you expect to find? There is a whole range of apartments defining themselves as serviced apartment but their services are often very different. By Puthipong Lamsam

erhaps the easiest way to understand what a serviced apartment is - and how it differs from a hotel - is in the way serviced apartments define service. The hotel offers full service to the client, and the hotels are rated on a system called stars. The higher the number of stars the more luxurious and wider range of client services. In contrast, a serviced apartment defines service as “service to the room”. This is why most apartment “room service” system provides service such as room repair and maintenance. As a result it is also service provided to the tenant as well. On closer examination serviced apartments offer greater freedom at

Thai Property Guide 2014

lower prices than hotels offer whilst maintaining the room and the facilities to high standards. Many better serviced apartments offer services such as coffee shops where clients can buy breakfast and snacks. Serviced apartments do not offer expensive restaurants. Serviced apartments offer the facilities of the building to tenants and these services might include cable TV as well as a swimming pool and exercise facilities. Car parking is something to be considered so it is recommended that you ask about it. Tenants who do not have their own car should instead look for a serviced apartment close to a major transport link as it will save both time and money. Serviced apartments also define themselves by the maintenance that they do. Look at the swimming pool area

and the building in general and think how well the staff is maintaining them. If the building is not well maintained then how will you feel living there? Serviced apartments will maintain the room in which you live. Let’s think about that for a moment. The owner of the room has a very strong interest in keeping the room in the best condition possible. If the service is poor the guest will inevitably leave. That is not what the owner wants. The owner wants a happy tenant who will stay for the longest. Therefore the service to the room is sure to be good. That means objects that break down as a result of fair wear and tear will be repaired or replaced. Great serviced apartments offer fully furnished apartments, including a kitchen with pantry, microwave, fridge and washbasin. Many serviced

apartments will offer cleaning services for your apartment and will clean all of the common areas. If you want help with laundry services they will do it for you and this is sometimes negotiated in the price. Most but not all serviced apartments have a kitchen so you will be able to prepare your own food. Invariably you will find a reception desk and a concierge service that will be able to help you with any of those day to day problems that sometimes arise. Serviced apartments are not hotels. They are alternatives to hotels and are available for use both long term and short term. You will be required to sign a contract however contract lengths are negotiable. Longer-term contracts can result in considerably lower prices than short-term contracts. The electricity bill, cleaning services and even laundry services may be available in a package form where for a certain fee the building will manage all of those things for you at a premium price. This allows the client to pick and choose exactly the degree of service desired. The package can be tailored to your specific needs. Serviced apartments, similar to most traditional apartments, expect long commitment so when you make your decision you must

assess the relationship between you and the building management. If you choose to stay in a serviced apartment, remember you are paying for service to the room. They may not provide mini bars and all of the luxuries a hotel provide. However serviced apartments may provide kitchen and eating utensils since most room have full furnished kitchenette. Many modern serviced apartments offer very well designed apartments at reasonable prices. Check out the security system on offer. 24 hours security personnel are usually the standard. When looking for a serviced apartment, it is advisable to think about where your serviced apartment is located. Travel in many big cities elsewhere in the world may be relatively quick and easy. This is not always the case in Bangkok. Think about where you are going to live and how long your daily commuting time may be. Ask questions about the building that you visit and keep your eyes open. Talk to the staff and the building manager. There are some excellent bargains in the property

market at the moment. You should have a clear understanding of what serviced apartments offer in Thailand. The focus is on providing an alternative to hotel living. Considerable savings can be had by allowing you to personalize your service accommodation to suit your needs and prevent unnecessary expenses. Some serviced residences may offer different service packages including housekeeping and dry cleaning services depending on the preference of the guest. Generally, property management and owner themselves have equal degree of interest to provide genuine services to preserve their rooms in sustainable conditions. Finally, the quality of the product cannot be measured solely on its cost but rather on its value. And how much a product is valued can only be measured by the quality of service it provides. Too much service can be very expensive and I recommend that all you really need from service apartment is standard cleaning and maintenance services. Other than that would be well beyond your needs and you may as well save that.

Thai Property Guide 2014

Black Mountains restaurant in Hua Hin. Designed by Apinya

the CABINET Interior Design on the market and for us the development is only positive. Nowadays we have almost as many Thai customers as foreigners. Thai people, especially the Bangkok people, are generally very interested in modern and good interior design”, he says.

