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<p><img alt="Long-tail boats along Phuket in Thailand. martinho/Shutterstock" src="/documents/10204/0/shutterstock_250098484-compressor.jpg/82105e8c-3b7e-471d-bf7b-38355a678012?t=1523441197563" style="width: 740px; height: 490px;" />The coasts of Southeast Asia are garlanded with some of the most beautiful beaches on earth, drawing visitors by the millions every year. Some of those visitors have decided to stay a little longer, cornering prime beachfront parcels to call home.</p> <p>For 13 years, the <a href="http://asiapropertyawards.com" target="_blank">PropertyGuru Asia Property Awards</a> series has recognised some of the region’s most well-designed, sustainable&nbsp;seaside residential properties. The following are just a sampling of the more memorable waterfront&nbsp;projects to have sprung around Thailand, Indonesia, Malaysia, the Philippines, Cambodia, and Vietnam in recent years.</p> <p>Who says you can’t be at the beach every week with these amazing properties?</p> <h4>1. Twinpalms Residences MontAzure</h4> <p><img alt="" src="/documents/10204/0/TWINPALMS-RESIDENCES-MONTAZURE-2.5-compressor.jpg/da64c645-1dba-4213-959e-50b7583d8440?t=1523440395019" style="width: 740px; height: 444px;" /></p> <p>Winner of Best Mixed-Use Development and a Special Recognition in Sustainable Development&nbsp;at the <a href="http://www.property-report.com/detail/-/blogs/propertyguru-thailand-property-awards-2018-embraces-high-growth-niche-segments-in-13th-ye-5" target="_blank">Thailand Property Awards</a>&nbsp;last year, MontAzure is a 450-rai project (72 hectares) along Kamala Beach in the west coast of Phuket. Winner of Best Condo Development (Phuket) in 2016, TwinPalms Residences is the first residential phase of the development, offering 75 low-rise condominium units with 100 metres of beach frontage.</p> <p>Surrounded&nbsp;with a range of onsite resort facilities, the main structure of the beachfront condominiums was completed last month. More than 70 percent of the units are already sold out, with potential for significant capital appreciation upon completion. In addition to Twinpalms Residences, MontAzure features an exclusive village for retirees (Kamala Senior Living), a plush hotel (InterContinental Phuket Resort), and a world-renowned beach club (Café Del Mar).&nbsp;</p> <h4>2. The Residences at Mandarin Oriental, Bali</h4> <p><img alt="" src="/documents/10204/0/MANDARIN-RESIDENCES-BALI-compressor.jpg/2d5b0b83-2821-46ef-9ab8-f3af0d9bb080?t=1523440624514" style="width: 740px; height: 371px;" /></p> <p>Beautiful villas are a dime a dozen in Bali but this project will have you eating, praying, and loving your way to the Indonesian island in no time. The Residences at Mandarin Oriental Bali is a cluster of 91 villas&nbsp;laid out on a gently sloping hillside in the Bukit Peninsula of&nbsp;Bali. Situated at the southernmost point of the island, the villas open to unobstructed, panoramic views of the Indian Ocean. The Residences, part of the 150-hectare luxury integrated project Bukit Pandawa Resort &amp; Golf, won several design honours at the <a href="http://www.property-report.com/detail/-/blogs/fourth-propertyguru-indonesia-property-awards-2018-to-celebrate-benchmark-setting-real-esta-3" target="_blank">Indonesia Property Awards</a> last year, including Best Luxury Landscape Architectural Design.</p> <h4>3. The Seagate Suite</h4> <p><img alt="" src="/documents/10204/0/Cambodia-mixed-use-Seagate-Suite-compressor.jpg/76fff33c-76f3-4037-bcaa-bbea30ac8303?t=1523269094000" style="width: 740px; height: 396px;" /></p> <p>Standing sentinel above Victory Beach in Sihanoukville, The Seagate Suite boasts views of both the sea and the Cambodian boomtown. The tropical breeze permeates through the 1,118 units of the 43-storey project, designed in styles ranging from northern European and luxurious baroque to minimalist. Winner of Best Residential Development for Sihanoukville at the <a href="http://www.property-report.com/detail/-/blogs/2018-propertyguru-cambodia-property-awards-the-winners-list" target="_blank">Cambodia Property Awards</a>, The Seagate Suite has&nbsp;a range of smart home products installed in every unit. If the sand and surf of Victory are not up to par, the building offers an infinity pool on the eighth floor with resplendent views of Sihanoukville.</p> <p><a href="http://property-report.com/detail/-/blogs/6-cool-reasons-why-niseko-luxury-is-on-top-of-the-wor-6" target="_blank"><strong>More:&nbsp;6 cool reasons why Niseko is on top of the world</strong></a></p> <h4>4. 8 Newport Boulevard</h4> <p><img alt="" src="/documents/10204/0/8-NEWTOWN-BOULEVARD-%281%29-compressor.jpg/95185182-9747-4554-bde4-6199bdfe9d30?t=1523440431200" style="width: 740px; height: 416px;" /></p> <p>Mactan Newtown&nbsp;is the&nbsp;first&nbsp;major&nbsp;township&nbsp;development with its own beach outside Metro Manila. Conceived by Megaworld, a pioneer in the development of live-work-play communities in the Philippines, the 30-hectare township offers nine high-end condominium towers. The first residential cluster in the township, 8 Newtown Boulevard, was the most decorated Cebuano project at the 2016 <a href="http://www.property-report.com/detail/-/blogs/propertyguru-philippines-property-awards-2017-winners-hope-for-a-green-future" target="_blank">Philippines Property Awards</a>, winning Best Condo Development in Cebu as well as two Highly Commended honours. Eight Newtown Boulevard features panoramic views of the Hilutungan Channel and Magellan Bay. The amenity deck is a joy to be in,&nbsp;featuring Japanese-inspired gardens and courtyards, plus an onsen spa. Residents may choose between the white-sand beach outside the building or the 60-metre infinity pool.&nbsp;</p> <h4>5. Queens Residences Q1&nbsp;</h4> <p><img alt="" src="/documents/10204/0/Queens-3-compressor.jpg/4d1721aa-fe95-4a6a-ad5f-38d4951ce411?t=1523440073480" style="width: 740px; height: 528px;" /></p> <p>Queens Residences Q1 won Best Condo Development for Penang at last year's <a href="http://www.property-report.com/detail/-/blogs/elite-shortlist-of-nominees-for-2018-propertyguru-asia-property-awards-malaysia-unveiled" target="_blank">PropertyGuru Asia Property Awards (Malaysia)</a>. Situated in front of Bayan Bay, the 500-unit project gives residents generous views of Pulau Jerejak and Penang’s landmark bridges. The project will come with its own marina, with water taxis conveying residents to Straits Quay and other points along the bay. One of the project's quirks? A&nbsp;frameless glass infinity pool that should give you literally immersive views of the sea.</p> <h4>6. Panorama Nha Trang</h4> <p><img alt="" src="/documents/10204/0/PANORAMA-%281%29-compressor.jpg/212065a7-878a-4ddc-937d-a82c4db8e2f2?t=1523439751075" style="width: 740px; height: 416px;" /></p> <p>Panorama Nha Trang took home the highly coveted Best Condo Development trophy at the <a href="http://property-report.com/detail/-/blogs/the-winners-list-propertyguru-vietnam-property-awards-2017" target="_blank">Vietnam Property Awards</a> last year, in addition to a gong for Best Condo Architectural Design. The project is truly one-of-a-kind, offering 1,112 condotel units by Nha Trang Bay. The tower is only a few steps away from the beach but residents are likely to enjoy the saltwater infinity sky pool. Unlike most others, the pool&nbsp;contorts to the building’s unique ellipse shape, intended to make the most of the gorgeous Nha Trang&nbsp;views.</p>
6 award-winning beachfront properties in Southeast Asia
<p><img alt="Aerial view of Ho Chi Minh City, Vietnam. Tonkinphotography/Shutterstock" src="/documents/10204/0/shutterstock_759434539-compressor.jpg/cbcba15c-d056-410c-a6a8-545a189e171e?t=1523349946752" style="width: 1000px; height: 667px;" />Ho Chi Minh City may expect tens of thousands of units in new apartment supply in the next four years, according to the most recent quarterly briefing from Savills Vietnam.</p> <p>Around 93 projects are set to contribute more than 122,000 units to Vietnam’s largest property market through 2020, the consultancy stated in the report.</p> <p>Over 10,500 units from 13 new projects in the city were launched in the first quarter of 2018 alone. These include advanced phases of nine active projects.</p> <p>Overall, primary supply&nbsp;in the city stood at 28,600 units as of Q1 2018, down 32 percent year-on-year and 13 percent quarter-on-quarter.</p> <p>District 9, one of the city’s more progressive suburban enclaves, will account for 32 percent of future supply until 2020, Savills Vietnam predicted. Around 61 percent of the new homes will be grade C units.</p> <p><a href="http://property-report.com/detail/-/blogs/top-brands-behind-the-annual-propertyguru-vietnam-property-awards-2018-gala-dinner-unveil-1" target="_blank"><strong>More:&nbsp;Top brands behind the annual PropertyGuru Vietnam Property Awards 2018 unveiled</strong></a></p> <p>Already, sales of grade C units took up 62 percent of sales in Q1 2018. However, sales performance across all grades have been strong, increasing 51 percent year-on-year to 13,500 deals, although this constituted a drop of 11 percent quarter-on-quarter.&nbsp;</p> <p>The first quarter also saw the addition of over 770 townhouses and villas. From Q2 2018 to 2020,&nbsp;supply of townhomes and villas could top 17,000 dwellings or plots, the consultancy noted, with most situated in the city's eastern districts will&nbsp; dominate with 60% market share.</p> <p>More than 1,100 serviced apartment units will hit the city in the&nbsp;last nine months of 2018.</p> <p>The Vietnamese economy has been benefiting from an upswing in overseas buyers, thanks to a raft of housing laws introduced in 2015 that streamlined processes for foreigners to buy property in the country.</p>
