Jan 06. 2021Naris Cheyklin, chief executive officer of Singha Estate
By The Nation
A group of Nirvana Daii (NVD) shareholders led by Sornsak Somwattana on Wednesday confirmed they had purchased Singha Estate’s entire shareholding in NVD of 711,855,320 shares, or 51.56 per cent of the total stock of NVD, at Bt2.52 per share.
Sornsak said: “We are very confident in the enormous potential of Nirvana Daii and look forward in the years ahead to building on this company’s exceptional track-record as a developer of some of the finest residential properties in Thailand.”
Said Naris Cheyklin, chief executive officer of Singha Estate: “Singha Estate is structuring its portfolio of investments to accelerate growth, while remaining committed to maintaining a significant presence in Thailand’s residential development sector. During the course of this year, we plan to unveil some exciting new initiatives that will rapidly advance the company in this direction.”
Noble reveals Bt45bn property development plan for 2021
Dec 22. 2020
By The Nation
Real estate firm Noble Development Plc (NOBLE) has unveiled plans to develop 11 new projects worth a total Bt45.1 billion in 2021.
Citing high purchasing power among local and overseas customers, Noble is confident its revenue next year will exceed Bt11 billion with pre-sales of Bt16 billion. This would pave the way to becoming a top-5 property developer in Thailand over the next three years (2021-2023), said the company.
Chairman and co-chief executive officer Thongchai Busrapan said 2021 will be a year of growth and huge investment for Noble.
The Bt45.1-billion plan is the largest since the firm was established in 1991. Targeted revenue of Bt11 billion is 10 per cent up on this year’s target of Bt10 billion, while the Bt16 billion pre-sales target is a jump of 146 per cent from Bt6.5 billion this year.
The 2021 plan comprises five solo projects, five joint ventures with BTS Group Holdings Plc, and one joint venture with Hongkong Land.
Four condominium projects, both high rise and low rise, are scheduled to launch in the first half of next year – the Bt5.4-billion Noble Form Thonglor, the Bt0.7-billion Nue Noble Centre Bangna, the Bt10.7-billion Embassy at Wireless, and the Bt1.9-billion Nue Condo at Don Mueang.
The other seven projects will be launched in the second half of the year, comprising condominiums, semi-detached houses, and townhouses, as part of Noble’s strategy to diversify its customer base locally and internationally.
The company has also partnered with U City Plc, an affiliate of BTS Group Holdings, to jointly develop Bangkok high-rise and low-rise condominiums, semi-detached houses, and townhouses on a 50:50 basis in Suksawat, Rat Burana, Khu Khot, and Rama IX roads worth a combined Bt23 billion.
The new projects are planned after the first joint venture project worth Bt2 billion on Ratchada-Lat Phrao Road has already sold more than 50 per cent of units. The four new projects are close to mass transit lines.
Noble has also formed a joint venture company with BTS Group Holdings and Saha Pathana (SPI) Inter-Holding Plc to acquire land around Project Thana City Bang Na (Noble 40 per cent, SPI 41 per cent and BTS 19 per cent) with registered capital of Bt1 billion.
The company said it was continuing to focus on development of residential projects along mass transit lines.
Although the Covid-19 pandemic had seen some customers delay their purchases, Noble still enjoyed a 37 per cent share of Bangkok’s condominium market during the first nine months of 2020, Thongchai said.
The company has set a 2021 capital expenditure budget of more than Bt9 billion to support the investment plan.
In November, Noble sold debentures worth Bt1.25 billion to investors, with subscriptions exceeding expectations.
The company also plans to issue 4:1 ratio warrants for existing shareholders to purchase ordinary Noble shares, to support business expansion in the next three years.
Moreover, Noble said it should be able to complete a par split process from 3 baht to 1 baht per share early next year, which would help increase trading liquidity for investors and also boost Noble’s eligibility for the SET100 Index.
Long-stay visas proposed for foreigners who buy Bt3m condos
Dec 18. 2020
By The Nation
Thai residency visas for foreigners who invest as little as Bt3 million in property is among five proposals being considered by the Finance Ministry.
The proposals were put forward by Thai real estate associations in a bid to lift a property sector slumping under the impact of Covid-19.
The Housing Business Association, Thai Real Estate Association and Thai Condominium Association (TCA) sent the proposals to Finance Minister Arkhom Termpittayapaisith on December 9, TCA deputy chairman Chairat Thampeera revealed on Thursday.
Under current rules, foreigners must spend at least Bt10 million on property to be eligible for a residency visa.
However, under the proposed three-tier visa system, foreign purchasers of condos worth Bt3 million-Bt5 million would get a five-year visa.
