The debentures will be offered to institutional and/or high-net-worth investors for a total amount of Bt2 billion, with a Bt2-billion greenshoe option.

Ananda expects seven more new condominium projects to be completed and transferred this year, compared to eight projects in 2019. The transferred amount of Bt22 billion, a 10 per cent increase from 2019, is as targeted.

Ananda chief financial officer Chaiyuth Chunnahacha said that the company was in the process of submitting the filing and draft prospectus for the issuance and offering of debentures to the Securities and Exchange Commission.

Ananda Development has appointed Krungthai Bank, Kasikornbank, CIMB Thai Bank, Globlex Securities and Asia Plus Securities as the arrangers. The subscription period is expected to be March 30 to April 1.

“The purpose of these debentures is to repay debentures that will become due in April and May this year. In the past, the company had regularly raised funds by issuing debentures and had always received the confidence of investors,” Chaiyuth said.

Ananda has a cash balance of more than Bt14.8 billion and the company maintains financial discipline by keeping net interest-bearing debt-to-equity level at 1.06 times, he said.

Ananda expects to complete the construction and transfer of seven condominium projects this year, compared to eight condominiums completed and transferred last year, he added.

This year the company is also launching a new condominium project; Ideo Pahol-SaphanKhwai which is close to the Saphan Khwai BTS Station.

The project, covering 5 rai (0.8 hectares) and offering 1,356 units, is worth more than Bt8.5 billion. The company has adjusted this project to be in line with current demands and the market situation, he said.

Ananda is also launching serviced-apartment projects in cooperation with the world-class international lodging firm, The Ascott Limited. Moreover, the construction of two serviced-apartment projects, Somerset Rama 9 and LYF Sukhumvit 8, is expected to be completed and operated this year, providing recurring income.

Investors interested in the debentures offered by Ananda Development can subscribe for a minimum amount of Bt100,000 and in multiples of Bt100,000.

The company emphasises  strong domestic financial status with Fitch Ratings at AA for year 2019. It is ready to launch four  new projects worth a total of more than  Bt20.9 billion, starting with the Bt-3.6 billion  ‘CLOUD Residences – SKV 23,’ a luxury condominium  in Asoke. It aims to penetrate the market gap of luxury condominium in inner Sukhumvit with affordable prices from Bt 5.99 million.

Paul Nie, Regional Sales & Marketing Director of  Risland (Thailand), said  the property market in 2020 faces many challenges such as  the global economic downturn undermined by the trade war which has affected many countries including Thailand, the baht which keeps getting stronger and the Covid-19 outbreak which aggravates the economic slowdown.  Risland has developed 15 property projects  in  the US, New Zealand, India, England, Vietnam, Indonesia and Thailand with a  combined value of around Bt100 billion.  In 2020, Risland aims for a  50-per cent  growth in revenue globally by applying the strategy, “Think Global, Act Local,” under the concept of “Be the Change, Create the Future”.

This year Risland (Thailand) plans to launch four  new projects worth a total of  more than Bt20.9 billion,  comprising two condominium projects and two mixed-use projects. It will focus on strategic locations with convenient transportation at  affordable prices to meet real demand. The company is also confident of its financial status which can support the business during unfavorable market sentiment for a long time  until the situation improves. The company was assigned AA rating for 2019 by Fitch Ratings,  which is the country’s highest credit rating in property segment. Risland (Thailand) launched two  projects; CLOUD Thonglor-Phetchaburi which is now over 50 per cent  sold and The LIVIN Phetkasem which has received  good response with Bt 700 million in booking for  the first phase worth Bt750 million. As a result, the company last year posted more than Bt4 billion  in sales from the 2 projects,  Nie siad.

CLOUD Residences – SKV23 is a 43-storey high-rise condominium located in the heart of Asoke on Sukhumvit 23 and is the first project  this year. Located near both BTS Green Line and MRT Blue Line, the neighborhood is a lifestyle hub surrounded by offices, hospitals and leading educational institutions. Land price soars consecutively by approximately 8 per cent  per year while the take-up rate is 82 per cent.

