Absolute Bangla Suites, located in the lively Patong area of the island, is a mixed-use resort featuring 54 suites, from studios to penthouses. The nearby Absolute Nakalay Beach Resort, just five minutes north of Patong, features 33 beachfront apartments with ocean views.

Absolute Bangla Suites

“We are delighted to add Jones Lang LaSalle to our growing network of international partner alliances. We are certain our clients will benefit greatly from an additional level of service and trust and we look forward to further collaborations on our many future mixed-use resort developments,” said Bryan Lunt, Chairman and CEO of Absolute World Group.

Jones Lang LaSalle will provide condo management services including juristic legalities and cost management and allocation while Absolute will continue resort management and operations for both properties.

“With the knowledge and expertise of Jones Lang LaSalle, our condominium owners at both developments will be ensured of professional management allowing both properties to operate effectively and efficiently, providing both strong returns and capital growth of their asset,” said Lunt.

SOURCE: Property-Report

The company finds that confidence has receded among buyers, causing them to be more cautious about buying resorts, condominiums or villas on the island. Some potential buyers have postponed their purchases while others have concentrated only on completed properties.

The more cautious approach has caused difficulties for projects of which construction has shown little progress. Different strategies have been implemented to attract potential buyers such as low booking fees and low property management costs.

However, he warned about potential danger involving property management as the lower costs may compromise the quality and standards of the maintenance and management of common areas and facilities.

The average monthly management costs for standard-sized resort and condominium units in Phuket range between 55 and 80 baht per square metre. For luxury villa resorts, the costs range from 30,000 to 80,000 baht per villa per month.

Mr Norville also added it was important for developers to assure buyers about their financial status and make sure that all sales and purchase agreements are drafted and presented clearly. Developers should also identify reliable management companies to run the properties after they are completed.

The Phuket holiday home market depends mainly on demand from international buyers, which has dropped since the global financial crisis escalated in late 2008. Sentiment started to revive in the last quarter of 2009 but buyers’ confidence declined again in light of the recent political unrest in Thailand.

The company expects the Phuket holiday home market to rebound in the next 12 months provided politics becomes stable. Until then, completed projects are well-positioned to attract buyers in the next high season.

Novotel Panwa

The Board of Directors of owners Natural Public Park Company Limited (N-Park) approved the sale to Ton Vassana Company Limited last month.

In details released to the Stock Exchange of Thailand, Natural Hotel Panwa Company Limited sold land and construction under mortgage, and other assets related to the Novotel Beach Resort Panwa Phuket to Ton Vassana Company Limited. The purchaser paid THB200 million in cash while the the remaining amount of THB670 million was assumed liability to repay the principal, accrued
interest and other amounts outstanding under Debentures certificates.

The 216-room development has 77 rooms in phase one of its development, with another 72 rooms under construction in phase two. Construction of the combined phase one and phase two at the four-star development stands at 75 per cent.

The new owner, according in formation from the Stock Exchange of Thailand, plans to continue to invest and run this business as a resort.

Commenting on the sale, the Board of Directors said: “Selling Novotel Beach Resort Panwa Phuket at the price higher than book value will be beneficial to the Company, whereby the Company will immediately realize the gain on sale of assets, lessen the debenture burden and reduce legal fees and lawsuit against Lehman Brothers. In addition, the sale of assets will increase the working capital and financial stability. The Company will use the cash receive from sale of assets as working capital and invest in its real estate projects.”

The company had previously explained it had been unable to complete construction of project because of the insolvency of Lehman Brothers Commercial Corporation Asia Limited, partner in its subsidiary company.

In 2009 The Bangkok Post reported that cash-strapped N-Park was seeking funds to complete the second phase of the resor. One of the project´s investors, Lehman Brothers collapsed leaving the company THB285 short of the cash n$eeded to complete the project.

SOURCE: Property-Report

According to Tom Travers, Managing Partner at Indigo Real Estate and agents for the development, the core fundamentals of building a successful development in Thailand are unchanged but today’s foreign buyers have become far more demanding since the September 2008 world financial crisis.

He said: “Today’s buyers are definitely more careful about purchasing in a new a development. The old days where a development could sell a major part of its inventory off-plan before building are unfortunately over. Buyers are now demanding developers with a track record and financial liquidity that offer quality, finished product with value pricing.”

He added that Mandala is a prime example of how property developers need to adapt to attract foreign buyers in Phuket’s changing market place.

SOURCE: Property-REport

According to Bill Barnett Managing Director of C9 “this year has seen the absence of new high end product which has propelled the secondary segment, while off plan product remains sluggish.”

Adding further that “the failure to launch new projects is a key constraining factor limiting volume in the marketplace. Despite demonstrated sales of a number of ‘super’ high end villas from THB 165 – 330 million, developers remain on the sideline more out of negative risk concern then fundamentals.”

Market data pinpoints that a growing number of early purchasers in developments are now cashing out at substantial profit levels thus pushing up pricing points for existing product. Geographically Kamala’s Millionaires Mile has experienced the highest level of activity.