Meanwhile buyers of Bt5 million-Bt10 million condos would get 10-year visas, and those who bought condos for more than Bt10 million would be granted permanent residency.
The other four proposals are targeted at Thai property buyers.
The first is to cut ownership-transfer and mortgage fees to the lowest rate until December 31, 2021 to reduce the cost of buying both new homes and second-hand houses.
The second is to relax government loan-to-value (LTV) mortgage enforcement to provide opportunities for people with purchasing power to invest in property. The real estate associations say home-loan providers already have strict LTV rules.
The third is to extend the land-and-buildings tax cut for another two years until the end of 2022 to help relieve ownership burdens.
The fourth is a cash-back campaign and credit increase from Bt50,000 to Bt100,000 per person until the end of 2021 to encourage first-time buyers to make their purchases.
InterContinental Hotels Group (IHG) has signed a landmark franchise agreement with Siamese Asset to expand its Crowne Plaza brand in Bangkok.
The new Crowne Plaza Bangkok Rama 9 hotel will open in 2025, close to the capital’s new central business district.
The announcement marks the first time IHG has completed a franchise agreement in Thailand, as they expand their relationship with long-term partner Kew Green, a franchisee of more than 40 hotels in the UK.
Kew Green has undertaken a joint venture with real estate developer Siamese Asset to bring the landmark deal to fruition.
“This project is the first of its type for IHG in Thailand and made possible by working with Siamese and Kew Green, who bring together the expertise of one of our long-term partners, Kew Green, and local real estate experts, Siamese Asset,” said Serena Lim, vice president of development for IHG, Southeast Asia and South Korea.
This signing demonstrates the continued growth of the Crowne Plaza brand in Thailand, having announced the signing of Crowne Plaza Bangkok Grand Sukhumvit last month, expanding the brand’s footprint to three hotels in the capital. IHG said it is continuing to seek further expansion for the brand across the country as the upscale segment continues to grow.
Kajonsit Singsansern, CEO of Siamese Asset, added that to ensure smooth progress, Kew Green will be setting up local infrastructure in Bangkok, which will be supported by its UK operation who are familiar with working with IHG’s systems and brand standards.
Crowne Plaza Bangkok Rama 9 will be positioned in a mixed-use development – Siamese Rama 9 – which features high-end apartments, office space and a mall. It is located 25 kilometres from Suvarnabhumi Airport and 22km from Don Mueang Airport.
Dusit expands to Singapore with luxury Laguna resort
Dec 02. 2020
By The Nation
Dusit International has expanded into Singapore with the opening of the Dusit Thani Laguna Singapore in the heart of the Laguna National Golf & Country Club.
Comprising 198 contemporary rooms and suites, plus eight pavilions with private pools, and located 10 minutes by car from Jewel Changi Airport and 15 minutes from downtown, the resort is the first in Singapore to offer direct access to award-winning golfing facilities.
Opening its doors to guests on Friday (December 4), the elegant resort has been designed to cater to golfers, local families, and business and leisure travellers, and meet demand for a wellness and destination getaway.
The Singapore branch is Dusit’s fifth resort to open this year, following dusitD2 Salwa Doha, Dusit Beach Resort Guam, ASAI Bangkok Chinatown, and Dusit Thani Wellness Resort Suzhou. It also comes hot on the heels of recent signings to manage upcoming hotels in India and Japan.
Dusit International, one of Thailand’s leading hotel and property development companies, continues its expansion in China with the recent opening of its 10th property in the mainland – Dusit Thani Wellness Resort Suzhou, Jiangsu.
Located in Shushan Ecological Village in Suzhou city’s Huqiu district, this resort combines southern Chinese culture with Thailand’s traditional hospitality.
Comprising 175 rooms and signature villas designed to reflect local art and culture amidst Shushan’s scenic surroundings, the resort is situated at the side of a peaceful lake and tranquil gardens. Private balconies provide sweeping views of the idyllic landscape, which is famed for its three natural treasures including Cui Guan pear, Yun Quan tea and the delicious waxberry.
Noble Development confident of achieving revenue target this year
Nov 13. 2020
By The Nation
Noble Development Public Co Ltd has announced a normalised total revenue of Bt3.39 billion and a normalised net profit of Bt524 million for the third quarter of this year, recording a 308 per cent and 18,285 per cent increase year on year, respectively.
The revenue and net profit announced does not include the extra net profit earned from the sale of land for future developments.
In the first nine months of this year, Noble Development’s normalised total revenue stood at Bt7.41 billion marking a 102 per cent growth year on year, and a normalised net profit of Bt1.24 billion, recording a growth of 304 per cent year on year.
The company is confident it will achieve its revenue target of over Bt10 billion this year.
