New MRT Purple Line extension a boon to real-estate, say Krungthai Bank analysts #SootinClaimon.Com

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/property/40007593


The Krungthai Bank’s business analysis arm, COMPASS, believes the MRT Purple Line’s southern extension will attract up to 80-billion-baht real-estate investment in the Tao Poon-Rat Burana area.

Phacharaphot Nuntramas, COMPASS’ executive vice president, said the 110-billion-baht extension of the MRT Purple Line will be a boon for the real estate market as it will attract investments from the private sector.

He reckons the extension will boost the sale of homes in the area by 25 per cent to 9,600 units this year from 7,700 units between 2018 and 2020.

Once the Covid-19 situation eases, the condominium developments in Bang Sue and Khlong San areas and townhouses in the Pracha Uthit-Phutta Bucha area, in the below 3-million-baht price bracket and those no more than 5 million baht, will benefit the most.

He said these units meet homebuyers’ needs and grant 30 to 40 per cent of the price as profit for the developer.

He also expects the number of convenience stores in the area to rise by two- or threefold. Currently, there are four to five convenience stores per 10,000 people in Thailand.

Related News

MRTA steams ahead with public hearing on South Purple Line

Court dismisses case against MRTA, says it has already provided facilities for the disabled

Two bidders eye Bangkok’s MRTA Purple Line

Kanit Umsakul, an analyst with COMPASS, said government investment in this project will boost GDP growth by 0.1-0.2 per cent. Though many construction sites were temporarily closed at the start of the third quarter, construction resumed in the middle of the quarter and many developments may meet their deadline in the fourth quarter.

He also believes the real-estate sector will grow significantly next year because the government plans to boost foreign ownership percentage in condominiums. Foreigners can currently only own 49 per cent. The government is also planning to allow foreigners to buy land and houses worth more than 10 million baht.

As for Bangkok and its adjacent provinces, COMPASS speculates that the number of properties bought will rise by 4.8 per cent or by 370 billion baht during the rest of this year, and by 5.1 per cent or 389 billion baht in 2022.

However, it says the number of condominium units bought will drop by 4.4 per cent or 249 billion baht until yearend, though it will rise by 3.2 per cent or 257-billion-baht next year.

Published : October 16, 2021

By : THE NATION

Knight Frank Thailand Reveals Survey Results of Resale Condominiums, still Generating an Upside in the Covid-19 Crisis #SootinClaimon.Com

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/pr-news/property/40007548


Mr. Nattha Kahapana, Deputy Managing Director and Head of Phuket Operation, Knight Frank Thailand, said that resale condominiums are considered a good indicator of pricing in the condominium market, reflecting the state of the market at any given time period and amid any situation.

There are different factors in play, such as location, condition of the project, project developer’s brand, lifestyle of residents, juristic person administration, and rental returns. For condominiums that are completed and ready for occupancy, the transactions that take place reflect real demand and supply in the local market. As such, the selling prices aptly represent the needs of buyers and sellers.

From a September 2021 survey among a sample group of resale condos located no more than 300 metres from a Sky Train station and from projects not older than 3 years with over 50 percent of the units sold, it was found that, in some cases, the asking prices in the resale market are higher than the initial prices offered by the developer. Most of these units are located near the Blue Line of the Sky Train, around Ratchadaphisek Station; the resale asking price is 162,000 baht per sq m., an upside of 22 percent. In the vicinity of Bang Phlat Station, resale condos have asking prices ranging from 87,000 to 120,000 baht per sq m., representing an upside of 10 to 22 percent. Around Sam Yan Station, despite the fact that they are leasehold condominiums, there is also an upside of 8 percent, with an asking price of 149,000 baht per sq m. The Charan 13 Station area has a resale price of 130,000 baht per sq m., with an upside of 19 percent.

The end of the Green Line at Pu Chao Saming Prai Station has resale condominium prices of 90,000  baht per sq m., which marks an upside of 14 percent. Around the Yellow Line at Thiphawan Station, the resale asking price is 111,000  baht per sq m., an upside of 16 percent. The pre-sale prices of projects in these locations are not high compared to the Green Line locations in the Sukhumvit area. Also, a portion of the units were sold through promotions intended to speed up sales and help developers maintain their cash flow during the Covid-19 crisis, which is reflected in the resale market’s moderate price upside. Additionally, many resale units tend to be quite well positioned within the projects. They have more selling points than other units in the same project as the customers who snap them up during the early sales stages tend to have the option to choose a good location first, for example. As for super luxury condos priced at 300,000 baht per sq m. and up, the upside has been quite limited. However, their target group of buyers are in a very niche market, so if there are products and services that cater to the needs of this group, it is believed that there would still be demand. This group possesses financial stability and has not been affected by the Covid-19 crisis.

