Connect with us

Property

Buying off plan? A few things to consider.

Legacy Phuket Gazette

Published

on

Buying off plan? A few things to consider. | The Thaiger

Many developers offer units and condo “off-plan” for sale at an early stage of the project development, even before the first brick has been laid. The lure is usually a lower price and getting the pick of the best location in the development.

Some of us may not be familiar with the term “off-plan”. Generally speaking, buying off-plan means buying units which exist only on the drawing table, construction of the project may not even have started. Off-plan sales are offered by developers as they often need to sell their product fast by pricing units extremely low in order to achieve fast and valuable finance to proceed with constructing their development.

Purchasing an off-plan unit may have considerable advantages compared to an investment in a completed project. Early birds may benefit from a significantly reduced price, which makes such off-plan purchases extremely interesting from an investment perspective as such units may rise in value during construction, even prior to completion.

Smart payment plans, typically a minor deposit payment, followed by a 30% first installment and a high final payment upon title transfer, allow buyers to effectively secure a high-value asset for a relatively low initial capital outlay. Furthermore, purchase at an early stage of a project ensures that a buyer can choose the best located units in order to satisfy his individual requirements as well as a future buyer in regard to a resale.

Buying off-plan also offers the chance to “flip” a unit prior to title transfer by way of assignment of the buyer’s rights under his/her sale and purchase agreement, which allows investors to save on transfer fees and taxes that occur from title transfer.

Summarised, such off-plan investment may create a “win-win” situation for both buyer and seller: buyers obtain a low price for a quality product with high resale value and sellers are able to receive fast project finance.

However, in order to secure your investment, due diligence should be ALWAYS be carried out to minimise risks and to prevent you from a worst-case scenario – a total loss of your invested funds. Basically, such due diligence should be conducted by a reliable and reputable law firm, whereby appointment of additional experts, such as a surveyor, might be recommended depending on individual requirements.

The importance of such due diligence, particularly when buying off-plan, in part arises from the fact that extremely important points – such as secured access, lawful title to the project’s land, as well as an
accurate application for the required construction permit or licenses – may not have been accomplished, completed or sufficiently verified by a developer.

Additionally, the financial stability of a developer offering such off-plan sales should always be of concern. In this context, the fullest attention should be paid to the reliability and track record of the developer. A professional real estate agent, representing only well reputed developers and ideally having the financial backing of big investors, can be the first credentials to look for to separate the wheat from the chaff.

Simply put, off-plan buying can be an interesting and promising investment, but extensive market research, awareness for potential risks, comprehensive due diligence as well as consideration of generally accepted risk management is mandatory to find the right product, which seems not only to be a bargain, but also fits with your personal requirements on a safe investment.

Select from over 7,000 properties in Phuket at property.thethaiger.com

This article was written by International Law Office Patong Beach. For any questions you can contact ([email protected]) or call ILO’s office 07 6222 1915.

International Law Office



Find more property for sale and rent across Thailand at Thaiger Property, powered by FazWaz. You can even list your property for free.

Bangkok

Bangkok luxury poised to push through the US$300 ceiling

Bill Barnett

Published

on

Bangkok luxury poised to push through the US$300 ceiling | The Thaiger

by Bill Barnett of c9hotelworks.com

PHOTOS: Rosewood Bangkok

For hotel owners and managers in South East Asia, one of the great mysteries of the past ten years has been the low rate profile of Bangkok’s luxury hotel set. Despite soaring and sustained tourism growth, rising airlift and a strong economy, rates at Bangkok’s top tier properties have remained fairly stagnant.

Have we reached the tipping point?

I had had the opportunity to visit the latest entry to the Bangkok luxury class a few days ago, the Rosewood. With 159 keys which includes a limited number of posh houses with private pools and terraces the property is seeing an exceptional response and already achieving high rates.

What’s impressive about the entry is a take on the design approach that sees hotel developers apply a non-uniform approach with AvroKO coming in to focus on the restaurants and bars, while the rooms and public areas were led by Celia Chu Design and Associates.

While the speakeasy Lennon’s has not be opened yet, the 6,000 record vinyl collection is impressive and the bar will clearly have a strong pull. Taking the approach to designing restaurants and not typical hotel outlets, the Chinese eatery Nan Bei is a breath of fresh air and limited seating provides a bespoke appeal.