Meanwhile, the board of directors has approved a par split from Bt3 per share to Bt1 per share, as well as the issuance of warrants for existing shareholders at the ratio of four shares to one warrant.
Thongchai Busrapan, chairman and co-CEO of the company, said: “The tremendous success in the company’s total revenue and net profit in the third quarter was driven by ownership transfers of units in completed condominium and horizontal projects, such as Noble BE19 Sukhumvit, Noble Ploenchit, Noble BE33 Sukhumvit, Noble Recole Sukhumvit 19 to local and foreign customers.
“Specifically, approximately Bt2 billion came from foreign buyers. The company has also recorded a 37 per cent pre-sale market share of total condominium sales in Bangkok in the first nine months of this year,” he said.
The company’s three new condominium projects under the NUE brand that were launched in the third quarter, namely NUE Noble Ngamwongwan, NUE Noble Ratchada-Lat Phrao and NUE Noble Fai Chai-Wang Lang, were clearly successful as each project managed to achieve 40 to 60 per cent in pre-sales.
In the first nine months of the year, Noble Development achieved Bt6.1 billion in total pre-sales, around Bt3 billion of which came from the sale of inventory. The sale of inventories can help recognise revenue immediately as well as boost liquidity.
As a result, the company more than Bt15 billion in backlog in the first nine months of this year, which will be realised in the next two to three years.
Mortgage rates climb on news of coronavirus vaccine breakthrough
Nov 13. 2020
By Special To The Washington Post · Michele Lerner · BUSINESS, US-GLOBAL-MARKETS Mortgage rates rose last week, according to a Freddie Mac survey released Thursday, amid a mixed stock market sparked by investors reacting to a breakthrough coronavirus vaccine and a growing caseload.
The average for a 30-year fixed-rate mortgage climbed to 2.84% from 2.78% with an average 0.7 point. (A point is a fee buyers pay, usually representing about 1% of the loan, to obtain a better rate.) The 2.84% average rate is well below the 3.75% level a year ago.
The 15-year fixed-rate average reached 2.34%, with an average 0.6 point – up from 2.32%. The five-year adjustable-rate average of 3.11%, with an average 0.4 point, was up from the 2.89% of the previous week. A year ago, the 15-year rate was 3.20% and the five-year was 3.44%.
This week’s averages represented the most significant spike in several months.
The average rate on the popular 30-year fixed-rate mortgage tumbled nearly a point from 3.65% in March, reaching new historic lows a dozen times over the past eight months. The decline was driven mainly by a Federal Reserve intervention – buying mortgage-backed securities, or bundled mortgages sold to investors – aimed at stabilizing the housing market amid the economic downturn.
Pfizer’s announcement Monday that its coronavirus vaccine in testing is more than 90% effective sent stocks soaring and bonds were sold off. That pushed mortgage rates higher and reversed all of the rate declines of the previous week.
“Bond yields fell precipitously in the immediate wake of the federal election, whose results failed to yield a landslide victory for either party – something that investors seemed to be preparing for. Monday’s announcement from pharmaceutical company Pfizer . . . was far less expected, and bond yields jumped on the news,” Zillow economist Matthew Speakman said in an email.
“Mortgage rates followed suit, rising firmly in recent days,” Speakman added. “The movement was a stark reminder of the influence the coronavirus – and our ability to contain it – has on the direction of financial markets going forward. This budding optimism regarding a treatment for the virus is likely to continue to nudge mortgage rates higher in the near term, barring any setbacks.”
The yield on 10-year Treasury notes, and a variety of political and economic issues are other factors that determine the trajectory of mortgage rates.
“Looking ahead, there are competing forces that will keep rates in an uneven pattern,” Michael Borodinsky, vice president of Caliber Home Loans in Edison, N.J., said in an email. “The current higher rates of covid-19 infections could force local economies to shut down, which would in turn support lower mortgage rates. The longer-term hopes for a successful vaccine will boost the economy and push rates marginally higher.”
Borodinsky added that with the Fed’s plan to stick with its purchase of mortgage-backed securities until at least 2023, “we can expect mortgage rates to remain near historically low levels for the foreseeable future.”
Freddie Mac’s averages come from its Primary Mortgage Market Survey – a questionnaire sent every week to 80 lenders nationwide to capture the rates they’re offering buyers. The survey is confined to borrowers with excellent credit seeking conventional mortgages making a 20% down payment.
“Mortgage rates jumped this week as a result of positive news about a COVID-19 vaccine,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “Despite this rise, mortgage rates remain about a percentage point below a year ago and the low rate environment is supportive of both purchase and refinance demand. Heading into late fall, the housing market continues to grow and buttress the economy.”
