Asia Investors Show Greater Optimism Pointing to a Full Upswing in Real Estate Markets

73% Expected to Expand Their Portfolio; 59% of Investors Eye on Overseas Investment
(Shanghai, Hong Kong and Singapore are Preferred Investment Targets in Asia)

Most commercial real estate markets around the world have passed the bottom and are now on the rise, according to the majority of respondents in the Colliers International Global Investor Sentiment Survey for the third quarter of 2010. In Asia, investors appear to be even more optimistic with 91% of respondents expressing a desire to buy property in their domestic region, and 73% considering to expanding their property portfolio in the coming 12 months.

Shanghai in China, followed by Hong Kong and Singapore, were the most-preferred hot spots for Asian investors looking to buy office space over the next 12 months. Shanghai is on its way of recovery; Hong Kong and Singapore are expected to have further upside in the office sector. Individual investors reported their intention to pursue residential investment opportunities in second-tier Chinese cities such as Nanjing and Hangzhou.

Moving from 6 o’ clock on the global property clock in 1Q, the average time today according to Asian investors is slightly past 7 o’ clock. In the coming 12 months, the Asian market is predicted to have moved towards between 8 and 9 o’ clock. And in both cases, the greatest number of respondents sees the market growing at an even faster rate.

“The survey shows that Asian investors are confident on the macro-fundamentals in the region,” said Piers Brunner, chief executive officer, Asia. “Personal and corporate debt levels are low. Interest rates are low and liquidity is high. Optimism in the market is reinforced by 75% of respondents in Asia saying a double-dip recession is unlikely.”

However there are concerns among Asian investors, such as the uncertainties on government policies to cool the overheated markets, change in market liquidity and interest rate increases.

MORE ASIAN INVESTORS EXPECT TO EXPAND THEIR PORTFOLIO
Looking ahead to the next 12 months, the largest group of Asian investors (73%) expect to expand their property portfolio. This figure was higher than the 65% registered in 1Q 2010. The next largest group of respondents (18%) expect to rebalance the size of their portfolio over the coming year.


STRONG DESIRE TO BUY PROPERTY IN ASIA
The desire to buy property in Asia among Asian investors continues to rise. 91% of respondents expressed a desire to buy property in their domestic region, compared to 78% in 1Q 2010. The high percentage can be explained by the growth expectations in Asia, primarily driven by the Chinese market.

While globally only 30% of respondents considered investments outside their domestic markets, 59% of respondents in Asia reported a desire to buy overseas properties. They would prefer Sydney office and Brisbane retail assets in Australia. Others think office properties in New York and Chicago would offer good market entry points amid the prevailing low real estate prices.


NEW OPTIMISM POINTS TO AN UPSWING IN REAL ESTATE MARKETS ACROSS THE WORLD
Globally, the largest group of survey respondents put the Global Property Clock for their particular regions at eight o’clock, with the second and third largest groups at six and seven o’clock, respectively. These responses indicate that most markets globally are on the upswing and are characterized by rising demand, falling availability and vacancy and rising headline rents. This marks a significant move from Colliers International’s last Investor Sentiment Survey conducted in Q1 2010, when most respondents placed their markets at between five and six o’clock.


Some additional key global findings of Colliers International’s Q3 2010 Global Investor Sentiment Survey include:

•90% of respondents said they planned to expand their current level of real estate holdings within a year or maintain them at current levels.
•New York, Chicago, San Francisco, Washington, London, Sydney, Singapore and Hong Kong were listed as key cross-border investment destinations. Emerging markets mentioned include Poland, Ukraine and Brazil.

Nearly 80 percent think debt will be easier to access in the next 12 months. Respondents who said they believe the cost of debt would rise in the next 12 months fell slightly from the first quarter of 2010, with 44 percent predicting an increase versus 52 percent six months ago.

KEY REGIONAL FINDINGS
•In Western Europe, 62% of respondents now intend to make cross-border investments, a notable increase from the figure of 30% for Q1 2010.
•In United States, a significantly greater proportion of investors (65%) indicated they are considering selling property over the next 12 months versus the Q1 2010 response of 23 percent.
•In the next 12 months, fewer Pacific (Australia and New Zealand) investors (46%) expect to expand their property portfolio compared to the 68% who expected to expand in Q1 2010.
•Among investors from the Middle East and Africa, 63% stated that they would be looking to actively reduce risk levels, with 25% indicating they would look to increase the diversification of their portfolio, implying an overall degree of risk management.
•Across Central and Eastern Europe, the range of locations being targeted by investors was quite diverse, although Warsaw remains the most popular destination, notably for office product. Other popular targets quoted were Kiev, Prague, Moscow and Bucharest.
•Among Latin American investors, 69 percent of those surveyed reported they will not reduce their risk levels.
•67 percent of the investors surveyed in Canada think that prime effective rents for the office market will either hit bottom by Q2 2011 or have already hit bottom. In the industrial market, 78 percent of investors think the bottom has either been reached or will be reached by Q2 2011 and that percentage jumps to 83 percent for retail.

The Colliers International Q3 2010 Global Investor Sentiment Survey was conducted from August 15 to September 7, 2010. Major institutional and private investors across the globe participated. The primary purpose of the survey is to better understand global investor attitudes in the current marketplace at a global and regional level, including investors’ outlook for the coming 12 months.

Embassy of Japan appoints Colliers to sell former Bangkok Embassy site

The Embassy of Japan has appointed Colliers International Thailand as its Sole Agent to sell the former location of The Embassy of Japan in central Bangkok.

Having now relocated to Wireless Road, the Japanese Embassy is putting the prime CBD site that housed the Embassy for some 40 years on the market. The former Embassy site, located at 1674 New Petchaburi Road, Huay Kwang, Bangkok, covers an area of 8 rai 3 ngan 13 square wah (14,052 sqm) on a major intersection in the heart of Bangkok. Colliers will sell the land by way of tender.