Without significant new product entering the supply steam, the second half of 2009 has seen a growing number of premium ocean view lots transacted with buyers set to develop their own luxury residences.

Bill Barnett commented “traditionally the period of December to April remains peak sales season, and feedback in the past few weeks has seen sales traction. Ultimately the market desperately requires new launches to stimulate broader interest if there is to be a return to stabilized trading.”

SOURCE: Property Report

Nick Anthony and Tom Travers of Indigo Real Estate discuss how Thailand’s property sector has been affected by the global economic crisis, and what to watch for in southern Thailand during 2010.

Phuket shakes off the world economic problems
The global financial crisis will rumble into 2010 and will create more surprises. The United States is still in deep trouble, Europe is fracturing and Africa is unstable.

In Phuket most projects went into the global financial crisis under duress caused by the previous two years of political instability, so most developers have escaped the worst of the speculative excesses. Developers have been offering attractive incentives in the final quarter of 2009 that have helped to thaw the standoff from buyers.

An end to the Mexican standoff
After an eerily quiet nine months in terms of actual deals, and despite a constant stream of interested wealthy clients visiting Phuket throughout the global financial crisis, there has been an upturn in negotiations and an increasing number of transactions, although prices remain unpredictable.

The reduced prices on offer from sellers is a return to a long term ‘fair valuation’ and is about 30 per cent down from peak prices. However, cashedup buyers have been seeking distressed pricing, asking a further 30 per cent discount – but without success.

Today the pendulum is starting to swing back towards sellers because the supply of value-priced finished villas is limited.

Completed, well-managed properties will attract buyers
‘Completion’ continues to be a buzzword in the minds of buyers, with rental programs, solid property management and access to boats and beach clubs highly sought after. Developers, despite not being able to reduce prices dramatically, are being realistic. Sellers of luxury homes are getting fair value prices, leaving buyers with a great long term asset, yield possibilities and medium term capital appreciation of between 20 per cent and 40 per cent.

Completed, well-managed villa projects will continue to outperform other market sectors, and in some cases developments such as Andara, Trisara and the Amanpuri will see their resale prices rising by as much as 100 per cent from just two or three years ago.

An under-supply in the luxury sector
Developers who have shown financial strength and have made solid construction progress will be signing deals that will see the luxury market in Phuket entering a state of under-supply of quality new developments by end of the first quarter. This could well surprise many people. Quality sea view land is becoming scarcer in Phuket, and there will be no increase in this type of land available while finished luxury villas for resale are already in short supply.

The villa rental market will continue to grow
Tourism is down some 20 per cent over 2008 figures, but the high season is now in full swing and all the main hotels are full. Occupancy rates in February 2010 are likely to be close to 100 per cent at many of the 5-star hotels. Virtually every big villa is rented throughout the peak season, and this is despite of a doubling in supply of finished villas since 2008. In 2009 there has been a steady slew of high-end renters, for example some villas in the Surin area have maintained 85 per cent occupancy levels all year at rates of between US$800 and US$4,000 per night.

Buyers are back, but concerns remain
There was a marked thawing in the final months of 2009, with intransigent negotiations that have frustrated all parties throughout the year starting to progress. Buyers, thanks to bullish regional equity rebounds and a relaxation in general global business, have resumed their rest and relaxation mentality. They have started writing cheques again. But political concerns are always a wild card when it comes to Thailand, although Phuket is increasingly becoming more isolated, independent and immune to Bangkok’s volatility.

Phuket remains a top contender in Asia
Places like Saigon are getting jammed by traffic and pollution, and are starting to resemble other overpopulated Asian cities where long term expatriates are leaving. With huge population growth predicted during the next 20 years in all major Asian cities, pollution will only get worse.

In the immediate vicinity we have wealthy investors from places like Malaysia, Singapore and Hong Kong looking for quality of life and a healthier family environment. Those buyers will continue to choose Phuket as the number one alternative place to spend substantial time. Put simply, no country in the region can offer what Thailand can offer overall.

Brokers’ survival is dependant on representing buyers
The Thailand property buyer today is savvy, is seeking value, and is well informed on the range of properties available – thanks to the Internet. Buyers are looking for representation from an agent that presents quality projects and developers with experience, and balance sheets to match their bravado. Agents must be prepared to do battle on their behalf, and with the buyers’ interests at heart. Agencies that are seen as a ‘sellers’ agency – listing all properties at the highest possible price – will lose the trust of customers.

Keep an eye on Krabi province
With good beach front and sea view land becoming rarer in Phuket, buyers are starting to follow the Phra Nang Ppeninsula south to Krabi Province. While most projects in Krabi lack the quality and architectural value seen in Phuket, demand in the market will soon change this. In particular, the island of Koh Lanta has become a contender as one of Asia’s hottest new vacation and holiday home locations. With its large selection of white sand beaches, proximity to world-class dive sites and spectacular boat anchorage, one can understand why this island is attracting so much attention.