By Cabinet Interior Design

he Cabinet Interior Design has for the last 17 years been providing high quality interior design solutions for both private property owners and businesses in Bangkok, Hua Hin/Cha Am and the Eastern Seaboard. We met up with Mr. Janeric Hogane, who together with his wife Apinya are the founders of The Cabinet Interior Design, at their large showroom in central Hua Hin to discuss how the market has changed over the years and to get his view on the future. “Ten years ago in Hua Hin and Cha Am most of our customers were Scandinavians who bought villas from Scandinavian developers, often in smaller communities of 15 to 20 villas. We worked very close together with both the developers and the house owners and a simple hand sketch over a cup of coffee was often enough to close a

Thai Property Guide 2014

deal. It doesn’t work that way anymore, which we think is positive for all parties. After the financial crisis in 2008 many of the smaller developers disappeared and were replaced by groups of either foreign or Thai investors, launching largescale projects targeting both foreign and Thai customers. Land prices doubling as a result of a lack of available land plots in the Hua Hin area caused the market to start shifting from villa communities to more and more high-rise condominium buildings being built. And after the flooding in 2011 we have experienced a real condominium-boom. Most of the people who buy these condominiums are wealthy Bangkok residents looking for a getaway if something similar would happen again. On the 20 kilometer stretch between Hua Hin and Cha Am alone approximately ten thousand new condominiums are currently under construction.”

Janeric guides us through the showroom and explains how also the product range has changed over the years. “Before most of our customers preferred darkstained wooden furniture with an Asian touch. Water hyacinth furniture was also very popular, and for outside use most customers chose teak wood furniture. Kitchens were pretty basic with laminate cabinets and granite top. We still have that in our product range but most of the furniture and kitchens we sell now are very modern, light-colored wood or high-gloss white lacquer for example. Kitchens have become a more and more important part of the home and many of our customers insist on using the very latest materials, appliances and fittings. We have our own production facilities on the outskirts of Hua Hin where we produce all our custom-made furniture and kitchens, which gives us full control of both the design and quality of our products. The teak wood outdoor furniture has been replaced by a full range of maintenancefree synthetic rattan furniture from our own brand HOGANE, which are very sought after.”

Janeric is optimistic about the future. “We were quick to adapt to the changes

The story of The Cabinet Interior Design is quite an impressive one. Starting

off with only 4 staff (including Janeric and his wife Apinya) 17 years ago in Bangkok, doing interior design work mostly for Scandinavian businesses, the company has now grown into a full-service interior design and build provider, with its own furniture factory, construction company, in-house architects and designers. “We are really a one-stop-shop nowadays”, Janeric explains. “We have our own teams of interior designers, architects, carpenters, construction workers, electricians, plumbers… you name it. We have had many customers that are so happy with our work that they say next time its better if they just buy a piece of land and let us design the house, build it and furnish it. However, this is something we try to avoid. We are still an interior design company and started our construction business as a complement to this, mainly to help with renovation work. The idea was never to build houses from scratch, even though it happened for example at Black Mountain Golf Course where we completed the construction of 4 show villas, including swimming pools, landscaping and all interior work and furniture in 4 months.”

Janeric tells us that they have just recently completed the interior work for Black Mountain’s new five-star restaurant in central Hua Hin. “That was really fun work”, he says. “We were basically given a free hand to renovate, furnish and decorate the whole restaurant. Here Apinya has done a great job on everything from designing the new ceilings and bathrooms to choosing the right table cloths and cutlery.

Trust, Quality and Service. That is the motto of The Cabinet Interior Design and it is something that Janeric constantly discusses with his staff. “It is not only the motto of the company but also our biggest selling point.” Janeric says. “We put a lot of pride and effort into living up to our motto and that is most definitely the reason why we are still here after all these years while many of our competitors has come and gone.”

Thai Property Guide 2014

Do it yourself - large selection of malls and shops Apartments and houses may come with or without kitchen equipment and furniture when you acquire property in Thailand. By Christer Nilsson

o matter what, after a while most owners like to add, change or repair something.