Record apartment supply to hit Ho Chi Minh City
<p><img alt="Phnom Penh in the early morning of 3 April. noomcpk/Shutterstock" src="/documents/10204/0/shutterstock_1063211387-compressor.jpg/b43759c6-f4c3-4971-839f-e5fdafc96da6?t=1523268530000" style="width: 740px; height: 494px;" />Standalone projects are fast becoming a thing of the past&nbsp;in Cambodia.</p> <p>If the results of the PropertyGuru Cambodia Property Awards in March were any foreshadowing of the future of Khmer real estate, developers are angling for mixed-use projects more than ever in the kingdom.</p> <p>From Phnom Penh and Siem Reap to Sihanoukville, developments are integrating residential, commercial, retail and hospitality components in a single site — to the pleasure of discerning home seekers and property investors.</p> <p>Cambodia has seen a&nbsp;22 percent year-on-year increase in construction investment during the past year, causing land prices to rise and the urban landscape in Phnom Penh to transform from a low-rise capital into a high-rise hub. “The real estate industry has indeed played a vital role in Cambodia’s economic growth. In recent years, it has evolved so rapidly, attracting major investors from around the region to invest in Cambodia’s real estate and construction sectors,” noted Sorn Seap, founder and director of Key Real Estate Co., Ltd., the returning chairman of the judging panel.</p> <p>Here are some amazing mixed-use developments to look forward to in Cambodia:</p> <h4><strong>Greater Euro Ville</strong></h4> <p><img alt="" src="/documents/10204/0/Cambodia-mixed-use-Greater-Euro-Ville-compressor.jpg/b0532e24-1518-4343-89d8-3ae469318d52?t=1523268987111" /></p> <p>This 30-hectare project has been adjudged the kingdom’s Best Mixed Use Development at the 2018 Cambodia Property Awards. The development is in good hands, having been conceived by the night’s biggest winner, Borey Peng Huoth Group, which won Best Developer for the third consecutive year. Inspired by historical European architecture with just enough hints of Khmer heritage, Greater Euro Ville consists of a spacious MICE centre (Euroville Convention Hall), a thematic leisure park (EuroPark), a shopping promenade (Euroville Retail Boulevard), and a housing component (Euroville Residencies).</p> <h4><strong>One Park by GRED </strong></h4> <p><img alt="" src="/documents/10204/0/Cambodia-mixed-use-One-Park-compressor.jpg/49ca16a5-17b8-4c78-bf51-7e9b00b6d36c?t=1523269018480" /></p> <p>This brainchild of Graticity Real Estate Development Co., Ltd won Best Mixed Use Landscape Architectural Design for good reason. Its landscape area stretches for more than 33,000 square metres, covering more than 50 plant species and over 1,000 trees, criscrossed by meandering walkways and jogging paths. A 650-square-metre network of water features simulate rivers, waterfalls and lakes through this lush vegetation, with 1,370 square metres allotted for multiple swimming pools. There are eight themed gardens, in addition to&nbsp;sky gardens atop the tower blocks strewn across the lot. Half of the project's 79,000-square-metre land area is devoted to greenery, a rarity in Cambodia.</p> <h4><strong>CEO KT Pacific </strong></h4> <p><img alt="" src="/documents/10204/0/Cambodia-mixed-use-CEO-KT-Pacific-compressor.jpg/01e4a851-ee58-4385-8ad0-7521e5095dbe?t=1523269042817" /></p> <p>LIXIN Construction was one of the biggest winners at this year's awards. Its bragging rights? Three gongs for CEO KT Pacific, its sprawling mixed-use collaboration with KT Pacific Group. CEO KT Pacific rises 36 storeys high, topped with a 30-meter-long infinity pool, sky bar, and scenic runway that command nonpareil views of central Phnom Penh. Below, the building offers&nbsp;106 well-equipped office units and a slew of residential products, including&nbsp;842 one- and two-bedroom apartments.</p> <p><a href="http://property-report.com/detail/-/blogs/propertyguru-cambodia-property-awards-2018-honours-maturing-property-market-aspiring-for-best-practi-16" target="_blank"><strong>More:&nbsp;PropertyGuru Cambodia Property Awards 2018 honours maturing property market</strong></a></p> <h4><strong>The Parkway </strong></h4> <p><img alt="" src="/documents/10204/0/Cambodia+mixed-use+The+Parkway+%281%29.jpg/29cb86f4-0e97-46ae-b935-19bcace8d4b4?t=1523269066676" /></p> <p>Parkway Investments Co., Ltd. is aiming big with its eponymous development, which is being called the largest mixed-use complex under construction in the Phnom Penh valley. Sprawling for 12,000 square metres, The Parkway combines high-end, earthquake-resistant office towers and apartment buildings. Prospective residents can choose from apartments in sizes ranging up to 300 square metres.&nbsp;Visitors can traipse around the 5,000-square-metre gardens on the roof of the podium with an infinity sky pool. The facilities deck stretches for 1,500 square metres, while every alternative floor offers a public green space. The area will give rise to various supermarkets, department stores,&nbsp;F&amp;B options, entertainment venues, healthcare facilities, and so much more.</p> <h4><strong>The Seagate Suite </strong></h4> <p><img alt="" src="/documents/10204/0/Cambodia-mixed-use-Seagate-Suite-compressor.jpg/76fff33c-76f3-4037-bcaa-bbea30ac8303?t=1523269094835" /></p> <p>Flying the flag high for Sihanoukville is KHCN Investment and Development Co., Ltd., which won Best Residential Development in the Khmer resort town with its Seagate Suite project. Envisioned as a symbol of the spirit of Cambodia, the USD200 million project has 1,118 homes on offer, in addition to 280 hotel keys and 3,000 square metres of leasable office and retail space. Each residential unit in the project maximises views of the fast-growing city, thanks to painstaking computer simulations during the design process by Shenzhen-based architecture studio Depus. Residents also have the best possible views of Sihanoukville from the eighth-floor infinity pool, which is lined with an artificial beach. The Seagate Suite has its own spa, plus a multi-functional conference centre and international banquet hall.</p> <h4><strong>Phnom Penh City Center </strong></h4> <p><img alt="" src="/documents/10204/0/Cambodia-mixed-use-Eden-Park-compressor.jpg/4dbf2bfb-2270-496d-ae50-5e04030269c7?t=1523269120379" /></p> <p>Last year’s big winner made an encore appearance in this year’s awards with its Eden Garden component taking home Best Retail Development and Best Universal Design Development. Eden Garden is unique in that it is the first outdoor retail strip in Phnom Penh to operate 24 hours a day. It boasts a good tenant mix of cinemas, bars, clubs, and restaurants, in addition to sprawling public green spaces. The project is within easy reach of aspiring entrepreneurs, with rental prices averaging at USD25 per square metre.</p>
Where to find Cambodia’s most exciting mixed-use developments