Knight Frank Thailand Reveals Survey Results of Resale Condominiums, still Generating an Upside in the Covid-19 CrisisKnight Frank Thailand Reveals Survey Results of Resale Condominiums, still Generating an Upside in the Covid-19 Crisis

Knight Frank Thailand Reveals Survey Results of Resale Condominiums, still Generating an Upside in the Covid-19 CrisisKnight Frank Thailand Reveals Survey Results of Resale Condominiums, still Generating an Upside in the Covid-19 Crisis

Resale Condo Ownership Transfers in Q2 2021 Recovered to Pre-Crisis Levels in Terms of Value

Ownership transfers of condominiums in Bangkok and its vicinity among ordinary persons in 2019, before the Covid-19 crisis, amounted to 11.136 to 12.210 billion baht in value. During Q2 In 2020, the transfer value decreased to 7.576 billion baht; it then gradually increased until Q2 2021, to 11.359 billion baht, which is at the same level as during the pre-epidemic period. In terms of the number of unit transfers, it is still recovering but has surpassed its lowest point in Q2 2020. This recovery in transfer value shows that the middle to upper segment of the condominium resale market is likely to recover. Meanwhile, condos in the lower priced segment is showing a slower recovery due to weak purchasing power as well as commercial banks tightening their lending terms amidst high NPL and SML levels, despite any positive outlooks.

Knight Frank Thailand Reveals Survey Results of Resale Condominiums, still Generating an Upside in the Covid-19 CrisisKnight Frank Thailand Reveals Survey Results of Resale Condominiums, still Generating an Upside in the Covid-19 CrisisKnight Frank Thailand Reveals Survey Results of Resale Condominiums, still Generating an Upside in the Covid-19 CrisisKnight Frank Thailand Reveals Survey Results of Resale Condominiums, still Generating an Upside in the Covid-19 Crisis

Condominium market was more balanced from 2020 to June 2021, with 23 new projects that sold well with pre-sales of over 80 percent.

Before the Covid-19 epidemic, the condo market was in an uptrend. The average new supply increase was 56,000 units per year, while demand increased by an average of 52,000 units per year as the supply continued to increase. This caused excess supply that required longer sales periods and oversupply concerns arose. In 2020, the launches of new projects slowed considerably due to concerns surrounding the Covid-19 epidemic. As a result, new project launches dropped by 60 percent to about 22,000 units – a dramatic shift from the past, which boasted an average of 56,000 new units launched per year amidst fairly stable demand. In the first half of 2021, developers offered promotions with significantly reduced prices so demand has been at 50,000 units per year, bringing demand and supply in the condo market back to a more balanced state. A survey conducted by the Research and Project Development Consultancy of Knight Frank Chartered (Thailand) Co., Ltd. found that, since 2020, there have been 23 newly launched condominium projects with 6,316 units that achieved pre-sales levels higher than 80 percent. This implies that confidence in the market has increased, and it is on a path of recovery once mass vaccinations and virus controls are in place.

Knight Frank Thailand Reveals Survey Results of Resale Condominiums, still Generating an Upside in the Covid-19 CrisisKnight Frank Thailand Reveals Survey Results of Resale Condominiums, still Generating an Upside in the Covid-19 CrisisKnight Frank Thailand Reveals Survey Results of Resale Condominiums, still Generating an Upside in the Covid-19 CrisisKnight Frank Thailand Reveals Survey Results of Resale Condominiums, still Generating an Upside in the Covid-19 Crisis

Published : October 15, 2021

By : THE NATION

5 Future Scenarios for Bangkok in the Next 30 Years from FutureTales Lab by MQDC #SootinClaimon.Com

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/blogs/property/40007245


8 October 2021, Bangkok – Dr. Karndee Leopairote, Executive Vice President of FutureTales Lab by MQDC, said the lab with Arup Foresight and Innovation, Australia, has researched 5 future scenarios in the next 30 years to 2050 for Greater Bangkok, which extends 150 km east from the city. The scenario analysis covers 6 dimensions: Live, Work, Learn, Play, Mobility, and Sustainability.

“The 5 future scenarios for Greater Bangkok are an extension of megatrends research we’ve published. In researching urbanization, future scenarios can help us find the futures we all want, which doesn’t just involve people but also biodiversity, other organisms in the ecosystem, and the environment. These future scenarios don’t clearly show what will or won’t happen. They help provide a more comprehensive analysis. Each scenario presents both opportunities and challenges. They help inspire us to prepare in time for future events,” said Dr. Karndee.