And many of them find pleasure in doing it themselves as long as it is not too cumbersome. If you belong to this group, Thailand offers a wide range of DYI chains as well as smaller specialty shops that cater for handy home owners. The big DYI chains have outlets in major tourist spots all over the country. There you find wide ranges of power tools, garden equipment, white goods, kitchen utilities like ovens and stoves, cables, electricity plugs, illumination products and lamps, paint and related products, bathroom equipment from whirlpools and bathtubs to hangers and mirrors and much much more. Many but not all DYI also carry a range of semi produce such as doors, cabinets, planks, and window borders, made of wood or synthetic materials. Usually some of the staff speak English. Most are service-minded and knowledgeable about what they sell. Major international credit cards like Mastercard and Visa are widely accepted. So are Amex cards in the large shops. Some furniture and home decoration chains also operate in the same destinations. Porcelain, curtains and hangers, bed linen, lamps, cooking goods and smaller kitchen equipment such as food processors are examples of their range.

Thai Property Guide 2014

They do typically not provide white goods, like washing machines, air conditioners, stoves etc. For that we recommend DYI chains or smaller Thai shops. Some stores provide computerised 3d interior design services where the customer sit down with an assistant and simulate ways to furnish the home or parts of it before you order the real products. Finally we mention specialised and sometimes exclusive shops. In them you can find European-made wallpapers, fine rugs and carpets, exclusive vases and glass, designer furniture and other home decoration pieces with that little extra. Prices are slightly up to much more expensive than the big chain´s goods. There are many such shops in greater Bangkok. Less so outside the capital. This writer has been through home decoration, furniture shopping, setting up a kitchen and fixing a garden in a new and ´naked´ house equipped only with functioning bathrooms and lamps and standard doors and windows at the outset. Last year the living room area got wallpapers instead of the in Thailand so common matte paint walls. Something

had to be done there after damage done by floods late 2011. These wallpapers were not pre-glued which makes them difficult to hang. Hanging the wallpapers was however done ´free´ by an experienced worker from the shop if the order was over 10 000 baht. Easy choice. DYI what you can, not stuff you are unsure to succeed with! The garden was a dry and hard earthen surface filled with small stones, spikes, cut off cables, plastic bags and other construction garbage left by the builder, a large Thai property company, when we got the house. Getting all that nice and clean took some time and money. Some expenses were saved by our own DYI efforts. Building extras like erect walls and make a roof over the backside outdoor space which after that was turned into a kitchen with space for a washing machine, and erect roofs over the entrance and parking areas were all done by hired workers. We did however control purchase of cement, sand, stones, tiles, paint, spotlights etc. from DYI and specialist shops while the workers put it all in place. Owner supervision recommended during the process!

DYI chains, home decoration and furniture chains and specialty shops in brief:

Home Pro Established DYI chain. Many outlets all over the country. Probably the best geographical coverage of all DYI chains. Large range of products. Experience in giving service to foreigners. URL: www.homepro.co.th/index.php?lang=en

Home Works Established DYI chain. Fewer outlets than Home Pro, but covering Pattaya and Phuket. Large range of products. Used to serve foreigners. URL: www.homeworks.co.th/index.html

IKEA Opened its first outlet a couple of years ago in Bangna, eastern Bangkok. The Swedish giant needs no presentation. This is a full range IKEA. URL: www.ikea.com/th/en/

Grand Home Mart A 30 + years old DYI chain focused on Thai customers but slowly moving into English on their website and face-lifting its showrooms to keep up with competition. Only four outlets so far, all in the Bangkok area. Strong on tiles, bathroom equipment, kitchen equipment, paints. URL: www.grandhomemart.com/index.php

Boonthavorn Another Thai customer oriented DYI chain with a big range of products ranging. Established 32 years ago, todayÂ´s Boonthavorn has everything from tools and paint to semi products. They have outlets in Hua Hin and Pattaya in addition to good coverage of greater Bangkok. The latest addition is a big showroom along Prasert-Manukitch Road in northern Bangkok. On its second floor one finds a large selection of brand name shops selling interior design products as well as jacuzzis and bathroom equipment. URL: http://www.boonthavorn.com/index.php

Index Living Mall Some ten years old furniture and home decoration chain used to foreign customers. Wide range of products and quick to pick up on trends. Website in English makes it easy to navigate for the non-Thai visitor. Very strong presence in greater Bangkok and with outlets in all major tourist regions except Samui. URL: www.indexlivingmall.com/index-en.php

Thai Watsadu A few years old DYI focused on Thai customers. But the range of products fit most needs a DYI foreigner can have. Best semi product range of the major DYIÂ´s gives this chain an edge in that niche. They have several outlets in greater Bangkok, upcountry and among tourist spots like Cha Am, Had Yai and Surat Thani. Website only in Thai language. URL: www.thaiwatsadu.com/index.html