This valuable property is located approximately 20 meters from Petchaburi MRT station and approximately 200 meters from Airport Rail Link Makkasan main station. The property is located in an area with very high potential for the commercial development of office buildings, large shopping centres, high-end hotels, serviced apartments and residential projects with its convenient access to both the MRT and the Airport Link, giving direct access to Suvarnabhumi Airport. The surrounding area along Sukhumvit 21 (Asoke) Road is fully developed with high end office and residential buildings and constitutes one of the busiest business districts of Bangkok.

The sale represents the most significant disposition of prime land by tender since the British Embassy sold part of its former premises on Ploenchit Road to Central Group in 2006. That transaction achieved record high prices. With confidence in the property market returning, bidding for the former Japanese Embassy site should attract wide interest.

Japan International Cooperation Agency (JICA), which owns approximately 1 rai next door to the former embassy site, is also planning to sell at the same time, subject to receiving formal approval.


“The Bangkok land market has continued to do exceptionally well, even throughout the political disturbances earlier this year,” said Mr. Patima Jeerapaet, Managing Director of Colliers. “We have
no doubt that this transaction will attract wide interest from both local and overseas developers as it represents one of the few remaining large redevelopment opportunities in the prime area of Bangkok.”

Bidding forms for the tender are available from Colliers from November 1, 2010 – February 14, 2011. Bids must be submitted on February 15, 2011.

Thailand Property Market Rebound

2 June 2010, Bangkok – The Bangkok hotel market had a good Q1 2010 on the back of a return of robust tourism figures highlighting the enduring appeal of Thailand and its capital city. Occupancy rates for the Luxury/Upper scale segments came just shy of the 70% mark. Of the four areas in the city centre, The Riverside recorded the lowest rates and the Southern CBD (Sathorn/Silom) the highest.

The future of the market remains unclear due to the considerable new supply of rooms being brought to the market in 2010 and 2011. This year will witness the greatest addition of new supply of Luxury and Upper scale hotels to Bangkok in its history. This is likely to squeeze occupancy levels which in turn will lead to pricing pressures even in a stable political climate. The current situation is a grim time for the industry and we must wait for Q4 until we have a better idea of how much tourism has been affected.

Hotels will still have to cope with increasing competition from serviced apartments for the short stay market. The Bangkok serviced apartment market is facing a difficult 2010 with a significant increase in supply while demand has fallen and is likely to remain down until confidence returns. Conversely the serviced apartments may benefit at the expense of apartments for lease due to uncertainty from foreign residents leading to a requirement for shorter term leasing contracts provided by serviced apartments. However such benefits will be short lived.

From 2009 to 2011 it is expected that overall supply of serviced apartment units will have risen by 40%. This will be difficult for the market to absorb. Average occupancy has continued to fall in Q1 2010 to the 65-70% mark for long term stays. This pattern is likely to continue until supply stabilizes and demand picks up again.

The retail market remained stable for Q1 2010 due to growing consumer confidence but was adversely affected by protracted political uncertainty. Only one new retail outlet was added to supply in Q1 2010 in the form of a community mall located in Sukhumvit. Rentals remain stable while only the city centre recorded a small increase in take up of 3% in Q1 q/q.

The current closure of Centralworld and Centre One are unlikely to lead to an increase in rentals due to the limited time they will be inoperable before rebuilding and renovation are completed and lower consumer confidence expected in the wake of the violence. The short term prospects of the retail market in the centre hinge on incentives and special events that can lure shoppers to the main shopping streets again. The severely reduced tourism numbers will also negatively affect the retail sector in the centre.

No new office supply came onto the market in Q1 2010 and only a very limited supply is expected until Q4 2010 with the scheduled opening of Sathorn Square. Occupancy rates fell by 1% in the CBD and Outer CBD while the Northern Fringe recorded a nearly 1% increase in Q1. Rental rates remained more or less the same in the CBD for Q1, although a fall in rates was more pronounced in the Northern Fringe. This was likely to be a correction to the steep rise in 2009.

Companies are still assessing the impact of the recent events and whether further instability will ensue for the rest of the year before making relocation plans. In the shorter term there could be an uptick in demand coming from firms occupying space as back up for reoccurring violence disrupting operations. However any positive effect will be temporary as protracted unrest will cause investment and employment to fall thus negatively impacting the market.

The bright spot in property remains the condominium market. New launches in Q1 2010 continue the breakneck pace set in the last quarter of 2009. Many developers are targeting affordability and selling out in a matter of hours in some cases. Tax incentives remain an impetus to temporarily boosting existing supply and the future expiration of incentives at the end of May are likely to cool the market, allowing for some consolidation. Demonstrations in Bangkok have had only a limited affect on condominium launches as end-user buyers maintain interest in purchasing their first property.

2010 is likely to see the largest influx of new supply since 1997 with an estimated increase of just over 30,230 units compared with approximately 27,430 units in 2009. About 6,940 units were supplied in Q1 2010. Smaller developers are entering the market again but with projects with fewer units than the large listed players.

Overall the property market will enter a period of stasis while the country faces up to its deep divisions. Foreign investment will begin to flow into the market only when these have been addressed and a more liberal business climate is established.



For further information, please contact:

Colliers International Thailand
Dr.Patima Jeerapaet
Managing Director
Tel : 662 656 7000
E-mail : patima.jeerapaet@colliers.com

Mr.Jean Marc Garret
Director of Hospitality Department
Tel : 662 656 7000
E-mail : jean.garret@colliers.com

Mr.Antony Picon
Senior Manager | Research & Advisory
Tel : 662 656 7000
E-mail : antony.picon@colliers.com

Mr.Surachet Kongcheep
Manager | Research & Advisory
Tel : 662 656 7000
E-mail : surachet.kongcheep@colliers.com

Colliers International Thailand appoints new director of hospitality department "Jean Marc Garret"

Colliers International Thailand has recently announced the appointment of Mr. Jean Marc Garret, a French national, as Director of Hospitality Department, to direct the growing business of Hotels and Leisure.

In his new role, Jean Marc in addition of the fundamental hotel brokerage activity of the group in Thailand will be responsible for our Consultancy Services Division, providing.