<p><img alt="Ron Bakker" src="/documents/10204/0/Ron-Bakker-lead-compressor+1.5.jpg/6dbd70c5-488b-49b3-ad42-9224a225feca?t=1522147695999" />Renowned architect Ron Bakker is expected to grace the second outing of the <a href="http://asiarealestatesummit.com" target="_blank">PropertyGuru Asia Real Estate Summit</a> in November at The Athenee Hotel in Bangkok.</p> <p id="yui_patched_v3_11_0_1_1522818563176_389">The founding partner of PLP will attend the high-level conference on 9 November to discuss the London-based architecture firm’s groundbreaking work on The Edge, the world's most sustainable and smartest building.</p> <p>The famed Amsterdam edifice uses 30,000 sensors that feed into a central smart system, allowing it to intelligently manipulate lighting, humidity, and other conditions, keeping utility costs low.&nbsp;A net-zero energy building, The Edge generates all the clean power it needs.&nbsp;</p> <p>Mounted by Asia’s foremost online property company PropertyGuru, the two-day Asia Real Estate Summit will gather top-level business leaders and decision-makers to exchange empowering ideas on disruption, digital innovation, smart cities and buildings, automation, blockchain, fintech and proptech.</p> <p><a href="http://property-report.com/detail/-/blogs/8-things-we-learned-about-smart-cities-at-the-asia-real-estate-sum-12" target="_blank"><strong>More:&nbsp;8 things we learned about smart cities at the Asia Real Estate Summit</strong></a></p> <p>Joining Bakker in the summit is Anthony Arundell, director of smart cities and sustainability for One Bangkok, a new mixed-use development in the Thai capital. He will be speaking in a highly anticipated panel discussion on big data.</p> <p>Sigrid Zialcita, managing director for Asia Pacific research at Cushman &amp; Wakefield, is returning&nbsp;this year to deliver a talk on intelligent facilities management.</p> <p>Ani Bhalekar, the head of Accenture’s Internet of Things and mobile practices for its ASEAN division, is also confirmed to be in attendance.</p> <p>Last year, the Asia Real Estate Summit series welcomed more than 500 delegates and members of the press&nbsp;and 60 expert speakers and thought leaders.</p> <p>Previous keynote speakers and expert speakers at the summit include Dr. Liu Thai Ker, Singapore’s former master architect-planner; Shailesh Rao, board director at Jones Lang LaSalle and former vice-president at Twitter; former Thailand Finance Minister Korn Chatikavanij; and Malaysian Deputy Finance Minister YB Dato’ Lee Chee Leong.</p> <p>Held across three cities – Kuala Lumpur, Bangkok and Singapore – the 2017 Summit series enjoyed the support of top global brands such as Kohler, THAI Airways, Regus, Techsauce, and the Royal Institution of Chartered Surveyors (RICS).</p>
This is your chance to catch smart building architect Ron Bakker in Bangkok
<p><img alt="Simon Rawlings has served as creative director of David Collins Studio since 2007" src="/documents/10204/0/SIMON-RAWLINGS-PORTRAIT-2-compressor.jpg/3afb0046-004a-47f4-9be9-45ec33d3bd45?t=1521543410804" />It takes a designer on Simon Rawlings’ level to know the perfect finished product needs to go beyond a choice of attractive furnishings, textures and materials. An empathic understanding of the client shines through in the Welsh-born interior stylist’s critically acclaimed, star-studded oeuvre.</p> <p>Rawlings has been at the artistic helm of David Collins Studio since its eponymous founder’s passing in 2013. As the London-based design firm’s creative director since 2007, Rawlings led a string of projects that went on to win&nbsp;coveted honours&nbsp;including the coveted Prix Versailles 2016 for Alexander McQueen, Paris and multiple Best Bar in the World gongs for the Artesian at The Langham, London.</p> <p>Rawlings, who has worked for David Collins Studio since the late 1990s, recently put his firm’s stamp on the Ritz-Carlton Residences, a 209-unit luxe residential project lodged in&nbsp;<a href="http://www.property-report.com/detail/-/blogs/thailand-real-estate-relentless-expensive-and-highly-desira-13">MahaNakhon</a>, Thailand’s tallest edifice. The residential component of the 76-storey tower, with its Jenga-like, pixelated form,&nbsp;initially presented a challenge to Rawlings but eventually became a showcase of the designer’s penchant for the unexpected.</p> <div class="pull-quotes-container">Emotion is very much a part of my design process. I want people to feel different as they come through the door</div> <p>A plan to <a href="https://www.1stdibs.com/introspective-magazine/david-collins-abcdcs-book-review/" target="_blank">create a postcard-size snapshot</a> of the MahaNakhon project evolved into a monograph, ABCDCS, published in 2014. It features a foreword by Madonna, just one of the studio’s famous clients.</p> <p>Whether he is designing a shoe store, sandwich shop, or luxury residences, Rawlings takes into account the power of human feeling into his commissions. His designs aim to please, factoring in practicalities of space to give customers, diners and residents alike the most ambient levels of comfort.&nbsp;</p> <p>Property Report caught up with Rawlings on a recent tour of the Ritz-Carlton Residences at MahaNakhon:</p> <h4><strong>How do you feel about this project now that your role is&nbsp;finished?</strong></h4> <p>What's really amazing about this building is that because of the pixelated design, every apartment layout is almost unique. At the beginning it was a real challenge, but it's actually a very appealing feature. When you visit your neighbor,&nbsp;it’s a completely different apartment.</p> <p>I think the loft-living style that is so common in apartments now is a bit difficult to live in. Very few people want just one big space, so I’ve applied the rules of a house here, with a hallway and separate rooms you can close off.</p> <p><img alt="Rawlings' eye for fashion inspired the unusual combination of muted greens and blues in the shared lounge " src="/documents/10204/0/SIMON-RAWLINGS-2-compressor+%281%29.jpg/c799dc02-c771-4340-8297-6cee973151c8?t=1521546238505" /></p> <h4><strong>Do you have a design philosophy?</strong></h4> <p>The way I approach every project is the same – whether it be private homes, retail, restaurant or hotel design. I first try to understand the feeling I’m looking to create. Emotion is very much a part of my design process. I want people to feel different as they come through the door. I hope there is a feeling of having arrived somewhere special but not intimidating.</p> <p>Then I think about how a space works, and the practicalities of living in it. In a building the size of MahaNakhon I have to be very careful. I want to remember that if you're coming in and out four or five times a day, there would be nothing worse than having a 15-minute walk from the front door to the elevator.</p> <p>The final piece of the puzzle is really giving it a cultural relevance. I always spend time in the country where the project is, embracing and understanding how people live and the materials, the colors, the textures, and how they all come together. Then it evolves into the finished design.</p> <p><a href="http://property-report.com/detail/-/blogs/meet-hong-kong-s-smartest-archite-9" target="_blank"><strong>More: Meet Hong Kong's smartest architect&nbsp;</strong></a></p> <h4>How did you give a sense of cultural relevance in these residences?</h4> <p>I think it’s really important that you wake up knowing where you are in the world. While I certainly didn’t want the design to feel themed or overly Thai, little things like carved tables, the rattan&nbsp;and Thai silk furnishings give you that sense of place.</p> <p>All the art we’ve used is by Thai artists, many of which I found at Chatuchak market and commissioned, briefing them on the design and colour pallet. We've also referenced a panel system a lot, which can be seen in a lot of old Thai architecture and is really beautiful.&nbsp;</p> <h4><strong>You’ve used quite quirky colour combinations in the common areas, how do you know what will work?</strong></h4> <p>I refer a lot to fashion when it comes to colour combinations, because in the world of fashion you can be a little bit braver. While I’ve been a bit bold in the colour selection, they are slightly muted tones, so they have a lovely balance. If I had used sharp colours it wouldn’t work as well.</p> <p>I like to think that I've put together colors in these public areas for people to enjoy that they wouldn't necessarily be brave enough to do in their own apartments.</p> <h4><strong>What’s your biggest challenge when it comes to designing?</strong></h4> <p>We live in a world of crazy social media influence, and with every new project I always remind my team that we’re designing interiors – not photographs. So many images on Instagram look amazing because they have been designed as a photograph, but I want to create spaces for people to live in. People should feel proud to bring friends and family home, but also comfortable enough to take their shoes off and put their feet up. I don’t want it to be precious, I want it to be liveable.&nbsp;</p> <p><em>More images of the Ritz-Carlton Residences below:</em></p> <p><strong><img alt="" src="/documents/10204/0/SIMON-RAWLINGS-3.3-compressor.jpg/7395d1ed-8723-409c-a4d7-5dae41a4cd33?t=1521543890969" /></strong></p> <p><img alt="" src="/documents/10204/0/SIMON-RAWLINGS-8.8-compressor.jpg/384e4803-132c-4d8d-a43a-50f84b7343a0?t=1521628023404" /></p> <p><strong><img alt="" src="/documents/10204/0/SIMON-RAWLINGS-4.4-compressor.jpg/a270c03d-fc34-4bdb-880e-95d99aa9a0f9?t=1521544003384" /></strong></p> <p><img alt="" src="/documents/10204/0/SIMON-RAWLINGS-6.6-compressor.jpg/a85f250c-4ef8-4f23-9ba8-03f1a87f62b6?t=1521544226000" /></p> <p><img alt="" src="/documents/10204/0/SIMON-RAWLINGS-5.5-compressor.jpg/6db119db-d8df-4d7d-8231-30d83bbafe6c?t=1521544119251" /></p> <p><img alt="" src="/documents/10204/0/SIMON-RAWLINGS-7-compressor+%281%29.jpg/617ca9c1-d0c9-4a90-8ef0-185fd59d69b5?t=1521545356647" style="cursor: default; background-color: rgb(255, 255, 255);" /></p>
A conversation with interior designer to the stars, Simon Rawlings

