by Property-Report.com

A unique property investment opportunity offered to serious foreign and Thai real estate investors - a first for Phuket.

Surin Hill Development, one of the leading luxury property developers in Phuket, unveils its new project ‘Baan Thai Layan’ with a unique concept - targeting serious Thai and foreign real estate investor.

´Baan Thai Layan’ will be built on 50 rai of land and based in the heart of Layan - a popular residential and tourist area on Phuket´s West Coast. The project is condominiums, and the investor is offered the complete package - full design, construction and project completion - to be purchased in phases. Baan Thai Layan will offer secure rental returns and attractive ROI for investors.

The first 8 phases will be developed on 25 rai of land with total project value of 2 billion baht. Each project will be condominium and open for investment in phases starting price at 100 million baht.

“The Phuket property market is strong and continues to be a hot property destination for international and local property investors, holiday home buyers, and holiday makers“ Khun Wanwipa Horbut, Deputy Managing Director, Surin Hill Development comments. “The concept behind Baan Thai Layan is based on our experience of an increasing trend in villa rental in our previous projects, as well as from our own market study of Phuket. Other factors that bode well for Baan Thai Layan are that visitors to Phuket continue to show strong year-on-year growth, especially high-end visitors who are choosing to stay in villas or rented condos more now than in the past.”

After the success of the completed luxury ‘Baan Thai Surin Hill’ and the boutique Asian pool Thai contemporary garden villa ‘Baan Thai Surin Garden’, as well as the under development ´Baan Thai Surin Hill Pool Villas´ and ´The Quarter´ (the tropical modern condominiums on Surin hill), Surin Hill Development have shown a strong track record of delivering quality products.

´Baan Thai Layan’ is Surin Hill Development’s fifth project and has now started construction of basic infrastructure. This project is a new concept for the Phuket market and is also a first for Surin Hill Development. The project will be condominiums and divided into phases. All phases are designed in a contemporary Asian style and will be constructed and finished to Surin Hill Development´s high standards.

“We are not selling individual units, the project will focus on investors only – investors who are looking to invest in a property project that will gain a healthy rental return, or a re-sale premium in the future. Investments start from 100 million baht” Wanwipa added.

‘Layan’ is a hot residential area on Phuket’s West Coast. There are now more than 20 new residential projects near by, including major brands such as Shangri-La, Banyan Tree and Laguna Phuket.

Khun Khamron Sutthi, Project Manager and head of the architect team for Surin Hill Development explained that Baan Thai Layan’s architecture and design concept is a showcase of Thai living and contemporary Asian design that will add value to the development and individual units, and create a great living environment. Of the total project area, 60% will remain green, another unique selling factor.

More information on Baan Thai Layan, contact Surin Hill Development 076-271-742, e-mail: investment@surinhill.com or visit www.surinhill.com.

by NIGEL CORNICK (for bangkokpost.com)

Branded residences are finally finding their way into Thailand’s real estate portfolio, and they are quickly attracting the attention of overseas investors due to the high levels of confidence they inspire and the elite status they provide.

Essentially, world-renowned luxury brands - mostly five-star hotels at this stage in Asia - are working with owners and property developers to manage different components of residential projects to encourage investment.

Buyers are attracted to branded residences by the security, trust and recognition they provide; the benefits that come from their managed rental and global distribution systems, and the superior returns they can deliver.

Though relatively new in Asia and Thailand, branded residences are not new to the world property market, with Thailand’s prime resort areas offering attractive destinations for these types of developments.

A good example was the recent launch by a global hotel management company of a residential project in Singapore. While luxury condominiums were typically selling there for S$2,500 per square metre (psm), this particular branded residential complex sold for an average of S$4,000 psm.

No one had ever seen any investment offerings like this before and they sold very fast. People were paying a real premium for the name and the brand attachment. It really set the market alight.

For instance, the St Regis being developed by Minor International on Rajadamri Road - just a few hundred metres from Raimon Land’s 185 Rajadamri - will contain a hotel, residences and serviced apartments.

The management company will handle this project in two ways. It either sells the residences outright with the owners living onsite, or the apartment will become part of the hotel inventory and in the hotel letting pool for owners to receive rental income.

Some owners in these letting pools have raised the issue of one condominium or villa getting a much better occupancy rate than others. This has led management companies to pool all the revenue from the leases and split it among the owners according to size.

Developers are a critical component of these residential projects, and hospitality brands need to be cautious in selecting the right one, as they risk damaging their reputations if the property doesn’t meet the brand’s standards.

Developers need to be convincing and ensure they will deliver a residential product that is in line with the luxury brand’s core service values.

Property agents place great emphasis on a developer’s track record, and have increased their due diligence to avoid developers who are unprofessional in their approach to the international property market.

Residential buyers also expect to receive the hotel brand’s services such as a concierge, valet, doorman, laundry, spa and private access. They want to be able to charge meals to their residence if they eat in the hotel’s restaurant.

There are many different things that buyers want, but hotel groups are finding that this concept only works for high-end luxury brands.

Branded residences also attract demand due to the integrity associated with the brands involved. This builds confidence among investors who are considering an off-plan purchase.