Taking a step back, and looking at recent entries like the Waldorf Astoria, and upcoming 101 key Capella, what is clear is luxury properties are shifting in terms of key drivers of the segment of art, fashion, residential vibe, bar and restaurant offerings, wellness and events.

So, what about rates?

On a broad basis Bangkok’s top tier hotels have averaged rates of US$200-240 for the past few years. This set has seen longer serving properties such as the St. Regis, Kempinski, and Okura effectively flatline on rates, though newer entries have come up including the Park Hyatt. On the broader horizon is the return of the Four Seasons and Capella by the river and the Orient Express at the MahaNakhon skyscraper.

With the entry of Rosewood driving rates, my expectation is that a few of the set will follow and at the end of 2019 we will set limited number of hotels crash through the US$300 average room rate barrier and effectively smash the legacy glass ceiling of Bangkok’s luxury hotels.

As in any business there will be winners and losers. Smaller hotels with some rate leading premium key types will be able to push up average daily rates. Segmentation is another key and hotels on the river that lack substantial corporate numbers will remain challenged until transport links to the area improve.

Where in the world are Bangkok luxury hotels heading?

To sum up 2019, size and location matter, the shift on food and beverage and social events along with niches like wellness and  smaller meetings/weddings are the key to the future. As for the quantum leap in rates, it’s about time Bangkok hoteliers be confident and push rates towards a more global norm.

Bangkok luxury poised to push through the US$300 ceiling | News by The Thaiger

Continue Reading

Phuket

Reservations now open for ‘Twinpalms MontAzure’ with enticing promotions

The Thaiger

Published

on

Reservations now open for ‘Twinpalms MontAzure’ with enticing promotions | The Thaiger

Celebrate the grand opening of Phuket’s newest beachside hotel by booking now to snap up fantastic deals. Twinpalms MontAzure in Kamala is offering irresistible packages ideal for both short and long-haul getaways for those who book directly from their website.

Guests may choose to enjoy three nights and pay for just two and for those who are looking to book a longer holiday, stay for six nights and pay only three on all Penthouses and Suite types. Guests may book from now until November 30, 2019, for stays from July 1 to 19 December 2019.

The latest addition to the Twinpalms Hotels & Resorts portfolio is set directly on Kamala Beach, on Phuket’s popular west coast and will welcome its first guests in July 2019. A member of Small Luxury Hotels of the World, the boutique beach hotel offers beautifully appointed Penthouses and Private Pool Suites and a collection of stunning Suites.

Suites range in size from 70m2 to splendid Penthouses with private pools and sea views boasting large living spaces of up to 300m2. Guests will also enjoy using a lap pool or an infinity pool offering views of the Andaman sea.

Adding to the collection of fantastic places to be on Phuket, Twinpalms MontAzure will launch its beachside restaurant and lounge, ‘Shimmer’, with uninterrupted sea views. Shimmer restaurant will serve vibrant and tasty food with an Asian focus, delicious and creative cocktails, and a great wine list, all served with the customary gusto and flair expected from the Twinpalms brand.

Designed by Martin Palleros, following the original Twinpalms concept and style, of utilising Phuket’s beautiful landscape, Martin has allowed the design to maximise the sea views from most of the Suites and areas within the buildings, whilst also ensuring the preservation of the views of the mountainside from other perspectives.

Guests of Twinpalms MontAzure also have access by complimentary transport to the brand’s other dining and entertainment destinations, taking full advantage of the three beautiful beaches Twinpalms has a presence on.

HQ Beach Lounge, a few steps away on Kamala Beach, Catch Beach Club, Catch Junior and Palm Seaside, located on Bang Tao Beach and of course, the flagship resort, Twinpalms Phuket is just a few steps from Surin Beach.

Reservations now open for ‘Twinpalms MontAzure’ with enticing promotions | News by The Thaiger Reservations now open for ‘Twinpalms MontAzure’ with enticing promotions | News by The Thaiger

Continue Reading

Business

Phuket hotel watch – 3 months down, 9 to go in 2019

Bill Barnett

Published

on

Phuket hotel watch – 3 months down, 9 to go in 2019 | The Thaiger

by Bill Barnett of C9Hotelworks.com

At the beginning of the year Phuket’s tourism and hotel sector was cautiously optimistic after a strong first half of 2018 and humbling second half. Key terms that kept popping up were Mainland Chinese, Thai Baht Appreciation, Elections and Supply Concerns.