Dr. Anne Kovachevich, Head of Arup Foresight and Innovation, Australia, said: “As the world starts to emerge from the COVID-19 pandemic, it is an interesting time to look out to 2050 and imagine the possible futures of Greater Bangkok. The last few years have seen major shifts in the way we work, live, commute, and play, and alongside that a demonstration of the human ability to adapt. Climate change impacts are clearly visible and becoming more common and extreme; the importance of health and wellbeing has been highlighted by the pandemic and cities are designing in active, healthy solutions; an aging population requires solutions for keeping both body and mind active. Amongst others, we have drawn on a few of these global trends to create 5 plausible futures for the city. These scenarios can be used to test strategies, help identify blind spots, or consider future complexities and opportunities for Greater Bangkok.”

Dr. Pannin Sumanasrethakul, Foresight Research Director at FutureTales Lab by MQDC, said that research revealed 5 future scenarios for Greater Bangkok.
 

Technotopia


The main factors driving this scenario are developments in automation, regional transport, and community engagement. In this scenario, a 7-year-old child may join classes online from his bedroom using VR devices. In the next 30 years, after the global impact of COVID-19, tech companies and advanced countries will bring new technology. Thailand may start thinking and operating under the governance of tech giants.


Ensuring debt management by 2030, this will help Thailand to catalyst the domestic economy and develop the city and its surroundings reaching toward population of over 25 million people. Thailand could thereby become one of Asia’s business hubs by 2050.


Urban Playgrounds


People of all ages will pay more attention to health and exercise. Policies will promote the development of the city to support activities and develop its people’s skills, also attracting more workers from abroad. Technology will meet the needs of residents, helping those with physical handicaps.


Thailand should aim to develop the city and its surroundings so people of all ages can live healthily and safely. The well-being of city residents should be promoted by 2030 with active lifestyles. That would help Thailand by 2050 will be able to attract people globally who are interested in active lifestyles.
 

Decentralised Resilience


Adapting to climate change includes co-creating residential areas with communities. Transport in Bangkok and its surroundings cities adjusts to rising water levels. Taking care of people in the city and its surroundings is a priority.
Drought and flooding are set to be the main challenges, affecting transport and the food system. Adaption and relocation will fuel inequality. Older areas affected by issues such as rising sea levels will contrast with newly developed neighborhoods. Poorer people will have to evacuate to abandoned buildings or move further out of the city. Informal innovations in the city may include floating houses or housing pods. Abandoned buildings may be used for vertical farms.


Based on this scenario, Thailand should focus on solving the problems of drought and flooding in Bangkok and its surroundings. This will lead to the development of mixed-use industrial areas and new lifestyles by 2030. Thailand will thereby have a city that copes with various natural disasters and manages these problems well by 2050.


Accelerated Generations


Education and skill development are greatly improved in Bangkok and its surroundings to bring older adults back into the labor market. The community is involved in helping design the city to meet the needs of urban development and take care of the environment.
To meet the needs of older adults and bring them back into society Thailand must apply the proper economic concepts. Implementing values that focus on family and environmental balance by 2030, Thailand will achieve leadership in startups by 2050. People of all ages will be integrated into the workforce, where the knowledge and expertise of older adults will combine with the new concepts of younger generations.


Transforming Lifestyles


Tourism will grow as environmental protection helps drives ecotourism and health tourism. Developing the skills of people in the tourism industry will also be important. The tourism industry’s outlook will be altered by the pandemic. Rather than looking at tourist numbers, the industry will focus on visitors who stay a long time, drawn by physical and mental well-being. Access to good quality of life and healthcare encourages people to slow down and value well-being and the environment.


Under this scenario, Thailand should focus on skills development to devise a strategy for the city and its surroundings to be a green megacity by 2030 that restores physical and mental health. Developing skills will attract workers from all over the world to a city that promotes well-being, including learning, which is the main goal for 2050.


“FutureTales Lab by MQDC has analyzed and studied each scenario from various angles for the next 30 years. For policymakers and communities we can provide recommendations for urban development, enabling everyone to prepare for achieving a desired future together,” said Dr. Sumanasrethakul.

Reference: Future of Urbanization Scenarios research.

Published : October 08, 2021

By : THE NATION

“ORIGIN” Joins Forces With “TOKYU LAND ASIA” in “One Phayathai” Mixed-Use Project #SootinClaimon.Com

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/property/40004259

“ORIGIN” Joins Forces With “TOKYU LAND ASIA” in “One Phayathai” Mixed-Use Project


“Origin Property” announced its business expansion through a joint venture with “Tokyu Land Asia” to develop “One Phayathai”, a mixed-use project with 3.6-billion-baht REIT value that gathers offices, retails and hotels in one building.