CDC Center This is a specialised Bangkok shopping mall dedicated to home decoration and interior design shops in particular. Impressive range of shops, 500 showrooms spread over a 100 000 square meter area divided into eight buildings and one open space. Ample parking, a supermarket and many restaurants complete the offering. URL: www.crystaldesigncenter.com/

Thai Property Guide 2014

Choosing your kid's school To decide on something as important as your childâ&#x20AC;&#x2122;s education and well-being might be the toughest part about moving to another country. By Gregers Moller

hoosing a new school when moving has become increasingly difficult for parents. There are more and more schools established all the time, and each institution has its own unique philosophy and attributes. Comparing what they offer with the needs of your child is no simple task. Most parents probably start out by asking other parents of their own nationality which school they have chosen and why. Then you find out they have chosen different schools and for different reasons and you are back to square one. There is probably no way around making your own inquiry into each available option.

Local vs International First choice is if you are looking for a local school or an international school? In most countries in Asia, a local school is an option - although certainly a more challenging option for your child. If your child is mixed European - Asian this may, however, not be so frightening a prospect. And mostly it will have an economic silver lining as local private schools are less costly compared to international schools. However, physical punishment has not been abolished in many Asian school systems, so take this into consideration.

Talk to the school how they administer physical punishment and ask if they can make an exception for your child if you are not comfortable with this. If you go for the International school, consider that international students grow up and evolve in a cultural environment that is vastly different to that of your own. Known as Third Culture Kids (TCKs), they often develop a very different attitude to many issues compared to their former friends back home. If you are uncomfortable with this prospect you may prefer to look into the option of choosing a local school or a boarding school back home. Once this is said, most expat families decide to go for the international school, at least through primary school up to grade 9, where other options may come into play. At this point, not only boarding schools in Europe but also boarding school in Asia may be considered.

A few suggestions So now you have the table filled with brochures of different schools and wonder what to look for. Here are a few suggestions to help you make up your mind: First: How far away is the school from your home?

Before spending time looking through school courses, you need to make sure the school is not too far away. Bear in

Thai Property Guide 2014

mind that in most big cities, it is the traveling time between your home and the school that matters. How long will it take for your child to get to school and home afterwards? How will your child be going there? Especially in cities like Bangkok, you will be challenged by some of the heaviest rush hour traffic in the world. Second: What reputation does the

school have?

Talk to people as much as possible. This is where your first intuition comes handy. Donâ&#x20AC;&#x2122;t listen to opinions expressed by people who have no children at the school themselves - parents are quick to seek confirmation of their own choice by adopting opinions about the competing schools. The age of the school is no sure indication either. Nothing guarantees that the reputation of a hundred year old school is better than a one year old school.

Third: How are the courses at the school?

The school’s courses and programs will most likely be listed in the school’s information packages. They will talk about British Curriculum and American Curriculum and - what most Europeans these days go for - the IB curriculum. This is important as you will most likely have to relocate again in a few years. Find out if the native language and culture of your child is taught as optional learning. It is important for your child to keep his or her ties to your cultural background. It is also important for you. Ask questions about the tests and exams which are offered and used as evaluation method. If your child is already a secondary school student, ask how well the graduating students do in getting accepted into major universities both in your current country, back home and elsewhere overseas. Fourth: What other activities can the school offer your child?

Besides the fundamental course works, what kind of arts, sports, community service does the school offer? Are there proper facilities to support those activities?

It seems that schools almost compete with each other when it comes to sports, thus many schools will have gymnasiums and sport complexes, which are either new or remodeled. But maybe your child is more into other activities - computer programming, performing arts? Most schools offer after-school/weekend programs as well as field trips and community services. You should be able to freely pick the activities that best suit your child. Fifth: Does the school have qualified personnel?

This is not as obvious as you may think. The school is most likely private and qualifications for employment are not as strict as for schools back home. What educational degree do they hold? How long have they been teaching at the school? What kind of teaching methods do they prefer? Are they involved in planning and evaluating the curriculum? Will they be giving special attention to each child’s problems or personal needs? Sixth: What do the current students think of the school?

If it’s possible, talk to some of the existing students. Are they happy there? Do they look motivated to learn? How will the school help your child get started? Do they assign so-called “buddies” (another student from the same country) for new students? Most schools have established student organizations to provide service to students at a personal level. Here, students can get help about studying, working, individual needs and so on.