Thailand real estate: relentless, expensive, and highly desirable

<p><img alt="" src="/documents/10204/0/Thailand+lead+image+2.jpg/fa21d8ab-ab6b-428e-ba4e-9fb5614f7802?t=1506489408522" style="width: 1081px; height: 549px;" /></p> <p>For Australians, the phrase ‘the lucky country’ has&nbsp;strong resonance. The nickname, coined by author Donald Horne in his novel of the same name, has been used to describe the Antipodean nation’s weather, lifestyle and is often invoked to describe its good fortune from gold rushes to economic booms.</p> <p>Despite its roots Down Under, the description could just as easily be applied to Thailand: a nation whose spectacular natural attributes, incredible cuisine and long-established cache as one of the world’s most appealing places to live has enabled its property market to ride out storms and setbacks that might have floored those in other countries.</p> <p>“Thailand’s infrastructure, accessibility, and general reputation for being a laid-back leisure destination are still vastly superior to other neighbouring countries,” says Andrew Gulbrandson, research head at JLL Thailand. “While certain destinations within Thailand may become less popular, it’s difficult to envision a scenario where Thailand’s desirability as a place to invest substantially decreases.”</p> <p>Indeed, the country’s reputation for being Teflon-coated when it comes to deflecting troublesome news, events and economic tidings is as resonant as ever. In August 2016, bombs exploded in the tourist hubs of Hua Hin and Phuket while last October saw the passing of King Bhumibol Adulyadej, the nation’s much revered monarch.</p> <p>This year has, by Thai standards at least, been relatively light on potentially seismic events. However, the military-run government, in power since a coup in 2014, preside over an economy that continues to be lacklustre. The economy will expand 3.3 percent a year on average from 2017 to 2019, according to the World Bank, the weakest among eight developing Southeast Asian nations.</p> <p>Given all this you could be forgiven for thinking that the country’s once-thriving real estate sector might be showing signs of lethargy, if not out and out fatigue. Not so, say analysts, experts and developers, pointing to booming demand for luxury property in the capital Bangkok and healthy interest from investors, both foreign and Thai, in popular secondary markets such as the paradise islands of Phuket and Koh Samui and the well-located beach resort of Hua Hin.&nbsp;</p> &nbsp; <p><a href="http://property-report.com/detail/-/blogs/what-you-missed-at-the-propertyguru-thailand-real-estate-summit-20-3" target="_blank"><strong>More:&nbsp;What you missed at the PropertyGuru Thailand Real Estate Summit 2017</strong></a></p> &nbsp; <p>In Bangkok, growth in the condominium market remained strong last year. According to Knight Frank’s “Asia Pacific Residential Review”, published earlier this year, more than 52,000 new units were added in 2016 bringing the total to 435,805. But with demand at 315,393 units, the take-up rate recorded a three percentage-point drop to 72.4 percent.</p> <p>Contrastingly, take-up in the sub-prime and prime segments increased by more than four percentage points to 75.4 percent – indicative of the current rude health of the luxury residential market in the city.</p> <p>High-end condominiums are rising with the regularity of a ticking metronome. The striking MahaNakhon building – a mixed-use tower (Thailand’s tallest tower) that features leading international restaurants, hospitality and a luxury residential component with management by Ritz-Carlton – is the most noticeable manifestation of the ongoing penchant for new high-end real estate, while other new projects vie for the attention of super-rich investors. Prime central areas in the city are rising in price with properties selling for up to THB300,000 (USD8,421) per sq metre.&nbsp;</p> <p>At super-luxe residential projects, such as the Ritz-Carlton Residences at MahaNakhon and 98 Wireless by respected Thai developer Sansiri, price tags are truly eye-watering. Units at the Ritz-Carlton Residences are priced from THB45 million to more than THB300 million while prices average about THB550,000 per square metre at 98 Wireless. Still, these asking prices pale in comparison with the city-record THB650,000 per square metre that was paid in March for the penthouse unit at Mandarin Oriental Bangkok Residences, winner of Best Condo Development at the Thailand Property Awards 2016.</p> <p>Such opulence may not come cheap but strong uptake from buyers proves that there’s a market for it.&nbsp;</p> <p>“Freehold ownership of Thailand’s tallest tower is truly a unique selling point,” says Kipsan Beck, managing director of MahaNakhon. “Buyers have indicated that they appreciate the design and specifications, mixed-use lifestyle benefits of having everything at their doorstep and the wide range of facilities and quality standards throughout.”&nbsp;</p> &nbsp; <div class="pull-quotes-container">Prices for new luxury units have risen to the point where it does not make sense for renters</div> &nbsp; <p>Developers and analysts are also reporting high levels of interest in luxury real estate elsewhere in the city’s central areas, even in the light of rocketing purchase prices and low to non-existent yield potential.&nbsp;</p> <p>“Investors eyeing the luxury condo market should not expect any rental yield from new projects,” says Gulbrandson. “Prices for new luxury units have risen to the point where it does not make sense for renters.”</p> <p>The absence of any significant buy-to-let benefits (at least at the highest end of the markets) could be looked upon as a disincentive to buyers. So too could the surge in land values. These factors, as well as an expected glut of supply in the condominium market, meanwhile, has prompted some – including, most recently, Supachai Panitchpakdi, a former director-general of the World Trade Organization – to speculate about a possible property bubble.</p> <p>Experts, however, point to a range of advantages which bolster Bangkok’s reputation as a safe and stable place to invest.&nbsp;</p> <p>Notably, the city still offers decent value for money. According to globalpropertyguide.com, property prices in the world’s top real estate markets like the US, UK and other Asian hotspots like Singapore and Hong Kong are between two to six times more expensive than Thailand.</p> <p>&nbsp;</p> <p><img alt="Hua Hin's proximity to Bangkok makes it a seriously convenient place for investors" src="/documents/10204/0/Thailand+templs.jpg/97cdbb82-6021-4c9a-817a-70df5c118609?t=1506487485611" style="width: 740px; height: 416px;" /></p> <p>&nbsp;</p> <p>Analysts also point to the absence of punitive stamp duties for foreign nationals such as those found in Singapore and Hong Kong and the liquidity of developers and the selectivity of banks in approving mortgages as positive indicators. And, of course, also appealing are the perks that come from living in a city with myriad lifestyle benefits and easy access to the rest of Thailand and the world.&nbsp;</p> <p>“Any suggestion of a bubble falls somewhere on the spectrum between ill-informed and irresponsible,” says Gulbrandson. “Bubbles can be created by many conditions, but most notably loose financing and massive speculative development, neither of which are present in the Bangkok market.”</p> <p>While Bangkok is by far the liveliest market in the country, sector conditions elsewhere in the tropical nation are also looking more promising than they have done for a while.&nbsp;</p> <p>The sector in Phuket is beginning to pick up momentum after a soft few years where various ructions including the collapse of the Russian rouble, the worldwide slump in oil prices and the fallout from the UK’s Brexit vote took their toll on investor confidence.&nbsp;</p> <p>Agents, however, are reporting an uptick in interest – especially in the resale market. And while there’s scant scope for new projects on the built up prime strip of coastline on the west of Thailand’s biggest island, inland areas such as Pasak and Kathu and quieter coastal enclaves such as Rawai in the south of the island are developing fast.</p> <p>Observers note a strong Thai flavour to the resurgence of the Phuket market, with home-grown developers and investors taking up the slack as interest from international buyers dwindles for the moment.</p> <p>“The positive response from the local market has been pleasantly surprising,” says Setthapol Boottho, executive director of MontAzure, whose Twinpalms Residences and Estates at MontAzure near Kamala beach are among the most exclusive of the new developments on the island.&nbsp;</p> &nbsp; <div class="pull-quotes-container">Many more experienced Thai investors realise the value of having a balanced property portfolio so they are looking further afield for better returns and capital appreciation</div> &nbsp; <p>The THB2.2 billion project, which is part of the larger mixed-use MontAzure development, comprises and condo and villas on one of the final plots of land on the island with direct beachfront access.