For example, investors know that a well established brand has the resources to ensure a branded residence will not only be completed, but will be built to a certain standard, and this creates a loyal following of buyers.

With so much wealth in the world today and the corresponding demand to spend it, there is no shortage of buyers. They don’t really care if a residence is three or four million dollars. But they do care if it is a St Regis or a Four Seasons.

Demand for luxury real estate is driven by people who are buying a lifestyle, and want the lifestyle linked to the name. International property agents view the development of branded residences in Thailand as highly positive, as they can generate long-term capital gains.

When they present a product to clients, they are expected to provide a solid reason why the clients should buy the development being marketed internationally.

If the developer and hotel brand have a good reputation and a strong track record, and they offer sensible or unique designs, investor confidence is much higher.

There are other benefits that international property buyers should consider when looking into the purchase of branded residences; the operators can provide security, confidence and peace of mind for the owners, especially when the investment is in excess of US$1 million.

A lot of buyers seeking luxury residential property in Thailand realise the return is not necessarily in the short-term yield for this asset class of property, but in its longer-term capital appreciation.

High-end branded residences can deliver those and other benefits, thus presenting a viable new alternative for those seeking to purchase property along with a lifestyle in Thailand.

Nigel Cornick is Chief Executive Officer of Raimon Land Public Co., Ltd, Thailand’s premier luxury property developer with projects in Bangkok, Phuket and Pattaya. For more information visit http://www.raimonland.com

by Robert Carry (property-report.com)

The developers of the Ocean Palms condominium development in Phuket believe they have secured “one of the best residential areas” on the island as the site of their project.

The popularity of the Bangtao Beach area development appears to support the assertion and 33 per cent of the 22 units, which start at Bt4.5m, have sold in the three months since the project´s launch.

“In our opinion this is one of the best residential areas in Phuket,” said Lisa McWilliams, the project´s
marketing manager. “Just 500m from the seven kilometre Bang Tao Beach and surrounded by five star hotels and luxury villas, this area, in our opinion, will see some of the highest growth rates on the island and is also a premium rentals area.”

The project, which is located opposite the Bann Mandala and Thai Bali Villa developments on Cherngtalay soi 14, is made up of 66 condominium apartments which come as either studios, deluxe one-bedroom suites, two-bedroom pool suites, or two or four-bedroom penthouses. Residents will also have access to two swimming pools, gym, spa, deli bar and the already-operational Babylon Beach Club.

The financial package and buyer security on offer are also proving to be key selling points. “Because it´s a condo it has a 49 per cent freehold allocation to foreigners,” adds McWilliams. “Our ´flexible rental programme´ allows owners to use the properties as much or as little as they want – when they are not in residence then their unit is immediately placed in the rental pool… It makes the whole process a refreshing, hassle-free income generating asset for owners.”

McWilliam´s also believes that the development represents an ideal investment for would-be buyers looking to make their first step onto the property ladder. She points out: “While there are many people who would clearly love to have a holiday/retirement home in Phuket, there are still several obstacles, such as ownership laws, maintenance issues, tax etc but Ocean Palms has been created as a worry free way to get a foothold in the Phuket market.”

She continues, “If they decide they would like to upgrade to a villa or full residential apartment at some point in the future then this development is a good stepping stone – they will have been in the market to benefit from any growth and will have some time to find out exactly which area/development they might like to get into later on.”

Land has been filled on the site since January 2008 and keys are scheduled to be handed over in Q4 2009.

by Robert Carry (property-report.com)

To mark the news that all the units in the first phase of the Dusit Laguna Villas development have sold out, Laguna Phuket has announced the launch of Dusit Laguna Phase II which will see 18 more luxury units hit the Thai island´s villa market.

“There has been a great deal of interest in the Laguna Village area, which is the reason for the launch of the new projects,” said Dan Simmons, the company´s director of sales and marketing.

The Dusit phase II launch comes at a busy time for the prolific Phuket developer, as they also just launched the Laguna Deluxe Townhomes and Laguna Deluxe Residences. Simmons continued, “While Laguna Village is already appealing with its lagoon and mountain views, beautiful tropical landscaping, access to numerous facilities throughout the Laguna Resorts, free golf membership and future clubhouse on its way, we have made the new properties even more attractive with a new design, larger living area, bigger lots, more available options and modern conveniences.”

He added, “In addition to living permanently in their homes, customers have the option of putting their home into the Laguna Holiday Residence rental program for an additional return on their investment.”

The development is situated on the southern side of the Dusit Thani Laguna Phuket Resort between a tropical lagoon, lush gardens and a beach. Each villa will have a view of the lagoon and a certain number will be within eye-shot of the Andaman.

The second phase of the villas will still feature a similar architectural style to the first Dusit Laguna Villas. Each unit will have two bedrooms with sea or garden views, terrace and en suite bathrooms on the lower floor. The next level will feature an open-plan kitchen, guest bathroom, dining and living room with an extended terrace. A roof-top pool, outdoor shower and private sun deck will be on the top floor. Buyers also receive a complimentary lifetime membership to the Laguna Phuket Golf Club. The Phase II Dusit Laguna Villas are priced from Bt34m.

Construction of the Dusit Laguna Villas II is scheduled to commence in June 2008 and expected to be completed by the middle of 2010.