Seventh: How is the relationship between the school and the parents?

You will obviously not be able to monitor your child in school. The teacher will have to be your eyes and ears. You must be notified of your child’s functionality regardless of grade, and regardless of whether it includes bad behavior or progress your child has made. Make sure that you can get informed as often as possible. You may join a parents’ volunteer program if available. Some schools may offer activities for the whole family as well. Watch your child!

Never mind how diligent you do your homework - and maybe the above list is a bit excessive - you will never be able to foresee if your child will thrive at the school. It is therefore important that you make a habit of spending more time than you used to at home talking to your child about how school was today. What they did in class, and what they did outside. Let her or him tell about their new friends. Listen. All may initially sound fine and uncomplicated, but that may just be a honeymoon period. This is the most important step of them all. If your child develops in any way you find disturbing or even develops signs of discomfort with going to school, you should think twice before you tell your child that “this is life - it is not always pleasant!”. A change of school at the right time might be the single most important decision to make to put the future of your child on the right track! Thai Property Guide 2014

British International School Phuket “Young people will

respond positively to the achievements of their peers, and in a climate of excellence – across all disciplines – every student will thrive.

”

Neil Richards MBE, Headmaster British International School Phuket (BISP)

“BISP provides a curriculum of opportunity, where curiosity is valued and encouraged, and each student is able to experience personal, physical, creative, and aesthetic expression within a strong and rigorous academic framework.” (BISP Philosophy Statement)

BISP STUDENTS Sixty percent of the school population is composed of foreign residents, and there are over forty nationalities at the school. Thirty percent of the students are native English speakers. This diverse body of students makes it possible to offer a truly international experience, and emphasises English as the language of communication. Such a diverse student body also 74

Thai Property Guide 2014

provides wonderful learning opportunities as students reflect upon their own cultural differences and learn to appreciate others. The school climate very positively affects the social-emotional development of each student – providing a critically rewarding experience for the development of global citizenship. CURRICULUM The school follows the National Curriculum of the United King-

dom, and offers IGCSE examinations in Year 11 (seven Top in Thailand achievement awards for Thailand in 2013), and culminating in the IB Diploma (33 pts average 2013). The range of subjects offered at external examination level is exceptionally wide: ¬¬s¬ ¬)'#3%¬SUBJECTS¬OFFERED ¬¬s¬ ¬(IGHER¬,EVEL¬ (, ¬AND¬ ¬ 3TANDARD¬,EVEL¬ 3, ¬)"¬$IPLOMA¬ subjects offered.

In addition all students in years ÂŹTAKEÂŹ,!-$!ÂŹ ,ONDONÂŹ!CADEMYÂŹOFÂŹ-USICÂŹANDÂŹ$RAMATICÂŹ!RTS ÂŹ Use of Spoken English examinations. In Secondary, there is a 1 to 1 laptop program with iPads in the Primary school. NEW HIGH PERFORMANCE SPORT ACADEMIES AT BIS PHUKET Scholarship enhanced high performance sport academies are being developed at the school. Each academy has its own full-time professional coach, and academy students are required to train five times each week throughout the academic year as a minimum requirement. ÂŹÂŹsÂŹ&LYINGÂŹ&ISHÂŹ(IGHÂŹ0ERFORMANCEÂŹ 4EAMÂŹ (04 ÂŹ3WIMÂŹ!CADEMYÂŹWASÂŹ ESTABLISHEDÂŹINÂŹ!UGUSTÂŹ ÂŹWITHÂŹ top youth swimmers from (UNGARY ÂŹTHEÂŹ0HILIPPINES ÂŹ3INGAPOREÂŹANDÂŹ4HAILAND ÂŹÂŹ!ÂŹPROFESsional swimming coach oversees THEÂŹ(04 ÂŹÂŹsÂŹ")30 #25:%)2/ÂŹ&OOTBALLÂŹ !CADEMY ÂŹ"RAZILIANÂŹYOUTHÂŹFOOTBALLÂŹ coach Jonathas Candido from Cruzeiro EC is employed by the school to establish this academy from November 2013; this !CADEMYÂŹWILLÂŹSUPPORTÂŹ0HUKETÂŹ&#ÂŹ with its youth programmes. ÂŹÂŹsÂŹ/THERÂŹPLANNEDÂŹACADEMIESÂŹ include Golf and Tennis. The academies are well served with a newly equipped gymnasium and professional fitness instructors. !ÂŹMAJORÂŹAIMÂŹOFÂŹTHEÂŹACADEMYÂŹ programme is to prepare young people for professional careers in sport and to provide further scholarship opportunities at the level of tertiary education.