As part of moving to the NEXT LEVEL, “Origin Property” announced its business expansion through a joint venture with “Tokyu Land Asia” to develop “One Phayathai”, a mixed-use project with 3.6-billion-baht REIT value that gathers offices, retails and hotels in one building. This project also becomes the first IHG Dual Branded Hotel in Thailand as it brings Hotel Indigo and Holiday Inn Express to be in one place. Its prime location can easily reach two international airports. It expects to serve demands from both Thai and foreigners by the end of 2023 when the COVID-19 pandemic falls off.

ADVERTISEMENTx

Mr.Peerapong Jaroon-ek,Chief Executive Officer of Origin Property Public Company Limited (ORI), says that following its ‘ORIGIN NEXT LEVEL’ vision, the company’s subsidiary, One Origin Company Limited, has announced a new business expansion through a 51:49 joint venture with Tokyu Land Asia Pte Ltd, a subsidiary of the umbrella of Tokyu Land Corporation, one of the leading property developers in Japan, to develop One Phayathai, a mixed-use project with REIT value over 3.6 billion baht. The companies aim to expand their recurring income business in Thailand.

“Tokyu Land Asia is our significant partner due to its strengths in capitals, know-how technology and fruitful experiences in property development across Japan and Southeast Asia. Importantly, it has shared the same vision with us to create the best ecosystem for our residents. This collaboration will enable both companies to share knowledge related to sustainable development and environmentally-friendly design, which will be another big step to create the NEXT LEVEL of the quality of life for our customers,” says Peerapong.

Tokyu Land Asia is a property development and investment arm of Tokyu Land Corporation, which has recorded over 67 years of experience in property business in Japan. Tokyu Land Corporation is a subsidiary under Tokyu Fudosan Holdings Corporation, a Tokyo Stock Exchange-listed firm. As one of Nikkei 225 companies list, Tokyu Fudosan Holdings Corporation reported a total asset of 2.652 trillion yen or approximately 790 billion baht in the latest financial report. This latest joint venture has reflected its confidence in Origin Property and Thailand’s investment climate.

Mr. Masaoki Kanematsu, Managing Director of Tokyu Land Asia Pte Ltd, as of the execution of the joint venture, says that the joint venture in One Phayathai is its first-ever investment in Thailand after it has searched for the right partner in Thailand for years. The company is pleased to have Origin Property as its partner as it is well-known for its reliability and has a good reputation in the industry. This joint venture will also initiate the knowledge sharing between both companies and further explore more potential collaboration opportunities in other areas, for example, logistics, renewable energy and other prospective businesses in Thailand.

One Phayathai is a mixed-use project which has a 31-floor building next to a luxury condominium, Park Origin Phayathai, in the center of Bangkok. This project is developed under the “ONE STEP JOURNEY” concept, gathering all lifestyles at one place. This is the first project in Thailand that will have two world-class hotel brands within the same building. One is boutique brand Hotel Indigo with 210 rooms and the other is trusted essential brand Holiday Inn Express with 202 rooms. Under the IHG Hotels & Resorts family of brands, the hotels will offer differentiated hotel experiences for both leisure and business travelers.

In addition, the building offers a commercial space of 2,200 square meters for shops and offices. The space utilization covers 26,880 square meters. The project’s location is 200 meters from the Phayathai interchange station of BTS Green Line and Airport Link to Suvarnabhumi International Airport and Don Mueang International Airport. It is scheduled to start the construction in Q3/2021 and expected to complete it by Q4/2023. By then, the COVID-19 situation is expected to be under control.

One Phayathai pays attention to a design that must be friendly to both the environment and local communities nearby. Therefore, it will provide a green area in front and make a vertical green façade to reduce the heat from outside the building. The fenestrations will be large enough to let natural light come inside the building in order to avoid unnecessary heat and save energy consumption. It also considers an automatic car parking system to reduce the pollution emission in car parking lots on the ground. Additionally, it will use only energy-saving, environmentally-friendly and low albedo construction materials for the sake of communities around the project.

Published : August 05, 2021

Real Estate Trends in the Digital Era #SootinClaimon.Com

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/property/40002410

Real Estate Trends in the Digital Era


Get yourself ready for property news and investment in the real estate industry in the fast-changing world.

Real Estate Trends in the Digital Era

In this fast-changing digital world, it has never been more dangerous for companies to neglect the importance of harnessing new technologies. Of course, the real estate industry is no exception.

All property developers have had to embrace digital technology as it has enabled them to better serve customers and stay ahead of their competitors. This is the best time to revolutionize real estate business models as the Covid-19 pandemic has profoundly changed the ways people live, work and play in a way that could never have been imagined previously.