</p> <p>“Thai buyers are far more discerning now in terms of design, quality and yield,” he adds. “Many more experienced Thai investors realise the value of having a balanced property portfolio so they are looking further afield for better returns and capital appreciation.”</p> <p>The high-end segment on Thailand’s star island is also expected to be boosted by the recent extension to its international airport, which increased capacity from 6.5 million to 12.5 million passengers a year.</p> &nbsp; <p><a href="http://property-report.com/detail/-/blogs/in-thailand-empty-nesters-find-their-luxe-forever-ho-16" target="_blank"><strong>More:&nbsp;In fast-aging Thailand, empty nesters find their luxe forever homes</strong></a></p> &nbsp; <p>“The airport facility itself will be a vast improvement on the customer experience which is important in the luxury segment,” Setthapol says. “It also means that more destinations are accessible which should broaden the market across all segments – high end and mass market. These markets co-exist in many celebrated destinations like Hawaii, and Bali, where there are a variety of locations with different segment appeal.”</p> <p>Over on the east coast of the country, in popular destinations like Koh Samui and Hua Hin, investment opportunities also abound.</p> <p>Although complaints of overdevelopment in certain areas of Samui, as well as an oversupply in poorly-constructed developments, are founded, agents are reporting generous yields of between 6 to 14 percent on luxury property. The emergence of Lamai, the island’s second-largest resort area, and the fact that there is still plentiful room for quality new projects are among other factors fuelling optimism.</p> <p>“If certain development plans around the island do end up being confirmed and put into place then huge changes could be seen in specific areas with many new investment opportunities,” says George Willoughby of Form Realty.</p> <p>Despite a slight slowdown over the past few quarters, the market in Hua Hin remains relatively stable.&nbsp;</p> <p>&nbsp;</p> <p><img alt="Phuket continues to lure tourists and investors alike due to its winning combination of big city amenities and stunning tropical shores" src="/documents/10204/0/Thailand+beachs.jpg/7a5ddf22-316f-4ed3-b896-b76bbb3f4cc4?t=1506487552596" style="width: 740px; height: 493px;" /></p> <p>&nbsp;</p> <p>According to Knight Frank Thailand research, the total supply at Q1 2017 stands at 23,584 units, with no new projects being launched yet in 2017. Approximately 1,000 to 3,000 new units were launched over the past few years, but the research notes that future supply will grow at a slower rate, especially in the luxury segments as premium real estate in the coastal town becomes scarce.&nbsp;</p> <p>The sector there is expected to expand, however, in the next three to four years thanks to the government’s plan to develop a high-speed rail connection from Bangkok to Hua Hin.</p> <p>Further encouragement to the real estate market nationwide came in March 2017 when Apisak Tantivorawong, minister of finance, said that the government was considering amending property legislation to allow investors to lease property for 50 years, with the option of renewing the contract for a further 49. Under present regulations, businesses are permitted to take out 30-year leases with the option of extending for another 30 years.&nbsp;</p> <p>“That would be a real game-changer,” says Robert Krupica of leading Thai international law firm Hughes Krupica. “Foreign villa buyers would benefit immensely from the longer tenure and the longer lease terms will be very positive for mixed use and commercial developments where the asset can be amortised over a longer period.”</p> <p>To those unfamiliar with Thailand, its paradoxes may seem disquieting. However, with value for money, high quality developments continuing to enhance the sky-high appeal of its property market, it’s hardly surprising that the nation continues to ride out its storms.&nbsp;</p> &nbsp; <h4>Chiang Mai continues to struggle</h4> <p>Thailand’s second-largest city has long been considered a poor relation to Bangkok and southern markets like Phuket when it comes to investment in real estate. And condo and housing supply in the northern capital remain weak despite new transport network development projects such as a second international airport and a 184-kilometre inter-city motorway between Chiang Mai and Chiang Rai. According to the Real Estate Information Centre (REIC), the monthly absorption rate of the low-rise housing supply in the city declined to an average of 3.6 percent in the third quarter of 2015, down from 5.3 percent. Samma Kitsin, director general of the REIC, says the ambitious transport plans will have minimal impact on the property market as the projects are unlikely to be completed in the near-distant future.</p> &nbsp; <h4>Phuket’s inland appeal</h4> <p>Although its beachfront areas are undoubtedly Phuket’s hottest investment hubs, urban zones inland such as Phuket Town and Kathu District are increasingly on the radar for developers and investors. While beachfront property is undoubtedly attractive, it comes at a premium. Buyers can expect to shell out up to THB110,000 per sqm for some high-end condos on the island’s most prized stretches of shoreline. Prices per sqm are around half that inland, while improving road links to the airport and a host of new retail options further enhance the appeal of areas such as Kathu.&nbsp; “We are seeing a lot of activity in Kathu District presently and that’s liable to be an ongoing trend due to the opening of new retail options such as Blue Pearl and the King Power duty free complex,” says Robert Krupica of Hughes Krupica.</p> &nbsp; <h2>What to buy</h2> <h3>Bangkok&nbsp;</h3> <h4>The Residences at Mandarin Oriental, Bangkok</h4> <h4><img alt="" src="/documents/10204/0/THE+RESIDENCES+AT+MANDARIN+ORIENTAL.jpg/8bfea135-0b05-4a4c-a413-11ed8c6077a7?t=1506658041113" style="width: 740px; height: 481px;" />&nbsp;</h4> <p>&nbsp;</p> <p>Developer: MQDC Magnolia Quality Development Corporation<br /> Size: 128-165 sqm<br /> Number of units: 146<br /> Price: USD10,026-15,750 per sqm<br /> Location: Charoenakorn Road<br /> Completion date: 2018<br /> X-factor: Direct connection to BTS Gold line</p> &nbsp; <h4>749 Residence</h4> <h4><img alt="" src="/documents/10204/0/749+%281%29.jpg/1005fbee-4f9c-4d54-b64a-9df6088bffb3?t=1506658078141" style="width: 740px; height: 639px;" />&nbsp;</h4> <p>&nbsp;</p> <p>Developer: Pannaphat Development Co Ltd<br /> Size (avg): 155.76 sqm<br /> Number of units: 7<br /> Price (avg): USD1.9 million&nbsp;<br /> Location: Sukhumvit 49<br /> Completion date: 2017<br /> X-factor: Private parking spaces for 4-5 cars</p> &nbsp; <h3>Phuket</h3> <h4>Twinpalms Residences MontAzure</h4> <p><img alt="" src="/documents/10204/0/TWINPALMS+RESIDENCES+MONTAZURE+%282%29.jpg/e563133c-0dd2-4482-9166-8d82517087b1?t=1506658151562" style="width: 740px; height: 444px;" /></p> <p>&nbsp;</p> <p>Developer: MontAzure<br /> Size: 70-400 sqm<br /> Number of units: 75<br /> Price: USD380,000-2.6 million<br /> Location: Kamala Beach, Phuket<br /> Completion date: 2018<br /> X-factor: Beachfront landscaped gardens</p> &nbsp; <h3>Samui</h3> <h4>uniQue</h4> <p><img alt="" src="/documents/10204/0/UNIQUE+%281%29.jpg/4d26bfc7-deea-49f9-b273-f4943ac68599?t=1506658215152" style="width: 740px; height: 493px;" /></p> <p>&nbsp;</p> <p>Developer: Q71 Development Co Ltd<br /> Size (avg): 100 sqm<br /> Number of units: 96<br /> Price (avg): USD344,000&nbsp;<br /> Location: Bho Phut, Koh Samui<br /> Completion date: 2017<br /> X-factor: proximity to island pier and Fishermen’s Village</p> &nbsp; <h3>Hua Hin</h3> <h4>MahaSamutr&nbsp;</h4> <p><img alt="" src="/documents/10204/0/MAHASAMUTR+%282%29.jpg/cfb31423-ea2a-4439-840f-d8d3d38928d4?t=1506658249696" style="width: 740px; height: 503px;" /></p> <p>&nbsp;</p> <p>Developer: PACE Development<br /> Size: 447-587 sqm&nbsp;<br /> Number of units: 80<br /> Price: Starts at USD1.4 million<br /> Location: Soi 112 Huana Tuptai Road, Hua HIn<br /> Completion date: 2017 (Phase 1)<br /> X-factor: Asia’s largest lagoon</p> &nbsp; <h3>Chiang Mai</h3> <h4>The Sanctum</h4> <p><img alt="" src="/documents/10204/0/THE+SANCTUM+%281%29.jpg/5c233828-c05c-427c-80b6-94dfd1511c15?t=1506658302268" style="width: 740px; height: 423px;" /></p> <p>&nbsp;</p> <p>Developer: Sanctum Co Ltd<br /> Size (avg): 730 sqm<br /> Number of units: 6<br /> Price: USD1.45-1.82 million<br /> Location: Hang Dong, Chiang Mai<br /> Completion date: 2017<br /> X-factor: Sophisticated security features including biometric door locks and a nuclear fallout shelter</p> &nbsp; <p><em>This article originally appeared in <a href="https://www.magzter.com/TH/PropertyGuru-International-(Thailand)-Co.,Ltd/Property-Report/Business/" target="_blank">Issue No. 143 of PropertyGuru Property Report Magazine</a></em></p>
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Thailand real estate: relentless, expensive, and highly desirable By Property Report
share-icon share-icon share-icon share-icon Sep 27, 2017