Hotel Financial Assistance, Corporate Solutions, Project Development Support, Asset Management as well as assisting in the development of investment programs and all related opportunities.

A 30 year group hotel veteran, he brings with him a wealth of experience in the tourism and travel industry. A graduate of the University of Law and Economics of Nice in France, Mr. Garret first arrived in Thailand more than 22 years ago to participate in the opening of Le Meridien in Phuket. He has since become a resident of Thailand where he also served as Honorary Consul of the Principality of Monaco and President of the Franco Thai Chamber of Commerce.

Mr. Garret is particularly well known within the hospitality industry circles for his keen business acumen and foresight in the field of development as well as management of hotel properties. He has diverse records of success in the areas of consulting and operations with global hotel chains such as Accor, Le Meridien and Choice Hotels International in Thailand.

Prior to joining Colliers International Thailand, he was with the Centara Hotels & Resorts group, for the last 12 years with his last position being Senior Vice President Development.

Jean Marc Garret is also Chairman of the Tourism Committee of the Joint Foreign Chamber of Commerce.

Colliers International Thailand believes that with his track records of expertise in the local market, Jean Marc will be an added asset in our Team to accelerating success and contribute to help our clients to make the right choices for their Hospitality business.

New launches in Q1 2010 continue the breakneck pace set in the last quarter of 2009

The condominium market continues to be the star performer in the Bangkok real estate market with new launches and supply continuing to register record growth. This was the main conclusion of the latest Bangkok Condominium Market Report from Colliers International Thailand for the first quarter of 2010.
“We have witnessed another bumper quarter for the condominium market in Bangkok, a welcome state of affairs amid the continuing uncertainty clouding other property sectors” stated Dr. Patima Jeerapaet, Managing Director of Colliers International Thailand.

“Nearly 13,700 units were launched in Q1 2010, a handful less than the previous quarter” observed Dr. Patima.

It was not only launches that made the news this quarter. “This year is likely to see the largest completion of new supply since 1997 with an estimated increase of just over 30,230 units compared with approximately 27,430 units in 2009” pointed out Mr. Surachet Kongcheep, Manager of Research & Advisory for Colliers International. About 6,940 units were supplied in Q1 2010.

Dr. Patima believes that the tax incentives remain an impetus to temporarily boosting existing supply and the future expiration of incentives at the end of May are likely to cool the market, allowing for some consolidation.

Whilst other sectors have been affected by the recent unrest in the capital, the condominium market remains immune. “Some launches have been slightly affected by the physical constraints caused by the recent demonstrations but not by any discernable lack of sentiment” Dr. Patima stressed. “End-user buyers maintain a strong interest in purchasing their first property” he added.

The key to the success in the condominium market recently is in large part due to the efforts from the developers themselves in tapping into pent up demand. According to the Real Estate Information Center (REIC) 88% of purchasers of new condominium units are first-time buyers. Most of these buyers are attracted to the low to mid end projects offering smaller sized units. “We are witnessing a rapid take up of units in the million and a half Baht range that appeal to first time buyers wishing to place their first steps on the property ladder” pointed out Antony Picon, Senior Manager for Research & Advisory at Colliers International. These are mostly one-bedroom units ranging from 26 sq m to 40 sq m. “The design of these units is interesting as the smaller units tend to have sliding doors in order to utilize space and can really function as studios as well” Mr. Picon added.

Affordability is likely to be the key demand driver going forward spurred on by the ongoing growth in mass transit railways. While the majority of newly launched developments were in the low to mid end category, the PYNE by Sansiri was sold out in one day and showed the resilience of the high end market as well. Most of the large scale developments were launched by listed developers such as LPN Development, Pruksa Real Estate and Asia Properties. “The experience and financial underpinning of the listed companies is critical to large scale projects” stated Mr. Picon

However, smaller non-listed developers launched a wide variety of projects in Q1 2010. In fact the majority were from these but the overall number of units was less than from the listed ones. Mr. Surachet stated that the average number of units from listed developers launched in Q1 2010 was 707, while the average from non-listed ones was 280. Mr. Picon said “ Those smaller developers are starting to dip their toes in the water although a lot more tentatively than in the past”.

Mr. Picon believes that the successful model for the condominium market that has been established here can be partially replicated in other countries. He tells of a friend of his who visited from Vietnam and viewed some show units in Bangkok recently. “He was exasperated that such condominiums, using high quality materials and designs as well as far superior facilities and affordable unit sizes, did not exist in Ho Chi Minh City”.”It could be time to export some of that success” he concluded.


For further information, please contact:

Colliers International Thailand
Dr.Patima Jeerapaet
Managing Director
Tel : 662 656 7000
E-mail : patima.jeerapaet@colliers.com

Mr.Antony Picon
Senior Manager | Research & Advisory
Tel : 662 656 7000
E-mail : antony.picon@colliers.com

Mr.Surachet Kongcheep
Manager | Research & Advisory
Tel : 662 656 7000
E-mail : surachet.kongcheep@colliers.com

Stability for retail market in Q1 due to consumer confidence despite unrest

The retail market in Bangkok continued to be the steady ship in uncertain seas for Q1, reflecting the sturdy performance throughout 2009 according to the latest Bangkok retail report from Colliers International Thailand.

Rentals remained stable while occupancy nudged up 3% in the city for Q1. New supply was limited in the quarter with just under 7,900 sq m coming from “K Village” community style mall located on Sukhumvit soi 26.

Shopping malls will continue to dominate the retail landscape with around 250,000 sq m coming on stream in the next couple of years, with nearly half that total coming from Central Rama 9 on the Ratchadapisek – Rama 9 Intersection. The second quarter will see the opening of Paradise Park, following new ownership, renovation and a change of name from the Seri Center.

Only community malls show real signs of life in the other retail categories with around 50,000 sq m scheduled to be added by the end of 2011. The development of community malls represents a move away from large scale retail centres. “The oil price surge focused our minds on car usage and the development of new mass residential projects means a greater need for smaller retail centres serving these residents” said Dr. Patima Jeerapaet, Managing Director of Colliers International Thailand. Dr. Patima pointed out that since 2007 community mall space has grown by 70%. “They are now becoming an intrinsic part of the lives of many people in Bangkok” he said.