Most businesses have needed to adapt and innovate to ensure consistency of services during extensive lockdowns and to ensure they serve customers in a way that safeguards health and safety.

With this in mind, this article will provide you with an overview of key digital trends in the real estate industry which have become crucial in order to build resilient business operations, remain competitive, create a digital-first culture and thrive in the long term.

Property InvestmentProperty Investment

1. Big Data for planning and making a decision

The term ‘Big Data’ has been around for some time, but what does it actually mean? And how does it impact the real estate industry?

Well, let’s think of our habits when we watch Netflix or YouTube, we tend to binge on shows suggested by algorithms that seem to understand our preferences. These algorithms make use of big data and analytics, such tools allow companies to utilize data to better understand customer needs and behaviors, in order to provide them with a more tailored and personalized experience.

In the context of real estate, developers can invest in advanced analytics tools in order to identify potential opportunities such as types of property for development, property investment opportunities, customer profile/buyer insights, market forecasts or price segmentation using a wide range of data sources.

2. Robotic Process Automation (RPA) for task automation

Real estate and property management involves working with many different documents and involves lots of time-consuming processes.

Investing in cloud-based RPA software will help realtors improve efficiency and productivity by eliminating or minimizing tedious labour-intensive tasks which are rule based such as data migration, data extraction, data updating, monthly invoices or other activities that are highly objective and repetitive.

RPA is capable of automating such tasks with speed, to a high quality and without errors. A key candidate for the application of RPA technology is in back-office support functions (e.g. accounting and HR) as tasks in this area often show a relatively high share of repetitive and structured processes which demand lots of manual time and effort from employees.

Through RPA automation, this can help companies recognize both financial and operational efficiencies, freeing up employees to focus on more value-add activities and on delivering a better customer experience which can ultimately lead to better customer outcomes and property investment decisions.

3. VR and AR Technologies for property showings

Virtual Reality (VR) and Augmented Reality (AR) have numerous applications in the real estate industry. Both technologies can play a vital role in seizing people’s attention and can provide the ultimate convenience to both customers and realtors.

A virtual 3D property walkthrough can be a highly appealing experience, it helps buyers to see the 360-degree view of each room. The buyers can move around the property and be provided with décor ideas when the property is fully staging and also can customize the home to their liking by adding furniture as well as moving items around to really bring their vision of the property to life, providing a truly cutting-edge customer experience.

Furthermore, such technology can also help realtors attract international buyers by removing any geo-locational restraints.

Smart Living HomeSmart Living Home

4. Blockchain for transparency and security

ADVERTISEMENT

Blockchain is a decentralized ledger of transactions through a peer-to-peer network. It allows customers to make transactions without the need for a central certification authority. It is a revolutionary technology which has the power to transform many different industries including real estate.

For example, it can be used to transform core real estate operations such as property transactions including purchasing, sales, financing, leasing, and record management.

It also has the power to transform norms around high value asset transactions which are typically done face-to-face. Through smart contracts, enabled by blockchain platforms, assets like real estate can be tokenized and safely and securely traded like cryptocurrencies.

The technology can solve several property-related pain points, such as preventing fraud, improving security of digital transactions, and cutting out the middleman when it comes to getting permits, notarizing forms, and performing other business support functions.

5. Mobile Apps can serve many purposes

Searching, buying, renting or selling houses using smartphones is increasingly becoming more commonplace as mobile technology has made the process easier and more convenient.

Mobile apps can allow players in the real estate industry to make use of mobile features such as push notifications, camera, and GPS integration and offer access to real estate tools such as a mortgage calculator for property investment.

Most crucially such apps offer fast and efficient customer engagement opportunities and can act as a channel to bring buyers and sellers closer together.

When building a mobile app in the real estate industry, it is important to bear in mind the purpose of the app. The target audience’s needs and expectations and consider how the application fits into a wider digital strategy which enables a seamless and consistent customer experience across touchpoints and channels.

6. Chatbots for customer engagement and lead generation

Chatbots can be found in almost all industries nowadays, but how can they increase efficiency in the real estate industry? Consider when a customer wants to buy something online, when they ask the seller for more information, if the seller is able to respond quickly, the chances are higher that the customer will make the purchase.

The same concept applies in the real estate industry, where chatbots can give an immediate response to customer queries when they are in the final stages of the customer buying cycle, which means customers can get the information they need right away.

Moreover, if customers are in earlier stages of the buying cycle, chatbots can be used to capture relevant customer information (such as name, contact details and buying preferences) which support lead generation and can ultimately lead to sales in the future, if the customer information captured by the chatbot is supported through a strong customer relationship management (CRM) approach.