For Australians, the phrase ‘the lucky country’ has strong resonance. The nickname, coined by author Donald Horne in his novel of the same name, has been used to describe the Antipodean nation’s weather, lifestyle and is often invoked to describe its good fortune from gold rushes to economic booms.

Despite its roots Down Under, the description could just as easily be applied to Thailand: a nation whose spectacular natural attributes, incredible cuisine and long-established cache as one of the world’s most appealing places to live has enabled its property market to ride out storms and setbacks that might have floored those in other countries.

“Thailand’s infrastructure, accessibility, and general reputation for being a laid-back leisure destination are still vastly superior to other neighbouring countries,” says Andrew Gulbrandson, research head at JLL Thailand. “While certain destinations within Thailand may become less popular, it’s difficult to envision a scenario where Thailand’s desirability as a place to invest substantially decreases.”

Indeed, the country’s reputation for being Teflon-coated when it comes to deflecting troublesome news, events and economic tidings is as resonant as ever. In August 2016, bombs exploded in the tourist hubs of Hua Hin and Phuket while last October saw the passing of King Bhumibol Adulyadej, the nation’s much revered monarch.

This year has, by Thai standards at least, been relatively light on potentially seismic events. However, the military-run government, in power since a coup in 2014, preside over an economy that continues to be lacklustre. The economy will expand 3.3 percent a year on average from 2017 to 2019, according to the World Bank, the weakest among eight developing Southeast Asian nations.

Given all this you could be forgiven for thinking that the country’s once-thriving real estate sector might be showing signs of lethargy, if not out and out fatigue. Not so, say analysts, experts and developers, pointing to booming demand for luxury property in the capital Bangkok and healthy interest from investors, both foreign and Thai, in popular secondary markets such as the paradise islands of Phuket and Koh Samui and the well-located beach resort of Hua Hin. 

 

More: What you missed at the PropertyGuru Thailand Real Estate Summit 2017

 

In Bangkok, growth in the condominium market remained strong last year. According to Knight Frank’s “Asia Pacific Residential Review”, published earlier this year, more than 52,000 new units were added in 2016 bringing the total to 435,805. But with demand at 315,393 units, the take-up rate recorded a three percentage-point drop to 72.4 percent.

Contrastingly, take-up in the sub-prime and prime segments increased by more than four percentage points to 75.4 percent – indicative of the current rude health of the luxury residential market in the city.

High-end condominiums are rising with the regularity of a ticking metronome. The striking MahaNakhon building – a mixed-use tower (Thailand’s tallest tower) that features leading international restaurants, hospitality and a luxury residential component with management by Ritz-Carlton – is the most noticeable manifestation of the ongoing penchant for new high-end real estate, while other new projects vie for the attention of super-rich investors. Prime central areas in the city are rising in price with properties selling for up to THB300,000 (USD8,421) per sq metre. 

At super-luxe residential projects, such as the Ritz-Carlton Residences at MahaNakhon and 98 Wireless by respected Thai developer Sansiri, price tags are truly eye-watering. Units at the Ritz-Carlton Residences are priced from THB45 million to more than THB300 million while prices average about THB550,000 per square metre at 98 Wireless. Still, these asking prices pale in comparison with the city-record THB650,000 per square metre that was paid in March for the penthouse unit at Mandarin Oriental Bangkok Residences, winner of Best Condo Development at the Thailand Property Awards 2016.

Such opulence may not come cheap but strong uptake from buyers proves that there’s a market for it. 

“Freehold ownership of Thailand’s tallest tower is truly a unique selling point,” says Kipsan Beck, managing director of MahaNakhon. “Buyers have indicated that they appreciate the design and specifications, mixed-use lifestyle benefits of having everything at their doorstep and the wide range of facilities and quality standards throughout.” 

 
Prices for new luxury units have risen to the point where it does not make sense for renters
 

Developers and analysts are also reporting high levels of interest in luxury real estate elsewhere in the city’s central areas, even in the light of rocketing purchase prices and low to non-existent yield potential. 

“Investors eyeing the luxury condo market should not expect any rental yield from new projects,” says Gulbrandson. “Prices for new luxury units have risen to the point where it does not make sense for renters.”

The absence of any significant buy-to-let benefits (at least at the highest end of the markets) could be looked upon as a disincentive to buyers. So too could the surge in land values. These factors, as well as an expected glut of supply in the condominium market, meanwhile, has prompted some – including, most recently, Supachai Panitchpakdi, a former director-general of the World Trade Organization – to speculate about a possible property bubble.

Experts, however, point to a range of advantages which bolster Bangkok’s reputation as a safe and stable place to invest. 

Notably, the city still offers decent value for money. According to globalpropertyguide.com, property prices in the world’s top real estate markets like the US, UK and other Asian hotspots like Singapore and Hong Kong are between two to six times more expensive than Thailand.

 

Hua Hin's proximity to Bangkok makes it a seriously convenient place for investors

 

Analysts also point to the absence of punitive stamp duties for foreign nationals such as those found in Singapore and Hong Kong and the liquidity of developers and the selectivity of banks in approving mortgages as positive indicators. And, of course, also appealing are the perks that come from living in a city with myriad lifestyle benefits and easy access to the rest of Thailand and the world. 

“Any suggestion of a bubble falls somewhere on the spectrum between ill-informed and irresponsible,” says Gulbrandson. “Bubbles can be created by many conditions, but most notably loose financing and massive speculative development, neither of which are present in the Bangkok market.”

While Bangkok is by far the liveliest market in the country, sector conditions elsewhere in the tropical nation are also looking more promising than they have done for a while. 

The sector in Phuket is beginning to pick up momentum after a soft few years where various ructions including the collapse of the Russian rouble, the worldwide slump in oil prices and the fallout from the UK’s Brexit vote took their toll on investor confidence. 

Agents, however, are reporting an uptick in interest – especially in the resale market. And while there’s scant scope for new projects on the built up prime strip of coastline on the west of Thailand’s biggest island, inland areas such as Pasak and Kathu and quieter coastal enclaves such as Rawai in the south of the island are developing fast.

Observers note a strong Thai flavour to the resurgence of the Phuket market, with home-grown developers and investors taking up the slack as interest from international buyers dwindles for the moment.

“The positive response from the local market has been pleasantly surprising,” says Setthapol Boottho, executive director of MontAzure, whose Twinpalms Residences and Estates at MontAzure near Kamala beach are among the most exclusive of the new developments on the island. 

 
Many more experienced Thai investors realise the value of having a balanced property portfolio so they are looking further afield for better returns and capital appreciation
 

The THB2.2 billion project, which is part of the larger mixed-use MontAzure development, comprises and condo and villas on one of the final plots of land on the island with direct beachfront access.

“Thai buyers are far more discerning now in terms of design, quality and yield,” he adds. “Many more experienced Thai investors realise the value of having a balanced property portfolio so they are looking further afield for better returns and capital appreciation.”

The high-end segment on Thailand’s star island is also expected to be boosted by the recent extension to its international airport, which increased capacity from 6.5 million to 12.5 million passengers a year.