The project comprises a total of 372 fully-fitted units designed in a modern style with a remarkable height as it will be the tallest building on Sukhumvit Soi 23. The interior design is made to give the feeling of hotel stay, with triple floating facilities as the highlight. This project occupies  1,400 square meters, featuring all-inclusive facilities such as swimming pool, jacuzzi, rest area surrounding the swimming pool, yoga room, sky lounge, co-working space, a meeting room and over 1,000 sqm of green area.

The first sales call is set for  March 20-21, 2020 at CLOUD Residences – SKV23 Sales office.

The projects consist of six condominiums and four horizontal projects worth Bt7.5 billion.

“Our solar rooftops will increase the use of green energy in our projects,” she said.

Seven Sena housing projects have previously participated in a programme called “Solar Move”, brought about by the Alternative Energy Institute of Thailand Foundation.

Under the programme, the property developer opened its 1,000 houses to people to learn about solar rooftops, besides inspiring them to realise the advantage of green energy.

“The programme aims to promote and educate people living in Bangkok and nearby provinces about solar energy,” she explained. “They are from 200 housing projects, or approximately 10,000 households.”

Sena has improved its solar-cell system to “Solar Scale-Up”, which allows people to increase or decrease the number of their solar cells in accordance with the number of electrical appliances in their houses.

“This is the first year we’re spreading our projects around Thailand,” he said. “We’ve started our first horizontal project in Nakhon Si Thammarat and will launch in the third quarter.”

The company is studying customer preferences in other provinces and aims to have projects in all regions to fit every pocketbook, he said.

“The purchasing power in the provinces is mainly among wealthy people, and the market isn’t as competitive as it is in Bangkok and the more populous provinces,” Vittakarn said.

“This expansion will be a chance for AP to study demand in each region. We’ll be looking at single houses, semi-detached and townhouses.”

He said AP will launch 37 projects in 2020, all but four being horizontals worth a combined Bt47.15 billion and the rest condominiums valued at Bt12.1 billion.

“We build six condos last year, but interest has since declined.”

Single-family home sales rose 7.9% to a 764,000 annualized pace in January, exceeding the median estimate in a Bloomberg survey, while the December figure was revised higher, government data showed Wednesday. The median sales price jumped 14% from a year earlier to a record $348,200 as more expensive properties made up a larger share of purchases.

Mortgage rates near three-year lows, elevated consumer confidence and steady employment are energizing the real estate market. Stronger demand against a backdrop of lean inventories will probably power residential construction for a third straight quarter and contribute to economic growth as business investment remains tepid and concerns mount about the economic repercussions of the coronavirus.

The number of new homes sold for which construction hadn’t yet started increased to the best level since June, while the number sold and currently being built was the highest since 2007. Those figures indicate a robust pipeline for homebuilders.

Consumer confidence data from the Conference Board on Tuesday showed a jump in the share of respondents who said they intended to buy a new home within the next six months.

Purchases of new homes, which account for about 10% of the market, increased in three of four U.S. regions, led by the Midwest and West.

The supply of homes at the current sales rate declined to 5.1 months, the lowest since November 2017, from 5.5 months in the prior month.

Economists in Bloomberg’s survey projected an annualized pace of 718,000 new-home sales for January. Estimates ranged from 674,000 to 792,000.

The government’s data on new-home sales are volatile on a month-to-month basis. Changes in the seasonally adjusted data have a wide margin of error. There’s a 90% chance that the percentage change in January was between a 9.9% decline and a 25.7% increase, according to the U.S. Census Bureau.

In 2020, Centara expects to open eight new properties, adding four countries to the company’s world map and enhancing its leadership position in Thailand.

This will increase the group’s worldwide inventory by almost 2,000 rooms and suites, in line with a strategic plan to make Centara a top 100 global hotel operator within five years.

As part of this expansion, Centara’s highly anticipated first resort of its new luxury brand will be unveiled at the end of 2020, following the refurbishment and repositioning of Centara Grand Beach Resort Samui.

This popular beachfront retreat closed temporarily in 2019 to facilitate an extensive upgrade. Its grand reopening in late 2020 will mark the launch of Centara’s sixth hotel brand, the name of which will be announced shortly.

Centra by Centara Cha Am Beach Resort Hua Hin is expected to open in April 2020.