Property NewsProperty News

7. IoT for Smart Living

The importance of IoT (internet of things) in real estate is crucial as this technology can bring new life to physical objects, embedded with software and network connectivity, homes can be transformed through features such as automated doors, smart locks and smart refrigerators which can be controlled through smartphones.

Such cutting-edge technology can make homes safer and more secure, improve energy efficiency and improve the overall experience of the home which ultimately can result in higher market value for homes which make use of IoT and smart technologies.

A McKinsey & Company study has found that the pandemic has accelerated the digital transformation agenda of many companies by up to seven years. Since societies are changing towards a more digital world, the real estate industry has to integrate technologies into its business fundamentals to continue serving customers.

Digital innovation will continue to disrupt business models across various industries, meaning it is increasingly important for real estate industry players to continue embracing new technologies to remain relevant and fend off the threat of disruption.

To do so, companies must move away from pre-pandemic organizational orthodoxies which have been uprooted by digital transformation and continue with a more digital-first approach, which will not only help the industry thrive during this crisis but will also help them to accommodate the needs of millennials as this digitally savvy customer cohort becomes increasingly interested in property investment and buying opportunities.

Get more insightful property news by visiting our real estate platform or get our latest news sent directly to your inbox by signing up here.

Published : June 24, 2021

COUNTRY GROUP DEVELOPMENT (CGD) STRENGTH DRIVES FIRST QUARTER RESULTS #SootinClaimon.Com

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/property/40000973

COUNTRY GROUP DEVELOPMENT (CGD) STRENGTH DRIVES FIRST QUARTER RESULTS


Country Group Development Public Company Limited (CGD) today announced the following results for the quarter ended March 31, 2021, as compared to the corresponding period of last fiscal year despite COVID-19 second wave

COUNTRY GROUP DEVELOPMENT (CGD) STRENGTH DRIVES FIRST QUARTER RESULTS

CGD today announced the following results for the quarter ended March 31, 2021, as compared to the corresponding period of last fiscal year despite COVID-19 second wave:

• Revenue was THB 1,256 million and increased 238%

• Operating Profit turned THB 163 million from negative THB 627 million

• Net Loss was THB 302 million and reduced 68%

Quarterly Highlights

• The company reported an increase in operating revenues and profit from operating activities despite the continued challenges of COVID-19 pandemic and the government imposed controls.

• First quarter revenue more than tripled from a year ago with the following notable highlights:

• Sale of the Four Season Private Residences (FSPR) remained the key contributor to the overall revenue at THB 971 million and increased 176% from the same period last year while maintaining its high gross profit margin of 50%

• Extraordinary revenue from investment project was THB 277 million from completion of surrender with the incumbent tenant and in line with the repositioning plan for the asset

• Operating profit was THB 163 million compared to negative THB 627 million last year.

• Excluding extraordinary items from gain and loss from investment project and foreign exchange rate, the ordinary operating profit was THB 368 million and increased 206%.

• Net Loss was THB 302 million and reduced 68% from THB 940 million last year, the loss mainly attributed to financial costs and loss from foreign exchange rate.

Outlook

• Although the short-term outlook remains uncertain, the longer-term outlook is becoming increasingly promising with positive news on the effectiveness and the rollout of vaccines, as well as the business on the books showing a positive trend.

• The company continues its capital strengthening plan with the divestment of hotel assets. The transaction is expected to significantly reduce financial costs, mitigate future foreign exchange exposure, as well as providing the company with a stable financial platform for business growth and sustainability.

• CGD is well-positioned to leverage on its high-quality brands and assets to generate revenues. The company expects a continued positive performance with THB 15 billion worth of ready to transfer assets to be gradually recognized in the following quarters.

• The company will remain agile and continue to take proactive measures on balance sheet management and cost control as the global economic recovery gains speed.

Published : May 17, 2021

Raimon Land Public Company Limited announces 1Q/2021 profit increase of 199% #SootinClaimon.Com

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/property/40000835

Raimon Land Public Company Limited announces 1Q/2021 profit increase of 199%


Raimon Land Public Company Limited announces 1Q/2021 profit increase of 199% as compared to the same period last year, announces profit of THB 138mn despite the COVID-19 economic downtrend.

Raimon Land Public Company Limited announces 1Q/2021 profit increase of 199%

Raimon Land Public Company Limited (“RML” or the “Company”), Thailand’s leading luxury real estate developer, announces profit of THB 138mn despite the COVID-19 economic downtrend. The Company recently rebranded its corporate image to expand its customer base to include a younger affluent generation and is accelerating its new project launches in 2021 to accommodate the Thai government’s new home buying foreign limit. The operating result of 1Q/2021 is a turnaround from the past five-loss quarters and is in line with the Company’s new strategic direction.