Future retail legislation points to a reduction in large scale development in the centre leading to hypermarket businesses such as Carrefour and Tesco Lotus continuing to scale-down future outlets taking the form of supermarkets and express branded stores. “The impending legislation is intended to protect the ‘Mom and Pop’ style stores” pointed out Antony Picon, Senior Manager of Research & Advisory at Colliers International Thailand, referring to the small traditional sole proprietors typically located in shophouses. “However the big players will now be competing head on with them by opening express and convenience outlets” he stated. “The large companies will have the advantage of superior logistics and greater pricing power” Mr Picon cautioned.

Dr. Patima is optimistic about the future of retail in Bangkok. “Personal consumption by credit card is nearly 13% compared to around 8-9% in 2005 and this represents a significant demand driver” he said. The growth in retail banking is another indicator that Dr. Patima stressed. “In 2010 there will be around 1,950 retail banking outlets compared to 1,200 in 2003”.

While new retail outlets are likely to spring up in the suburbs over the coming years, what are the prospects for the retail market in the centre; restricted by limitations on future development? Mr Picon sees this as an opportunity. “We should not only see the retail market in terms of area, size constraints will focus the minds on utilization of existing space and the development of new retailing concepts inspired domestically and from abroad”. “Retailing, unlike other property sectors, offers more options for innovation” he said.

For further information, please contact:

Colliers International Thailand
Dr.Patima Jeerapaet
Managing Director
Tel : 662 656 7000
E-mail : patima.jeerapaet@colliers.com

Mr.Antony Picon
Senior Manager | Research & Advisory
Tel : 662 656 7000
E-mail : antony.picon@colliers.com

Mr.Surachet Kongcheep
Manager | Research & Advisory
Tel : 662 656 7000
E-mail : surachet.kongcheep@colliers.com

Ratchaprasong to stay prime site _ Colliers

Ratchaprasong to stay prime site _ Colliers
Published: 21/04/2010 at 12:00 AM
Newspaper section: Business

The Ratchaprasong intersection area will remain the prime Bangkok location despite the risk of future protests in the area, says Patima Jeerapaet, managing director of the property consultant Colliers International Thailand.

''The central business district [CBD] remains the central business district but to future risks, there should be preventive measures to prevent a second blockage,'' he said.

Protests are often held in the centre of cities like London and Tokyo, he said.

Bangkok's CBD is continuing to expand and the demonstrations will have no significant impact on the rents as real estate is valued on a long-term basis while political problems tend to be shorter term, he added.

The appraisal of commercial real estate income is based on annual turnover. Income at department stores located in the Ratchaprasong area has dropped to zero since start of the rally. If the stores remain shut for 30 days this would cut 10% from the yearly projection.

But the appraisal method includes discount factors and business risks _ which cover negative factors such as inflation and business instability _ which account for about 5% of annual income.

''Offering rents will not drop as commercial property takes a long-term view,'' he said. ''Normally, when there's anything happening, landlords will help tenants by not charging rents for a certain period to help compensate disappearing revenue.''

With a situation like the rally at Ratchaprasong intersection, landlords must make sacrifices to help their tenants survive. But a landlord may ask for a higher increase in rents when contracts are renewed. Mr Patima said the government and Bank of Thailand should introduce financial measures to help business owners who suffer from the demonstration at Ratchaprasong, such as assisting debt negotiations or restructuring.

''Once everything settles down, the government should introduce a quick economic recovery plan or it might be too late to revive the worsening economy,'' he said.

He said the government should work in a parallel way with a contingency plan to cope with the political turmoil and the economic impact. The people in charge with the plan are civil servants, not government.

''We must be ready to face every kind of change, not only politics. There's also another critical change -disaster,'' he said.

Meanwhile, landlords and building owners should take preventive measures, such as building double entrances or reducing the potential for damage.

Colliers International Jumps a Notch

Colliers International Jumps a Notch
- Firm moves to the Second Spot in the Annual Lipsey Survey -

The results are in and Colliers International has climbed to the #2 spot in the annual Lipsey Survey of the top 25 brands in the commercial real estate industry. The firm had a lock on third place since 2004 and rose from 6th place in 2002 to 4th in 2003.

The results reflect the ballots, informal focus groups, and opinions from a variety of sources made up of more than 50,000 practitioners and industry leaders from REITs, Institutions, Mortgage Bankers, Commercial Brokers, Asset Managers, Property Managers and related professionals surveyed and interviewed by The Lipsey Company, which is a training and consulting firm specializing in the commercial real estate industry.

“Although we are pleased to have moved up to second place, we will continue to pursue our strategy of ensuring our clients receive the highest levels of service and consistent delivery over the long-term,” said Douglas P. Frye, Chairman and CEO of Colliers International. “We have risen in the rankings largely due to our best-in-class service and the high quality service offerings that we provide around the world. We are in the process of integrating some of the top names in commercial real estate under the Colliers International brand including FirstService Williams, FirstService PGP Valuation and PKF Hospitality and Hotel Consulting which will mark the beginning of our final step to the summit in this survey and in the minds of our clients.”

Earlier in the year, Colliers International announced it will combine operations and global real estate services platforms with FirstService Corporation (NASDAQ: FSRV; TSX: FSV) firms in the commercial real estate space. The combined entity will assume an industry-unique operating and partnership model and operate under the Colliers International brand.

For further information please contact:
Preedee Nukulsomprattana
Manager | Marketing & Communications
Colliers International Thailand
Tel : (662) 656 7000 # 501
Email : preedee.nukulsomprattana@colliers.com

FOR LEASEHOLD EXTENSION SUBMITTED TO THE GOVERNMENT

FOR LEASEHOLD EXTENSION SUBMITTED TO THE GOVERNMENT

On 10 March, 2010, Dr. Patima Jeerapaet, Chairperson of the Joint Foreign Chamber of Commerce's Property Committee and Managing Director of Colliers International Thailand submitted the final white paper for the proposal of Leasehold Extension to Khun Kiat Sittheeamorn, President of the Thai Trade Representative who seems to have been pleased with the proposal.