Lawrence Yun, chief economist of the National Association of Realtors, said he thinks that given the vaccine news, “we’ve seen the bottom for mortgage rates. But we won’t see any notable increases, either.” The existence of the vaccine means that the economy will grow in 2021 and investors will be less likely to invest in safe assets such as mortgage bonds, Yun said.
For buyers, the difference in monthly payment on a $400,000 30-year fixed-rate loan at this week’s rate of 2.84% compared with last year at this time, when the rate was 3.75%, is about $200 per month. However, Yun said, fast-rising home prices negate some of the impact of low-interest rates.
Meanwhile, the high demand from buyers, driven by the low interest rates, is squeezing the supply of homes for sale. Thus, according to the Mortgage Bankers Association, the overall number of borrowers seeking mortgages fell slightly.
The market composite index, which measures the volume of both application types, dropped 0.5% from last week. The purchase index decreased 5% from last week but rose 16% from a year ago. The refinance index rose 1% from a week earlier and soared 67% from a year earlier.
“Homebuyer demand remains strong in much of the country, but purchase applications have decreased in recent weeks,” Bob Broeksmit, president and CEO of the association, said in a statement. “Supply and affordability constraints – especially at the lower end of the market – are limiting choices for some prospective buyers.”
Home prices in the U.S increase at fastest rate since 2013
Nov 13. 2020A prospective home buyer looks out the master bedroom window at a house for sale in Dunlap, Ill, on Aug. 19, 2018. MUST CREDIT: Bloomberg photo by Daniel Acker.
By Syndication Washington Post, Bloomberg · Prashant Gopal · BUSINESS, US-GLOBAL-MARKETS Prices for single-family homes across the U.S. increased 12% in the third quarter, the biggest annual jump in seven years, according to the National Association of Realtors.
The cost of housing is rising everywhere, adding to affordability concerns as millions of Americans lose income during the pandemic. Prices rose from a year earlier in all 181 metropolitan areas measured by the group, and 117 regions had double-digit gains, compared with only 15 in the second quarter, according to a report Thursday.
Mortgage rates near record lows have fueled a surge in demand, pushing buyers to compete for a scarce supply of listings. Many are rushing to the suburbs, looking for extra space to quarantine in comfort — searches that are likely to intensify now as Covid-19 infections soar to the highest levels in months. Unless borrowing costs fall much further, first-time buyers will increasingly get priced out of homeownership.
“Favorable mortgage rates will continue to bring fresh buyers to the market,” said Lawrence Yun, chief economist for the Realtor’s group. “However, the affordability situation will not improve even with low interest rates because housing prices are increasing much too fast.”
The average rate for a 30-year mortgage climbed to 2.84%, up from a record-low 2.78% last week, Freddie Mac said Thursday.
The nationwide median price of a single-family home in the quarter was $313,500, according to the Realtors group. The 12% year-over-year increase was the largest since the third quarter of 2013, when prices jumped 12.4%
Fairfield County, Connecticut — home of tony enclaves like Greenwich, as well as Bridgeport, one of the state’s poorest cities — had the biggest increase in prices, with 27.3%. Following were Crestview, Florida; Pittsfield, Massachusetts; Kingston, New York; Atlantic City, New Jersey; and Boise, Idaho.
At the end of the quarter, 1.47 million previously owned homes were available for sale in the U.S., 19.2% fewer than a year earlier. It would take just 2.7 months to sell those homes at the current rate of deals.
Italian brand Tonino Lamborghini has unveiled plans for its first hotel on Phuket, in a collaboration with property developer Utopia Corporation.
Scheduled to open in 2023, the Tonino Lamborghini Boutique Hotel Phuket will occupy beachfront plot in Chalong Bay.
Construction will start in August 2021, with completion expected by July 2023 before a grand opening in November 2023.
The low-rise retreat is the vision of Alexander Wong, founder of the multi-award-winning Alexander Wong Architects.
Inspired by Miami’s South Beach, the hotel will feature a signature Red Pool to evoke the atmosphere of a Floridian beach club.
Ferruccio Lamborghini, CEO and vice president of Tonino Lamborghini, hailed the Thai expansion as a landmark, after the company opened branded hotels in Suzhou, Kunshan and Huangshi, as well as a real estate project in China, and a residence project in Brazil. Ferruccio is the third generation of the Lamborghini family, famous for its luxury sports cars.
Utopia Corporation currently operates three own-branded hotels in Phuket: Utopia Kata, Utopia Loft, and Utopia Naiharn.
Naris Cheyklin, chief executive officer of Singha Estate
A prospective home buyer looks out the master bedroom window at a house for sale in Dunlap, Ill, on Aug. 19, 2018. MUST CREDIT: Bloomberg photo by Daniel Acker. 
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