Korn Narongdej, Chief Executive Officer of Raimon LandKorn Narongdej, Chief Executive Officer of Raimon LandKorn Narongdej, Chief Executive Officer of RML, stated, “in 1Q/2021 revenue from real estate grew 322% compared to the same period of the previous year after the Company implemented new strategies in existing projects to accelerate sales. Although the third wave of COVID-19 is in the background, we are confident that the market is adapting and together with the speeding up of vaccine distribution in Thailand and globally, we believe that the situation will be greatly improved in the near future. After research, we found considerable demand for luxury residential products from a young and dynamic generation with high-purchasing power. Our company has adjusted its strategy to attract this group of potential customers.”

Raimon Land Public Company Limited announces 1Q/2021 profit increase of 199%Raimon Land Public Company Limited announces 1Q/2021 profit increase of 199%RML has announced that it sold out The Lofts Silom project and also cleared all remaining units of The River, Unixx South Pattaya and The Lofts Asoke in this first quarter. This will allow the Company to focus on its upcoming projects such as The Estelle Phrom Phong and Tait Sathorn 12 that are under development, as well as on new projects that will be announced shortly.

Published : May 13, 2021

Future of Bangkok’s property sector relies on how soon third Covid wave can be controlled #SootinClaimon.Com

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/property/40000363

Future of Bangkok’s property sector relies on how soon third Covid wave can be controlled


The property sector in Bangkok and its vicinity will either grow or contract by 5 to 6 per cent depending on how successfully the government tackles the third wave of Covid-19 infections, property consultancy firm Lumpini Wisdom and Solution (LPN Wisdom) said.

Future of Bangkok’s property sector relies on how soon third Covid wave can be controlled

Prapansak Rakchaiwan, managing director for LPN Wisdom, said the third wave has had a direct impact on the economy, including the property sector.

He explained that there are three scenarios in line with the central bank’s economic growth forecast:

Best-case scenario: If the government can contain the spread of Covid-19 within a month, reopen the country to foreign tourists by July and distribute Covid-19 vaccines as scheduled, then the property sector will grow by 5 to 6 per cent compared to the previous year.

In this scenario, 75,000 to 76,000 new units worth a total of THB292 billion to THB298 billion should be launched in Bangkok and its vicinity this year, while economic growth is expected to hit 3 per cent year on year.

Not-so-good scenario: The government contains the spread of Covid-19 by the second quarter this year, resulting in a slowdown in tourism recovery, then growth in the property sector will be similar to the previous year.

Some 70,000 to 71,000 new units worth a total of THB270 billion to THB280 billion should be launched and economic growth is expected to contract 0.5 per cent year on year.

Worst-case scenario: If the Covid-19 situation cannot be controlled and the foreign tourists are still not able to land in Thailand, then the property will contract by 5 to 6 per cent compared to the previous year.

Only some 65,000 to 66,000 new units worth THB260 billion to THB265 billion would be launched in Bangkok and its vicinity this year, while economic growth is expected to contract 1.7 to 2 per cent year on year.

“We don’t expect the worst-case scenario to happen, but if the Covid-19 situation does get out of hand and the vaccines cannot contain the spread of the virus, it will have a direct impact on the overall economy and people’s purchasing power,” Prapansak said.

He added that if the government launches measures to stimulate the property sector, such as allowing foreigners to own more than 49 per cent of condominiums, or buy houses under specific conditions, then it will help stimulate demand.

He said 8,285 units worth THB37.71 billion were transferred to foreigners last year, down 35.3 per cent and 25.5 per cent compared to 2019, according to the Government Housing Bank’s statistics.

“This shows that despite travel restrictions, foreigners still want to buy homes in Thailand,” he said.

He added that only 9,688 units were launched in Bangkok and its vicinity in the first quarter of this year, down 45.72 per cent year on year.

“However, the total value was THB70.15 billion, up 0.81 per cent year on year,” he said.

Meanwhile, the average sales of new units in the first quarter this year was 20 per cent, higher than 16 per cent last year, he added.

Published : April 29, 2021

By : The Nation

Condo price index sees slight decrease #SootinClaimon.Com

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/property/40000088

Condo price index sees slight decrease


The price index of condominiums for sale in Bangkok and its surroundings in the first quarter of 2021 decreased 0.8 per cent compared to the previous year, the Government Housing Bank’s Real Estate Information Centre (REIC) reported.