The purpose of the proposal is to stimulate a 60-year lease scheme, by ruling that the registration of two consecutive 30-year lease agreements be enforceable under the law at the Land Department. For further information of the submission, please click on link below.

Proposal for Leasehold Extension
Appendix 1 Property law comparative table
Appendix 2

Bangkok Condominium Market Q4-2009

Colliers International Thailand has launched Bangkok Condominium Market Q4-2009

Rapid increase in supply
Q4 2009 witnessed a rapid increase in condominium units launched over previous quarters with approximately 13,700 units in total, over 9,000 of these in the suburban area. This represents a 5.8% increase in total supply q/q and a 10.7% increase y/y.

Rising in the east
The eastern fringe and the outer city east area recorded the highest price increases in Q4 y/y with 35% and 19.6% rises respectively. The preeminence of the Sukhumvit corridor as the most sought after area to live shows no sign of abating.

Mass transit on the march
Continued expansion of the new BTS lines dominates condominium growth in urban Bangkok. Q4 2009 witnessed continued development along the new BTS Silom line extension in Thonburi. The number of units completed along the extension will have risen over sevenfold from 2006 to the end of 2010.

New niche market
The new decade will herald in a significant increase of the relatively prosperous 50 to 60 age group. Developers should consider this an attractive but challenging niche market. In the next ten years there will be an additional 1.58 million people in this age category.

Cheap credit fueling growth
Interest rates remain low but rises loom in 2010. Continued low interest rates have energized the market but most forecasters predict limited increases in H2 2010.
The rebirth of suspended projects begins Nearly 1,000 units are expected to be completed by the end of 2010 from previously suspended projects. Two more projects are slated for 2011.

The urbanization of Bangkok
Mass transit development will expand the urban reach of the city with more condominium units to be supplied in the urban area than the suburbs for the next few years.

Read full report

Guidance note issued to assist valuations of incomplete property

Thai lenders and the investment community will find it easier to set internationally recognised values on investment property under construction, thanks to a new guidance note issued by the International Valuation Standards Council (IVSC).

Commenting on the guideline which was released today globally, Simon Landy, Executive Chairman of Colliers International Thailand, said it was another necessary step in bringing transparency and international alignment to property valuations worldwide.

"Partially completed buildings have always been something of a grey area when it comes to establishing their true value, not only in Thailand but in many markets around the world," said Mr. Landy. "With the anticipated level of merger and acquisition activity in international markets over the next few years, more certainty is required in the way these values are established. This new guideline will provide an internationally recognised benchmark which will assist in bringing transparency and clarity to valuations of incomplete property assets, especially in listed companies."

Mr. Landy is a member of the International Valuation Standards Board of the IVSC, a not-for-profit, private sector organisation which was established to ensure an independent and transparent international valuation standards setting process. He was appointed to the Standards Board in 2009 and chaired the working group which developed the new guideline

Foreigners seek clarity, consistency

Thailand needs clearer regulations and policies to attract more foreign property investment, says George McKay, managing director of Colliers Corporate Services Asia Pacific Region.

"Rules should be rules. Some regulations are not clear enough - like foreign property ownership. Investors want clarity. It builds confidence. Unclearness will obstruct investment," he said.

As the Thai government aims to make the country a hub for regional offices, Mr McKay suggests the authorities set up long-term plans such as those implemented by Singapore.

"You need to know what type of business you want to attract," he added. "Pharmaceutical and biotech is a good opportunity to tap but key factors to building a regional hub include infrastructure, the tax system and education.

"Thailand should make a big investment in education to create more jobs and improve working skills. For instance, in the Philippines people can speak English and now it is becoming a rival to India in the call centre business."

The country also needs more aggressive strategies to compete with other countries and also should differentiate itself from others, he said.

The property market has bounced back and continues to improve in 2010 after a sluggish year in 2009, he said. Colliers recorded a 20% decline in the first half of 2009 but ended up with results on a par with 2008 as the second half was quite strong.

"The situation in Europe was worse but the Asia-Pacific region has come back, pushed by emerging markets like India, China and Southeast Asian countries," he said.

Colliers and FirstService Real Estate Advisors (FirstService REA) recently announced that they would combine their operations and global real estate services platforms. The combined entity will operate as Colliers International in 61 countries.

FirstService REA is an autonomous subsidiary of publicly traded FirstService Corporation on Nasdaq. With the announced integration, Colliers International is now ranked as the world's third-largest real estate services firm.

Source : Bangkok Post

Colliers International and FirstService Real Estate Advisors combine to create world’s 3rd largest commercial real estate services firm

Colliers International and FirstService Real Estate Advisors (“FirstService REA”) announced that they will combine their operations and global real estate services platforms. The combined entity will operate as Colliers International in 61 countries around the world. FirstService REA is an autonomous subsidiary of publically traded FirstService Corporation (NASDAQ: FSRV;TSX: FSV).

With this announced combination, Colliers International is now ranked as the world’s 3rd largest real estate services firm. Transiting from a network of affiliates to a more centrally owned and operated firm, the company will provide greater consistency in its operations and deliver highly specialised world class real estate services in markets around the world.

“Colliers International has many distinct competitive advantages when compared to other global service providers,” said Douglas P. Frye, Chairman and CEO of Colliers International. “Our successful partnership model enables key executives to retain significant equity in the businesses they operate day-to-day creating more alignment and accountability; ensuring clients receive the highest level of service and consistent delivery over the long-term.”

FirstService REA embarked on one of the most aggressive global expansion in the history of commercial real estate, largely executed during a time when competitors were scaling back due to the global economic recession. Apart from its expansion in the United States, most recently, the firm has acquired significant equity interests in Colliers International operations in the United Kingdom, Ireland, Spain, Russia and several other countries in Western and Eastern Europe and Asia Pacific.