ARTS 4HEÂŹ!RTSÂŹAREÂŹWELLÂŹSERVEDÂŹATÂŹ")30 ÂŹ WITHÂŹ)"ÂŹ$IPLOMAÂŹ(,ÂŹANDÂŹ3,ÂŹ COURSESÂŹINÂŹ4HEATREÂŹ!RTS ÂŹ-USICÂŹ ANDÂŹ6ISUALÂŹ!RTS ÂŹÂŹ)NÂŹRECENTÂŹYEARSÂŹ the IGCSE award of â&#x20AC;&#x2DC;Best in the Worldâ&#x20AC;&#x2122; has twice gone to students at the school. Each year dramatic productions, including a full musical, are offered, and artists in residence and interns FROMÂŹTHEÂŹ,ONDONÂŹ!CADEMYÂŹOFÂŹ -USICÂŹANDÂŹ$RAMATICÂŹ!RTSÂŹ ,!-$! ÂŹ have joined the school at various TIMES ÂŹÂŹ2OCKÂŹ3CHOOLÂŹANDÂŹ!"23-ÂŹ examinations are also offered. SCHOLARSHIPS !CADEMICÂŹANDÂŹSPORTINGÂŹSCHOLARships are offered annually worldwide. DR. ARTHIT WORLD SCHOLARS: Each year five outstanding students from around the world are offered full scholarships, including boarding. SWIMMING HPT SCHOLARSHIPS: Up to five scholarships are offered annually to swimmers who have represented their countries and AREÂŹSTRIVINGÂŹFORÂŹ9OUTHÂŹ/LYMPICÂŹ places. FOOTBALL SCHOLARSHIPS: Up to ten tuition scholarship

places will be offered each year for outstanding young footballers TOÂŹJOINÂŹTHEÂŹ")30 #25:%)2/ÂŹ &OOTBALLÂŹ!CADEMYÂŹWITHÂŹTHEÂŹGOALÂŹ of providing professional opportuNITIES ÂŹTHISÂŹ!CADEMYÂŹWILLÂŹBEÂŹ developed in cooperation with Cruzeiro EC from Brazil whose top youth coach is employed by the school. The local professional TEAMÂŹ0HUKETÂŹ&#ÂŹWILLÂŹALSOÂŹWORKÂŹINÂŹ PARTNERSHIPÂŹWITHÂŹTHEÂŹ&OOTBALLÂŹ !CADEMY It is anticipated that scholarship opportunities will also become available in GOLF and TENNIS as these academies are established. &ORÂŹMOREÂŹINFORMATION asktheheadmaster@bisphuket.ac.th

KIS International School At some point in time, families with children will be looking at options for schools. If you are at this stage, or know someone who is looking for a school, we’d like to encourage you to visit KIS. KIS International School is a full IB World school. This means that the school offers the International Baccalaureate for children in the Primary Years and the Middle Years, and of course also the well known IB Diploma. An IB curriculum provides children with a well-balanced education. The programmes are academically rigorous, but they are stimulating and engaging so children enjoy learning at KIS. The IB doesn’t just focus on teaching knowledge, but it goes further, teaching the students the bigger picture or, in other words, concepts. Students are also taught skills and are encouraged to develop positive attitudes and take action based on what they have learned. The Middle Years programme is an excellent

The school’s smaller size allows for a positive learning and social environment and allows each student to be treated as a unique individual. School facilities are good with a sports field, swimming pool, basketball court, tennis courts, auditorium, science labs, libraries, IT labs, an art studio and many more.

programme for 11-16 year olds, and it provides a great preparation for the IB Diploma, which, as many people know is a well-respected university entrance qualification. KIS graduates are accepted at top universities around the world, many with significant scholarships. The atmosphere at KIS is one of its most loved strengths. Around 550 students from 47 countries are part of the school community. 76