Hot projects to watch
Limited completions during 2010 means supply will be tight. Watch for the first completed villas at Istana Phuket above Naithon Beach. It will redefine what real luxury villas are all about in Sia. Gary Fell’s design enjoy superb detailing and will be quite possibly the best interiors on Phuket.

Up at Natai beach Sava is powering ahead towards completion. The roof structures are up, pools being tiled and as a big family home with direct ocean access it doesn’t get much better anywhere in the region.

Mandala Condominiums are now completing and are, unusually, launching sales at the same time. Attractively priced, nicely detailed and with no risk they make an excellent investment property or beach pad, being 300 metres from Bang Tao Beach.

Following the immense success of the exclusive Andara Luxury Villas, the Kamala headland development is now offering Andara Apartments with 2, 3, and 4 bedroom apartment suites. The Taj Phuket is readying for launch in 2010 and will be Phuket’s most luxurious combination of a hotel and managed villas, nestled into three private beaches on Koh Lon Island south of Sri Panwa.

SOURCE: Property Report

Supalai Park

The 15-storey condominium will be built on 4 rai land plot near Seng-Ho Book Store facing main road. Unit spaces vary from 29.5 – 66 sqm.

Downtown Phuket

Open for reservation 2 days only at the sale office on Saturday 19th – Sunday 20th December, 2009. Price starting at a bit above 1 million baht or 3x,xxx baht for each sqm. Free wall type air conditioner, kitchen built-in furniture, water heater, safety glass shower screen. Choose for complete furniture packages* + special discount or double discount as much as 150,000-350,000 baht.

SOURCE: Phuket Index

The two remaining units of The Heights, the company’s luxury condominium in Phuket, will be offered at 2.7 million baht for a share of a 220-square-metre unit, and 4.7 million baht for a share of a larger unit of 410 sq m.

Each unit is divided into 13 saleable fractions. Each fraction allows its owner to spend 21 days per year and to also have access to more than 160 properties under the IFA Collection and the Registry Collection property networks worldwide.

The Heights is among three projects under Private Residence Clubs that Raimon Land plans to sell on fractional ownership basis. The company expects to sell at least five units of its Northpoint condo in Pattaya and at least 40 units of The River in Bangkok in the near future.

The Heights Phuket

It hopes to close sales of the first two units within six months.

Patrick Hanes, Raimon Land’s consultant for Private Residence Clubs, said the new product would help add diversity and speedy sales.

Unit prices sold under fractional ownership are higher than the equivalent price for full ownership. For example, the three-bedroom unit of the Heights is normally priced at 41 million baht, but the unit could earn up to 61 million baht when divided into fractions.

“The fractional ownership concept has been popular in the United States in the last 10 years and makes US$2 billion each year,” he said.

Raimon Land recorded a loss of 54.56 million baht in the first nine months of this year compared with net profit of 60.5 million a year earlier. Revenue totalled 2.59 billion baht, up 27% from 2.041 billion in the same period last year. Net profit in the third quarter rose by 143% to 171 million baht on revenue of 1.06 billion, up 22% year-on-year.

RAIMON shares closed yesterday on the SET at 31 satang, down one satang, in trade worth 6 million baht.

SOURCE: Bangkok Post

Kata Rocks

Rob will be working closely with the Kata Rocks architect and audio visual technicians to design the lighting both in the individual Sky Villas and in all the communal areas so that it enhances all the best features of Kata Rocks after dark. The lighting system will be fully controlled with the latest technology to allow for certain pre selected settings and moods. With the touch of a switch all the lights can dim and adjust to a pre-programmed setting for dining or watching the home theatre and more. Rob also puts a great effort into designing the lighting using a variety of different lights so that it is both subtle and warm but also highlights the best features of a property.

Kata Rocks aim to ensure that the Kata Rocks resort will look equally stunning when the sun goes down.

SOURCE: Property-Report

Impiana Private Villas

While Phuket´s mainstay accommodation is in the hotel and resort segment, there is clear growth in the condominium and villa rental sector which appears likely to continue.

The latest luxury villa resort to enter the market is Impiana Private Villas Kata Noi. 11 luxury villas located on 3 rai on the southern headland of Kata Noi Beach in the South West of Phuket, 50 metres above sea level, Impiana Private Villas is the first foray by Impiana into the boutique villa resort segment.

The Malaysian hotel and resorts group operate the long-established Impiana Phuket Cabana Resort & Spa in Patong and are well experienced in Phuket´s tourism market.

Impiana Private Villas @ Kata Noi offers a variety of villas (Deluxe, Grand, Garden, Impiana and Family) as well as one Honeymoon Villa and one Presidential two-suite villa. Expected to open in February 2010, opening rates range from 20,000THB to 38,000THB per night.

Private Infinity Swimming Pool, Wine Cellar, Cigar Bar and personal butler throughout your stay position Impiana Private Villas @ Kata Noi at the upper-end targetting high-spending tourists.

SOURCE: Property-Report