 

More: In fast-aging Thailand, empty nesters find their luxe forever homes

 

“The airport facility itself will be a vast improvement on the customer experience which is important in the luxury segment,” Setthapol says. “It also means that more destinations are accessible which should broaden the market across all segments – high end and mass market. These markets co-exist in many celebrated destinations like Hawaii, and Bali, where there are a variety of locations with different segment appeal.”

Over on the east coast of the country, in popular destinations like Koh Samui and Hua Hin, investment opportunities also abound.

Although complaints of overdevelopment in certain areas of Samui, as well as an oversupply in poorly-constructed developments, are founded, agents are reporting generous yields of between 6 to 14 percent on luxury property. The emergence of Lamai, the island’s second-largest resort area, and the fact that there is still plentiful room for quality new projects are among other factors fuelling optimism.

“If certain development plans around the island do end up being confirmed and put into place then huge changes could be seen in specific areas with many new investment opportunities,” says George Willoughby of Form Realty.

Despite a slight slowdown over the past few quarters, the market in Hua Hin remains relatively stable. 

 

Phuket continues to lure tourists and investors alike due to its winning combination of big city amenities and stunning tropical shores

 

According to Knight Frank Thailand research, the total supply at Q1 2017 stands at 23,584 units, with no new projects being launched yet in 2017. Approximately 1,000 to 3,000 new units were launched over the past few years, but the research notes that future supply will grow at a slower rate, especially in the luxury segments as premium real estate in the coastal town becomes scarce. 

The sector there is expected to expand, however, in the next three to four years thanks to the government’s plan to develop a high-speed rail connection from Bangkok to Hua Hin.

Further encouragement to the real estate market nationwide came in March 2017 when Apisak Tantivorawong, minister of finance, said that the government was considering amending property legislation to allow investors to lease property for 50 years, with the option of renewing the contract for a further 49. Under present regulations, businesses are permitted to take out 30-year leases with the option of extending for another 30 years. 

“That would be a real game-changer,” says Robert Krupica of leading Thai international law firm Hughes Krupica. “Foreign villa buyers would benefit immensely from the longer tenure and the longer lease terms will be very positive for mixed use and commercial developments where the asset can be amortised over a longer period.”

To those unfamiliar with Thailand, its paradoxes may seem disquieting. However, with value for money, high quality developments continuing to enhance the sky-high appeal of its property market, it’s hardly surprising that the nation continues to ride out its storms. 

 

Chiang Mai continues to struggle

Thailand’s second-largest city has long been considered a poor relation to Bangkok and southern markets like Phuket when it comes to investment in real estate. And condo and housing supply in the northern capital remain weak despite new transport network development projects such as a second international airport and a 184-kilometre inter-city motorway between Chiang Mai and Chiang Rai. According to the Real Estate Information Centre (REIC), the monthly absorption rate of the low-rise housing supply in the city declined to an average of 3.6 percent in the third quarter of 2015, down from 5.3 percent. Samma Kitsin, director general of the REIC, says the ambitious transport plans will have minimal impact on the property market as the projects are unlikely to be completed in the near-distant future.

 

Phuket’s inland appeal

Although its beachfront areas are undoubtedly Phuket’s hottest investment hubs, urban zones inland such as Phuket Town and Kathu District are increasingly on the radar for developers and investors. While beachfront property is undoubtedly attractive, it comes at a premium. Buyers can expect to shell out up to THB110,000 per sqm for some high-end condos on the island’s most prized stretches of shoreline. Prices per sqm are around half that inland, while improving road links to the airport and a host of new retail options further enhance the appeal of areas such as Kathu.  “We are seeing a lot of activity in Kathu District presently and that’s liable to be an ongoing trend due to the opening of new retail options such as Blue Pearl and the King Power duty free complex,” says Robert Krupica of Hughes Krupica.

 

What to buy

Bangkok 

The Residences at Mandarin Oriental, Bangkok

 

 

Developer: MQDC Magnolia Quality Development Corporation
Size: 128-165 sqm
Number of units: 146
Price: USD10,026-15,750 per sqm
Location: Charoenakorn Road
Completion date: 2018
X-factor: Direct connection to BTS Gold line

 

749 Residence

 

 

Developer: Pannaphat Development Co Ltd
Size (avg): 155.76 sqm
Number of units: 7
Price (avg): USD1.9 million 
Location: Sukhumvit 49
Completion date: 2017
X-factor: Private parking spaces for 4-5 cars

 

Phuket

Twinpalms Residences MontAzure

 

Developer: MontAzure
Size: 70-400 sqm
Number of units: 75
Price: USD380,000-2.6 million
Location: Kamala Beach, Phuket
Completion date: 2018
X-factor: Beachfront landscaped gardens

 

Samui

uniQue

 

Developer: Q71 Development Co Ltd
Size (avg): 100 sqm
Number of units: 96
Price (avg): USD344,000 
Location: Bho Phut, Koh Samui
Completion date: 2017
X-factor: proximity to island pier and Fishermen’s Village

 

Hua Hin

MahaSamutr 

 

Developer: PACE Development
Size: 447-587 sqm 
Number of units: 80
Price: Starts at USD1.4 million
Location: Soi 112 Huana Tuptai Road, Hua HIn
Completion date: 2017 (Phase 1)
X-factor: Asia’s largest lagoon

 

Chiang Mai

The Sanctum

 

Developer: Sanctum Co Ltd
Size (avg): 730 sqm
Number of units: 6
Price: USD1.45-1.82 million
Location: Hang Dong, Chiang Mai
Completion date: 2017
X-factor: Sophisticated security features including biometric door locks and a nuclear fallout shelter

 

This article originally appeared in Issue No. 143 of PropertyGuru Property Report Magazine