Thai Property Guide 2014

KIS is not located directly on Sukhumvit, but it is only about 6 kilometers from the Asoke- and easily accessible from Ekamai Road. We’d like to encourage you to visit our school and experience our special blend of Knowledge, Inspiration and Spirit first hand. We’d be delighted to show you around. KIS International School 999/124 Kesinee Ville, Pracha-Uthit RoadHuay Kwang, Bangkok 10320Phone: (66) 02-2743444Fax: (66) 02-274-3452Website: www.kis.ac.thEmail: info@kis.ac.th

Thai Property Guide 2014

NIST – A Truly International School in the Heart of Bangkok

NIST International School, is the only fully accredited IB World School in the heart of Bangkok that offers all three International Baccalaureate programmes. Located in Bangkok’s foremost business, diplomatic, residential and shopping areas, the school sits on a well-appointed campus with state-of-the-art technology providing an international education to a diverse group of students from over 50 nationalities ranging from 3 to 18 years of age. Since its inception 21 years ago with guidance and support from the United Nations, NIST has gained a reputation as one of the leading IB schools in the world. Its students consistently earn high scores in the IB Diploma and move on to higher education in North America, Europe, and Australasia. Accredited by both the CIS and NEASC, NIST was the first school in Thailand to achieve dual accreditation. NIST was also accredited by ONESQA (Sor Mor Sor)

“As a leading IB World School, NIST’s mission is to inspire and empower each student to pursue individual excellence and to enrich the world.” Laying the Foundation From the Early Years Programme (ages 3 – 4) to the International

Baccalaureate Primary Years Programme (ages 5 to 10), NIST lays the foundation upon which all learning is built. At the core of its Elementary curriculum, the International Baccalaureate Primary Years Programme (IB PYP) develops inquiry-based learning in language, mathematics, and physical skills. The IB PYP ensures that both academic and social aspects of learning are fully integrated, accommodating each child’s particular needs. Study centres on “units of inquiry” which are selected to specifically match the interests and abilities of the children. Each “unit” addresses the core subjects of learning but also offers a wide range of other learning opportunities. Co-operation, creativity, individual initiative and responsibility are encouraged. Individual and group research activities are a notable feature of the PYP classroom, and help students from an early age become independent and confident thinkers and learners. At NIST, the IB PYP incorporates a very extensive World Language programme – both for mother tongue and learned languages. Over six languages are taught as a mother tongue and four as a learned tongue, while “English as an Additional Language” is mainstreamed in the class.

“NIST’s elementary curriculum is designed to provide students with the academic concepts and skills necessary for educational success, a grounding in healthy self-respect, a sense of tolerance and an appreciation of others from different racial, religious and cultural backgrounds.” Building on the Foundation Following on from the Primary Years programme, NIST students enter the International Baccalaureate Middle Years programme (IB MYP) and then the International Baccalaureate Diploma programme (IB DP). The combination of academic rigour and flexibility, which is the hallmark of the MYP and IB DP, lays a substantial foundation for lifelong learning. These programmes complete the intellectual, emotional, physical and social development of our students as well-rounded, active global citizens. Looking to the Future “NIST nurtures in our students an understanding of themselves and others in a world of cultural diversity, leading to a sense of tolerance, interdependence, and openmindedness.”

NIST celebrates the outstanding results achieved by its Class of 2013 NIST’s graduating Class of 2013 achieved outstanding results, improving on the strength of previous years. Of 98 students the average score of candidates who passed the IB Diploma was 35, compared to the 34 point average in 2012 and 33 point average in 2011. Additionally, 97% of students from the Class of 2013 successfully passed the IB Diploma, a significant improvement from the 85% pass rate last year. Notably two students, Jenny Holloway and Ritah Chumdermpadetsuk received a perfect total score of 45 points, placing them in the top 0.25% of candidates worldwide. In addition, Emily Daykin and Marten Dondorp achieved a near-perfect score of 44 points. In total, 16 members of NIST’s graduating Class of 2013 attained marks of 40 points or higher, placing them in the top 6.6% of the world. The Class of 2013 – IB Results & University List 2013

May-12

2012

2011

World Avg. Students with 43 points (%)

6.66

1.61

1.20

Students with 40 points (%)

17.7

6.64

8.43

10.38

Students who passed the Diploma (%)

78.48

5.51

4.67

5.34

5.21

Average total points

28.77

Total number of DP students

N/A

Percentage of Bilingual Diplomas (%)

31.26

Average points per subject for those who passed the Diploma

Members of the Class of 2013 received offers to study a great range of courses at diverse universities across the globe. Below are the universities they will be attending: University