Located on the pristine Cha-Am Beach, this 190-room and suite hotel will be surrounded by attractions, including theme parks, golf courses, retail outlets and a Royal palace.

COSI, Centara’s affordable lifestyle brand, will also drive Centara’s domestic growth in Thailand. After the recent addition of hotels in Pattaya and Koh Samui, this cutting-edge concept will enter another popular beach resort destination in Q4, with the launch of the 142-room COSI Krabi Ao Nang Beach.

Southeast Asia will be a major focus area for Centara in 2020. The company will plant its flag in two new countries this year; the 95-room Centara KMA Resort Inle Lake will become its first location in Myanmar in Q2, and the 162-room Centara Plumeria Resort Pakse will launch in Q4 to mark Centara’s introduction to Laos.

Moving forward, Centara will enter several exciting new destinations in both countries, including Luang Prabang, the UNESCO World Heritage-listed former capital of Laos and the country’s capital, Vientiane.

The Middle East is another key region, with several new hotels and resorts preparing to welcome their first guests this year.

In Qatar, The B Premiere Hotel, an 85-room property under the Centara Boutique Collection, will be introduced in Q2. Then in Q4, Centara will enter the UAE with the 607-key Centara Mirage Beach Resort Dubai – an outstanding family-friendly themed resort that will comprise 607 rooms and suites and a wealth of activities for all ages.

Finally, Centara will accelerate the implementation of its companywide Sustainability Plan in 2020, which includes the elimination of single-use plastic products, such as straws, bags, bottles and food containers, the reduction of food waste, and the expansion of its support for local farmers, rural communities and small-scale sustainable producers.

Pruksa Real Estate Value chief executive officer Piya Prayong said that the condo projects launched near universities were successful.

He cited the example of Pruksa’s “Plum 89” project, situated near Rangsit University, Bangkok University, and Thammasat University’s Rangsit campus.

“Almost 2,000 units of these condominium units have been sold, especially as the unit price is inexpensive, or lower than Bt1 million,” he added.

He said there were investors buying at least 10 to 20 condo rooms, with the aim of renting them out to students at Bt7,000 to Bt10,000 per month.

“The room rates are not expensive for parents, and presently the rooms are full of students,” he added.

The CEO also said that the rooms of another Pruksa condo project, located near Srinakharinwirot University, have been sold to investors who aim to rent them out as well.

Meanwhile, LPN Development’s managing director, Opas Sripayak, said that more than 7,000 units of his company’s “Lumpini Township Rangsit-Khlong 1” have been sold out, and ownership was expected to be transferred at the end of this year.

The condo project, like Plum 89, are also located in the Rangsit area.

Residential starts slipped 3.6% to a 1.57 million annualized rate, still the second-fastest pace of the expansion, after an upwardly revised 1.63 million pace in the prior month, according to government figures released Wednesday. January starts exceeded the median estimate in a Bloomberg survey of economists. Permits, a proxy for future construction, advanced 9.2% to a 1.55 million rate, the highest since March 2007.

While the pace of construction eased in January, the figures suggest the housing market remains a bright spot for the U.S. economy amid sluggish business investment. When paired with continued strength in housing permits, current and planned construction should help mitigate a lean supply of housing.

Mild weather likely played a role in both the December and January readings as warmer temperatures supported construction in months that typically slow homebuilding in areas like the Northeast.

Single-family starts declined 5.9% to a 1.01 million pace, though permits climbed to a 987,000 rate that was also the highest since 2007.

Starts of multifamily homes, a category that tends to be volatile and includes apartment buildings and condominiums, edged up 0.7% to the highest level since 1986. Permits surged 14.6% to a 564,000 pace.

Private data released Tuesday showed sentiment among homebuilders eased slightly in February, but held near a two- decade high, as gauges of sales and prospective buyer traffic cooled. Recent figures from the University of Michigan showed home-buying attitudes in February advanced to the highest level since 2017.

By region, new-home construction fell in the South and Midwest. Starts increased in the Northeast to the highest since June 2015 and climbed in the West the best level since the end of 2006.

The report, produced jointly by the U.S. Census Bureau and the Department of Housing and Urban Development, has a wide margin of error, with a 90% chance that the headline figure was between a 16.9% drop and a 9.7% increase.