So today, with three months of performance under the belt in 2019 what are the key trends in hotel trading? These can best be compressed in the following points –

According to data from hotel benchmarking group STR, Thailand remains Southeast Asia’s leading destination for Mainland Chinese, but the gloss is being diminished by Vietnam’s meteoric rise, and strong numbers by the Philippines and Cambodia.

Market-wide RevPar shunk by 0.04% in 2018 and flat demand at the onset of the year is now shifting into negative territory moving into February and beyond. Turning back to last year, group demand is falling which is as key concern in a wholesale driven marketplace.

One stark positive is that RevPar is being propped up by rates and not occupancy. A key takeaway is that in peak and high season, Phuket hotels are able to drive rates up in key periods and continue to do so. This of course is a broad trend.  Good hotels tend to perform at higher levels, while poorly managed ones remain subpar.

Getting beyond the numbers, as I speak to hoteliers the expectation is that wholesalers remain a critical component of the island’s hotel industry and despite the expected shift with technology to more direct bookings, the reality is that wholesale models are sensitive to demand volatility and the result of this feeding frenzy most often will be either flat rates for the year or in some cases a retraction.

We expect the remainder of 2019 to be challenging. Some hotels will look at this as an opportunity to reposition, renovate or cut costs. While others will look at new segments, niche offerings or emerging markets like India to regain momentum.

As for the top critical issues facing Phuket hotels, in my opinion these can be distilled in the following Top 3 Things Keep Me Awake at Night…

• Mainland Chinese – If tourism players or hotels believe the damage to Brand Phuket is over, think again. Talking to key tour operators there remains a hangover from last year’s boat sinking incident and travellers remain keenly concerned over safety. Only time and more concentrated promotion will see a return of the numbers.

• Growing Supply and Demand Imbalance – The current pipeline is just over 8,000 keys in development on the island. What’s more concerning is that projects in planning are not represented in this metric, and by our estimate there are approximately 5,000 more keys in planning. While both the pipeline and planning numbers will see some wash, the sum total exceeds current and forecasted demand.

Moreso, the rise of unlicensed condominiums, apartments, houses and villas is continuing unabated and is further exacerbating supply issues. Every time you see a group of tourists renting a 3 or 4 bedroom villa, that’s three or four hotel rooms that lay empty. Government control of unlicensed properties is a key issue facing Phuket’s tourism industry.

• Diminished Natural Resources and Strained Infrastructure – Water tops the list and there is little doubt we are reaching the tipping point with mounting shortages and soaring demand. Electricity is another concern. Lastly is a rising number of vehicles on the road, a urbanising trajectory and slow development of roads and public transport.

To these point’s lets revisit the hotel development pipeline and reflect that a island long term master plan, zoning for new tourism expansion and requirements for developers to invest in public infrastructure to obtain operating licenses is sorely lacking. Something has to give on this front.

In conclusion am I pessimistic about Phuket’s tourism and hotel future in 2019 and beyond? Absolutely not, direct airlinks are growing and the island has a well-structured capacity for handling tourism, but I firmly believe looking into our problems, discussing and finding ways to resolve these are critical to a sustainable growth pattern.

Continue Reading

The Thaiger Newsletter

Keep up with all the day’s news. Subscribe here.

The latest news and information from Thailand.

* indicates required
เขย่าเกาะฟิลิปปินส์ แผ่นดินไหวขนาด 6.3 ตึกไหวสะเทือน ตายแล้ว 5 ราย | The Thaiger
ต่างประเทศ3 hours ago

เขย่าเกาะฟิลิปปินส์ แผ่นดินไหวขนาด 6.3 ตึกไหวสะเทือน ตายแล้ว 5 ราย

K-POP : BTS พาอัลบั้มใหม่ฉายแสงทั่วโลก พร้อมทุบสถิติใหม่รัว ๆ | The Thaiger
BTS1 day ago

K-POP : BTS พาอัลบั้มใหม่ฉายแสงทั่วโลก พร้อมทุบสถิติใหม่รัว ๆ

ตรวจหวย ตรวจสลากกินแบ่งรัฐบาล งวด วันที่ 16 เมษายน 2562 | The Thaiger
ตรวจหวย2 days ago

