January 2008
Strong Showing for Bangkok at Thailand Property Awards
Bangkok put in a strong performance at the second annual Thailand Property Awards, which recognizes the top players in Thai real estate. Announced in early December 2007 at a lavish Gala ceremony at the Royal Orchid Sheraton in Bangkok, award-winners from Bangkok included property developer Raimon Land, which won both the McEvily & Collins Best Developer Award and the Vivaldi PR Best Urban Condo Development Award, for their high-end 78 apartment project, The Legend, in Sala Daeng. Others included CB Richard Ellis Co. (British Chamber of Commerce Thailand Best International Agent), Woods Bagot (Gaggenau Best Architect), and Sachdev Odell (Best Interior Designer).
Phuket put in the strongest showing, awards going to The Yamu (Best Resort Villa Development), Royal Phuket Marina (Best Resort Condo Development), West Sands (Lighthouse Club Green Development Award), and Siam Real Estate (Best Agent Website). Dhevatara Properties (Best Boutique Developer) and Samui Villas & Homes Co. Ltd (Best Thailand Agent) flew the flag for Koh Samui.
The Thailand Property Awards are run by Ensign Media Co. Ltd, publishers of the market-leading real estate publication Property Report Thailand. Awards are voted for through a three-phased process of entry and judging, in which the real estate industry nominate companies in the 12 categories, nominees are then asked to enter, and, finally, a team of 22 judges from different disciplines in the industry choose the winners.
Despite a tough year for Bangkok real estate, Duncan Worthington, managing director of Ensign Media Co, believes the high level of competition at this year's awards is evidence of the industry's resilience. "We've faced a number of challenges this year with growth being slower than previously expected. However, the success of the 2007 Thailand Property Awards and acknowledgment of the winners by their peers is a good indicator of the underlying quality and dynamic of the industry throughout the country."
June, 2007
The Condominium Market in Bangkok: Update
Demand for inner-city condominiums remained strong throughout 2006, and looks set to continue despite rising development costs being passed onto buyers. That's the assessment of the latest Condominium Focus report by top Thai property developer Raimon Land, released after the first quarter of 2007.
"Take up rates in inner-city Bangkok were almost 80%, while average per metre square prices grew by 4%, encouraging figures given that new condominium launches grew by 75% to 8,148 units in 2006, up from 4,642 in 2005," says Raimon Land Chief Executive Officer, Nigel Cornick. There were 29 new condominium projects launched in 2006, and 7,300 condominium units worth a total of 42.5 billion baht sold, a rise of 40% on 2005, when 4,300 units sold for 30.3 billion baht.
Market trends for potential buyers to watch
So, while demand is clearly strong, and market supply keeping apace, what does this all mean for potential buyers?
For starters, it means abundant choice. Many projects are scheduled for completion in the coming year, and around 16,348 units are currently in the planning stages or under-development. The only dearth, in fact, is in economy condos (those costing 5 million baht or less). The net result of this increasing competition, Raimon Land suggests, is better deals for buyers, with many developers likely to run alluring promotional campaigns like free furniture, price discounts and special features.
Then, in spite of rising floor space prices (84,187 baht per square metre in 2006, up from 80,836 baht in 2005), the average selling price of new condominiums in Bangkok is actually falling (from 7.65 million baht in 2005 to 5.5 million baht in 2006). However, this is mainly down to reductions in unit sizes (an average of 66 square metres - from 95 square metres in 2005) as developers attempt to both cater for the decreased affordability of local buyers affected by rising mortgage rates, and counter increasing building costs. According to the report, this move is part of a global trend toward "more compact, efficiently designed layouts", one that looks likely to continue if developers are going to continue offering inner-city locations at affordable prices.
Bangkok's most popular areas
Due to its entertainment options and proximity to public transport routes, the most popular area for development remains Sukhumvit (which accounted for 49% of new units), followed by the central business districts of Lumpini and Silom/Sathorn, which accounted for 20%. However, Sukhumvit was also the area with the greatest number of unfilled condos, around 35% or 13.34 billion bath's worth, currently empty. And, with developments Watermark, The Pano and The River leading the way, the city's exclusive riverside is still very much on the up with brisk sales.
Overall, the assessment is that while caution is clever, 2007 looks set to be a good year to buy that swanky city view. Condominiums remain the only type of property non-Thais can buy freehold, and are exempt from the Foreign Direct Investment rule adjustments that have caused jitters in the international business world. Also, while prices per square metre will continue to rise in line with increasing costs, Bangkok is still much more affordable than other Asian cities like Hong Kong, Singapore or Kuala Lumpur.
"While demand and supply are in balance, inner-city Bangkok offerings will continue to become more exclusive should the political situation remain stable and government infrastructure expenditure be renewed," Mr Cornick said.
The River: Own a slice of Bangkok's historical riverside area
Meanhwile, Raimon Land's very exclusive and luxurious 'The River' condominium project has caused quite a stir in property circles, with more than 1,500 potential buyers registering during a pre-launch campaign. When a limited number of units were put of for sale over three days, these were snapped up at staggering per-square metre highs (150,000 baht) that set a new Bangkok property record - and representing a sales volume in excess of US$ 60 million (2 billion baht)! Raimon Land will be releasing more units in the lead up to the opening of an on-site sales office and show suites (expected in June, 2007).
Located directly opposite The Shangri-La Hotel, on the Thonburi side and with sweeping views of the city and Chao Phraya River, The River will consist of two towers - one of which will be the tallest residential building in the city - with its own private pier and shuttle boat service to Saphan Taksin Skytrain (BTS) station. It was designed by architect Hans Brouwer, also responsible for Raimon Land's prestigious The Point development at Wong Amat Beach in Pattaya.
At over 250 metres tall, the two towers of The River have been carefully sculpted to create an interplay of the restrained elegance of the curved glass facades, which is contrasted by the deep articulation of the straight elevations - the taller tower culminating in a dramatic, free-standing glass curtain, translucent by day and lit up at night. Living areas, bedrooms and studies will enjoy spectacular, unobstructed city and riverside views. The design provides full-height, floor-to-ceiling glazing. The result is urban, high-rise living that brings the outside indoors to create spectacularly expansive spaces.
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