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<p><img alt="Villas careen down a hill by the sea in Phuket, Thailand. Day2505/Shutterstock" src="/documents/10204/0/shutterstock_712651837-compressor.jpg/dbc34397-8662-427c-9611-77747cd645d6?t=1524461243592" style="width: 1000px; height: 668px;" />Around 155 resort villas were sold in the Thai province of Phuket last year, according to a recent report from CBRE Thailand.</p> <p>This marks the highest number of units sold in a year since 2015, noted the real estate consultancy which opened an office in the touristy island in 2004.</p> <p>Year-over-year, Phuket’s sales performance translated&nbsp;to a 21 percent growth over 2016. &nbsp;</p> <p>However, offerings on the luxury end of the market or units priced above THB90 million (USD2.9&nbsp; million) enjoyed only limited take-up. Instead, 90 percent of total villa sales consisted of units in the price range of THB5 million to THB35 million.</p> <p><a href="http://property-report.com/detail/-/blogs/6-award-winning-beachfront-properties-in-southeast-a-21" target="_blank"><strong>More:&nbsp;6 award-winning beachfront properties in Southeast Asia</strong></a></p> <p>The consultancy “remains confident” of continued interest in the luxury sector though, reported Prakaipeth Meechoosarn, head of advisory and transaction services for resort property sales at&nbsp;CBRE Thailand. Three villas last year hit record selling prices between THB300 million and THB500 million.</p> <p>Investment-oriented,&nbsp;income-producing villas as well as resort condominiums commanded the bulk of sales in 2017. Most of these units offered guaranteed yields of 5 percent through 7 percent for two to five years.</p> <p>In addition to locals, the top Phuket resort property buyers consisted of European and Chinese nationalities.</p> <p>“In 2018, CBRE believes that growth in tourist arrivals will continue to be a key driver of demand in Phuket market, both residential sales and hotel markets,” CBRE researchers stated.</p>
Phuket villa sales highest in two years
<p><img alt="The Shard in London, seen left of the iconic Tower Bridge, is the tallest building in the UK. maziarz/Shutterstock" src="/documents/10204/0/shutterstock_712517563-compressor.jpg/265c3fdf-92b5-47ab-a528-69d23139acce?t=1524205652551" style="width: 1000px; height: 667px;" />The number of skyscrapers in <a href="http://www.property-report.com/detail/-/blogs/is-the-london-property-market-ready-to-banish-the-brexit-blu-13" target="_blank">London</a> is skyrocketing to record numbers, revealed a survey issued Wednesday by New London Architecture, an independent forum for urban planning in the British capital.</p> <p>A total of 510 buildings that are at least 20 storeys high have been planned or are under construction in&nbsp;2017, as more developers feel the impetus to build tall in the&nbsp;English metropolis' suburbs.</p> <p>This tally is up 12 percent from 2016 when there were 455 tall edifices in the pipeline, the survey noted. It also marks the first time more than 500 buildings of such heights are underway.</p> <p>Around 115 high-rise buildings are under construction, another record for the city.</p> <p>The city's renewed vertical ambitions mirror a growing trend in skyscraper construction worldwide. Around 230 towers with heights of at least 200 metres are projected to be completed this year, according to <a href="http://www.property-report.com/detail/-/blogs/230-supertall-buildings-to-be-completed-in-2018-ctu-2" target="_blank">a recent report</a> from&nbsp;the Council on Tall Buildings and Urban Habitat (CTUBH).</p> <p><a href="http://property-report.com/detail/-/blogs/the-world-s-tallest-wooden-building-will-rise-in-jap-2" target="_blank"><strong>More:&nbsp;The world’s tallest wooden building will rise in Japan</strong></a></p> <p>London's own future supertalls include the Spire London in Canary Wharf, which at 235 metres, will be one of Europe’s highest structures upon completion in 2020.</p> <p>Skyscrapers are being distributed evenly in London as tall structures appear in such areas as Battersea, Greenwich, Lambeth, and Poplar, the survey noted.</p> <p>Only seven boroughs, including Bexley, Enfield, Havering, and Hillingdon, have no existing skyscraper projects.</p> <p>Majority (90 percent) of the future towers are for residential use, projected to deliver 106,000 units by 2030 to a city rocked by a housing affordability crisis.</p> <p>"With London's population continuing to increase and the demand for new homes only getting higher, our view remains that well designed tall buildings, in the right place, are part of the solution," said New London Architecture chairman Peter Murray.</p> <p>London’s 310-metre-high Shard is still the tallest skyscraper in western Europe.</p>
London's skyline set to welcome over 500 tall towers
<p><img alt="Tokyo Tatemono will be building a high-rise condo in the central business district of Sathorn in Bangkok. Blue Planet Studio/Shutterstock" src="/documents/10204/0/shutterstock_486006214-compressor.jpg/ad4ffcfb-4702-4329-a372-5bf365ca439b?t=1524214719968" style="width: 1000px; height: 667px;" />Tokyo Tatemono is joining a growing list of Japanese developers building big and tall in Thailand.</p> <p>The firm is slated to develop two luxury high-rise condominiums valued at JPY28 billion (USD260 million) in Bangkok, the Nikkei Asian Review reported.</p> <p>Partnering with Thai development firm Raimon Land, Tokyo Tatemono will construct a 31-storey tower of 150 units in Bangkok’s upmarket Sukhumvit neighbourhood. Another building, rising 36 storeys high, will offer 250 units in the Sathorn business district.</p> <p>The structures will be completed in 2021, with construction set to commence next year.</p> <p><a href="http://property-report.com/detail/-/blogs/this-is-your-chance-to-catch-smart-architect-ron-bakker-in-bangk-6" target="_blank"><strong>More:&nbsp;This is your chance to catch smart building architect Ron Bakker in Bangkok</strong></a></p> <p>Tokyo Tatemono is following in the vein of Japan-based firms such as Mitsubishi Estate, which has 12,000 units across 12 condominium developments in Thailand, and Mitsui Fudosan, which has 16,000 units across 20 condo properties.</p> <p>Nomura Real Estate Development also operates a complex of serviced apartments in the country.</p> <p>Back home, Tokyo Tatemono is known for its line of condominiums under its Brillia brand.</p> <p>Joint ventures between Thai and foreign firms have been on the upswing in recent years. The combined value of JV&nbsp;projects between Japanese and Thai developers in the kingdom has <a href="http://www.cdiasiabusiness.com/en/library/detail.html?p=457" target="_blank">topped THB200 billion (USD6.4 billion)</a> since 2013.&nbsp;</p> <p>Ventures between Mitsui Fudosan and Bangkok-listed realty giant Ananda Development, which won Best Developer at the <a href="http://www.asiapropertyawards.com/thailand-property-awards/" target="_blank">PropertyGuru Thailand Property Awards</a>, have reached THB114 billion in value as of January 2018.</p>
This is the latest Japanese developer with ambitious plans for Bangkok
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<p><img alt="Shocks to house prices elsewhere will affect markets at home. Kanok Sulaiman/Shutterstock" src="/documents/10204/0/shutterstock_684462301-compressor.jpg/2f79786f-4ec9-468c-a006-d533892c46e8?t=1523946883461" style="width: 1000px; height: 667px;" />Global synchronicity in residential property prices is on the rise, according to a new report by the International Monetary Fund.</p> <p>Financial conditions have compelled home prices in pairs of countries and cities to move in tandem worldwide, revealed the IMF's Global Financial Stability Report which studied 40 countries and 44 major cities in advanced and emerging market economies.</p> <p>The move toward synchronicity can be put down to&nbsp;a combination of perennially low interest rates across major central banks; increased activity in major cities among institutional investors, private equity firms, and Real Estate Investment Trusts (REIT); demand from high-net-worth foreign investors for yield or safe assets in luxury housing; and buoyant economic growth in general.</p> <p>As a result, house prices are starting to behave more like prices of stocks, bonds and other financial assets&nbsp;influenced by investment activity from around the world.</p> <p><a href="http://property-report.com/detail/-/blogs/berlin-is-the-world-s-fastest-growing-housing-mark-6" target="_blank"><strong>More:&nbsp;Berlin now the world's fastest-growing housing market</strong></a></p> <p>Among cities, Shanghai and Auckland posted the highest annual real house price growth on average between 2013 and 2017, based on calculations by IMF staff and other institutional sources.</p> <p>House price dispersion in the United States has been rising in consonance with increases in house prices in alternative investment destinations outside the United States, especially in Asia and Europe, the IMF noted. “House prices in major cities outside the United States—Beijing, Dublin, Hong Kong SAR, London, Seoul, Shanghai, Singapore, Tokyo, Toronto, and Vancouver—are positively associated with US house price dispersion.”&nbsp;</p> <p>The increasingly synchronised movement of home prices around the world has become a more prescient predictor of economic downturns. “Higher house price synchronization corresponds to increased downside risks to growth at horizons of up to one year, controlling for other financial and macroeconomic conditions,” IMF researchers stated.</p> <p>In advanced economies, the short-term co-movement in house prices sharply increases around the time of global recessions. Such spikes, however, are more felt in major cities than at the country level, suggesting that the ramifications of the global financial cycle for cities may be particularly notable.</p>
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Global real estate markets are more intertwined than you think
<p><img alt="The skyline of Berlin with the Alexanderplatz. Markus Mainka/Shutterstock" src="/documents/10204/0/shutterstock_743545075-compressor.jpg/b571373a-888a-4534-b702-f98da793cb0c?t=1523423277279" style="width: 1000px; height: 667px;" />Bucking a downtrend in urban home price growth worldwide, Berlin led the annual rankings of Knight Frank’s latest Global Residential Cities Index released this week.</p> <p>Home prices in the German capital surged 20.5 percent in the year to the fourth quarter of 2017 — the only city among 150 markets to post a growth rate above 20 percent.</p> <p>“Strong population growth, a stable economy, record low unemployment and robust interest from overseas investors are together propelling prices higher,” stated Kate Everett-Allen, head of the consultancy’s international residential research.</p> <p>The index included&nbsp;German cities for the first time. Hamburg, Munich and Frankfurt made their debuts on the index at seventh, eighth and 10th places, in that order.</p> <p><a href="http://property-report.com/detail/-/blogs/is-the-london-property-market-ready-to-banish-the-brexit-blu-13" target="_blank"><strong>More:&nbsp;Is the London property market ready to banish the Brexit blues?</strong></a></p> <p>Only Hong Kong represented Asia in the top 10, with prices in the Chinese SAR soaring 14.8 percent between the fourth quarters of 2016 and 2017. Along with Seville in Spain, Hong Kong was one of two “most improved markets in 2017,” Everett-Allen noted.</p> <p>Mainland Chinese cities experienced a general downtrend in price increases, averaging only 1.6 percent last year.&nbsp;The latest rankings mark a departure from the end of 2016 when 12 mostly Chinese markets exceeded 20 percent in pricing growth.&nbsp;</p> <p>Worldwide, home prices increased 4.5 percent at the end of 2017, down from 7 percent in 2016.</p> <p><em>The Knight Frank Global Residential Cities Index, top 10:&nbsp;</em></p> <p>1. Berlin</p> <p>2. Izmir</p> <p>3. Reykjavik</p> <p>4. Vancouver</p> <p>5. Hong Kong</p> <p>6. Budapest</p> <p>7. Hamburg</p> <p>8.&nbsp;Munich</p> <p>9. Rotterdam</p> <p>10.&nbsp;Frankfurt</p>
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Berlin now the world's fastest-growing housing market
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