The fully integrated Colliers International business employs more than 15,000 people in 480 offices in 61 countries, and generates in excess of US$1.9 billion in revenues annually.

Successful Identification of an Operator for a 5-star Serviced Residence in Bangkok

Bangkok – The Hotels & Leisure, Asia team of Colliers International has successfully concluded the selection of an internationally known serviced apartment operator for a luxury serviced residence planned to open in Bangkok, Thailand in early 2010. The team was the sole and exclusive advisor for the project and, after a lengthy process, Shama, a Hong Kong based, specialised serviced residence operator, was appointed by the owner to manage the property, which will be named as ‘Shama Bangkok’.

It is Shama’s first management agreement in South East Asia, although they have a number of serviced residences already operating in Hong Kong and the PRC.

The 19-storey property is situated in a prime position in the heart of Sukhumvit, Bangkok’s premier location for business travellers and tourists, being within easy reach of both the BTS Skytrain and the Metro Underground system, plus being within 200 m of Bangkok’s main north to south expressway. The property is around 30 to 40 minutes’ driving time from both Suvarnabhumi International Airport and Don Muang Airport.

The property, which is nearing construction completion, will be 5-star international standard and comprise 90 residences with a variety of unit sizes and configurations; there will be 20 one-bed units at around 60 sq.m., 52 two-bed units at 110 sq.m., 14 three-bed units at 140 - 145 sq.m. each and 4 three-bed units at 160 sq.m. each.

Other facilities include a lobby restaurant, a fitness centre and swimming pool, plus some meeting facilities.

“We were very pleased to have had this opportunity to work with the property owner in the selection and appointment of Shama, and are pleased to have been able to introduce Shama as the operator to their first serviced residence in South East Asia,” said R. Keith Humphreys, Director of Hotels & Leisure, Asia, Colliers International. “It’s an important milestone in Shama’s regional growth. Now the management agreement has been signed, Shama will commence work immediately and provide technical services and pre-opening services in order to have the property open by early 2010.”

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Colliers appointed marketing agent for 9@Tagore

International property consultant, Colliers International has been appointed as the lead marketing agent for a brand new four-storey ramp-up light industrial building located at 9 Tagore Lane. Named 9@Tagore, the freehold property is developed by Chiu Teng @ Tagore Pte Ltd.

9@Tagore comprises a total of 124 units, ranging from 1,800 sq ft to 4,800 sq ft in size. Most of the units are column free, with a loading capacity of up to 15 kN per sq m and a floor-to-ceiling height of 6.0 m.

The development´s Temporary Occupation Permit (TOP) is targeted at the end of 2011.

Mr Tan Boon Leong, director of Industrial at Colliers International, says, “9@Tagore is, by far, the only freehold ramp-up industrial development in Singapore that is available for strata sale.

As the majority of the existing industrial developments in the vicinity are 5-20 years old, 9@Tagore is an attractive development suited for companies looking to secure a brand new industrial space at affordable price. Additionally, given its high potential yield of 5-6 per cent, the development is also likely to appeal to investors. Prices for the units start from S$410 per sq ft.

Tan also explained that the expected improvement of Singapore economy as whole, including the manufacturing sector. Also an optimistic outlook in business sentiments could lead to a increase in demand for industrial space.

Enjoying a prominent road frontage along Upper Thomson Road, 9@Tagore is surrounded by flatted factories/warehouses, detached factories and light industrial buildings. It also enjoys easy access to other parts of the island via the Central and Seletar Expressways while Ang Mo Kio and Yio Chu Kang MRT stations are also just a short drive away.

Source : Property Report Asia

Thailand Megatrends | Unique growth prospects for the new decade

Thailand is poised for a decade of growth according to substantive research released today by real estate and property services giant, Colliers International Thailand. “The research points to four compelling and positive factors that favour Thailand in the new decade” pointed out Patima Jeerapaet, Managing Director of Colliers International Thailand. “I have been involved in real estate for most of my adult life, but the next ten years could be the most exciting” he stressed.

“It is a unique period of opportunity, which provides a window of significant economic and social development for the country” said Antony Picon, Senior Research Manager for Colliers and writer of the report. “Demographic and regional economic factors are pointing in the right direction for sustainable development of the economy and it is vital that this reality is grasped by our policymakers and policy implementers, starting from today” he stated.

1. Demographic dividend presents window of opportunity

“Thailand is at the apex of one of its most dynamic and exceptional demographic periods for potential economic growth” points out Antony Picon from Colliers International Thailand.

While economists still debate about the causes of the Japanese economic miracle and later the explosive growth of the South Korean and Taiwanese economies, one key factor is often overlooked: demographics.

It is no coincidence that both Japan and Korea’s growth was coupled by a dramatic increase in the proportion of people aged between fifteen and sixty four. Korea’s economy expanded by over 8% a year from the 1960’s to 1990’s, occurring during a remarkable increase of the proportion of its population of working age. The same correlation occurred for Taiwan in the eighties and Ireland in the nineties. Some economists refer to it as the Goldilocks period, not too hot and not too cold; a period when many enter the workforce but few leave it for retirement and fewer babies are born due to low fertility rates. Antony referred to Japan. “Its demographic story is instructive; at around the turn of the new millennium the population started to age, which was also a period of sclerotic economic growth for the country”.

Thailand’s window of opportunity

The chart shows that Thailand is reaching the zenith of its most potentially productive period, which is set to last for the next 20 years. Vietnam is also entering this period as its young population enters working age. With the reduced burden of dependants, young and old, more labour and capital can be channeled into output thus fueling rapid economic growth. “This enormous catalyst for development is dependent upon the ability of the economy to absorb the extra workforce productively” highlighted Antony.

The lower fertility rates that accompany lower youth dependency lead to more women in the workforce. The upshot of this is increased household income leading to greater discretionary spending; and as a result greater emphasis on quality and branding of products. Smaller household sizes, coupled with greater spending power will provide the engine for the condominium market in the next decade. Antony emphasized that more families will seek their own home, in a location close to mass transit routes at an affordable price in smaller size units. “Developers will increasingly have to consider amenities and branding for their condominiums to cater to a more discerning buyer in the mid-end category” he said.

