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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