Course / Major

Amsterdam University College Ateneo De Manila University Babson College Biola University Bond University Chulalongkorn University Chulalongkorn University City University Drexel University Emerson College Emory University Emory University George Washington University Hotel School of The Hague Imperial College Imperial College King's College London College of Fashion Long Island University Loyola Marymount University Macquarie University Mahidol University Mahidol University Mahidol University McGill University Miami University Nanyang Academy of Fine Arts New York University Northeastern University Northeastern University Northeastern University Northwestern University Oxford Pennsylvania State University Pratt Institute Princeton Purdue University Queen Mary University of London

Sociology Business and Management Business and Entrepreneurship History and Anthropology Hotel and Resort Management Language and Culture Economics Accounting and Finance Biological Science Writing Literature and Publishing College of Arts and Science Liberal Arts Psychology Business and Management Mechanical Engineering Electrical Engineering Law Fashion Design Health Science Liberal Arts Actuarial Science Business Finance Environmental Science Liberal Arts Business Fashion Merchandising Liberal Arts Liberal Arts Landscape Architecture Business Engineering Japanese Psychology Interior Design Engineering Finance Business Management

University

Course / Major

Rangsit University Reed College Ringling College of Art and Design Royal Veterinary College in London Santa Clara University Simon Frasier University Syracuse University Syracuse University Thammasat University Tufts University Tufts University UC Berkeley UC, Santa Barbara

Dentistry Liberal Arts Game Art and Design Veterinary Medicine Business Chemistry Communications Sociology and Journalism Law Pre-Med Liberal Arts Biology Liberal Arts/ College of Letters and Science Early Childhood Education Dentistry Psychology Mechanical Engineering Business and Finance Economics English and Drama Commerce Engineering International Relations Sciences Human Geography The Arts Psychology Mathematics Land Economy Social Anthropology and Human Development Sociology Business and Management Marine Biology Accounting and Finance Industrial Engineering

Unitech Institute of Technology University of Adelaide University in Australia University of Bath University of Boston University of Bristol University of Bristol University of British Columbia University of British Columbia University of British Columbia University of British Columbia University of British Columbia University of British Columbia University of British Columbia University of Cambridge University of Cambridge University of Edinburgh University of Edinburgh University of Exeter University of Hawaii University of Hong Kong University of Illinois at Urbana Champaign University of Manchester University of New Brunswick University of New South Wales University of New South Wales University of New South Wales University of Pennsylvania University of Pittsburgh University of Queensland University of Southern California University of Strathclyde University of Sydney University of the Arts London University of Toronto University of Toronto University of Tsukuba University of Washington University of Western Ontario University of Wisconsin Madison Webster University

International Business Economics and Finance Marine Biology Media Communications and Journalism Medicine Computer Science Mass Communication Media Military Nursing Education Undecided Sport Technology Psychology Interior Design Political Science Social Sciences Sociology Psychology Biomedical Science Economics and Political Science Advertisement and Marketing

Thai Property Guide 2014 Sectoral Guidebook on Thai Property The European ASEAN Business Centre in Thailand (EABC) 25th Floor, Empire Tower, 195 South Sathorn Road, Yannawa, Sathorn, Bangkok 10120 Tel: +66 2670 0624 - Fax: +66 0670 0608 - Email: office@eabc-thailand.eu - www.eabc-thailand.eu Copyright ÂŠ EABC 2014. All rights reserved. Published by Thai-Swedish Chamber of Commerce Printed by Scand-Media Corp., Ltd. ISBN: 978-616-91113-1-3

Disclaimer The material in this publication is designed to be used as a source of general reference and information and is intended to provide transparent information and offer first instance guidance on accessing property market in Thailand to those interested. The content is the sole responsibility of the EABC and the author(s). It is not to be considered legally binding, or in any way to replace any regulatory documents or trade/investment issues and recommendations raised in the EABC European Business Position Paper in Thailand. Views expressed are those of the authors and do not necessarily reflect those of the European Commission, nor other relevant authorities in Europe and Thailand. Content in this guidebook may be reproduced and disseminated, in whole or in part, for public information only, provided that it is attributed to the original source. A copy of the republication containing the quotation or citation from this guidebook is required to be sent to the EABC. Any adaptation or translation of the information from this guidebook is required to have prior permission from copyright holders. Should you be interested, please contact counsel@eabc-thailand.eu

Thai Property Guide 2014

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