Mr. Suchad Chiaranussati, Managing Director of MR Sukhumvit Co. Ltd, the owner of “Millennium Residence @ Sukhumvit Project” said the project is now completed. The development’s unique architecture is conceived by Design Consultant, Atkins Ltd. of the United Kingdom, which is also the designer of world renowned Burj Al-Arab in Dubai.
The project is sited on a very unique and rare large piece of land area of over 12 Rai, consisting of 4 towers with 51 storey and 53 storey buildings, comprising of 604 apartment units, situated in a very residential vicinity in downtown Sukhumvit area. Located in the heart of bustling Bangkok with easy access to BTS and MRT stations, it is located on Sukhumvit Soi 16-20 within close proximity to Asoke, Rama IV roads and the CBD areas, with an approximate project value of about 10 Billion Baht. Set amidst a luscious landscape of trees and soothing water features, with many facilities like state-of the-art clubhouse, gymnasium, swimming pool, tennis court, function room, children’s playground, one would be spoilt for choice.
The project was carefully designed to be environmentally friendly and responsible, becoming the first project in Thailand to be awarded the prestigious Green Mark Gold Award by BCA International Pte. Ltd. of Singapore. The very unique and ultra modern look of aluminum and glass curtain wall façade will always enable the condominium to always look pristine and new.
Owners of the units in the condominium will enjoy stunning views of Benjakitti Lake and Bangkok’s skyline. With only 4 units per floor, allowing excellent privacy, the residents can enjoy the panoramic views from every room of their apartments.
Mr. Suchad added that at this time the project has achieved over 85% sales with a value of about 7 Billion Baht. Sales to date have been to high end customers, both Thai and Oversea buyers and expatriates in approximate equal proportions. Overseas buyers have come from all over the world such as Korea, USA, UK, Australia, Japan, Germany, Switzerland, Vietnam, Norway, Singapore and
Hong Kong etc. At present, the transfer of ownership is in process, commencing with some buyers being invited to inspect their units in December 2009.
Vital factors that help the successful sales of the project are the effective area usage layout and floor plan which has only 4 units on every floor i.e. every unit is a corner apartment affording a high degree of privacy, and enjoying stunning scenic views of Benjakitti Park as well as panoramic view of the Bangkok Skyline. The stunning ultra modern architecture is also another strong selling point of the development. It’s convenient location in Sukhumvit 16-20 is a very strong selling point for the condominium.
Speaking of forthcoming marketing and sales efforts, Khun Suchad advised we plan to work closely with banks and furniture stores to be able to provide total solution packages to offer special mortgage rates and competitively priced quality furniture which will be essential to buyers. As the project is now completed, we will move the sales office and show flats to the actual condominium itself so that potential customers can have a real feel for the beauty of the development and it’s extensive facilities.
As for the world economy, we have been through a near collapse of the global financial system and trade flows were affected hitting the real economy hard especially export oriented Asian economies. The coordinated efforts by the governments around the world have prevented a much more serious decline on the economy. We are now in a recovery period, whilst the real estate prices around the world have seen a significant mark down in some markets especially where high leverages were allowed through financial engineering. For example, in some markets the price levels have fallen 30-50% from the peak in early 2008.
On the overall picture of Thailand’s real estate market and investment trends from local and foreign investors, K’ Suchad strongly believes that property price levels in Thailand is still low relative to neighboring countries such as Vietnam, Malaysia, Hong Kong and Singapore. Our real estate price is cheap using any benchmark measurements. The value is good especially if one is to believe that inflation will return in the future. Alternative investment in cash and financial instruments yield very low returns, often below inflation rate. I believe that buying real estate in Thailand especially in Bangkok is of exceptionally good value and should have reasonable upside.
Thailand’s extensive infrastructure, excellent flight connections to around the globe, state of the art connectivity and communication network, together with it’s advanced medical treatment and health care services, Thailand will remain an attractive destination for foreign investors to invest in real estate here.
Tuesday, December 15, 2009
Moody's says newly listed Chinese property developers face challenges
Moody's Investors Service says that eight major Chinese property developers succeeded in substantially enhancing their capital bases and liquidity positions during September-December
2009 with a total raising of HK$38.5 billion (US$4.9 billion) through IPOs on the Hong Kong Stock Exchange, but these improvements to their financial fundamentals could prove short lived.
"Debt leverage is likely to rise again and exceed the levels seen at the time of the IPOs as the sector continues with its ingrained strategy of pursuing high growth and bigger scale," says Peter Choy, a Moody's VP and Senior Credit Officer.
"It was common for the debt to total capitalization of those developers already rated by Moody's to increase -- some by 10-15% -- in the 2 years after their IPOs, and such a similar trend is therefore expected for most of the recently listed developers," says Choy.
"Most usually, funds are spent on the expansion of land banks and larger scale developments, and experience indicates that Chinese developers generally come over budget in their land acquisitions," says Choy.
Choy was speaking on the release of a special comment -- authored by him and Kaven Tsang, a Moody's Assistant Vice President and Analyst -- on the implications of recent IPOs by Chinese property developers.
"Once their listings are complete, developers will experience -- in line with past examples -- strong shareholder pressure to grow," says Choy.
"As a result, the newly listed companies are likely to see debt leverage increase over the next 2 years."
Even though the Chinese real estate market in 2010 is expected to be stable, conditions will not be strong enough to support the very aggressive targets set by the newly listed companies, and their reliance on strong pre-sales to reduce their borrowing needs may prove misplaced, the report says.
In addition, Chinese banks will likely strengthen their capital bases and reduce loan growth in 2010 to help reinforce the stability of the banking system; and, as such, availability of mortgage finance to property purchasers will not be as strong as in 2009, the report says.
2009 with a total raising of HK$38.5 billion (US$4.9 billion) through IPOs on the Hong Kong Stock Exchange, but these improvements to their financial fundamentals could prove short lived.
"Debt leverage is likely to rise again and exceed the levels seen at the time of the IPOs as the sector continues with its ingrained strategy of pursuing high growth and bigger scale," says Peter Choy, a Moody's VP and Senior Credit Officer.
"It was common for the debt to total capitalization of those developers already rated by Moody's to increase -- some by 10-15% -- in the 2 years after their IPOs, and such a similar trend is therefore expected for most of the recently listed developers," says Choy.
"Most usually, funds are spent on the expansion of land banks and larger scale developments, and experience indicates that Chinese developers generally come over budget in their land acquisitions," says Choy.
Choy was speaking on the release of a special comment -- authored by him and Kaven Tsang, a Moody's Assistant Vice President and Analyst -- on the implications of recent IPOs by Chinese property developers.
"Once their listings are complete, developers will experience -- in line with past examples -- strong shareholder pressure to grow," says Choy.
"As a result, the newly listed companies are likely to see debt leverage increase over the next 2 years."
Even though the Chinese real estate market in 2010 is expected to be stable, conditions will not be strong enough to support the very aggressive targets set by the newly listed companies, and their reliance on strong pre-sales to reduce their borrowing needs may prove misplaced, the report says.
In addition, Chinese banks will likely strengthen their capital bases and reduce loan growth in 2010 to help reinforce the stability of the banking system; and, as such, availability of mortgage finance to property purchasers will not be as strong as in 2009, the report says.
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