Condo price index sees slight decrease

“Although condominium prices are contracting slightly compared to 2020, condos in Bangkok have seen their prices increase by 0.2 per cent when compared to the previous quarter,” said REIC acting director-general Wichai Viratakaphan.

“This trend has driven developers to continue launching promotional campaigns until the end of the year to help sell condos in stock,” he said.

Wichai said ownership transfer statistics of condominiums priced at Bt3 million or lower nationwide has decreased by 1.5 per cent year on year, while the transfer statistics of differently priced condos went down by 8.5 per cent year on year.

“This is thanks to the government’s economic stimulus measures to boost the real estate business by lowering property transfer fees and mortgage fees for cheaper condos,” he said.

The measure, which will expire at year-end, cuts property transfer fees from 2 per cent to 0.01 per cent and mortgage fees from 1.0 per cent to 0.01 per cent for buying condominium units priced at Bt3 million or lower.

Regarding promotional benefits offered by condominium developers to prospective buyers in the first quarter of 2021, 46.1 per cent were free gifts (furniture, electrical appliances), 35.1 per cent featured cash discounts and 18.9 per cent were fee waivers upon ownership transfer, the REIC said.

Published : April 22, 2021

By : THE NATION

It’s truly a buyer’s market, new study on Bangkok condos shows #SootinClaimon.Com

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/property/30404361

It’s truly a buyer’s market, new study on Bangkok condos shows

Apr 01. 2021Nattha KahapanaNattha Kahapana

By The Nation (sponsored news)

Though Thailand’s property market showed some signs of recovery in the third quarter of 2020, homebuyers’ purchasing power was weakened with the arrival of a new wave of Covid-19 infections in mid-December, Nattha Kahapana, deputy managing director and head of Knight Frank’s Phuket operations said.

The real-estate consultancy says buyers postponed home-buying decisions as they were worried about the state of the economy. Also, foreign buyers have not returned due to travel restrictions and the rising number of new infections in Europe.

Hence, property developers are having to rely on local buyers, whose spending power has been restricted by layoffs or salary cuts, and subsequently banks denying them loans.

With no foreign buyers and limited local buyers, some developers have either postponed or cancelled new projects.

Nattha reckons it will take at least two years to sell off the units in stock and bring equilibrium to the market.

Supply

A recent Knight Frank Thailand study found that the supply of new condo units in Q4 2020 dropped by 77.8 per cent, with only 4,196 new condo units being put up for sale compared to 18,926 units in the same period in 2019.

Up to 65 per cent of the total new condo projects launched in the fourth quarter of 2020 were Grade C properties with a selling price of Bt40,000 to Bt75,000 per square metre, followed by Grade B projects going for Bt85,000-Bt120,000 per sqm. No Grade A condos were launched during that period.

In terms of location, 95 per cent of the new condominiums were situated in the suburbs of Bangkok followed by 5 per cent in the fringe of the central business district. No projects in the actual CBD area were launched in the last quarter of 2020.

Demand

The overall market in Q4 2020 slowed down from the previous quarter due to the new Covid flare-up. In the last quarter, only 1,391 or 33 per cent of the 4,196 units up for sale were sold, marking a 17 per cent drop compared to the same period in 2019 and a 6 per cent drop compared to the previous quarter.

Selling price

The selling price of condominium units dropped in Q4 2020 compared to the previous quarter. Condos in the CBD area dropped by 5 per cent to Bt251,435 from Bt265,000 per square metre in the previous quarter. Those in the fringe of the CBD dropped 15.4 per cent from Bt146,000 to Bt123,560 per square metre, while the asking price for those in the suburbs dropped 13.2 per cent from Bt79,400 to Bt68,945 per square metre.

This price drop was put down to operators pushing to sell off units to boost their liquidity.

New projects launched in the fourth quarter of last year are also relatively cheaper, proving that it is truly a buyer’s market.

Outlook

Last year was challenging for the real-estate business in Thailand and 2021 is not expected to improve very much because developers have to rely primarily on local buyers, Nattha said.

Developers are also delaying new launches because they need to sell off their sizeable stock of unsold units. Some 20,000 to 30,000 new units are expected to be put on the market this year at prices that reflect real demand.

Many large developers are also shifting their focus on low-rise projects due to reduced risk as they can be built in phases.

A rebound in the condominium market is expected in mid-2022, once the Covid-19 epidemic comes under control.

Also, Chinese investors have been trying to buy condos via the embassy or brokers in China as they are unable to enter Thailand. They view the country as a safe haven in the event of an epidemic.

However, the market still needs to wait for the outbreak to ease and international travel to resume before it can fully recover. Things may go in the opposite direction if there is political turmoil, so developers need to come up with a plan for an uncertain future.