“Chinese buyers would delay the transfer of property ownership in the first half of the year due to the Covid-19 coronavirus outbreak,” Parinya said. “However, it would affect the market only slightly as Chinese make up just 6 per cent of total apartment buyers.”

Meanwhile, Phoenix Property Development and Consultancy managing director Surachet Kongcheep said negative factors such as the virus and a global economic slowdown have led to a decrease of around 40 per cent of Chinese buying Thai property.

“We hope those Chinese who have bought property would transfer ownership,” he added.

REIC , under chairman Parinya Patanaphakdee, has been developing simulation models to assess the direction and trends of the housing business,utilising its data of information collected through the years.

In regard to the market situation in 2019, the government has launched three stimulus measures: tax deduction of not more than Bt200,000 for the purchase of houses and apartments under the first house project; reduction of registration fee on property transfers and cutting the registration fee of estate mortgages to 0.01 per cent for houses and condominium units costing less than Bt1 million (including new houses and second hand homes); and a similar measure cutting the registration fee for transfers and reducing mortgage registration fee to 0.01 per cent on the purchase of houses and condominium units worth no more than Bt3 million.

These measures resulted in the nationwide transfers of ownership rising to 373,365 units worth a total of Bt875.18 billion in 2019, representing a 2.7 per cent increase in the number of units and a 4.3 per cent rise in value year on year.

The numbers of estate permission requests increased nationwide in the second and third quarters of 2901 while the figure in the last quarter of last year, similar to 2018, pointed to entrepreneurs changing business plans to develop new residential projects on the plain field.

In Bangkok and metropolitan areas,it can be seen that the adjustment has been continuing since 2016 with the number of units receiving construction permits throughout the country decreasing by 9 per cent last year as condominium construction fell 24 per cent.

The number and proportion of condominium building permits have been decreasing continuously since 2016, signalling the volume of new condominiums during the next 1-2 years would be lower.

New residential units in Bangkok and metropolitan area in 2019 decreased by 32.1 per cent; new condominiums dropped by 34.3 per cent last year while housing estates fell 29 per cent, meaning there are vacant units remaining on sales since 2018.

For 2020, REIC pointed to the positive factors of low interest rates, government stimulus measures, easing of the loan-to-value (LTV) regulations, while negative factors included the economic slowdown, Covid-19 virus outbreak, and the trade war between the United States and China.

REIC expects adjustments in the residential sector this year with the total transfers of ownership of all types of housing units around the country rising to 372,500 – 400,660 units, worth around Bt853.1 – Bt917.1 billion, representing an expansion of between -0.2 per cent to 7.3 per cent from the previous year. Ownership transfers in Bangkok and its vicinity of 197,500 – 214,300 units, will account for 53 per cent of all units and 67 per cent of value of all transfers across the country.

Transfers of condominium units nationwide will be approximately 117,400 – 126,780 units, worth approximately Bt284.36 – Bt305.7 billion, with Bangkok and its vicinity accounting for 73.6 per cent of the volume and 78.1 per cent of the total value. A slow down in ownership transfers to Chinese buyers is expected in the first half of this year in light of the coronavirus outbreak but it will not have a significant impact as they account for only 6 per cent of all buyers.

Residential units from the launches of new projects in Bangkok and its suburbs in 2020 will be around 114,400- 122,600 units, comprising 55 per cent condominium units, or approximately 62,900 to 67,400 . Applications for subdivision permits throughout the country is estimated at 97,500 to 100,400 units with Bangkok and its surrounding provinces accounting for 58.4 per cent

The number of applications for building licences nationwide is estimated at 292,100 to 300,900 units, with approximately 27.4 per cent for condominiums, or approximately 80,000 to 82,400 units.

Applications for building permits in Bangkok and its suburbs is put at around 129,000 to 132,900 units with approximately 51.1 per cent for condominiums or approximately 65,900 to 67,900 units, meaning that 82 per cent of condominium projects receiving building permits throughout the country will be located in Bangkok and its vicinity.

From the forecast above, it may conclude that the real estate market in 2020 is likely to be relatively stable but still has the potential to grow by up to 5-7 per cent if the country’s overall economy improves. This will create employment and confidence in property buyers.