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