Antony remembered fondly the acronyms used in England in the eighties to described these trends in his home country. “Yuppie was most widely used, standing for young upwardly mobile professional but my favourite was DINK, which stood for Double Income No Kids. So perhaps I can start using that name again but this time for Thailand”

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PROPERTY WATCH: ตั้งตัวรับเอเชียฟื้น

PROPERTY WATCH: ตั้งตัวรับเอเชียฟื้น
ผู้จัดการ 360 ํ รายสัปดาห์์ ฉบับวันที่ 18 มกราคม พ.ศ. 255

อัญชลี จิตติวิชกุล

ผลพวงจากวิกฤตเศรษฐกิจโลกในช่วงปีที่ผ่านมา แม้จะไม่ได้ส่งผลกระทบต่อไทยอย่างรุนแรงเช่นเดียวกับวิกฤตต้มยำกุ้งเมื่อปี 2540 แต่ก็ถือเป็นเหตุการณ์สำคัญและเป็นหลักหมุดที่สะท้อนการเปลี่ยนแปลงครั้งใหญ่ ที่ต่อจากนี้กลุ่มประเทศในเอเชียจะมีบทบาทมากขึ้นในเวทีเศรษฐกิจโลก แทนที่อเมริกาและกลุ่มยุโรป

ฝ่ายวิจัยของคอลลิเออร์สได้นำเสนอมุมมองหนึ่ง ซึ่งสอดคล้องกับเหตุการณ์ดังกล่าว เรียกว่า Mega Trends หรือกระแสการเปลี่ยนแปลงครั้งใหญ่ที่จะเกิดขึ้นกับประเทศในกลุ่มเอเชียในช่วง 10 ปีต่อจากนี้ การเปลี่ยนแปลงนี้จะสร้างโอกาสทองทางธุรกิจครั้งใหญ่ให้กับประเทศไทยและเอเชียอย่างมาก ซึ่งคอลลิเออร์สระบุว่าในช่วงปี 2555-2563 ประเทศไทยจะมีกลุ่มประชากรในช่วงอายุ15-64ปีมากที่สุด โดยเป็นช่วงวัยที่มีกำลังซื้อในการบริโภคและจับจ่ายใช้สอยอย่างเต็มที่ ถือเป็นโอกาสของธุรกิจทั่วโลกที่จะคว้าโอกาสในการจับกำลังซื้อขนาดใหญ่ในภูมิภาคนี้ โดยเฉพาะอย่างยิ่งในยุคใหม่ที่กลุ่มชนชั้นกลางขยายตัวขึ้น มีกำลังซื้อสูงกว่ายุคก่อน ชอบความสะดวกสบาย ส่งผลให้อสังหาริมทรัพย์ประเภทซิตี้คอนโดได้รับการตอบรับเป็นอย่างดีและมีโอกาสขยายตัวมากขึ้น โดยเฉพาะอย่างยิ่งคอนโดมิเนียมที่มีขนาดเล็กลงเหมาะกับกำลังซื้อ ตอบรับกับไลฟ์สไตล์ของคนรุ่นใหม่ที่มีขนาดครอบครัวเล็กลง

นอกจากนี้ศักยภาพของไทยก็ยังมีโอกาสสูงในการจับตลาดต่างประเทศ ทั้งการลงทุน และการซื้ออสังหาริมทรัพย์ไทยเพราะไทยมีสภาพแวดล้อมที่ได้เปรียบหลายด้านในการทำธุรกิจหรือการพักอาศัย รวมถึงข้อตกลงการค้าเสรีกับกลุ่มประเทศในอาเซียน จะยิ่งสร้างโอกาสของการค้าระหว่างประเทศมากขึ้น และจะเป็นจุดเริ่มต้นในการดึงดีมานด์ชาวต่างชาติกลุ่มใหม่ๆ เข้ามาในตลาด อาทิ การลงทุนในเซอร์วิสอพาร์ตเมนต์ โรงแรม อาคารสำนักงาน คอนโดมิเนียม ซึ่งคอลลิเออร์สได้ยกตัวอย่างว่าปัจจุบันมีกลุ่มเศรษฐีชาวอินโดนีเซีย เชื้อสายจีน ต้องการหาช่องทางลงทุนในไทย เพราะประเทศตัวเองไม่มีปัจจัยเอื้อในการลงทุน และสนใจซื้อคอนโดมิเนียมในไทยด้วย รวมถึงทุนต่างชาติยังมองหาโอกาสที่จะย้ายฐานการผลิตและเข้ามาตั้งสำนักงานในไทยแทนเนื่องจากสู้ค่าเช่าในสิงคโปร์และฮ่องกงไม่ไหวรวมถึงกลุ่มคนวัยเกษียณจากเยอรมัน เกาหลี อังกฤษสแกนดิเนเวีย ออสเตรเลีย ที่จะเพิ่มขึ้นมากในช่วงปี 2558 เป็นต้นไป และจะหลั่งไหลเข้ามาซื้ออสังหาฯ ไทยและเอเชียอีกมหาศาลสำหรับพักอาศัยในยามเกษียณ

สิ่งเหล่านี้ถือเป็นความท้าทายว่า เมื่อโอกาสก้าวมาถึงตรงหน้าแล้ว ภาครัฐและดีเวลลอปเปอร์จะมีการเตรียมตัวอย่างไรไม่ให้ตกขบวน เพื่อคว้าโอกาสทางธุรกิจในครั้งนี้

THAI MARKET TO RECOVER ACROSS ALL SEGMENTS

THAI MARKET TO RECOVER ACROSS ALL SEGMENTS
THE NATION Issued date 12 January 2010

Foreign buyers have returned to the Thai property market thanks to recent price stability and signs that prices may rise between 5 and 10 per cent this year, Patima Jirapath, managing director of property agency Colliers International (Thailand), said yesterday.