ตรวจหวย ตรวจสลากกินแบ่งรัฐบาล งวด วันที่ 16 เมษายน 2562

[Live] มิ่งขวัญ แสงสุวรรณ์ แถลงข้อเท็จจริง กรณี ส.ส. พรรคเศรษฐกิจใหม่ยื่นยุบพรรคตัวเอง : เลือกตั้ง 2562 | The Thaiger
เลือกตั้ง 623 days ago

[Live] มิ่งขวัญ แสงสุวรรณ์ แถลงข้อเท็จจริง กรณี ส.ส. พรรคเศรษฐกิจใหม่ยื่นยุบพรรคตัวเอง : เลือกตั้ง 2562

คดีพลิก! คลิปแดดลำปางร้อนทอดไข่ดาวสุก หนุ่มถ่ายคลิปรับใส่น้ำมันตั้งเตาก่อน | The Thaiger
ข่าว3 days ago

คดีพลิก! คลิปแดดลำปางร้อนทอดไข่ดาวสุก หนุ่มถ่ายคลิปรับใส่น้ำมันตั้งเตาก่อน

ตัวอย่าง Game of Thrones Season 8  ตอนที่ 2 | The Thaiger
ตัวอย่าง4 days ago

ตัวอย่าง Game of Thrones Season 8 ตอนที่ 2

แก๊งวัยรุ่นตีกันงานสงกรานต์ พาพวกตะลุมบอนต่อหน้าห้องฉุกเฉินโรงพยาบาล | The Thaiger
ข่าว6 days ago

แก๊งวัยรุ่นตีกันงานสงกรานต์ พาพวกตะลุมบอนต่อหน้าห้องฉุกเฉินโรงพยาบาล

สงกรานต์หรือสงคราม ถือพร้าคว้ามีดจะอาบเลือดแทนน้ำ [คลิป] | The Thaiger
ข่าว6 days ago

สงกรานต์หรือสงคราม ถือพร้าคว้ามีดจะอาบเลือดแทนน้ำ [คลิป]

ไฟไหม้ “วิหารนอเทรอดาม” อายุ 850 ยอดหักพังถล่ม กรุงปารีส ฝรั่งเศส | The Thaiger
ต่างประเทศ7 days ago

ไฟไหม้ “วิหารนอเทรอดาม” อายุ 850 ยอดหักพังถล่ม กรุงปารีส ฝรั่งเศส

ฉายแล้ววันนี้ Game of Thrones ซีซั่น 8 ep.01 | The Thaiger
ฉายแล้ว1 week ago

ฉายแล้ววันนี้ Game of Thrones ซีซั่น 8 ep.01

สงกรานต์ร้อน ดีเจโซดาเล่นปืนฉีดน้ำในชุดบางแหวกลึก [คลิป] | The Thaiger
K-Pop1 week ago

สงกรานต์ร้อน ดีเจโซดาเล่นปืนฉีดน้ำในชุดบางแหวกลึก [คลิป]

K-POP : สรุปเดบิ้วเสตจ BlackPink บนเวที Coachella เสียงเชียร์กระหึ่ม [คลิป] | The Thaiger
BLACKPINK1 week ago

K-POP : สรุปเดบิ้วเสตจ BlackPink บนเวที Coachella เสียงเชียร์กระหึ่ม [คลิป]

[K-POP] : สุดจี๊ด MV เพลงใหม่ BTS – Boy With Luv feat. Halsey’ | The Thaiger
BTS1 week ago

[K-POP] : สุดจี๊ด MV เพลงใหม่ BTS – Boy With Luv feat. Halsey’

ตัวอย่างแรก Star Wars ภาค 9 : The Rise of Skywalker – ตัวอย่างแรก (Official ซับไทย) | The Thaiger
ตัวอย่าง1 week ago

ตัวอย่างแรก Star Wars ภาค 9 : The Rise of Skywalker – ตัวอย่างแรก (Official ซับไทย)

ด่วน! ไฟไหม้เซนทรัลเวิลด์ ประชาชนหนีตาย โดดตึก [อัปเดต] | The Thaiger
ข่าว2 weeks ago

ด่วน! ไฟไหม้เซนทรัลเวิลด์ ประชาชนหนีตาย โดดตึก [อัปเดต]

Trending