Stories tagged with condominium
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International Interest in Property Rises in Phuket
Two recently-released studies indicate a significant increase in the purchase of property by international buyers in Phuket, one of Thailand’s top tourist destinations.
There was a 32 percent increase in the number of property transactions, in the second half of 2007, and a 59 percent jump in the total value of the property sold on Phuket island, according to a CB Richard Ellis report. The activity is attributed to a 22 percent boost in Phuket’s tourism, along with a rise in interest among Middle Eastern and Russian buyers.
A study by Jones Lang LaSalle on the high-end condominium market also noted a shift in the demographics of Phuket buyers. UK, US and Scandinavian investors have traditionally represented the market’s base, but now “affluent individuals from China, Russia, India, Korea and the Middle Eastern countries are representing a growing source of demand,” according to this study.
Whatever else the studies demonstrate, it seems evident that Thailand’s political issues, including a coup in 2006, continuing unrest in the South and recent, large-scale anti-government demonstrations in Bangkok, are not discouraging foreign interest in the resort property market.
“The new government has expressed its strong will to attract more overseas capital flows into Thailand,” noted Dan Tantisunthorn, the head of research for Thailand at Jones Lang LaSalle. Currently, the Thai government is considering legislation to extend foreigner land leasehold periods, he added. “Should the initiative materialize, we can expect the market to be more robust.”
Posted by: Andrew on 28 Jun 2008, 21:44 -
New Condo Rules Offer Better Buyer Protection
Condominium buyers in Pattaya and throughout Thailand are set to have better legal protection from an amendment to the condominium act under which penalties are imposed on developers who do not deliver as advertised.
The amendment becomes effective on 4 July and will punish those developers who engage in misleading advertising in order to boost their sales. “If they don’t deliver what they advertise, the land department is empowered to charge them with giving false information,” explained a department spokesman.
Complaints from buyers who found that the units they purchased did not include what was promised led to the new amendment. Most had purchased condominium units before they had been completed.
From 4 July developers will be required to submit their advertising plans at the same time they submit their construction proposals. On completion of the construction, the land department will inspect the units to determine if everything has been completed as advertised.
Most complaints about condos purchased in Pattaya generally deal with smaller items, such as the construction not finished on schedule, disputes about the common areas and charges for general condominium services. Under the new provisions, condo owners will be required to show all of the promotional material they received when making a complaint.
Posted by: Andrew on 19 Jun 2008, 10:46 -
Strong Condominium Sales Continue in Bangkok
The condominium market in Bangkok continues to thrive in spite of increasing costs of construction, and prices remain some of the most attractive in the region. In comparison to other Asian capitals, Bangkok successful competes for investor dollars.
Bangkok maintains its status as one of the most affordable cities in Asia, in terms of luxury residential property prices, based on sales in completed developments. The average price of $2,425 per square metre is only one-tenth the price of similar units in Hong Kong and Singapore.
Beijing posted a moderately lower price per square metre in 2006 compared to Bangkok but in 2007 the rates in China’s capital soared by more than 40%, reaching $2,873 per square metre.
In 2007, the demand and supply situation for new condominiums was reasonably balanced, with 63% of the new 6,940 units launched in 2007 sold by the end of the year. Overall, a total of 6,214 condominium units were sold in 2007, having a total value of 42.5 billion baht. The supply/demand balance appears to be stable for the immediate future.
Low interest rates have fuelled demand, lifting purchasing power and stimulating local buyer investment. Consumer confidence appears to be recovering since the fourth quarter of 2007 following incentives initiated by the new Thai government.
Posted by: Andrew on 09 Jun 2008, 20:00