He said the property mar-|kets in the UK, Hong Kong and Singapore still faced tough |times, as they had not yet stabilised following the global recession. However, Thai property prices bottomed out last year and are showing signs of rising this year, leading foreign investors to consider expanding their investment here instead of in other parts of Asia.

According to the company's research, luxury condominiums located close to the cen-tral business district and the mass-transit system, and priced between Bt150,000 and Bt200,000 per square metre, have the potential to rise by more than 5 per cent from last year.

Demand in this market is both domestic and from other Asean countries, such as from Chinese investors living in Indonesia, Singapore and Malaysia. Most foreign buyers are in-|terested in purchasing residences in Bangkok because they are cheaper than in Singapore and Hong Kong. Meanwhile, office rental prices also show potential to rise 5 per cent this year, following a drop of 5-10 per cent last year, Patima said.

He added that rental prices for the retail market showed signs of increasing 5-10 per cent because of limited supply. Most new retail space was delayed from last year and is now due for completion this year. "In my view, the property market this year will recover in all segments," he said.

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Prices in Bangkok to climb by 10%

Prices in Bangkok to climb by 10%, says Colliers
BANGKOK POST Issued date 12 January 2010

PROPERTY
KANANA KATHARANGSIPORN

Prices of residential projects close to Bangkok's mass transit system and rents for grade-A office and retail properties in the central business district will rise by about 5% to 10% this year, says property consultancy Colliers International Thailand.

Managing director Patima Jeerapaet said prices of luxury and mass residential units will this year increase by 5% and 5% to 15%, respectively. The residential market is expected to be buoyant during the first half of the year.

Factors such as affordability and access to the new mass transit lines will be key drivers of housing demand for the next few years. Prices of new condominium units rose by 5% to 10% since the third quarter last year. But new launches of high-end condominiums have slowed as developers have shifted their focus to the middleto upper-middle income buyers.

Colliers' research estimated that about 70,000 condominium units were sold last year, down by 4% to 5% from 2008.The firm expects the figure to rise to 80,000 units this year, of which 30,000 will be under the BoI Home promotion.

Though foreign buyers have faded from the local property market in recent years, Chinese and Indonesian investors are increasingly shifting their focus to Thailand from the Singaporean market,where prices are soaring, said Mr Patima.

Expatriates living in Vietnam are another potential buyer group. They are likely to buy in Thailand as rampant speculation in Vietnam could soon lead to a crash in prices, he said. "We are offering condominium units in Bangkok downtown priced at around 200,000 baht a square metre to ChineseIndonesian buyers," said Mr Patima.

Domestic politics and the Map Ta Phut issue are key factors in reducing foreign interest in the Thai property market, he said. The current situation at Map Ta Phut continues to cast a shadow over the industrial sector, especially foreign investment in the oil and gas sector. But the last quarter of 2009 saw an increase in inquiries and transactions, he said.

No major new office developments were completed in the second half of last year and demand remained weak during the period. Rental rates were cut by 5% to 10% in the central business district and other areas, according to the firm's research.

Demand is expected to remain lacklustre in the first half of this year, but rents should stay firm with no new significant supply coming online until the fourth quarter. There will be 72,000 square metres available at Sathorn Square, developed by listed developer Golden Land Development, and 6,000 sq m from Sivatel on Sukhumvit Road which is developed by local firm.

Colliers research found that the prices of luxury condominiums dropped by 10% last year, while mid-end condominium prices rose by 5% and grade-A office rents declined by 5% to 10%. Luxury hotels were the worst performing sector last year, where average daily room rates dropped by 30% to 40%, while grade-A serviced apartment rents decreased by 5% to 10%.

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Colliers : Plan for older buyers

Colliers : Plan for older buyers
BANGKOK POST Issued date 14 January 2010

PROPERTY
KANANA KATHARANGSIPORN

Thailand should capitalise on the surge in the elderly population in the coming decade through medical and wellness tourism, special packages for retirees and a clearer property ownership structure.

Antony Picon, senior research manager of the property consultant Colliers International Thailand, says concerns over freehold and leasehold ownership for foreigners persist and a more open and clearer structure involving longer lease periods and streamlined inheritance procedures should be set in place.

"This will help Thailand make the most of the dramatic population shift in Europe and North America," he said."It must also be remembered that other countries will provide stiff competition for this burgeoning market."

These rivals include Malaysia, the Philippines, Vietnam and Cambodia. The distinction between tourist and resident will become blurred as many retirees are likely to stay in Thailand for the winter and return to their home countries in summer.

"Thailand has long been a magnet for retirees and second-home occupiers,"Mr Picon said."The grey baby boomer is rising extraordinarily. Economists have been talking about it for a long time, but finally it is upon us.

"The first baby boomers, born after the Second World War, are about to retire and the positive consequences for Thailand could be substantial."

The number of people who will be of retirement age over the next two decades is massive. They are American, Japanese,German, Korean, Australian, British,Scandinavian as well as other Europeans.These present strong tourist markets for Thailand.

"An amazing 3% of the Scandinavian population visits Thailand every year,"he said.
About 1 million people there will enter retirement age during the 2010s, over double the number in the previous decade. And that is just a small fraction of the total in Europe and North America.

He expects the market to become more sophisticated with retirement home property developers from Europe, North America and Australia providing specialised packages and financing.

He believes that as a population grows older, it also grows healthier. Mr Picon denies that old means inactive. "Senior citizens will demand more facilities in the future as they will be more active because of their free time.Activities such as golf and hiking will be partly driven by new retirees and expect concurrent growth in medical and wellness tourism."

In 2009,1.2 million visitors came to Thailand for medical tourism and this is set to swell due to new retirees. They could significantly affect growth and development of resort areas in Pattaya,the Hua Hin corridor, Chiang Mai and Phuket as well as the less well-known areas of Chiang Rai and Hat Yai.

A key focus will be on clusters, as retirees care more about who their neighbours are and especially if they can speak their language. Mr Picon expects partially clustered retirement communities in the future with shops, restaurants and community centres catering for language groups.

"Some serviced apartments and hotels are likely to offer special packages for those over 60 to capture this growth market," he added.

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